Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
LARGE CAP EQUITY FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
JANUARY 31, 2009
RIVERSOURCE LARGE CAP EQUITY FUND SEEKS TO PROVIDE
SHAREHOLDERS WITH LONG-TERM GROWTH OF CAPITAL.
(SINGLE STRATEGY FUNDS ICON)
LETTER TO SHAREHOLDERS ---------------------------------------------------------
(PHOTO - BANNIGAN - LEWIS)
Patrick T. Bannigan (left)
Stephen R. Lewis, Jr. (right)
Dear Fellow Shareholders,
2008 was an unprecedented year in many ways. Investors watched the precipitous
decline in all the major U.S. and international equity indexes as concerns about
the economy gave way to fear and selling of securities. In response to
substantial losses in the markets and weakening economic indicators, the
government stepped in swiftly and aggressively to encourage liquidity and credit
availability in an attempt to make credit markets function. By the end of the
calendar year, these actions still needed time to gain traction in the markets.
During a severe economic environment like the one we are experiencing, it is
essential that investors try not to let short-term losses in the market distract
from a long-term investment plan. Such discipline may be easier said than done
in the presence of negative news in the media. However, the financial choices
you make today -- practicing patience or locking in losses -- will influence
your portfolio's performance.
GETTING BACK ON TRACK
Whether you look at the glass as half empty or half full, every broad based
market decline creates investment opportunities. The financial markets are
expected to recover, although it is impossible to know when. In the meantime,
make sure your portfolio is positioned to benefit from the next sources of
growth.
Market recoveries often occur before the reported end of a recession. If you
wait for validation of economic recovery before reinvesting in the markets, you
may well miss out on market returns associated with an economic rebound.
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THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
TIME ELAPSED
BETWEEN BEAR
MARKET AND
BEAR MARKET RECESSION RETURNS
RECESSION ENDED END DATES MISSED*
- -----------------------------------------------------------------
August 1929 - March
1933 June 1932 9 months 39.21%
August 1957 - April
1958 December 1957 4 months 9.94%
December 1969 -
November 1970 June 1970 5 months 21.81%
November 1973 - March
1975 September 1974 6 months 34.47%
July 1981 - November
1982 July 1982 4 months 31.72%
July 1990 - March 1991 October 1990 5 months 25.33%
- -----------------------------------------------------------------
</Table>
* S&P 500(R) Index total returns for the number of months
between the recession and bear market end dates.
Be sure your portfolio is on track today. Talk with your
financial professional about opportunities that have been
created in the markets and take advantage of our solutions and
strategies that can help position portfolios for the next market
recovery cycle.
OUR FAMILY OF FUNDS
We also want to share some good news with our fellow
shareholders. Last November, RiverSource Investments, a wholly-
owned subsidiary of Ameriprise Financial, Inc., acquired J. & W.
Seligman & Co. Incorporated. Seligman's long heritage of
investing and exceptional wealth of experience is a valuable
addition to RiverSource Investments. Along with RiverSource and
Threadneedle, Seligman joins our comprehensive family of mutual
funds we offer investors.
For more information
about any of our
RiverSource Funds, go
online to RiverSource.com
or call (888) 791-3380.
Customer Service
Representatives are
available to answer your
questions Monday through
Friday from 8 a.m. to
5 p.m. Central time.
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THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT
LETTER TO SHAREHOLDERS (continued) ---------------------------------------------
In addition, we are excited to welcome John Maher and Leroy Richie to the
RiverSource Funds' Boards of Directors. Mr. Maher and Mr. Richie join us from
the Seligman Funds' Boards of Directors. The acquisition of Seligman creates
several new opportunities for RiverSource Funds' shareholders, including access
to talented portfolio managers and competitive mutual fund solutions to help you
reach your investment goals. We hope you are as excited by these opportunities
as we are. Thank you for investing with us.
<Table>
/s/ STEPHEN R. LEWIS, JR. /s/ PATRICK T. BANNIGAN
Stephen R. Lewis, Jr. Patrick T. Bannigan
Chairman of the Boards President, RiverSource Funds
</Table>
YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF A
MUTUAL FUND CAREFULLY BEFORE INVESTING. FOR A FREE PROSPECTUS, WHICH CONTAINS
THIS AND OTHER IMPORTANT INFORMATION ABOUT THE FUNDS, CALL (888) 791-3380. READ
THE PROSPECTUS CAREFULLY BEFORE INVESTING.
Asset allocation, diversification, and dollar cost averaging do not assure a
profit or protect against loss and past performance is no guarantee of future
results.
Standard & Poor's 500 Index (S&P 500 Index) is an unmanaged list of common
stocks and is frequently used as a general measure of U.S. market performance.
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THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 2
Fund Expenses Example.............. 8
Portfolio of Investments........... 11
Statement of Assets and
Liabilities...................... 25
Statement of Operations............ 27
Statements of Changes in Net
Assets........................... 29
Financial Highlights............... 31
Notes to Financial Statements...... 39
Proxy Voting....................... 56
</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 LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 1
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource Large Cap Equity Fund (the Fund) Class A shares declined 39.47%
(excluding sales charge) for the semiannual period ended Jan. 31, 2009.
> The Fund underperformed its benchmarks, the Standard & Poor's 500 Index (S&P
500 Index), which declined 33.95% and the Russell 1000(R) Index (Russell
Index), which declined 34.71% in the same six-month period.
> The Fund's peer group, the Lipper Large-Cap Core Funds Index, fell 33.98%
during the same time frame.
ANNUALIZED TOTAL RETURNS (for period ended Jan. 31, 2009)
- --------------------------------------------------------------------------------
<Table>
<Caption>
Since
inception
6 months* 1 year 3 years 5 years 3/28/02
- -------------------------------------------------------------------------
RiverSource Large Cap
Equity Fund Class A
(excluding sales
charge) -39.47% -45.50% -15.96% -7.68% -5.47%
- -------------------------------------------------------------------------
Russell 1000 Index
(unmanaged)(1) -34.71% -39.04% -12.03% -4.05% -2.56%
- -------------------------------------------------------------------------
S&P 500 Index
(unmanaged)(2) -33.95% -38.63% -11.78% -4.24% -2.86%
- -------------------------------------------------------------------------
Lipper Large-Cap Core
Funds Index(3) -33.98% -38.34% -11.95% -4.55% -3.40%
- -------------------------------------------------------------------------
</Table>
* Not annualized.
The performance information shown represents past performance and is not a
guarantee of future results. The investment return and principal value of your
investment will fluctuate so that your shares, when redeemed, may be worth more
or less than their original cost. 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.
- --------------------------------------------------------------------------------
2 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the table above. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses. See the Average Annual Total Returns table for performance of other
share classes of the Fund.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
(1) The Russell 1000 Index, an unmanaged index, measures the performance of the
1,000 largest companies in the Russell 3000(R) Index, which represents
approximately 90% of the total market capitalization of the Russell 3000
Index. The index reflects reinvestment of all distributions and changes in
market prices.
(2) The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of
common stocks, is frequently used as a general measure of market
performance. The index reflects reinvestment of all distributions and
changes in market prices.
(3) The Lipper Large-Cap Core Funds Index includes the 30 largest large-cap core
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this index
for purposes of determining the performance incentive adjustment.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT JAN. 31, 2009
SINCE
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS INCEPTION
Class A (inception
3/28/02) -39.47% -45.50% -15.96% -7.68% -5.47%
- ---------------------------------------------------------------------------
Class B (inception
3/28/02) -39.64% -45.89% -16.62% -8.37% -6.21%
- ---------------------------------------------------------------------------
Class C (inception
3/28/02) -39.39% -45.79% -16.53% -8.32% -6.14%
- ---------------------------------------------------------------------------
Class I (inception
3/4/04) -39.23% -45.24% -15.59% N/A -7.69%
- ---------------------------------------------------------------------------
Class R2 (inception
12/11/06) -39.26% -45.49% N/A N/A -25.50%
- ---------------------------------------------------------------------------
Class R3 (inception
12/11/06) -39.17% -45.29% N/A N/A -25.29%
- ---------------------------------------------------------------------------
Class R4 (inception
3/28/02) -39.24% -45.43% -15.78% -7.47% -5.28%
- ---------------------------------------------------------------------------
Class R5 (inception
12/11/06) -39.21% -45.27% N/A N/A -25.27%
- ---------------------------------------------------------------------------
With sales charge
Class A (inception
3/28/02) -43.00% -48.67% -17.60% -8.75% -6.30%
- ---------------------------------------------------------------------------
Class B (inception
3/28/02) -42.57% -48.53% -17.56% -8.67% -6.21%
- ---------------------------------------------------------------------------
Class C (inception
3/28/02) -39.98% -46.31% -16.53% -8.32% -6.14%
- ---------------------------------------------------------------------------
</Table>
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4 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT DEC. 31, 2008
SINCE
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS INCEPTION
Class A (inception
3/28/02) -32.82% -42.40% -12.07% -5.37% -3.92%
- ---------------------------------------------------------------------------
Class B (inception
3/28/02) -32.94% -42.70% -12.71% -6.05% -4.65%
- ---------------------------------------------------------------------------
Class C (inception
3/28/02) -33.05% -42.78% -12.72% -6.07% -4.63%
- ---------------------------------------------------------------------------
Class I (inception
3/4/04) -32.57% -42.03% -11.64% N/A -5.60%
- ---------------------------------------------------------------------------
Class R2 (inception
12/11/06) -32.81% -42.32% N/A N/A -22.21%
- ---------------------------------------------------------------------------
Class R3 (inception
12/11/06) -32.57% -42.11% N/A N/A -21.97%
- ---------------------------------------------------------------------------
Class R4 (inception
3/28/02) -32.81% -42.27% -11.93% -5.19% -3.74%
- ---------------------------------------------------------------------------
Class R5 (inception
12/11/06) -32.66% -42.21% N/A N/A -21.99%
- ---------------------------------------------------------------------------
With sales charge
Class A (inception
3/28/02) -36.70% -45.76% -13.77% -6.49% -4.77%
- ---------------------------------------------------------------------------
Class B (inception
3/28/02) -36.20% -45.49% -13.70% -6.36% -4.65%
- ---------------------------------------------------------------------------
Class C (inception
3/28/02) -33.70% -43.33% -12.72% -6.07% -4.63%
- ---------------------------------------------------------------------------
</Table>
Class A share performance reflects the maximum sales charge of 5.75%. Class B
share performance reflects a contingent deferred sales charge (CDSC) applied as
follows: first year 5%; second and third years 4%; fourth year 3%; fifth year
2%; sixth year 1%; no sales charge thereafter. Class C shares may be subject to
a 1% CDSC if shares are sold within one year after purchase. Sales charges do
not apply to Class I, Class R2, Class R3, Class R4 and Class R5 shares. Class I,
Class R2, Class R3, Class R4 and Class R5 are available to institutional
investors only.
