UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-2591
RIVERSOURCE MONEY MARKET SERIES, INC.
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(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
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(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
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(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-1947
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Date of fiscal year end: 7/31
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Date of reporting period: 1/31
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Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
CASH MANAGEMENT FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
JANUARY 31, 2008
RIVERSOURCE CASH MANAGEMENT FUND
SEEKS TO PROVIDE SHAREHOLDERS WITH
MAXIMUM CURRENT INCOME CONSISTENT
WITH LIQUIDITY AND STABILITY OF
PRINCIPAL.
(SINGLE STRATEGY FUNDS ICON)
TABLE OF CONTENTS
<Table>
Fund Snapshot....................... 2
Performance Summary................. 3
Questions & Answers
with Portfolio Management........ 5
Fund Expenses Example............... 8
Portfolio of Investments............ 10
Financial Statements................ 15
Notes to Financial Statements....... 18
Proxy Voting........................ 33
</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.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 1
FUND SNAPSHOT AT JAN. 31, 2008 (UNAUDITED)
FUND OBJECTIVE
RiverSource Cash Management Fund seeks to provide shareholders with maximum
current income consistent with liquidity and stability of principal.
SECTOR BREAKDOWN
Percentage of portfolio assets
(PIE CHART)
<Table>
Commercial Paper 73.5%
Floating Rate Notes 17.4%
Certificates of Deposit 5.9%
U.S. Government Agencies 3.2%
</Table>
STYLE MATRIX
<Table>
<Caption>
DURATION
SHORT INT. LONG
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, involve investment risks
including possible loss of principal and fluctuation in value.
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A IDSXX 10/06/75
Class B ACBXX 03/20/95
Class C RCCXX 06/26/00
Class I RCIXX 03/04/04
Class R5 -- 12/11/06
Class W RCWXX 12/01/06
Class Y IDYXX 03/20/95
Total net assets $5.750 billion
Number of holdings 150
Weighted average maturity(1) 32 days
</Table>
(1) WEIGHTED AVERAGE MATURITY is the amount of time remaining before securities
are due and principal must be repaid.
An investment in a money market fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the Fund
seeks to maintain the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
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2 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
PERFORMANCE SUMMARY
FUND PERFORMANCE
For the six-month period ended Jan. 31, 2008
(BAR CHART)
<Table>
RiverSource Cash Management Fund Class A
(excluding sales charge) +2.32%
</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 Fund is neither insured nor guaranteed by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1 per share, it is possible to lose
money by investing in the Fund. Yields will fluctuate. The seven-day current
yield more closely reflects the current earnings of the Fund than the total
return. The performance of other classes may vary from that shown because of
differences in expenses.
ANNUAL OPERATING EXPENSE RATIO (AS OF THE CURRENT PROSPECTUS)
<Table>
<Caption>
TOTAL NET EXPENSES(A)
Class A 0.70% 0.69%
Class B 1.46% 1.35%
Class C 1.36% 1.35%
Class I 0.38% 0.38%
Class R5 0.44% 0.44%
Class W 0.65% 0.65%
Class Y 0.59% 0.59%
</Table>
(a) The Investment Manager and its affiliates have contractually agreed to
waive certain fees and to absorb certain expenses until July 31, 2008,
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 0.69% for Class A, 1.35% for Class B, 1.35% for
Class C, 0.46% for Class I, 0.51% for Class R5, 0.76% for Class W and 0.64%
for Class Y.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 3
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
AT JAN. 31, 2008
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 10/6/75) +2.32% +4.74% +4.01% +2.62% +3.37% +6.09%
Class B (inception 3/20/95) +1.98% +4.04% +3.33% +2.05% +2.70% +3.11%
Class C (inception 6/26/00) +1.99% +4.06% +3.34% +2.05% N/A +2.22%
Class I (inception 3/4/04) +2.46% +5.05% +4.36% N/A N/A +3.60%
Class R5 (inception 12/11/06) +2.45% +5.03% N/A N/A N/A +5.01%
Class W (inception 12/1/06) +2.30% +4.71% N/A N/A N/A +4.70%
Class Y (inception 3/20/95) +2.36% +4.82% +4.13% +2.74% +3.44% +3.86%
WITH SALES CHARGE
Class B (inception 3/20/95) -3.02% -0.96% +2.06% +1.68% +2.70% +3.11%
Class C (inception 6/26/00) +0.99% +3.06% +3.34% +2.05% N/A +2.22%
</Table>
<Table>
<Caption>
AT DEC. 31, 2007
SINCE
WITHOUT SALES CHARGE 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (inception 10/6/75) +2.38% +4.80% +3.94% +2.56% +3.39% +6.09%
Class B (inception 3/20/95) +2.04% +4.10% +3.25% +1.99% +2.71% +3.10%
Class C (inception 6/26/00) +2.04% +4.11% +3.26% +1.99% N/A +2.20%
Class I (inception 3/4/04) +2.53% +5.11% +4.29% N/A N/A +3.58%
Class R5 (inception 12/11/06) +2.52% +5.10% N/A N/A N/A +5.05%
Class W (inception 12/1/06) +2.37% +4.78% N/A N/A N/A +4.74%
Class Y (inception 3/20/95) +2.42% +4.89% +4.06% +2.68% +3.46% +3.85%
WITH SALES CHARGE
Class B (inception 3/20/95) -2.96% -0.90% +1.99% +1.62% +2.71% +3.10%
Class C (inception 6/26/00) +1.04% +3.11% +3.26% +1.99% N/A +2.20%
</Table>
Sales charges do not apply to Class A, Class I, Class R5, Class W and Class Y
shares. Class B share performance reflects a contingent deferred sales charge
(CDSC) applied as follows: first year 5%; second 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. Class
I, Class R5 and Class Y are available to institutional investors only. Class W
shares are offered through qualifying discretionary accounts.