*Not annualized.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 5
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
STYLE MATRIX
- --------------------------------------------------------------------------------
Style Matrix
<Table>
<Caption>
STYLE
VALUE BLEND GROWTH
X LARGE
MEDIUM SIZE
SMALL
</Table>
Shading within the style matrix indicates areas in which the Fund is designed to
generally invest.
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 may serve as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
ANNUAL OPERATING EXPENSE RATIO
(as of the current prospectus)
- --------------------------------------------------------------------------------
<Table>
<Caption>
Net fund
and acquired
Total fund Net fund fund fees
expenses expenses(a) and expenses(b)
- --------------------------------------------------------
Class A 1.03% 0.96% 0.98%
- --------------------------------------------------------
Class B 1.79% 1.73% 1.75%
- --------------------------------------------------------
Class C 1.79% 1.72% 1.74%
- --------------------------------------------------------
Class I 0.57% 0.54% 0.56%
- --------------------------------------------------------
Class R2 1.39% 1.34% 1.36%
- --------------------------------------------------------
Class R3 1.14% 1.09% 1.11%
- --------------------------------------------------------
Class R4 0.87% 0.82% 0.84%
- --------------------------------------------------------
Class R5 0.67% 0.59% 0.61%
- --------------------------------------------------------
</Table>
(a) The Investment Manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until July 31, 2009, 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
(excluding fees and expenses of acquired funds), before giving effect to any
performance incentive adjustment (that decreased the management fee by 0.08%
for the year ended July 31, 2008), will not exceed 1.04% for Class A, 1.81%
for Class B, 1.80% for Class C, 0.62% for Class I, 1.42% for Class R2, 1.17%
for Class R3, 0.90% for Class R4 and 0.67% for Class R5.
(b) In addition to the Fund's total annual operating expenses that the Fund
bears directly, the Fund's shareholders indirectly bear the expenses of
acquired funds in which the Fund invests. The Fund's "Acquired fund fees and
expenses," based on its investment in the acquired funds, was 0.02% for the
year ended July 31, 2008.
- --------------------------------------------------------------------------------
6 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SECTOR DIVERSIFICATION(1) (at Jan. 31, 2009; % of portfolio assets)
- ---------------------------------------------------------------------
<Table>
<Caption>
Consumer Discretionary 11.4%
- ------------------------------------------------
Consumer Staples 11.7%
- ------------------------------------------------
Energy 14.2%
- ------------------------------------------------
Financials 11.5%
- ------------------------------------------------
Health Care 16.0%
- ------------------------------------------------
Industrials 8.8%
- ------------------------------------------------
Information Technology 10.2%
- ------------------------------------------------
Materials 2.4%
- ------------------------------------------------
Telecommunication Services 0.4%
- ------------------------------------------------
Utilities 1.8%
- ------------------------------------------------
Other(2) 11.6%
- ------------------------------------------------
</Table>
(1) Sectors can be comprised of several industries. Please refer to the section
entitled "Portfolio of Investments" for a complete listing. No single
industry exceeds 25% of portfolio assets.
(2) Cash & Cash Equivalents. Of the 11.6%, 8.7% is due to security lending
activity and 2.9% is the Fund's cash equivalent position.
The sectors identified above are based on the Global Industry Classification
Standard (GICS), which was developed by and is the exclusive property of Morgan
Stanley Capital International Inc. and Standard & Poor's, a division of The
McGraw-Hill Companies, Inc.
TOP TEN HOLDINGS (at Jan. 31, 2009; % of portfolio assets)
- ---------------------------------------------------------------------
<Table>
<Caption>
Wal-Mart Stores 4.6%
- ------------------------------------------------
Pfizer 4.4%
- ------------------------------------------------
Chevron 4.2%
- ------------------------------------------------
Johnson & Johnson 4.1%
- ------------------------------------------------
Home Depot 2.2%
- ------------------------------------------------
JPMorgan Chase & Co 2.2%
- ------------------------------------------------
Exxon Mobil 2.1%
- ------------------------------------------------
IBM 1.6%
- ------------------------------------------------
Microsoft 1.6%
- ------------------------------------------------
PepsiCo 1.4%
- ------------------------------------------------
</Table>
For further detail about these holdings, please refer to the section entitled
"Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 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) on purchase payments; and (2) ongoing
costs, which may include management fees; distribution and service (12b-1) fees;
and other Fund fees and expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the ongoing expenses which the Fund bears directly, the Fund's
shareholders indirectly bear the expenses of the funds in which it invests (also
referred to as "acquired funds"), including affiliated and non-affiliated pooled
investment vehicles (including mutual funds and exchange traded funds). The
Fund's indirect expense from investing in the acquired funds is based on the
Fund's pro rata portion of the cumulative expenses charged by the acquired funds
using the expense ratio of each of the acquired funds as of the acquired fund's
most recent shareholder report.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Jan. 31, 2009.
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.
- --------------------------------------------------------------------------------
8 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
DIRECT AND
DIRECT INDIRECT
BEGINNING ENDING EXPENSES EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING PAID DURING
AUG. 1, 2008 JAN. 31, 2009 THE PERIOD(A) THE PERIOD(B)
- ------------------------------------------------------------------------------------------
Class A
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 605.30 $3.46 $3.50
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.76 $4.36 $4.41
- ------------------------------------------------------------------------------------------
Class B
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 603.60 $6.55 $6.59
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,016.90 $8.24 $8.29
- ------------------------------------------------------------------------------------------
Class C
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 606.10 $6.52 $6.56
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,016.95 $8.19 $8.24
- ------------------------------------------------------------------------------------------
Class I
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 607.70 $1.77 $1.81
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.86 $2.23 $2.28
- ------------------------------------------------------------------------------------------
Class R2
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 607.40 $5.00 $5.04
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.85 $6.28 $6.33
- ------------------------------------------------------------------------------------------
Class R3
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 608.30 $3.99 $4.03
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,020.10 $5.01 $5.06
- ------------------------------------------------------------------------------------------
Class R4
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 607.60 $2.90 $2.94
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.46 $3.65 $3.70
- ------------------------------------------------------------------------------------------
Class R5
- ------------------------------------------------------------------------------------------
Actual(c) $1,000 $ 607.90 $1.81 $1.85
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.81 $2.28 $2.33
- ------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 9
FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
ANNUALIZED EXPENSE RATIOS
<Table>
<Caption>
FUND'S ACQUIRED FUND
ANNUALIZED FEES AND NET FUND
EXPENSE RATIO EXPENSES EXPENSES
- ----------------------------------------------------------------------
Class A .86% .01% .87%
- ----------------------------------------------------------------------
Class B 1.63% .01% 1.64%
- ----------------------------------------------------------------------
Class C 1.62% .01% 1.63%
- ----------------------------------------------------------------------
Class I .44% .01% .45%
- ----------------------------------------------------------------------
Class R2 1.24% .01% 1.25%
- ----------------------------------------------------------------------
Class R3 .99% .01% 1.00%
- ----------------------------------------------------------------------
Class R4 .72% .01% .73%
- ----------------------------------------------------------------------
Class R5 .45% .01% .46%
- ----------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio for each class,
multiplied by the average account value over the period, multiplied by
183/365 (to reflect the one-half year period).
(b) Expenses are equal to the Fund's annualized expense ratio for each class
plus the acquired fund fees and expenses, multiplied by the average account
value over the period, multiplied by 183/365 (to reflect the one-half year
period).
(c) Based on the actual return for the six months ended Jan. 31, 2009: -39.47%
for Class A, -39.64% for Class B, -39.39% for Class C, -39.23% for Class I,
-39.26% for Class R2, -39.17% for Class R3, -39.24% for Class R4 and -39.21%
for Class R5.
- --------------------------------------------------------------------------------
10 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS -------------------------------------------------------
JAN. 31, 2009 (UNAUDITED)
(Percentages represent value of investments compared to net assets)
INVESTMENTS IN SECURITIES
<Table>
<Caption>
COMMON STOCKS (96.8%)
ISSUER SHARES VALUE(a)
AEROSPACE & DEFENSE (0.8%)
AeroVironment 8,500(b,f) $315,010
American Science & Engineering 3,213 250,614
Ceradyne 25,331(b,f) 578,053
General Dynamics 172,255(f) 9,772,027
Rockwell Collins 33,368 1,257,306
United Technologies 99,020 4,751,970
---------------
Total 16,924,980
- -------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS (0.2%)
CH Robinson Worldwide 95,986 4,413,437
Hub Group Cl A 16,373(b) 371,667
Pacer Intl 46,242(f) 397,681
---------------
Total 5,182,785
- -------------------------------------------------------------------------------------
AIRLINES (0.4%)
Alaska Air Group 31,558(b) 831,869
Allegiant Travel 8,541(b,f) 305,426
AMR 30,335(b) 180,190
Continental Airlines Cl B 14,891(b) 200,582
Delta Air Lines 59,755(b) 412,310
Hawaiian Holdings 65,225(b) 265,466
JetBlue Airways 37,430(b) 210,731
SkyWest 71,912 1,125,423
Southwest Airlines 502,569(f) 3,533,059
UAL 73,227(b) 691,263
US Airways Group 81,594(b) 462,638
---------------
Total 8,218,957
- -------------------------------------------------------------------------------------
AUTO COMPONENTS (0.1%)
Cooper Tire & Rubber 56,651(f) 264,560
Exide Technologies 62,946(b) 228,494
Fuel Systems Solutions 7,302(b,f) 190,874
Goodyear Tire & Rubber 194,518(b) 1,200,176
Johnson Controls 65,605 820,719
---------------
Total 2,704,823
- -------------------------------------------------------------------------------------
AUTOMOBILES (0.1%)
Ford Motor 249,800(b,f) 467,126
General Motors 62,539(f) 188,242
Harley-Davidson 164,139(f) 1,999,213
---------------
Total 2,654,581
- -------------------------------------------------------------------------------------
BEVERAGES (2.9%)
Brown-Forman Cl B 56,384 2,560,397
Coca-Cola 631,980 26,998,186
PepsiCo 653,531 32,826,862
---------------
Total 62,385,445
- -------------------------------------------------------------------------------------
BIOTECHNOLOGY (2.6%)
Amgen 405,762(b) 22,256,046
Cephalon 45,699(b,f) 3,527,049
CV Therapeutics 32,590(b) 510,034
Emergent BioSolutions 13,873(b,f) 304,235
Genentech 14,017(b) 1,138,741
Gilead Sciences 524,678(b) 26,637,901
Myriad Genetics 19,227(b) 1,433,757
NPS Pharmaceuticals 36,398(b) 227,124
Vertex Pharmaceuticals 8,688(b,f) 287,138
---------------
Total 56,322,025
- -------------------------------------------------------------------------------------
BUILDING PRODUCTS (0.1%)
American Woodmark 16,024(f) 241,161
Insteel Inds 27,417(f) 211,111
Masco 291,531 2,279,772
Owens Corning 7,565(b) 100,917
Trex 11,677(b,f) 172,703
---------------
Total 3,005,664
- -------------------------------------------------------------------------------------
CAPITAL MARKETS (1.5%)
Goldman Sachs Group 133,369 10,766,879
Knight Capital Group Cl A 24,027(b) 433,207
Morgan Stanley 1,011,014(f) 20,452,814
Stifel Financial 11,707(b,f) 410,213
SWS Group 45,991(f) 673,768
---------------
Total 32,736,881
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 11
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
CHEMICALS (1.5%)
Ashland 21,801 $174,844
Balchem 10,066(f) 224,774
CF Inds Holdings 28,881 1,357,407
Dow Chemical 1,772,219 20,540,017
Ecolab 19,484 661,677
EI du Pont de Nemours & Co 108,801 2,498,071
Innophos Holdings 15,945 241,248
OM Group 16,873(b,f) 326,999
PPG Inds 77,165 2,899,861
Sigma-Aldrich 56,009 2,020,805
Solutia 48,200(b,f) 188,462
Stepan 6,925(f) 254,078
Westlake Chemical 14,332(f) 195,918
WR Grace & Co 100,680(b) 580,924
---------------
Total 32,165,085
- -------------------------------------------------------------------------------------
COMMERCIAL BANKS (1.1%)
BancFirst 6,108(f) 217,567
BB&T 292,392(f) 5,786,437
Comerica 125,875 2,097,078
Community Trust Bancorp 6,575 183,903
Fifth Third Bancorp 606,788 1,450,223
First BanCorp 15,522(c,f) 110,361
First Citizens BancShares Cl A 949 132,727
First Financial 7,250(f) 240,338
First Financial Bankshares 9,490(f) 421,261
Home BancShares 8,731(f) 179,771
Intl Bancshares 20,109(f) 366,386
KeyCorp 343,879 2,503,439
MainSource Financial Group 17,647(f) 172,411
Marshall & Ilsley 204,955(f) 1,170,293
Popular 18,530(c,f) 50,772
Republic Bancorp Cl A 11,372(f) 204,696
SunTrust Banks 146,867 1,800,589
TowneBank 11,883 247,642
Trico Bancshares 9,961(f) 200,615
Trustmark 13,543 274,923
UMB Financial 10,116 391,894
Wells Fargo & Co 268,910(f) 5,082,399
Wilshire Bancorp 33,656(f) 230,880
Zions Bancorporation 9,592(f) 143,113
---------------
Total 23,659,718
- -------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.9%)
ABM Inds 9,515(f) 141,298
Avery Dennison 48,390(f) 1,172,490
Clean Harbors 5,723(b,f) 306,238
HNI 20,631(f) 272,536
Kimball Intl Cl B 44,536 306,853
Republic Services 248,682 6,430,916
RR Donnelley & Sons 80,980 790,365
Sykes Enterprises 13,650(b) 228,092
Tetra Tech 6,789(b) 157,708
United Stationers 7,598(b,f) 212,820
Waste Management 282,337 8,806,090
---------------
Total 18,825,406
- -------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.4%)
3Com 129,413(b) 301,532
Airvana 49,195(b) 250,403
ARRIS Group 40,980(b) 291,778
Cisco Systems 489,238(b) 7,323,893
Corning 747,258(f) 7,554,778
InterDigital 28,749(b,f) 929,455
Motorola 133,924 593,283
NETGEAR 21,473(b,f) 238,780
QUALCOMM 328,496 11,349,536
Tekelec 18,199(b) 226,032
---------------
Total 29,059,470
- -------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (3.5%)
Adaptec 83,576(b,f) 233,177
Apple 120,797(b) 10,887,434
Dell 831,979(b) 7,903,801
Electronics for Imaging 26,387(b,f) 234,580
Hewlett-Packard 338,952 11,778,582
IBM 414,283 37,969,036
Lexmark Intl Cl A 207,679(b) 4,917,839
NCR 18,658(b,f) 234,158
Western Digital 26,046(b) 382,355
---------------
Total 74,540,962
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
12 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
CONSTRUCTION & ENGINEERING (0.3%)
EMCOR Group 21,413(b,f) $440,894
Fluor 66,753 2,596,691
Foster Wheeler 2,749(b) 54,898
Granite Construction 36,466(f) 1,284,333
Michael Baker 3,799(b) 132,813
Perini 48,557(b,f) 1,012,413
---------------
Total 5,522,042
- -------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (--%)
Vulcan Materials 3,181(f) 157,332
- -------------------------------------------------------------------------------------
CONSUMER FINANCE (0.2%)
Advanta Cl B 88,512(f) 69,039
American Express 60,682 1,015,210
Discover Financial Services 80,265(f) 573,895
SLM 248,814(b,f) 2,848,920
---------------
Total 4,507,064
- -------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (--%)
Rock-Tenn Cl A 25,329(f) 789,505
- -------------------------------------------------------------------------------------
DISTRIBUTORS (0.2%)
Genuine Parts 106,374 3,406,095
- -------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES (0.5%)
Apollo Group Cl A 20,567(b) 1,675,388
Career Education 4,579(b,f) 99,822
Corinthian Colleges 37,035(b,f) 691,814
H&R Block 372,711 7,726,298
Regis 22,824 256,770
Universal Technical Institute 12,637(b,f) 221,527
---------------
Total 10,671,619
- -------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (4.8%)
Apollo Management LP 1,406,500(d,e) 2,109,750
Bank of America 3,728,404 24,532,898
Citigroup 6,585,055(f) 23,376,945
JPMorgan Chase & Co 1,969,323 50,237,430
KKR Financial Holdings LLC 563,202 799,747
Life Partners Holdings 6,727(f) 255,626
Moody's 6,357(f) 136,167
---------------
Total 101,448,563
- -------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.3%)
CenturyTel 45,084(f) 1,223,580
Embarq 106,239 3,794,856
Frontier Communications 134,518 1,090,941
Qwest Communications Intl 87,185 280,736
Shenandoah Telecommunications 8,904(f) 217,080
---------------
Total 6,607,193
- -------------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.1%)
Entergy 43,933(f) 3,354,724
Exelon 142,513(f) 7,727,055
FirstEnergy 141,478(f) 7,072,485
Hawaiian Electric Inds 20,076 435,248
Pinnacle West Capital 1,445 48,364
Portland General Electric 20,589 400,456
Southern 149,523 5,001,544
---------------
Total 24,039,876
- -------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.3%)
American Superconductor 10,335(b,f) 167,220
Emerson Electric 138,702(f) 4,535,556
Encore Wire 14,462 238,768
Energy Conversion Devices 10,231(b,f) 257,514
GrafTech Intl 25,000(b) 200,250
---------------
Total 5,399,308
- -------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (0.3%)
Anixter Intl 14,075(b) 379,744
Arrow Electronics 34,712(b,f) 661,958
Avnet 35,573(b) 705,057
Benchmark Electronics 82,459(b) 968,069
Ingram Micro Cl A 49,358(b) 605,623
Insight Enterprises 47,127(b,f) 244,118
Jabil Circuit 365,781 2,128,844
L-1 Identity Solutions 16,308(b) 118,233
Methode Electronics 32,965(f) 152,298
SYNNEX 23,322(b,f) 357,993
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 13
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS (CONT.)
Tyco Electronics 65,715(c,f) $930,524
---------------
Total 7,252,461
- -------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (2.0%)
Baker Hughes 96,051 3,200,419
BASiC Energy Services 52,684(b) 505,766
BJ Services 228,552 2,514,072
Complete Production Services 30,311(b) 194,294
ENSCO Intl 149,498 4,090,265
GulfMark Offshore 12,678(b) 303,511
Halliburton 554,230 9,560,469
Helmerich & Payne 14,600 327,916
Lufkin Inds 8,971 313,536
Nabors Inds 270,635(b,c,f) 2,963,453
Natl Oilwell Varco 200,633(b) 5,304,737
Newpark Resources 39,801(b) 167,562
Noble 139,883(f) 3,797,823
Oil States Intl 7,333(b) 134,267
Parker Drilling 149,991(b,f) 317,981
Patterson-UTI Energy 28,165 269,257
Pioneer Drilling 40,209(b,f) 199,839
Rowan Companies 84,835 1,074,011
Smith Intl 45,574 1,034,530
Tidewater 6,622 275,541
Unit 7,740(b,f) 193,036
Weatherford Intl 586,296(b) 6,466,845
---------------
Total 43,209,130
- -------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (5.7%)
Casey's General Stores 12,446(f) 264,478
Costco Wholesale 34,790(f) 1,566,594
Ingles Markets Cl A 17,188(f) 245,101
Nash Finch 8,093 348,242
Pantry 11,709(b,f) 194,721
SUPERVALU 121,694 2,134,513
SYSCO 119,812 2,670,609
Walgreen 242,493(f) 6,646,733
Wal-Mart Stores 2,280,221 107,444,013
Winn-Dixie Stores 44,499(b,f) 611,416
---------------
Total 122,126,420
- -------------------------------------------------------------------------------------
FOOD PRODUCTS (2.3%)
Bunge 5,267(f) 226,165
Cal-Maine Foods 11,403(f) 308,793
Campbell Soup 93,880(f) 2,851,136
Darling Intl 42,476(b) 194,965
Dean Foods 78,795(b) 1,523,895
Diamond Foods 7,437(f) 190,982
Flowers Foods 33,535(f) 720,667
Fresh Del Monte Produce 16,371(b,c,f) 394,541
General Mills 405,435 23,981,480
Hershey 14,498(f) 540,485
J&J Snack Foods 7,348 256,519
JM Smucker 79,073(f) 3,570,146
Kellogg 100,341 4,383,898
Lance 11,712(f) 220,537
Ralcorp Holdings 17,045(b) 1,009,405
Sanderson Farms 8,480 306,806
Sara Lee 505,990 5,075,080
TreeHouse Foods 17,104(b,f) 451,375
Tyson Foods Cl A 189,641(f) 1,678,323
---------------
Total 47,885,198
- -------------------------------------------------------------------------------------
GAS UTILITIES (0.3%)
Atmos Energy 8,037 197,308
Laclede Group 9,965(f) 452,311
New Jersey Resources 25,623(f) 1,027,226
Nicor 32,666 1,117,504
Piedmont Natural Gas 25,754 667,286
Questar 73,004(f) 2,480,677
---------------
Total 5,942,312
- -------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.9%)
Becton Dickinson & Co 94,068 6,835,922
Covidien 200,575(c,f) 7,690,045
CryoLife 19,446(b,f) 160,235
Cyberonics 11,792(b) 181,479
Greatbatch 9,720(b,f) 226,476
Immucor 7,503(b) 207,908
St. Jude Medical 32,370(b) 1,177,297
STERIS 35,623(f) 947,572
Thoratec 29,234(b,f) 846,909
Volcano 28,992(b) 378,925
---------------
Total 18,652,768
- -------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (1.2%)
Almost Family 4,966(b,f) 153,151
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
14 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
HEALTH CARE PROVIDERS & SERVICES (CONT.)