* Not annualized.
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4 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
Below is the discussion of RiverSource Cash Management Fund's results and
strategy for the six months ended Jan. 31, 2008.
Q: How did RiverSource Cash Management Fund perform for the semiannual period?
A: RiverSource Cash Management Fund's Class A shares returned 2.32% for the
semiannual period. The Fund's annualized simple yield was 3.87% and its
annualized compound yield was 3.93% for the seven-day period ended Jan. 31,
2008.* The Fund serves as a conservative, shorter-term investment choice for
individuals seeking current income.
Q: What factors most significantly affected the Fund's performance?
A: Changing expectations of future Federal Reserve Board (Fed) policy and of the
strength or weakness of economic growth had the greatest effect on the Fund's
results. The Fed held interest rates steady through its Aug. 7, 2007,
meeting. Despite an ongoing correction in the housing market, the Fed stated
that the economy seemed likely to expand at a moderate pace, and it
maintained its bias toward inflation risk. Toward the end of July, however,
tightening credit conditions following turbulence in the subprime mortgage
market began to shake up the financial markets. Turmoil in the credit markets
and fears regarding liquidity heightened, leading to a dislocation in
short-term investment markets. The yield differential between commercial
paper and LIBOR** widened dramatically. The Fund's net assets continued to be
predominantly invested in first-tier securities, those money market
instruments in the highest rating category, during the semiannual period.
* The 7-day yields shown reflect more closely the earnings of the Fund than the
total return. Short-term yields may be higher or lower than the figures
shown.
** London Interbank Offered Rates (LIBOR) are floating interest rates that are
widely used as reference rates in bank, corporate and government lending
agreements.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 5
QUESTIONS & ANSWERS
As investor fears rippled around the world, central banks were prompted
globally to strengthen liquidity. Included among these was the Fed, which cut
the targeted federal funds rate five times from mid-September through the end
of the period by a total of 225 basis points (a basis point is one-hundredth
of one percentage point). The targeted federal funds rate stood at 3.00% at
the end of January 2008. Following the downward path of the targeted federal
funds rate, taxable money market yields moved lower. For the semiannual
period as a whole, we believe the Fund was positioned appropriately to take
advantage of the prevailing interest rate environment.
CHANGING EXPECTATIONS OF FUTURE FEDERAL RESERVE BOARD (FED) POLICY AND OF
THE STRENGTH OR WEAKNESS OF ECONOMIC GROWTH HAD THE GREATEST EFFECT ON THE
FUND'S RESULTS.
Q: What changes did you make to the Fund during the period?
A: As credit concerns entered the market over the summer of 2007, we shortened
the Fund's average weighted maturity to enhance its liquidity profile. We
carried out this strategy by opportunistically buying floating rate issues,
which are reset in line with changes in market interest rates. In so doing,
we were able to capture elevated LIBOR rates then available. The Fund's
average weighted maturity was 32 days on Jan. 31, 2008, compared to 64 days
six months earlier. Overall, this shortening of the Fund's weighted average
maturity as market conditions shifted helped the Fund's results.
As always, we attempted to maximize the Fund's yield without taking
unnecessary risks. We continued to invest in high quality securities.
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6 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
QUESTIONS & ANSWERS
Q: What is the Fund's tactical view and strategy for the months ahead?
A: Factors the Fed must consider over the coming months include inflation,
continued housing market inactivity and a weaker U.S. dollar. We believe that
continued aggressive Fed easing currently priced into the market is overdone,
and intend to keep the Fund's average weighted maturity within the 30- to
40-day range for the near term. We anticipate better opportunities to lock in
higher yields going forward. We will, of course, continue to closely monitor
economic data, Fed policy and any shifts in the money market yield curve,
striving to strategically adjust our portfolio positioning accordingly, and
intend to continue to focus on high-quality investments with minimal credit
risk while seeking competitive yields.
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.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 7
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads); and (2) ongoing costs, which may include
management fees; distribution and service (12b-1) fees; and other Fund fees and
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Jan. 31, 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.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
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8 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2007 JAN. 31, 2008 THE PERIOD(A) EXPENSE RATIO
CLASS A
Actual(b) $1,000 $1,023.20 $3.31 .65%
Hypothetical
(5% return before
expenses) $1,000 $1,021.93 $3.31 .65%
CLASS B
Actual(b) $1,000 $1,019.80 $6.67 1.31%
Hypothetical
(5% return before
expenses) $1,000 $1,018.60 $6.67 1.31%
CLASS C
Actual(b) $1,000 $1,019.90 $6.62 1.30%
Hypothetical
(5% return before
expenses) $1,000 $1,018.65 $6.61 1.30%
CLASS I
Actual(b) $1,000 $1,024.60 $1.89 .37%
Hypothetical
(5% return before
expenses) $1,000 $1,023.34 $1.89 .37%
CLASS R5
Actual(b) $1,000 $1,024.50 $2.04 .40%
Hypothetical
(5% return before
expenses) $1,000 $1,023.19 $2.04 .40%
CLASS W
Actual(b) $1,000 $1,023.00 $3.37 .66%
Hypothetical
(5% return before
expenses) $1,000 $1,021.88 $3.36 .66%
CLASS Y
Actual(b) $1,000 $1,023.60 $2.91 .57%
Hypothetical
(5% return before
expenses) $1,000 $1,022.33 $2.91 .57%
</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 for the six months ended Jan. 31, 2008: +2.32%
for Class A, +1.98% for Class B, +1.99% for Class C, +2.46% for Class I,
+2.45% for Class R5, +2.30% for Class W and +2.36% for Class Y.