AMERIGROUP 31,195(b) $872,524
Cardinal Health 93,991(g) 3,538,761
CIGNA 460,711 7,997,943
Coventry Health Care 16,443(b) 248,783
DaVita 39,752(b) 1,868,344
Gentiva Health Services 12,919(b) 326,592
HealthSpring 60,412(b) 1,052,377
Humana 19,622(b) 744,262
Kindred Healthcare 60,238(b) 817,430
Landauer 5,797(f) 397,558
LHC Group 6,103(b) 162,401
Magellan Health Services 26,612(b) 963,887
Molina Healthcare 21,468(b) 376,549
Omnicare 9,838(f) 275,070
Quest Diagnostics 71,854 3,545,995
Tenet Healthcare 606,612(b) 649,075
UnitedHealth Group 48,487 1,373,637
Universal American Financial 25,232(b,f) 249,040
Universal Health Services Cl B 3,693 139,780
---------------
Total 25,753,159
- -------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (1.3%)
Bob Evans Farms 6,334(f) 111,225
Darden Restaurants 28,115(f) 737,175
Intl Game Technology 86,368(f) 915,501
McDonald's 426,834 24,764,910
Panera Bread Cl A 2,788(b,f) 130,980
Starwood Hotels & Resorts Worldwide 23,901(f) 361,383
Wyndham Worldwide 168,588 1,033,444
---------------
Total 28,054,618
- -------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.6%)
Black & Decker 39,371(f) 1,138,216
Centex 133,790 1,138,553
DR Horton 201,667 1,201,935
Garmin 15,642(c,f) 274,204
Harman Intl Inds 72,907(f) 1,173,074
KB Home 54,179(f) 578,090
Leggett & Platt 102,924(f) 1,285,521
Lennar Cl A 134,250 1,032,383
Natl Presto Inds 8,400 563,976
Newell Rubbermaid 40,565 327,765
NVR 401(b) 170,862
Pulte Homes 111,267 1,129,360
Ryland Group 16,765(f) 261,534
Snap-On 32,903 993,013
Stanley Works 8,721 272,618
Toll Brothers 6,345(b) 107,992
Whirlpool 51,835(f) 1,732,843
---------------
Total 13,381,939
- -------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS (1.8%)
Clorox 32,837 1,646,776
Kimberly-Clark 85,492 4,400,273
Procter & Gamble 576,352 31,411,184
---------------
Total 37,458,233
- -------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.2%)
Calpine 8,553(b) 63,378
Constellation Energy Group 104,964(f) 2,760,553
Dynegy Cl A 466,585(b) 984,494
---------------
Total 3,808,425
- -------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (1.3%)
3M 217,362 11,691,902
Seaboard 471 473,355
Textron 93,093 840,630
Tredegar 16,209 267,449
Tyco Intl 654,427(c,g) 13,756,055
---------------
Total 27,029,391
- -------------------------------------------------------------------------------------
INSURANCE (4.5%)
AFLAC 147,289 3,418,578
Allied World Assurance Holdings 6,869(c) 258,961
Allstate 1,197,191(g) 25,943,129
American Financial Group 11,304 191,942
Aon 103,317 3,827,895
Arch Capital Group 6,237(b,c,f) 375,156
Aspen Insurance Holdings 66,891(c) 1,478,291
Assurant 56,546 1,492,814
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 15
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
INSURANCE (CONT.)
Axis Capital Holdings 20,174(c) $489,421
Chubb 140,797(f) 5,995,136
Cincinnati Financial 12,519 274,542
Employers Holdings 36,927 499,992
Everest Re Group 5,516(c) 347,508
Hartford Financial Services Group 158,284(f) 2,083,017
HCC Insurance Holdings 14,014 328,068
IPC Holdings 33,187(c,f) 851,578
Marsh & McLennan Companies 440,703 8,518,789
Montpelier Re Holdings 71,187(c) 1,006,584
Odyssey Re Holdings 25,577(f) 1,203,398
PartnerRe 6,873(c) 450,388
Platinum Underwriters Holdings 45,109(c,f) 1,254,481
Progressive 1,242,638(b) 15,098,052
RenaissanceRe Holdings 8,305(c) 371,150
RLI 12,392 700,024
Travelers Companies 434,027 16,770,803
Validus Holdings 48,236(c,f) 1,100,746
WR Berkley 19,445 514,904
Zenith Natl Insurance 29,120 816,525
---------------
Total 95,661,872
- -------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (--%)
NutriSystem 41,148(f) 530,398
PetMed Express 10,222(b) 147,606
Ticketmaster Entertainment 26,034(b) 154,902
---------------
Total 832,906
- -------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (0.1%)
Ariba 38,540(b,f) 294,446
EarthLink 70,156(b,f) 528,274
ModusLink Global Solutions 71,828(b) 167,359
RealNetworks 67,312(b) 189,820
---------------
Total 1,179,899
- -------------------------------------------------------------------------------------
IT SERVICES (1.4%)
Affiliated Computer Services Cl A 103,970(b) 4,768,064
Automatic Data Processing 202,289(f) 7,349,159
Ciber 52,635(b,f) 229,489
Computer Sciences 17,530(b) 645,805
Convergys 13,435(b,f) 101,166
CSG Systems Intl 22,398(b) 324,771
Integral Systems 17,756(b) 194,073
ManTech Intl Cl A 21,514(b,f) 1,153,796
MasterCard Cl A 39,332 5,340,499
NCI Cl A 8,433(b) 252,990
Paychex 127,898 3,106,642
Perot Systems Cl A 28,231(b,f) 366,721
SAIC 36,100(b,f) 712,614
Total System Services 21,811 276,127
Western Union 345,685(f) 4,722,057
---------------
Total 29,543,973
- -------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (0.4%)
Brunswick 79,223(f) 220,240
Eastman Kodak 257,081(f) 1,164,577
Hasbro 117,369 2,832,114
JAKKS Pacific 40,483(b,f) 742,458
Mattel 253,773 3,601,039
---------------
Total 8,560,428
- -------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (0.1%)
Luminex 15,394(b) 313,576
PerkinElmer 125,550(f) 1,584,440
Sequenom 19,260(b,f) 426,802
---------------
Total 2,324,818
- -------------------------------------------------------------------------------------
MACHINERY (1.2%)
Cummins 100,950 2,420,781
Deere & Co 92,031 3,197,157
Dover 77,239(f) 2,184,319
Eaton 74,070 3,260,561
Flowserve 30,090 1,604,098
Force Protection 68,911(b) 414,155
FreightCar America 7,315 140,082
Gardner Denver 8,822(b) 192,055
Illinois Tool Works 154,278 5,038,720
Ingersoll-Rand Cl A 183,012(c) 2,966,625
Joy Global 9,129(f) 190,157
Manitowoc 146,341 804,876
Mueller Inds 51,804 1,042,296
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
16 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
MACHINERY (CONT.)
NACCO Inds Cl A 8,300(f) $265,517
Pall 49,291 1,285,016
Terex 16,330(b,f) 193,347
Wabtec 28,621(f) 856,627
---------------
Total 26,056,389
- -------------------------------------------------------------------------------------
MEDIA (3.1%)
CBS Cl B 608,287 3,479,402
Comcast Cl A 1,292,482(f) 18,934,862
DIRECTV Group 209,156(b) 4,580,516
DreamWorks Animation SKG Cl A 3,854(b) 84,595
Gannett 501,357 2,892,830
Marvel Entertainment 14,171(b) 389,844
Meredith 86,571(f) 1,382,539
New York Times Cl A 266,866(f) 1,326,324
News Corp Cl A 283,178(f) 1,809,507
Sirius XM Radio 15,046,171(b) 1,805,541
Time Warner Cable Cl A 59,461(b,f) 1,107,758
Virgin Media 5,987,186(e) 27,181,825
WorldSpace Cl A 263,942(b) 3,167
---------------
Total 64,978,710
- -------------------------------------------------------------------------------------
METALS & MINING (1.0%)
AK Steel Holding 137,071(f) 1,106,163
Alcoa 48,086 374,590
AM Castle & Co 26,449(f) 223,759
Cliffs Natural Resources 14,804(f) 343,009
Compass Minerals Intl 5,450 327,927
Freeport-McMoRan Copper & Gold 42,418(f) 1,066,389
Horsehead Holding 25,185(b) 99,733
Kaiser Aluminum 8,262(f) 205,228
Nucor 314,082(f) 12,811,404
Olympic Steel 15,484 245,731
Reliance Steel & Aluminum 15,731(f) 348,127
RTI Intl Metals 9,465(b) 125,979
Timminco 510,164(b,c,f) 1,441,189
United States Steel 112,157(f) 3,368,074
Worthington Inds 22,881 230,183
---------------
Total 22,317,485
- -------------------------------------------------------------------------------------
MULTILINE RETAIL (0.7%)
Big Lots 80,289(b,f) 1,079,887
Dillard's Cl A 53,223(f) 231,520
Dollar Tree 8,846(b) 377,813
Family Dollar Stores 175,923(f) 4,885,382
Fred's Cl A 33,104(f) 339,647
JC Penney 51,311(f) 859,459
Kohl's 113,484(b,f) 4,165,998
Macy's 83,729 749,375
Nordstrom 82,493(f) 1,046,836
Sears Holdings 8,132(b,f) 332,761
---------------
Total 14,068,678
- -------------------------------------------------------------------------------------
MULTI-UTILITIES (0.4%)
CH Energy Group 3,442 174,096
DTE Energy 2,526 87,147
MDU Resources Group 10,592 210,675
PG&E 80,109 3,097,815
TECO Energy 120,193 1,443,518
Vectren 7,668 197,758
Wisconsin Energy 51,986(f) 2,317,536
---------------
Total 7,528,545
- -------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (13.6%)
Apache 176,609 13,245,675
Cabot Oil & Gas 55,530(f) 1,526,520
Chesapeake Energy 289,099 4,570,655
Chevron 1,385,499 97,705,390
Cimarex Energy 13,126(f) 326,050
Clayton Williams Energy 5,179(b) 206,124
Comstock Resources 20,170(b,f) 769,082
ConocoPhillips 584,206 27,767,311
CONSOL Energy 85,435 2,328,958
Contango Oil & Gas 5,181(b,f) 231,073
EOG Resources 112,266(f) 7,608,267
EXCO Resources 18,093(b) 183,463
Exxon Mobil 625,884 47,867,608
Frontier Oil 14,907(f) 212,872
Frontline 4,642(c,f) 132,343
Goodrich Petroleum 7,657(b) 221,287
Gran Tierra Energy 87,228(b,c) 246,855
Hess 127,604(f) 7,096,058
James River Coal 16,847(b) 228,445
Marathon Oil 412,818 11,241,034
Massey Energy 92,601 1,405,683
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 17
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
OIL, GAS & CONSUMABLE FUELS (CONT.)
McMoRan Exploration 30,874(b) $206,547
Murphy Oil 111,186 4,912,197
Newfield Exploration 7,467(b) 143,292
Noble Energy 103,023 5,040,915
Occidental Petroleum 312,463(f) 17,044,857
Peabody Energy 136,760 3,419,000
Penn Virginia 11,931(f) 245,779
Petrohawk Energy 3,969(b,f) 78,229
PetroQuest Energy 24,474(b,f) 154,920
Pioneer Natural Resources 141,145 2,066,363
Plains Exploration & Production 7,946(b,f) 167,820
Range Resources 33,648 1,205,944
Rosetta Resources 43,026(b) 261,168
Southwestern Energy 218,764(b) 6,923,881
Spectra Energy 479,403 6,956,138
St. Mary Land & Exploration 10,285(f) 199,015
Stone Energy 22,251(b) 190,914
Sunoco 42,251(f) 1,957,066
Swift Energy 45,994(b,f) 704,628
Tesoro 77,808(f) 1,340,632
USEC 77,943(b) 396,730
VAALCO Energy 46,283(b,f) 347,585
Valero Energy 204,530 4,933,264
Western Refining 23,140 269,812
Williams Companies 202,174 2,860,762
World Fuel Services 7,441(f) 251,283
---------------
Total 287,399,494
- -------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (--%)
Wausau Paper 39,145(f) 372,269
- -------------------------------------------------------------------------------------
PERSONAL PRODUCTS (0.1%)
Estee Lauder Companies Cl A 87,587(f) 2,299,159
- -------------------------------------------------------------------------------------
PHARMACEUTICALS (12.8%)
Abbott Laboratories 122,292 6,779,868
Eli Lilly & Co 283,187 10,426,945
Forest Laboratories 430,301(b) 10,774,737
Johnson & Johnson 1,636,996 94,438,299
King Pharmaceuticals 793,580(b) 6,935,889
Merck & Co 508,625 14,521,244
Mylan 123,475(b,f) 1,398,972
Par Pharmaceutical Companies 19,731(b) 242,889
Pfizer 7,072,211 103,112,837
Schering-Plough 434,393 7,627,941
Valeant Pharmaceuticals Intl 36,414(b,f) 790,184
ViroPharma 92,903(b) 1,114,836
VIVUS 21,562(b) 105,869
Watson Pharmaceuticals 46,739(b,f) 1,275,040
Wyeth 266,933 11,470,111
---------------
Total 271,015,661
- -------------------------------------------------------------------------------------
PROFESSIONAL SERVICES (0.1%)
Administaff 15,452 325,883
Heidrick & Struggles Intl 15,205 231,116
Huron Consulting Group 4,487(b) 224,260
Kelly Services Cl A 32,477 294,242
Korn/Ferry Intl 21,781(b,f) 204,741
Manpower 8,767 249,509
TrueBlue 49,670(b,f) 422,195
---------------
Total 1,951,946
- -------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (0.2%)
American Campus Communities 11,424(f) 244,131
BRE Properties Cl A 3,175(f) 80,613
Capstead Mtge 26,825 286,223
Digital Realty Trust 3,469(f) 110,661
Equity Residential 144,231 3,451,449
Health Care REIT 5,787(f) 218,806
Investors Real Estate Trust 22,612 224,989
Liberty Property Trust 7,850 157,000
UDR 9,138(f) 107,190
---------------
Total 4,881,062
- -------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (--%)
Avatar Holdings 8,745(b) 226,933
St. Joe 6,506(b,f) 156,469
---------------
Total 383,402
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
18 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
ROAD & RAIL (3.8%)
Arkansas Best 33,461 $782,653
Burlington Northern Santa Fe 314,011 20,803,229
Con-way 3,857 84,970
CSX 417,739(f) 12,097,721
Genesee & Wyoming Cl A 10,684(b,f) 290,284
Kansas City Southern 6,630(b,f) 120,401
Norfolk Southern 452,461 17,356,404
Old Dominion Freight Line 10,109(b,f) 253,534
Ryder System 84,319 2,848,296
Saia 26,543(b) 283,745
Union Pacific 566,518 24,807,822
Werner Enterprises 18,060 270,900
---------------
Total 79,999,959
- -------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.0%)
Altera 281,189 4,324,687
Amkor Technology 141,788(b,f) 328,948
Atmel 32,711(b,f) 109,255
Infineon Technologies 806,777(b,c,f) 718,921
Infineon Technologies ADR 614,065(b,c) 528,096
Intel 1,283,714 16,559,910
Lam Research 26,944(b,f) 544,538
Linear Technology 203,498(f) 4,765,923
LSI 406,802(b,f) 1,293,630
MEMC Electronic Materials 152,983(b) 2,080,569
Microchip Technology 121,743 2,309,465
MKS Instruments 29,302(b,f) 411,693
Natl Semiconductor 114,937(f) 1,165,461
NVIDIA 21,718(b,f) 172,658
OmniVision Technologies 40,728(b) 272,470
Sigma Designs 26,295(b,f) 268,735
Silicon Image 79,753(b,f) 292,694
Spansion Cl A 1,738,038(b) 116,449
Teradyne 33,804(b) 162,597
Xilinx 290,253(f) 4,890,763
Zoran 33,505(b) 199,020
---------------
Total 41,516,482
- -------------------------------------------------------------------------------------
SOFTWARE (2.5%)
BMC Software 41,845(b,f) 1,059,934
Compuware 240,368(b) 1,562,392
Intuit 47,822(b) 1,083,168
Microsoft 2,175,020 37,192,842
Oracle 659,566(b,f) 11,100,496
Quality Systems 8,208(f) 305,994
Red Hat 6,267(b,f) 91,812
Salesforce.com 47,195(b,f) 1,255,859
Take-Two Interactive Software 20,438 143,475
TeleCommunication Systems Cl A 31,053(b) 222,339
---------------
Total 54,018,311
- -------------------------------------------------------------------------------------
SPECIALTY RETAIL (4.8%)
Aaron Rents 24,988(f) 546,238
Abercrombie & Fitch Cl A 121,228 2,163,920
Advance Auto Parts 4,756 155,664
Aeropostale 18,721(b,f) 395,200
American Eagle Outfitters 12,985 116,995
Asbury Automotive Group 38,005(f) 136,058
AutoNation 212,973(b,f) 1,976,389
AutoZone 23,871(b,f) 3,172,217
Barnes & Noble 14,133(f) 232,064
Bed Bath & Beyond 193,604(b,f) 4,497,421
Best Buy 125,015 3,502,920
Blockbuster Cl A 261,540(b,f) 333,464
Brown Shoe 35,184(f) 165,013
Cato Cl A 27,254(f) 360,570
Chico's FAS 96,855(b) 383,546
Children's Place Retail Stores 22,270(b,f) 418,899
Collective Brands 48,547(b) 517,996
Dress Barn 37,279(b,f) 321,345
Finish Line Cl A 51,549 244,858
Foot Locker 60,996(f) 448,931
Gap 290,846 3,280,743
Group 1 Automotive 34,272(f) 341,692
Home Depot 2,397,534 51,618,906
Hot Topic 49,620(b,f) 423,755
Jo-Ann Stores 18,977(b,f) 242,336
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 19
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SPECIALTY RETAIL (CONT.)