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RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 9
PORTFOLIO OF INVESTMENTS
JAN. 31, 2008 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
U.S. GOVERNMENT AGENCIES (3.2%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
Federal Home Loan Bank Disc Nts
02-01-08 4.04% $92,800,000 $92,800,000
04-02-08 3.84 30,900,000 30,699,657
Federal Home Loan Mtge Disc Nts
03-24-08 2.95 38,700,000 38,535,095
Federal Natl Mtge Assn Disc Nts
04-16-08 3.66 20,000,000 19,848,750
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TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $181,883,502) $181,883,502
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</Table>
<Table>
<Caption>
CERTIFICATES OF DEPOSIT (5.8%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
Bank of Montreal Chicago Branch
04-21-08 3.90% $63,000,000(b) $63,000,000
Barclays Bank
02-27-08 5.13 40,000,000 40,000,000
03-17-08 4.04 32,000,000(b) 31,999,465
06-16-08 4.28 40,000,000(b) 40,000,000
Credit Suisse NY
02-26-08 5.00 73,000,000(b) 73,000,000
Natixis
03-31-08 5.40 50,000,000(b) 50,000,000
04-02-08 5.40 36,500,000(b) 36,498,828
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TOTAL CERTIFICATES OF DEPOSIT
(Cost: $334,498,293) $334,498,293
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</Table>
<Table>
<Caption>
FLOATING RATE NOTES (17.1%)(B)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
Bank of Ireland
09-12-08 4.86% $50,000,000 $50,000,000
Bank of New York
10-10-08 4.29 40,000,000 40,000,000
</Table>
<Table>
<Caption>
FLOATING RATE NOTES (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
Bear Stearns Companies
08-15-08 4.30% $25,000,000 $25,000,000
08-28-08 3.35 30,000,000 30,000,000
Cullinan Finance
03-28-08 4.80 37,000,000(d) 36,999,146
04-28-08 3.20 31,000,000(d) 30,998,898
DEPFA Bank
07-15-08 5.00 50,000,000 49,999,454
General Electric Capital
02-23-09 3.79 10,000,000 10,000,000
Goldman Sachs Group
09-12-08 4.31 25,000,000 25,000,000
HSBC Finance
09-24-08 3.82 25,000,000 25,000,000
Irish Life & Permanent
08-20-08 3.92 35,000,000 34,999,032
Lehman Brothers Holdings
09-26-08 4.88 40,000,000 40,000,000
Lloyds TSB Group
10-06-08 5.11 40,000,000 40,000,000
Merrill Lynch & Co
08-15-08 4.13 35,000,000 34,979,557
08-22-08 3.92 48,000,000 48,000,000
09-12-08 4.38 30,000,000 30,000,000
11-17-08 4.13 40,000,000 40,000,000
Metlife Global Funding I
09-24-08 3.92 30,000,000 30,000,000
Morgan Stanley
02-06-08 4.59 61,000,000 61,000,000
Natixis
08-14-08 4.26 27,000,000 27,000,000
09-08-08 4.90 30,000,000 30,000,000
Northern Rock
07-08-08 5.24 59,300,000 59,300,000
08-01-08 4.61 15,000,000 15,000,000
Skandinaviska Enskilda Banken
08-22-08 4.85 43,000,000 43,000,000
09-08-08 4.44 20,000,000 20,000,000
09-17-08 4.01 30,000,000 30,000,000
</Table>
See accompanying notes to portfolio of investments.
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10 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
<Table>
<Caption>
FLOATING RATE NOTES (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
Wells Fargo Bank
03-03-09 4.65% $20,000,000 $20,000,000
Westpac Banking
07-11-08 5.20 59,300,000 59,300,000
- ------------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost: $985,576,087) $985,576,087
- ------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COMMERCIAL PAPER (72.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
ASSET-BACKED (23.9%)
Alpine Securitization
02-01-08 5.70% $38,000,000(c) $38,000,000
02-05-08 3.56 2,600,000(c) 2,598,732
02-13-08 4.10 40,000,000(c) 39,941,733
04-23-08 3.28 27,000,000(c) 26,800,125
Amsterdam Funding
02-01-08 5.65 48,000,000(c) 48,000,000
Chariot Funding LLC
02-07-08 2.91 33,000,000(c) 32,981,575
CHARTA LLC
03-19-08 3.34 34,000,000(c) 33,851,297
04-29-08 3.34 43,000,000(c) 42,653,133
Cheyne Finance LLC
10-18-07 4.95 23,000,000(d,e) 19,619,000
CIESCO LLC
02-26-08 3.37 38,000,000(c) 37,908,958
02-28-08 4.22 20,100,000(c) 20,035,178
CRC Funding LLC
02-14-08 5.42 40,000,000 39,916,944
Cullinan Finance
04-25-08 5.18 40,000,000(d) 40,000,000
Gemini Securitization LLC
02-04-08 3.31 25,000,000(c) 24,990,938
02-06-08 3.69 20,000,000(c) 19,987,861
Jupiter Securization
03-07-08 3.31 33,000,000(c) 32,892,521
K2 (USA) LLC
04-21-08 5.13 45,000,000(d) 45,000,000
Kitty Hawk Funding
02-27-08 3.23 38,000,000(c) 37,909,433
</Table>
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
ASSET-BACKED (CONT.)
Old Line Funding LLC
02-06-08 3.73% $15,000,000(c) $14,990,813
02-19-08 3.95 9,600,000(c) 9,580,320
02-27-08 4.26 16,000,000(c) 15,949,733
03-03-08 3.94 25,000,000(c) 24,913,889
Park Avenue Receivables
02-04-08 2.74 60,000,000 59,982,000
02-25-08 3.95 39,600,000 39,493,080
Ranger Funding LLC
02-05-08 4.59 44,000,000(c) 43,972,378
02-22-08 4.07 12,724,000(c) 12,692,826
02-27-08 3.28 30,000,000(c) 29,927,417
Sheffield Receivables
02-11-08 3.83 30,000,000(c) 29,965,417
02-20-08 3.97 29,000,000(c) 28,937,094
02-21-08 3.97 44,100,000(c) 43,999,550
03-12-08 3.33 40,000,000(c) 39,851,111
Sigma Finance
04-18-08 5.13 45,000,000(d) 45,000,000
04-23-08 5.17 60,000,000(d) 60,000,001
06-06-08 5.19 40,000,000(d) 39,999,311
Thunder Bay Funding LLC
03-24-08 4.42 15,000,000(c) 14,904,450
WhistleJacket Capital LLC
02-25-08 3.90 35,000,000(d) 35,000,372
03-20-08 3.89 40,000,000(d) 39,998,951
Windmill Funding
02-28-08 4.41 42,900,000(c) 42,755,213
03-03-08 4.39 40,000,000(c) 39,846,722
03-04-08 4.20 40,000,000(c) 39,848,533
03-05-08 3.98 40,000,000(c) 39,852,233
---------------
Total 1,374,548,842
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BANKING (31.7%)
Abbey National North America LLC
02-22-08 3.08 40,000,000 39,925,800
Bank of America
02-21-08 4.60 25,400,000 25,332,972
03-19-08 4.69 50,000,000 49,693,194
04-21-08 3.25 45,000,000 44,678,000
04-24-08 3.10 45,000,000 44,680,969
04-28-08 3.05 50,000,000 49,634,479
</Table>
See accompanying notes to portfolio of investments.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 11
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
BANKING (CONT.)
Bank of Ireland
02-12-08 4.72% $48,400,000(c) $48,324,946
02-19-08 4.77 40,000,000(c) 39,901,000
Barclays US Funding
02-07-08 4.48 38,000,000 37,967,352
03-17-08 4.61 50,000,000 49,710,938
Deutsche Bank Financial LLC
02-25-08 3.17 43,000,000 42,906,833
ING US Funding LLC
02-11-08 3.88 40,000,000 39,953,333
02-15-08 4.56 40,000,000 39,925,178
02-21-08 4.63 30,000,000 29,920,333
02-25-08 3.17 15,000,000 14,967,500
03-10-08 4.28 20,600,000 20,506,281
JPMorgan Chase & Co
02-19-08 4.65 40,000,000 39,903,400
03-24-08 3.10 52,000,000 51,767,156
04-17-08 3.73 25,000,000 24,804,722
04-22-08 3.23 48,000,000 47,654,400
05-27-08 3.05 35,000,000 34,661,667
Nordea North America
02-05-08 4.08 42,200,000 42,176,415
02-07-08 4.38 40,000,000 39,966,400
02-15-08 3.67 24,000,000 23,963,880
02-20-08 4.64 40,000,000 39,898,667
02-25-08 2.96 45,000,000 44,909,100
Rabobank USA Financial
02-19-08 3.66 37,000,000 36,929,700
02-20-08 4.52 40,000,000 39,901,094
02-28-08 3.10 14,500,000 14,465,635
Skandinaviska Enskilda Banken
02-08-08 4.37 19,800,000(c) 19,781,058
Societe Generale North America
02-04-08 3.89 40,000,000 39,982,967
02-07-08 3.80 45,000,000 44,967,188
03-18-08 4.91 40,000,000 39,748,533
04-04-08 4.78 40,000,000 39,667,500
Swedbank
02-08-08 4.56 43,600,000 43,556,509
02-11-08 4.68 48,000,000 47,932,333
02-13-08 4.78 44,000,000 43,925,273
02-14-08 4.65 42,800,000 42,723,727
</Table>
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
BANKING (CONT.)
UBS Finance (Delaware) LLC
02-11-08 4.21% $50,000,000 $49,936,667
04-03-08 4.49 19,800,000 19,647,573
04-04-08 4.39 80,000,000 79,388,899
04-16-08 3.80 49,000,000 48,615,656
Wells Fargo Bank
02-08-08 3.68 50,000,000 49,959,750
02-29-08 3.78 43,800,000 43,668,843
03-11-08 2.97 50,000,000 49,838,042
03-18-08 3.04 20,000,000 19,922,056
---------------
Total 1,822,293,918
- ------------------------------------------------------------------------------------
BROKERAGE (5.0%)
Goldman Sachs Group
02-01-08 3.25 80,000,000 80,000,001
02-04-08 3.66 44,000,000 43,982,363
Lehman Brothers Holdings
02-08-08 2.71 13,300,000 13,292,112
02-13-08 2.92 78,500,000 78,418,360
04-15-08 5.08 36,000,000 35,627,780
Merrill Lynch & Co
02-05-08 2.92 21,000,000 20,991,600
02-11-08 3.10 15,300,000 15,285,720
---------------
Total 287,597,936
- ------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (0.8%)
General Electric
03-14-08 3.84 46,000,000 45,792,847
- ------------------------------------------------------------------------------------
LIFE INSURANCE (1.6%)
New York Life Capital
02-21-08 2.95 10,063,000(c) 10,045,949
02-28-08 2.99 23,000,000(c) 22,947,388
Prudential Funding LLC
02-12-08 4.14 29,000,000 28,960,568
02-29-08 3.63 30,000,000 29,913,666
---------------
Total 91,867,571
- ------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (2.5%)
General Electric Capital
02-15-08 4.31 35,400,000 35,337,362
</Table>
See accompanying notes to portfolio of investments.