Jos A Bank Clothiers 19,777(b,f) $543,076
Limited Brands 133,601 1,058,120
Lowe's Companies 749,982(g) 13,702,170
Men's Wearhouse 37,223(f) 433,648
Monro Muffler Brake 6,976 169,308
Office Depot 499,362(b) 1,078,622
PetSmart 9,435(f) 177,095
RadioShack 165,444(f) 1,895,988
Rent-A-Center 43,584(b) 647,222
Ross Stores 9,891(f) 290,993
Sherwin-Williams 45,446 2,170,047
Stage Stores 34,037 243,365
Staples 100,397 1,600,328
Tiffany & Co 51,022(f) 1,058,707
Urban Outfitters 3,466(b,f) 54,000
Wet Seal Cl A 86,206(b,f) 224,998
---------------
Total 101,344,827
- -------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.7%)
Carter's 26,542(b,f) 450,949
Coach 320,745(b,f) 4,682,876
Jones Apparel Group 143,519 496,576
Liz Claiborne 253,530(f) 557,766
Nike Cl B 79,319 3,589,185
Polo Ralph Lauren 27,092(f) 1,111,585
Skechers USA Cl A 24,247(b,f) 241,500
Steven Madden 16,880(b) 293,374
VF 65,686(f) 3,679,730
---------------
Total 15,103,541
- -------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (0.2%)
Capitol Federal Financial 2,312 95,717
First Niagara Financial Group 42,786 558,785
Freddie Mac 112,515 66,946
Hudson City Bancorp 224,552 2,604,804
NewAlliance Bancshares 12,085(f) 132,814
Ocwen Financial 34,121(b) 303,677
People's United Financial 22,442 367,151
Trustco Bank NY 23,917 160,244
United Financial Bancorp 17,441 239,116
---------------
Total 4,529,254
- -------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS (0.3%)
Beacon Roofing Supply 27,278(b) 347,249
Fastenal 74,300(f) 2,539,574
GATX 3,343(f) 80,566
Rush Enterprises Cl A 27,585(b,f) 251,024
Watsco 12,534 414,249
WESCO Intl 16,458(b) 303,156
WW Grainger 37,197(f) 2,713,521
---------------
Total 6,649,339
- -------------------------------------------------------------------------------------
WATER UTILITIES (--%)
Aqua America 5,838 121,080
California Water Service Group 4,243 184,571
---------------
Total 305,651
- -------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.2%)
Sprint Nextel 1,283,585(b) 3,119,112
USA Mobility 37,213(b) 393,341
---------------
Total 3,512,453
- -------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $2,692,173,898) $2,059,825,946
- -------------------------------------------------------------------------------------
<Caption>
MONEY MARKET FUND (3.1%)
SHARES VALUE(a)
RiverSource Short-Term Cash Fund, 0.47% 65,890,575(h) $65,890,575
- -------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $65,890,575) $65,890,575
- -------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
20 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON LOAN
(9.6%)
SHARES VALUE(a)
CASH COLLATERAL REINVESTMENT FUND
JPMorgan Prime Money Market
Fund 203,391,339 $203,391,339
- -----------------------------------------------------------------
TOTAL INVESTMENTS OF CASH COLLATERAL RECEIVED FOR SECURITIES ON
LOAN
(Cost: $203,391,339) $203,391,339
- -----------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $2,961,455,812)(i) $2,329,107,860
=================================================================
</Table>
INVESTMENTS IN DERIVATIVES
FUTURES CONTRACTS OUTSTANDING AT JAN. 31, 2009
<Table>
<Caption>
NUMBER OF UNREALIZED
CONTRACTS NOTIONAL EXPIRATION APPRECIATION
CONTRACT DESCRIPTION LONG (SHORT) MARKET VALUE DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------
Russell 2000 Mini Index 234 $10,356,840 March 2009 $(124,593)
S&P 500 Index 285 58,603,125 March 2009 (7,248,513)
- ------------------------------------------------------------------------------------
Total $(7,373,106)
- ------------------------------------------------------------------------------------
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using procedures described in Note 1 to the
financial statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At Jan. 31, 2009, the
value of foreign securities represented 1.9% of net assets.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
may be determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At Jan. 31,
2009, the value of these securities amounted to $2,109,750 or 0.1% of net
assets.
(e) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). Information concerning such security
holdings at Jan. 31, 2008, is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
----------------------------------------------------------------------------
Apollo Management LP* 08-02-07 thru 09-30-08 $30,730,942
Virgin Media 07-26-07 thru 08-06-08 101,975,398
</Table>
* Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 21
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(f) At Jan. 31, 2009, security was partially or fully on loan. See Note 5 to
the financial statements.
(g) At Jan. 31, 2009, investments in securities included securities valued at
$11,992,828 that were partially pledged as collateral to cover initial
margin deposits on open stock index futures contracts.
(h) Affiliated Money Market Fund -- See Note 7 to the financial statements. The
rate shown is the seven-day current annualized yield at Jan. 31, 2009.
(i) At Jan. 31, 2009, the cost of securities for federal income tax purposes
was approximately $2,961,456,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
<Table>
Unrealized appreciation $44,376,000
Unrealized depreciation (676,724,000)
------------------------------------------------------------
Net unrealized depreciation $(632,348,000)
------------------------------------------------------------
</Table>
The industries identified above are based on the Global Industry Classification
Standard (GICS), which was developed by and is the exclusive property of Morgan
Stanley Capital International Inc. and Standard & Poor's, a division of The
McGraw-Hill Companies, Inc.
- --------------------------------------------------------------------------------
22 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
FAIR VALUE MEASUREMENTS
Statement of Financial Accounting Standards No. 157 (SFAS 157) seeks to
implement more uniform reporting relating to the fair valuation of securities
for financial statement purposes. Mutual funds are required to implement the
requirements of this standard for fiscal years beginning after Nov. 15, 2007.
While uniformity of presentation is the objective of the standard, it is likely
that there may be a range of practices utilized and it may be some period of
time before industry practices become more uniform. For this reason care should
be exercised in interpreting this information and/or using it for comparison
with other mutual funds.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below:
- Level 1 -- quoted prices in active markets for identical securities
- Level 2 -- other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds, credit risks,
etc.)
- Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
Observable inputs are those based on market data obtained from sources
independent of the fund, and unobservable inputs reflect the fund's own
assumptions based on the best information available. The input levels are not
necessarily an indication of the risk or liquidity associated with investments
at that level.
The following table is a summary of the inputs used to value the Fund's
investments as of Jan. 31, 2009:
<Table>
<Caption>
FAIR VALUE AT JAN. 31, 2009
-----------------------------------------------------------
LEVEL 1 LEVEL 2
QUOTED PRICES OTHER LEVEL 3
IN ACTIVE SIGNIFICANT SIGNIFICANT
MARKETS FOR OBSERVABLE UNOBSERVABLE
DESCRIPTION IDENTICAL ASSETS INPUTS INPUTS TOTAL
- ------------------------------------------------------------------------------------
Investments in
securities $2,329,107,860 $-- $-- $2,329,107,860
Other financial
instruments* (7,373,106) -- -- (7,373,106)
- ------------------------------------------------------------------------------------
Total $2,321,734,754 $-- $-- $2,321,734,754
- ------------------------------------------------------------------------------------
</Table>
* Other financial instruments are derivative instruments, such as futures, which
are valued at the unrealized appreciation/depreciation on the instrument.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 23
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
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.
- --------------------------------------------------------------------------------
24 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES -------------------------------------------
JAN. 31, 2009 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value
Unaffiliated issuers* (identified cost $2,692,173,898) $ 2,059,825,946
Affiliated money market fund (identified cost $65,890,575) 65,890,575
Investments of cash collateral received for securities on loan
(identified cost $203,391,339) 203,391,339
- ----------------------------------------------------------------------------------
Total investments in securities (identified cost $2,961,455,812) 2,329,107,860
Cash 22,382
Foreign currency holdings (identified cost $652) 637
Capital shares receivable 437,979
Dividends receivable 3,595,532
Receivable for investment securities sold 130,663,058
- ----------------------------------------------------------------------------------
Total assets 2,463,827,448
- ----------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 2,380,003
Payable for investment securities purchased 128,505,375
Payable upon return of securities loaned 203,391,339
Variation margin payable on futures contracts 1,729,515
Accrued investment management services fees 34,994
Accrued distribution fees 19,269
Accrued transfer agency fees 23,709
Accrued administrative services fees 3,200
Accrued plan administration services fees 495
Other accrued expenses 656,515
- ----------------------------------------------------------------------------------
Total liabilities 336,744,414
- ----------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 2,127,083,034
- ----------------------------------------------------------------------------------
REPRESENTED BY
Capital stock -- $.01 par value $ 8,112,130
Additional paid-in capital 4,419,558,829
Excess of distributions over net investment income (11,741,239)
Accumulated net realized gain (loss) (1,649,118,429)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign
currencies (639,728,257)
- ----------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $ 2,127,083,034
- ----------------------------------------------------------------------------------
*Including securities on loan, at value $ 190,109,786
- ----------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 25
STATEMENT OF ASSETS AND LIABILITIES (continued) -------------------------------
JAN. 31, 2009 (UNAUDITED)
<Table>
<Caption>
NET ASSET VALUE PER SHARE
NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE
Class A $1,767,428,770 673,576,511 $2.62(1)
Class B $ 231,221,979 89,152,064 $2.59
Class C $ 11,202,974 4,332,812 $2.59
Class I $ 28,634,991 10,885,950 $2.63
Class R2 $ 2,177 822 $2.65
Class R3 $ 2,175 822 $2.65
Class R4 $ 70,551,113 26,500,389 $2.66
Class R5 $ 18,038,855 6,763,671 $2.67
- -------------------------------------------------------------------------------------------
</Table>
(1) The maximum offering price per share for Class A is $2.78. The offering
price is calculated by dividing the net asset value by 1.0 minus the maximum
sales charge of 5.75%.