- --------------------------------------------------------------------------------
12 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
NON CAPTIVE DIVERSIFIED (CONT.)
General Electric Capital Services
02-28-08 4.31% $49,000,000 $48,838,667
03-07-08 4.06 38,200,000 38,047,731
03-27-08 4.32 20,800,000 20,663,038
---------------
Total 142,886,798
- ------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (7.1%)
BNP Paribas Finance
02-13-08 4.14 43,000,000 42,936,675
02-22-08 4.78 72,000,000 71,793,066
02-25-08 4.83 82,000,000 81,729,563
</Table>
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(A)
OTHER FINANCIAL INSTITUTIONS (CONT.)
Citigroup Funding
03-06-08 3.86% $50,200,000 $50,015,097
03-13-08 4.36 43,000,000 42,785,502
03-14-08 4.92 40,000,000 39,769,467
04-04-08 3.01 40,000,000 39,790,000
04-11-08 3.02 40,000,000 39,766,667
---------------
Total 408,586,037
- ------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $4,176,954,949) $4,173,573,949
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $5,678,912,831)(f) $5,675,531,831
====================================================================================
</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 $1,051,539,524 or 18.3% of net assets.
(d) Denotes investments in structured investment vehicles ("SIVS"). See Note 5
to the financial statements.
(e) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities have been valued at
fair value according to procedures approved, in good faith, by the Fund's
Board of Directors. Information concerning such security holdings at Jan.
31, 2008, is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
- ---------------------------------------------------------------------------------
Cheyne Finance LLC
4.95% Commercial Paper 2007 04-10-07 $23,000,000
</Table>
(f) Also represents the cost of securities for federal income tax purposes at
Jan. 31, 2008.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 13
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.
- --------------------------------------------------------------------------------
14 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JAN. 31, 2008 (UNAUDITED)
<Table>
ASSETS
Investments in securities, at value (identified cost
$5,678,912,831) $5,675,531,831
Cash 23,580,030
Capital shares receivable 62,668,903
Accrued interest receivable 18,777,133
- ----------------------------------------------------------------------------
Total assets 5,780,557,897
- ----------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 1,753,750
Capital shares payable 28,626,255
Accrued investment management services fee 43,670
Accrued distribution fee 17,381
Accrued transfer agency fee 16,344
Accrued administrative services fee 7,287
Accrued plan administration services fee 136
Other accrued expenses 572,046
- ----------------------------------------------------------------------------
Total liabilities 31,036,869
- ----------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $5,749,521,028
============================================================================
REPRESENTED BY
Capital stock -- $.01 par value $ 57,526,410
Additional paid-in capital 5,695,038,009
Excess of distributions over net investment income (10,700)
Accumulated net realized gain (loss) 348,309
Unrealized appreciation (depreciation) on investments (3,381,000)
- ----------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $5,749,521,028
============================================================================
</Table>
<Table>
Net assets applicable to outstanding
shares: Class A $5,213,050,899
Class B $ 105,197,921
Class C $ 7,067,694
Class I $ 63,172,056
Class R5 $ 4,996
Class W $ 327,640,099
Class Y $ 33,387,363
Net asset value per share of outstanding
capital stock: Class A shares 5,215,856,627 $ 1.00
Class B shares 105,282,859 $ 1.00
Class C shares 7,071,412 $ 1.00
Class I shares 63,204,802 $ 1.00
Class R5 shares 5,000 $ 1.00
Class W shares 327,833,101 $ 1.00
Class Y shares 33,387,245 $ 1.00
- --------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 15
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JAN. 31, 2008 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income:
Interest $138,952,309
- ----------------------------------------------------------------------------
Expenses:
Investment management services fee 7,569,953
Distribution fee
Class A 2,474,475
Class B 325,555
Class C 18,682
Class W 113,746
Transfer agency fee
Class A 4,437,503
Class B 81,861
Class C 4,558
Class R5 2
Class W 227,492
Class Y 11,995
Administrative services fee 1,263,360
Plan administration services fee -- Class Y 35,986
Compensation of board members 51,615
Custodian fees 235,419
Printing and postage 492,450
Registration fees 181,600
Professional fees 46,168
Other 71,933
- ----------------------------------------------------------------------------
Total expenses 17,644,353
Earnings and bank fee credits on cash balances (526,763)
- ----------------------------------------------------------------------------
Total net expenses 17,117,590
- ----------------------------------------------------------------------------
Investment income (loss) -- net 121,834,719
- ----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on net realized gain (loss) on
security transactions 344,237
Net change in unrealized appreciation (depreciation) on
investments (3,381,000)
- ----------------------------------------------------------------------------
Net gain (loss) on investments (3,036,763)
- ----------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $118,797,956
============================================================================
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
16 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2008 JULY 31, 2007
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 121,834,719 $ 204,989,435
Net realized gain (loss) on investments 344,237 4,073
Net change in unrealized appreciation (depreciation)
on investments (3,381,000) --
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 118,797,956 204,993,508
- -----------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (112,571,926) (195,775,646)
Class B (1,696,419) (3,904,861)
Class C (97,356) (112,970)
Class I (1,347,827) (2,824,863)
Class R5 (120) (156)
Class W (5,017,859) (926,030)
Class Y (1,113,912) (3,214,417)
- -----------------------------------------------------------------------------------------
Total distributions (121,845,419) (206,758,943)
- -----------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS AT CONSTANT $1 NET ASSET VALUE
Proceeds from sales
Class A shares 3,595,406,121 6,798,412,383
Class B shares 83,544,837 139,418,982
Class C shares 6,605,548 5,923,860
Class I shares 22,018,782 55,056,992
Class R5 shares -- 20,831,219
Class W shares 231,008,954 5,000
Class Y shares 22,329,735 140,775,465
Reinvestment of distributions at net asset value
Class A shares 111,355,854 189,464,296
Class B shares 1,634,662 3,701,794
Class C shares 90,965 104,891
Class I shares 1,368,165 2,820,353
Class W shares 5,008,460 839,625
Class Y shares 1,137,894 3,235,937
Payments for redemptions
Class A shares (3,153,046,678) (6,016,286,218)
Class B shares (55,622,392) (170,355,522)
Class C shares (3,227,353) (4,931,190)
Class I shares (9,423,829) (71,939,753)
Class W shares (28,405,666) (64,180,397)
Class Y shares (33,592,625) (21,458,738)
- -----------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions 798,191,434 1,011,438,979
- -----------------------------------------------------------------------------------------
Total increase (decrease) in net assets 795,143,971 1,009,673,544
Net assets at beginning of period 4,954,377,057 3,944,703,513
- -----------------------------------------------------------------------------------------
Net assets at end of period $ 5,749,521,028 $ 4,954,377,057
=========================================================================================
Undistributed (excess of distributions over) net
investment income $ (10,700) $ --
- -----------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 17
NOTES TO FINANCIAL STATEMENTS
(Unaudited as to Jan. 31, 2008)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RiverSource Cash Management Fund (the Fund) is a series of RiverSource Money
Market Series, Inc. and is registered under the Investment Company Act of 1940
(as amended) (the 1940 Act) as a diversified, open-end management investment
company. RiverSource Money Market Series, Inc. has 10 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.
The Fund offers Class A, Class B, Class C, Class I, Class R5, Class W and Class
Y shares.
- - Class A shares have no sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I, Class R5 and Class Y shares are sold without a front-end sales
charge or CDSC and are offered to qualifying institutional investors.
- - Class W shares are sold without a front-end sales charge or CDSC and are
offered to qualifying discretionary accounts.
At Jan. 31, 2008, RiverSource Investments, LLC (the Investment Manager) and the
affiliated funds-of-funds owned 100% of Class I shares and the Investment
Manager owned 100% of Class R5 shares.
All classes of shares have identical voting, dividend and liquidation rights.
Class specific expenses (e.g., distribution and service fees, transfer agency
fees, plan administration services fees) differ among classes. Income, expenses
(other than class specific expenses) and realized and unrealized gains or losses
on investments are allocated to each class of shares based upon its relative net
assets.
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.
- --------------------------------------------------------------------------------
18 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
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.
ILLIQUID SECURITIES
At Jan. 31, 2008, 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 Jan. 31, 2008 was
$19,619,000 representing 0.34% 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.
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.
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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 19
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.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, 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 0.33%
to 0.15% annually as the Fund's assets increase. The management fee for the six
months ended Jan. 31, 2008 was 0.28% of the Fund's average daily net assets.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial
Inc. (Ameriprise Financial), parent company of the Investment Manager, 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. The fee for six months ended Jan. 31, 2008 was 0.05% of the Fund's
average daily net assets.
Other expenses are for, among other things, certain expenses of the Fund or the
Board including: Fund boardroom and office expense, employee compensation,
employee health and retirement benefits, and certain other expenses. Payment of
these Fund and Board expenses is facilitated by a company providing limited
- --------------------------------------------------------------------------------
20 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
administrative services to the Fund and the Board. For the six months ended Jan.
31, 2008, other expenses paid to this company were $12,467.
Compensation of Board members includes, for a former Board Chair, compensation
as well as retirement benefits. Certain other aspects of a 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.
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 $22.00
- - Class B $23.00
- - Class C $22.50
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 R5 and Class Y shares
and an annual asset-based fee at a rate of 0.20% of the Fund's average daily net
assets attributable to Class W shares.
The Transfer Agent charges an annual fee of $5 per inactive account, charged on
a pro rata basis for 12 months from the date the account becomes inactive. These
fees are included in the transfer agency fees on the Statement of operations.
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund
pays an annual fee at a rate of 0.15% of the Fund's average daily net assets
attributable to Class Y shares for the provision of various administrative,
recordkeeping, communication and educational services.
The Fund has an agreement with RiverSource Distributors, Inc. (the Distributor)
for distribution and shareholder services. Prior to Oct. 1, 2007, Ameriprise
Financial Services, Inc. also served as a principal underwriter and distributor
to the Fund. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1,
the Fund pays a fee at an annual rate of up to 0.10% of the Fund's average daily
net assets attributable to Class A and Class W shares and a fee at an annual
rate of up to 0.85% and 0.75% of the Fund's average daily net assets
attributable to Class B and Class C shares, respectively. At Jan. 31, 2008, the
Fund paid an annual rate of 0.75% of the Fund's average daily net assets
attributable to Class B and Class C shares.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 21
Sales charges received by the Distributor for distributing Fund shares were
$164,754 for Class B and $2,197 for Class C for the six months ended Jan. 31,
2008.
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and expenses such that net expenses will not exceed 0.69% for Class
A, 1.35% for Class B, 1.35% for Class C, 0.46% for Class I, 0.51% for Class R5,
0.76% for Class W and 0.64% for Class Y of the Fund's average daily net assets
until July 31, 2008, unless sooner terminated at the discretion of the Board.
For the six months ended Jan. 31, 2008, the waiver was not invoked since the
Fund's expenses were below the cap amount.
During the six months ended Jan. 31, 2008, the Fund's custodian and transfer
agency fees were reduced by $526,763 as a result of earnings and bank fee
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
$19,471,705,617 and $18,712,835,281, 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. INVESTMENTS IN STRUCTURED INVESTMENT VEHICLES AND DOWNGRADED SECURITIES
Structured investment vehicles ("SIVs") have generally experienced a significant
decrease in liquidity as a result of the reduction in demand for asset backed
- --------------------------------------------------------------------------------
22 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
commercial paper as well as the lack of liquidity and overall volatility in the
markets for the collateral underlying these investment structures. As of Jan.