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
26 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
STATEMENT OF OPERATIONS -------------------------------------------------------
JAN. 31, 2009 (UNAUDITED)
<Table>
<Caption>
INVESTMENT INCOME
Income:
Dividends $ 38,823,381
Income distributions from affiliated money market fund 736,103
Fee income from securities lending 180,077
Less foreign taxes withheld (17,909)
- ----------------------------------------------------------------------------------
Total income 39,721,652
- ----------------------------------------------------------------------------------
Expenses:
Investment management services fees 5,880,940
Distribution fees
Class A 3,118,876
Class B 1,601,985
Class C 77,364
Class R2 7
Class R3 4
Transfer agency fees
Class A 3,943,510
Class B 546,009
Class C 25,521
Class R2 1
Class R3 1
Class R4 32,997
Class R5 737
Administrative services fees 771,189
Plan administration services fees
Class R2 4
Class R3 4
Class R4 164,984
Compensation of board members 47,231
Custodian fees 199,560
Printing and postage 580,700
Registration fees 17,240
Professional fees 42,299
Other 30,173
- ----------------------------------------------------------------------------------
Total expenses 17,081,336
Expenses waived/reimbursed by the Investment Manager and its
affiliates (3,023,996)
Earnings and bank fee credits on cash balances (27,696)
- ----------------------------------------------------------------------------------
Total net expenses 14,029,644
- ----------------------------------------------------------------------------------
Investment income (loss) -- net 25,692,008
- ----------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 27
STATEMENT OF OPERATIONS (continued) -------------------------------------------
JAN. 31, 2009 (UNAUDITED)
<Table>
<Caption>
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions $(1,237,189,207)
Foreign currency transactions 38,078,697
Futures contracts (24,847,973)
Options contracts written (4,792,289)
- ----------------------------------------------------------------------------------
Net realized gain (loss) on investments (1,228,750,772)
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities in
foreign currencies (298,686,651)
- ----------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies (1,527,437,423)
- ----------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $(1,501,745,415)
- ----------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
28 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS -------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2009 JULY 31, 2008
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 25,692,008 $ 65,487,946
Net realized gain (loss) on investments (1,228,750,772) (20,362,259)
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities in
foreign currencies (298,686,651) (865,038,637)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (1,501,745,415) (819,912,950)
- ----------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (73,410,953) (36,389,921)
Class B (5,489,205) --
Class C (317,848) --
Class I (1,247,239) (866,696)
Class R2 (88) (32)
Class R3 (97) (44)
Class R4 (4,396,983) (2,588,075)
Class R5 (105) --
Net realized gain
Class A (11,674,647) (503,800,045)
Class B (1,552,503) (85,854,373)
Class C (75,828) (3,230,993)
Class I (166,927) (7,554,314)
Class R2 (14) (539)
Class R3 (14) (539)
Class R4 (654,100) (31,125,821)
Class R5 (14) (539)
- ----------------------------------------------------------------------------------------------------
Total distributions (98,986,565) (671,411,931)
- ----------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 29
STATEMENTS OF CHANGES IN NET ASSETS (continued) -------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2009 JULY 31, 2008
CAPITAL SHARE TRANSACTIONS
Proceeds from sales
Class A shares $ 38,712,056 $ 211,484,181
Class B shares 8,833,689 33,647,160
Class C shares 1,029,455 2,226,679
Class I shares 6,815,859 10,561,864
Class R4 shares 11,759,682 34,516,064
Class R5 shares 20,568,962 --
Reinvestment of distributions at net asset value
Class A shares 82,326,997 523,659,899
Class B shares 6,986,555 85,230,086
Class C shares 385,379 3,174,765
Class I shares 1,413,924 8,419,823
Class R4 shares 5,050,991 33,713,417
Payments for redemptions
Class A shares (407,989,877) (1,190,365,828)
Class B shares (48,792,757) (315,875,480)
Class C shares (2,783,016) (8,714,618)
Class I shares (848,883) (30,081,251)
Class R4 shares (55,775,946) (150,506,498)
Class R5 shares (360,970) (26,533,250)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (332,667,900) (775,442,987)
- ----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,933,399,880) (2,266,767,868)
Net assets at beginning of period 4,060,482,914 6,327,250,782
- ----------------------------------------------------------------------------------------------------
Net assets at end of period $ 2,127,083,034 $ 4,060,482,914
- ----------------------------------------------------------------------------------------------------
Undistributed (excess of distributions over) net investment
income $ (11,741,239) $ 47,429,271
- ----------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
30 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS -----------------------------------------------------------
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(j) 2008 2007 2006 2005
Net asset value, beginning of period $4.52 $6.05 $5.40 $5.26 $4.64
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03(b) .07(b) .06(b) .06 .04
Net gains (losses) (both realized and
unrealized) (1.80) (.90) .79 .12 .61
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.77) (.83) .85 .18 .65
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.11) (.05) (.06) (.04) (.02)
Distributions from realized gains (.02) (.65) (.14) -- (.01)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.13) (.70) (.20) (.04) (.03)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.62 $4.52 $6.05 $5.40 $5.26
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,767 $3,389 $5,039 $5,461 $1,030
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c),(d) 1.07%(e) 1.03% 1.09% 1.06% 1.16%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(f),(g) .86%(e) .97% 1.09% 1.06% 1.11%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.78%(e) 1.31% .99% 1.08% .79%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66% 116% 128%
- --------------------------------------------------------------------------------------------------------------
Total return(h) (39.47%)(i) (15.40%) 15.79% 3.51% 13.99%
- --------------------------------------------------------------------------------------------------------------
</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) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(g) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the six months ended Jan. 31,
2009 were less than 0.01% of average net assets. The ratio of net expenses
after expense waiver/reimbursement and after reduction for earnings and bank
fee credits was 0.96% for the year ended July 31, 2008.
(h) Total return does not reflect payment of a sales charge.
(i) Not annualized.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 31
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(j) 2008 2007 2006 2005
Net asset value, beginning of period $4.41 $5.91 $5.29 $5.15 $4.56
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02(b) .03(b) .01(b) .02 --
Net gains (losses) (both realized and
unrealized) (1.76) (.88) .76 .12 .60
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.74) (.85) .77 .14 .60
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.06) -- (.01) -- --
Distributions from realized gains (.02) (.65) (.14) -- (.01)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.08) (.65) (.15) -- (.01)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.59 $4.41 $5.91 $5.29 $5.15
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $231 $433 $833 $1,169 $472
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c),(d) 1.84%(e) 1.79% 1.86% 1.84% 1.93%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(f),(g) 1.63%(e) 1.73% 1.86% 1.84% 1.88%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.01%(e) .56% .23% .28% .02%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66% 116% 128%
- --------------------------------------------------------------------------------------------------------------
Total return(h) (39.64%)(i) (15.97%) 14.71% 2.72% 13.09%
- --------------------------------------------------------------------------------------------------------------
</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) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(g) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the six months ended Jan. 31,
2009 were less than 0.01% of average net assets. The ratio of net expenses
after expense waiver/reimbursement and after reduction for earnings and bank
fee credits was 1.72% for the year ended July 31, 2008.
(h) Total return does not reflect payment of a sales charge.
(i) Not annualized.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
32 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(j) 2008 2007 2006 2005
Net asset value, beginning of period $4.41 $5.92 $5.30 $5.16 $4.57
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02(b) .03(b) .01(b) .02 --
Net gains (losses) (both realized and
unrealized) (1.75) (.89) .77 .12 .60
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.73) (.86) .78 .14 .60
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.07) -- (.02) -- --
Distributions from realized gains (.02) (.65) (.14) -- (.01)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.09) (.65) (.16) -- (.01)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.59 $4.41 $5.92 $5.30 $5.16
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $11 $21 $32 $35 $9
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c),(d) 1.83%(e) 1.79% 1.86% 1.84% 1.93%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(f),(g) 1.62%(e) 1.73% 1.86% 1.84% 1.88%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.03%(e) .55% .23% .28% .02%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66% 116% 128%
- --------------------------------------------------------------------------------------------------------------
Total return(h) (39.39%)(i) (16.11%) 14.80% 2.71% 13.06%
- --------------------------------------------------------------------------------------------------------------
</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) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(g) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the six months ended Jan. 31,
2009 were less than 0.01% of average net assets. The ratio of net expenses
after expense waiver/reimbursement and after reduction for earnings and bank
fee credits was 1.72% for the year ended July 31, 2008.
(h) Total return does not reflect payment of a sales charge.
(i) Not annualized.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 33
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(i) 2008 2007 2006 2005
Net asset value, beginning of period $4.55 $6.09 $5.44 $5.31 $4.67
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04(b) .09(b) .09(b) .10 .05
Net gains (losses) (both realized and
unrealized) (1.81) (.90) .78 .12 .63
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.77) (.81) .87 .22 .68
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.13) (.08) (.08) (.09) (.03)
Distributions from realized gains (.02) (.65) (.14) -- (.01)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.15) (.73) (.22) (.09) (.04)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.63 $4.55 $6.09 $5.44 $5.31
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $29 $39 $68 $105 $43
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c),(d) .51%(e) .57% .63% .59% .70%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(f),(g) .44%(e) .57% .63% .59% .65%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 2.21%(e) 1.74% 1.44% 1.53% 1.24%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66% 116% 128%
- --------------------------------------------------------------------------------------------------------------
Total return (39.23%)(h) (15.02%) 16.13% 4.06% 14.64%
- --------------------------------------------------------------------------------------------------------------
</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) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(g) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the six months ended Jan. 31,
2009 were less than 0.01% of average net assets. The ratio of net expenses
after expense waiver/reimbursement and after reduction for earnings and bank
fee credits was 0.56% for the year ended July 31, 2008.
(h) Not annualized.
(i) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
34 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS R2
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(j) 2008 2007(b)
Net asset value, beginning of period $4.55 $6.08 $6.08
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(c) .03 .06 .03
Net gains (losses) (both realized and
unrealized) (1.81) (.90) .19
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.78) (.84) .22
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.10) (.04) (.08)
Distributions from realized gains (.02) (.65) (.14)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.12) (.69) (.22)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.65 $4.55 $6.08
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $-- $-- $--
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d),(e) 1.28%(f) 1.39% 1.44%(f)
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(g),(h) .98%(f) 1.14% 1.44%(f)
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.70%(f) 1.15% .67%(f)
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66%
- --------------------------------------------------------------------------------------------------------------
Total return (39.26%)(i) (15.45%) 3.71%(i)
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 11, 2006 (inception date) to July 31, 2007.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(f) Adjusted to an annual basis.
(g) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(h) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. The ratio of net expenses after expense waiver/reimbursement and
after reduction for earnings and bank fee credits was 0.96% for the six
months ended Jan. 31, 2009. Earnings and bank fee credits for the year ended
July 31, 2008 were less than 0.01% of average net assets.
(i) Not annualized.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 35
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS R3
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(j) 2008 2007(b)
Net asset value, beginning of period $4.56 $6.09 $6.08
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(c) .03 .08 .04
Net gains (losses) (both realized and
unrealized) (1.80) (.90) .19
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.77) (.82) .23
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.12) (.06) (.08)
Distributions from realized gains (.02) (.65) (.14)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.14) (.71) (.22)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.65 $4.56 $6.09
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $-- $-- $--
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d),(e) 1.05%(f) 1.14% 1.19%(f)
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(g),(h) .73%(f) .89% 1.19%(f)
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.94%(f) 1.40% .92%(f)
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66%
- --------------------------------------------------------------------------------------------------------------
Total return (39.17%)(i) (15.19%) 3.88%(i)
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 11, 2006 (inception date) to July 31, 2007.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(f) Adjusted to an annual basis.
(g) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(h) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. The ratio of net expenses after expense waiver/reimbursement and
after reduction for earnings and bank fee credits was 0.71% for the six
months ended Jan. 31, 2009. Earnings and bank fee credits for the year ended
July 31, 2008 were less than 0.01% of average net assets.