31, 2008, on an aggregate basis, $392.6 million, representing 6.8% of the Fund's
total net assets were invested in SIVs. These investments were in the most
senior debt issued by these vehicles.
On Aug. 28, 2007, Cheyne Finance breached a financial covenant relating to the
market value of its underlying collateral, resulting in the occurrence of an
"enforcement event." This led to the appointment of receivers on Sept. 4, 2007.
On Oct. 17, 2007, the receivers declared Cheyne Finance to be insolvent. The
Fund's holding in Cheyne Finance is in default as of its Nov. 12, 2007 maturity
date. The receivers are currently developing a restructuring plan which will
likely result in the Fund receiving less than full payment on its investment.
Accordingly, this holding has been determined to be illiquid and its value has
been reduced through fair valuation procedures from its amortized cost of $23.0
million down to $19.6 million as of Jan. 31, 2008. Subsequent to Jan. 31, 2008,
the fair value of the position has been further reduced to $17.4 million based
on information available as of March 10, 2008.
On Jan. 18, 2008, $8.0 million matured on one of the Fund's SIV holdings in
Sedna Finance, and all interest and principal payments were received by the Fund
on a timely basis.
Subsequent to Jan. 31, 2008, Whistlejacket Capital LLC (WJC) breached a
financial covenant relating to the market value of its underlying collateral,
resulting in the occurrence of an "enforcement event" on Feb. 11, 2008. This
resulted in the appointment of a receiver on Feb. 12, 2008. On Feb. 11, 2008,
Management determined WJC to be an illiquid investment. On Feb. 15, 2008, the
receivers declared WJC to be insolvent. Of the Fund's two remaining positions in
WJC, the Feb. 25, 2008 maturity date ($35 million) is now in default. The other
remaining position has a maturity date of March 20, 2008 ($40 million). The
receivers are currently developing a restructuring plan which may result in the
Fund receiving less than full payment on its investment. Accordingly, based on
information available as of March 10, 2008, the fair value of these positions
have subsequently been reduced from their amortized cost of $75 million down to
$69.8 million.
As of March 10, 2008, with the exception of Cheyne Finance LLC and WhistleJacket
Capital LLC, it is still anticipated that the Fund will receive full payment on
the other SIV investments, which remain outstanding and had an aggregate value
of $298.0 million, representing 5.2% of net assets on Jan. 31, 2008.
As of March 14, 2008, Bear Stearns Companies was downgraded from prime to not
prime.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 23
6. CONCENTRATION OF RISK
CONCENTRATION RISK
Investments that are concentrated in a particular issuer, geographic region, or
sector will be more susceptible to changes in price. The more a fund
diversifies, the more it spreads risk. For example, if the Fund concentrates its
investments in banks, the value of these investments may be adversely affected
by economic or regulatory developments in the banking industry.
7. POST-OCTOBER LOSS
For federal income tax purposes, the Fund had a post-October loss of $6,554 at
July 31, 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. 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
- --------------------------------------------------------------------------------
24 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
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.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 25
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 JULY 31, 2008(J) 2007 2006 2005 2004
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02(b) .05(b) .04 .02 --
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.05) (.04) (.02) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in
millions) $5,213 $4,662 $3,692 $3,054 $3,680
- -----------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .65%(d) .70% .83% .80% .78%
- -----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(f) .65%(d) .70% .75% .80% .78%
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.55%(d) 4.65% 3.75% 1.58% .35%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 2.32%(h) 4.80% 3.82%(i) 1.63% .35%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction of earnings and bank fee credits on cash
balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates have agreed to waive certain fees
and expenses.
(f) Expense ratio is before reduction of earnings and bank fee credits on cash
balances. The ratio of net expenses after reduction of earnings and bank
fee credits was 0.63% for the six months ended Jan. 31, 2008.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior
years. Had the Fund not received this payment, the total return would have
been lower by 0.06%.
(j) Six months ended Jan. 31, 2008 (Unaudited).
- --------------------------------------------------------------------------------
26 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED JULY 31, 2008(J) 2007 2006 2005 2004
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02(b) .04(b) .03 .01 --
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.04) (.03) (.01) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL VALUE
Net assets, end of period (in
millions) $105 $76 $103 $129 $180
- -----------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) 1.31%(d) 1.36% 1.49% 1.45% 1.43%
- -----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(f) 1.31%(d) 1.36% 1.40% 1.44% 1.07%
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.90%(d) 3.98% 3.05% .91% .05%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 1.98%(h) 4.11% 3.14%(i) .98% .06%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction of earnings and bank fee credits on cash
balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates have agreed to waive certain fees
and expenses.
(f) Expense ratio is before reduction of earnings and bank fee credits on cash
balances. The ratio of net expenses after reduction of earnings and bank
fee credits was 1.29% for the six months ended Jan. 31, 2008.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior
years. Had the Fund not received this payment, the total return would have
been lower by 0.06%.
(j) Six months ended Jan. 31, 2008 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 27
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED JULY 31, 2008(J) 2007 2006 2005 2004
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02(b) .04(b) .03 .01 --
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.04) (.03) (.01) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL VALUE
Net assets, end of period (in
millions) $7 $4 $3 $2 $3
- -----------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) 1.30%(d) 1.36% 1.49% 1.45% 1.43%
- -----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(f) 1.30%(d) 1.36% 1.41% 1.44% 1.07%
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss) 3.90%(d) 4.00% 3.05% .91% .06%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 1.99%(h) 4.12% 3.14%(i) .98% .06%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction of earnings and bank fee credits on cash
balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates have agreed to waive certain fees
and expenses.
(f) Expense ratio is before reduction of earnings and bank fee credits on cash
balances. The ratio of net expenses after reduction of earnings and bank
fee credits was 1.28% for the six months ended Jan. 31, 2008.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior
years. Had the Fund not received this payment, the total return would have
been lower by 0.06%.
(j) Six months ended Jan. 31, 2008 (Unaudited).
- --------------------------------------------------------------------------------
28 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED JULY 31, 2008(K) 2007 2006 2005 2004(B)
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02(c) .05(c) .04 .02 --
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.05) (.04) (.02) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL VALUE
Net assets, end of period (in
millions) $63 $49 $63 $12 $4
- -----------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d) .37%(e) .38% .42% .39% .43%(e)
- -----------------------------------------------------------------------------------------------------------
Net expenses after expense
wavier/reimbursement(f),(g) .37%(e) .38% .42% .39% .43%(e)
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.82%(e) 4.97% 4.42% 2.21% .77%(e)
- -----------------------------------------------------------------------------------------------------------
Total return(h) 2.46%(i) 5.14% 4.16%(j) 2.04% (.30%)(i)
- -----------------------------------------------------------------------------------------------------------
</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 July 31, 2004.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Expense ratio is before reduction of earnings and bank fee credits on cash
balances.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive certain fees
and expenses.
(g) Expense ratio is before reduction of earnings and bank fee credits on cash
balances. The ratio of net expenses after reduction of earnings and bank
fee credits was 0.35% for the six months ended Jan. 31, 2008.
(h) Total return does not reflect payment of a sales charge.
(i) Not annualized.
(j) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior
years. Had the Fund not received this payment, the total return would have
been lower by 0.06%.
(k) Six months ended Jan. 31, 2008 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 29
CLASS R5
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED JULY 31, 2008(J) 2007(B)
Net asset value, beginning of period $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(c) .02 .03
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.03)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL VALUE
Net assets, end of period (in
millions) $-- $--
- -----------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d),(e) .40% .44%
- -----------------------------------------------------------------------------------------------------------
Net expenses after expense
wavier/reimbursement(e),(f),(g) .40% .44%
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss)(e) 4.78% 4.90%
- -----------------------------------------------------------------------------------------------------------
Total return(h),(i) 2.45% 3.20%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) From the period from Dec. 11, 2006 (inception date) to July 31, 2007.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Expense ratio is before reduction of earnings and bank fee credits on cash
balances.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive certain fees
and expenses.
(g) 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.
(h) Total return does not reflect payment of a sales charge.
(i) Not annualized.
(j) Six months ended Jan. 31, 2008 (Unaudited).
- --------------------------------------------------------------------------------
30 RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT
CLASS W
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED JULY 31, 2008(J) 2007(B)
Net asset value, beginning of period $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(c) .02 .03
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.03)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL VALUE
Net assets, end of period (in
millions) $328 $120
- -----------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d),(e) .66% .65%
- -----------------------------------------------------------------------------------------------------------
Net expenses after expense
wavier/reimbursement(e),(f),(g) .66% .65%
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss)(e) 4.43% 4.46%
- -----------------------------------------------------------------------------------------------------------
Total return(h),(i) 2.30% 3.13%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) From the period from Dec. 1, 2006 (inception date) to July 31, 2007.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Expense ratio is before reduction of earnings and bank fee credits on cash
balances.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive certain fees
and expenses.
(g) Expense ratio is before reduction of earnings and bank fee credits on cash
balances. The ratio of net expenses after reduction of earnings and bank
fee credits was 0.64% for the six months ended Jan. 31, 2008.
(h) Total return does not reflect payment of a sales charge.
(i) Not annualized.
(j) Six months ended Jan. 31, 2008 (Unaudited).
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 31
CLASS Y
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED JULY 31, 2008(J) 2007 2006 2005 2004
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02(b) .05(b) .04 .02 --
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.05) (.04) (.02) --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL VALUE
Net assets, end of period (in
millions) $33 $44 $84 $140 $209
- -----------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .57%(d) .59% .68% .66% .65%
- -----------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(f) .57%(d) .59% .62% .66% .65%
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss) 4.64%(d) 4.75% 3.78% 1.55% .47%
- -----------------------------------------------------------------------------------------------------------
Total return(g) 2.36%(h) 4.92% 3.95%(i) 1.76% .48%
- -----------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction of earnings and bank fee credits on cash
balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates have agreed to waive certain fees
and expenses.
(f) Expense ratio is before reduction of earnings and bank fee credits on cash
balances. The ratio of net expenses after reduction of earnings and bank
fee credits was 0.55% for the six months ended Jan. 31, 2008.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
(i) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior
years. Had the Fund not received this payment, the total return would have
been lower by 0.06%.
(j) Six months ended Jan. 31, 2008 (Unaudited).
- --------------------------------------------------------------------------------
32 RIVERSOURCE CASH MANAGEMENT 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; 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 CASH MANAGEMENT FUND -- 2008 SEMIANNUAL REPORT 33
RIVERSOURCE CASH MANAGEMENT FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by
the Fund's current prospectus. RiverSource mutual
funds are distributed by RiverSource
Distributors, Inc., Member FINRA, and managed by
RiverSource Investments, LLC. These companies are
part of Ameriprise Financial, Inc.
(RIVERSOURCE INVESTMENTS LOGO) (C) 2008 RiverSource Distributors, Inc. S-6322 Y (3/08)
</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 Money Market Series, Inc.
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