(i) Not annualized.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
36 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS R4
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(i) 2008 2007 2006 2005
Net asset value, beginning of period $4.58 $6.13 $5.47 $5.28 $4.66
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .04(b) .08(b) .07(b) .09 .04
Net gains (losses) (both realized and
unrealized) (1.82) (.92) .79 .12 .61
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.78) (.84) .86 .21 .65
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.12) (.06) (.06) (.02) (.02)
Distributions from realized gains (.02) (.65) (.14) -- (.01)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.14) (.71) (.20) (.02) (.03)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.66 $4.58 $6.13 $5.47 $5.28
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $71 $179 $330 $1,069 $--
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c),(d) .80%(e) .87% .90% .81% .95%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(d),(f),(g) .72%(e) .82% .89% .81% .90%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.97%(e) 1.46% 1.14% 1.41% 1.08%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66% 116% 128%
- --------------------------------------------------------------------------------------------------------------
Total return (39.24%)(h) (15.40%) 15.80% 4.03% 14.06%
- --------------------------------------------------------------------------------------------------------------
</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) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(g) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the six months ended Jan. 31,
2009 were less than 0.01% of average net assets. The ratio of net expenses
after expense waiver/reimbursement and after reduction for earnings and bank
fee credits was 0.81% for the year ended July 31, 2008.
(h) Not annualized.
(i) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 37
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS R5
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(j) 2008 2007(b)
Net asset value, beginning of period $4.61 $6.11 $6.08
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(c) .01 .08 .06
Net gains (losses) (both realized and
unrealized) (1.80) (.93) .19
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (1.79) (.85) .25
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.13) -- (.08)
Distributions from realized gains (.02) (.65) (.14)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.15) (.65) (.22)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.67 $4.61 $6.11
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $18 $-- $25
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d),(e) .58%(f) .67% .70%(f)
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(g),(h) .45%(f) .67% .70%(f)
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.09%(f) 1.21% 1.44%(f)
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 80% 68% 66%
- --------------------------------------------------------------------------------------------------------------
Total return (39.21%)(i) (15.38%) 4.24%(i)
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from Dec. 11, 2006 (inception date) to July 31, 2007.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the acquired
funds in which it invests. Such indirect expenses are not included in the
above reported expense ratios.
(f) Adjusted to an annual basis.
(g) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses (excluding fees and expenses of acquired funds),
before giving effect to any performance incentive adjustment.
(h) Includes the impact of a performance incentive adjustment, if any. Expense
ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits for the six months ended Jan. 31,
2009 were less than 0.01% of average net assets. The ratio of net expenses
after expense waiver/reimbursement and after reduction for earnings and bank
fee credits was 0.66% for the year ended July 31, 2008.
(i) Not annualized.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
38 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS TO JAN. 31, 2009)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RiverSource Large Cap Equity Fund (the Fund) is a series of RiverSource Large
Cap Series, Inc. and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. RiverSource
Large Cap 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 equity securities of
companies with a market capitalization greater than $5 billion at the time of
purchase.
The Fund offers Class A, Class B, Class C, Class I, Class R2, Class R3, Class R4
and Class R5 shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I, Class R2, Class R3, Class R4 and Class R5 shares are sold without a
front-end sales charge or CDSC and are offered to qualifying institutional
investors.
At Jan. 31, 2009, RiverSource Investments, LLC (RiverSource Investments or the
Investment Manager) and the RiverSource affiliated funds-of-funds, owned 100% of
Class I shares and the Investment Manager owned 100% of Class R2 and Class R3
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.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 39
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
VALUATION OF SECURITIES
Effective Aug. 1, 2008, the Fund adopted 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. There was no impact to the
Fund's net assets or results of operations upon adoption. The fair valuation
measurements disclosure can be found following the Notes to Portfolio of
Investments.
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
When market quotes are not readily available, the pricing service, in
determining fair values of debt securities, takes into consideration such
factors as current quotations by broker/dealers, coupon, maturity, quality, type
of issue, trading characteristics, and other yield and risk factors it deems
relevant in determining valuations. Foreign securities are valued based on
quotations from the principal market in which such securities are normally
traded. The procedures adopted by the Board generally contemplate the use of
fair valuation in the event that price quotations or valuations are not readily
available, price quotations or valuations from other sources are not reflective
of market value and thus deemed unreliable, or a significant event has occurred
in relation to a security or class of securities (such as foreign securities)
that is not reflected in price quotations or valuations from other sources. A
fair value price is a good faith estimate of the value of a security at a given
point in time.
Many securities markets and exchanges outside the U.S. close prior to the close
of the New York Stock Exchange and therefore the closing prices for securities
in such markets or on such exchanges may not fully reflect events that occur
after such close but before the close of the New York Stock Exchange, including
significant movements in the U.S. market after foreign exchanges have closed.
Accordingly, in those situations, Ameriprise Financial, Inc. (Ameriprise
Financial), parent company of the Investment Manager, as administrator to the
Fund, will fair value foreign securities pursuant to procedures adopted by the
Board, including utilizing a third party pricing service to determine these fair
values. These procedures take into account multiple factors, including movements
in the U.S. securities markets, to determine a good faith estimate that
reasonably reflects the current market conditions as of the close of the New
York Stock
- --------------------------------------------------------------------------------
40 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Exchange. Swap transactions are valued through an authorized pricing service,
broker, or an internal model.
Short-term securities maturing in more than 60 days from the valuation date are
valued at the market price or approximate market value based on current interest
rates; those maturing in 60 days or less are valued at amortized cost, which
approximates fair value.
ILLIQUID SECURITIES
At Jan. 31, 2009, investments in securities included issues that are illiquid
which the Fund currently limits to 15% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at Jan. 31, 2009 was
$29,291,575 representing 1.38% of net assets. Certain illiquid securities may be
valued by management 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 15%
limitation specified above. Assets are liquid if they can be sold or disposed of
in the ordinary course of business within seven days at approximately the value
at which the asset is valued by the Fund.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Fund may buy and write options traded
on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
Cash collateral may be collected by the Fund to secure certain over-the-counter
options (OTC options) trades. Cash collateral held by the Fund for such option
trades must be returned to the counterparty upon closure, exercise or expiration
of the contract. The Fund also may buy and sell put and call options and write
covered call options on portfolio securities as well as write cash-secured put
options. The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases. The risk
in writing a put option is that the Fund may incur a loss if the market price of
the security decreases and the option is exercised. The risk in buying an option
is that the Fund pays a premium whether or not the option is exercised. The Fund
also has the additional risk of being unable to enter into a closing transaction
if a liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. Option
contracts, including OTC option contracts, with no readily available market
value are valued using quotations obtained from independent brokers as of the
close of the New York Stock Exchange. The Fund will realize a gain or loss when
the option
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 41
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
transaction expires or closes. When an option is exercised, the proceeds on
sales for a written call option, the purchase cost for a written put option or
the cost of a security for a purchased put or call option is adjusted by the
amount of premium received or paid. At Jan. 31, 2009, the Fund had no
outstanding option contracts.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Futures and options on futures are valued daily based upon the last sale price
at the close of the market on the principal exchange on which they are traded.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FORWARD FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the Statement of Operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Jan. 31, 2009, foreign currency holdings were entirely
comprised of European monetary units.
The Fund may enter into forward foreign currency contracts for operational
purposes. The net U.S. dollar value of foreign currency underlying all
contractual commitments held by the Fund and the resulting unrealized
appreciation or depreciation are determined using foreign currency exchange
rates from an independent pricing service. The Fund is subject to the credit
risk that the
- --------------------------------------------------------------------------------
42 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
counterparty will not complete its contract obligations. At Jan. 31, 2009, the
Fund had no outstanding forward foreign currency contracts.
TOTAL RETURN EQUITY SWAP TRANSACTIONS
The Fund may enter into swap agreements to gain exposure to the total return on
a specified security, basket of securities or security indexes during the
specified period, in return for periodic payments based on a fixed or variable
interest rate. Total return swap agreements may be used to obtain exposure to a
security or market without owning or taking physical custody of such security or
market. Under the terms of a total return equity swap agreement, payments made
by the Fund or the counterparty are based on the total return of a particular
reference asset or assets (such as an equity security, a combination of such
securities, or an index). That is, one party agrees to pay another party the
return on a stock, basket of stocks, or stock index in return for a specified
interest rate.
The notional amounts of swap contracts are not recorded in the financial
statements. Swap contracts are valued daily, and the change in value is recorded
as unrealized appreciation (depreciation) until the termination of the swap, at
which time realized gain (loss) is recorded. Payments received or made are
recorded as realized gains (losses).
Swap agreements may be subject to liquidity risk, which exists when a particular
swap is difficult to purchase or sell. It may not be possible for the Fund to
initiate a transaction or liquidate a position at an advantageous time or price,
which may result in significant losses. Total return swaps are subject to the
risk associated with the investment in the underlying securities and also the
risk of the counterparty not fulfilling its obligations under the agreement. At
Jan. 31, 2009, the Fund had no outstanding total return equity swap contracts.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to shareholders. No provision for income or excise
taxes is thus required.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 43
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
Financial Accounting Standards Board (FASB) Interpretation 48 (FIN 48),
"Accounting for Uncertainty in Income Taxes," clarifies the accounting for
uncertainty in income taxes recognized in accordance with FASB Statement 109,
"Accounting for Income Taxes." FIN 48 provides guidance for how uncertain tax
positions should be recognized, measured, presented and disclosed in the
financial statements. 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 primarily because of futures and options
contracts, foreign currency transactions, recognition of unrealized appreciation
(depreciation) for certain derivative investments, re-characterization of REIT
distributions, investments in partnerships, post-October losses and losses
deferred due to wash sales. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
RECENT ACCOUNTING PRONOUNCEMENTS
The Fund has adopted FASB Staff Position No. 133-1 and FIN No. 45-4 (FSP FAS
133-1 and FIN 45-4), "Disclosures about Credit Derivatives and Certain
Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No.
45". The amendments to FSP FAS 133-1 and FIN 45-4 require enhanced disclosures
about a fund's derivatives and guarantees. Funds are required to provide
enhanced disclosures about (a) how and why a fund uses derivative instruments,
(b) how derivative instruments and related hedged items are accounted for under
SFAS 133 and its related interpretations, (c) how derivative instruments and
related hedged items affect a fund's financial position, financial performance,
and cash flows and (d) the current status of the payment/performance risk of the
credit derivative. The amendments to FSP FAS 133-1 and FIN 45-4 also require
additional disclosures about the current status of the payment/performance risk
of a guarantee. At Jan. 31, 2009, the Fund did not own nor was it a party to any
credit derivative contracts within the scope of these amendments.
In March 2008, the FASB issued Statement of Financial Accounting Standards No.
161 (SFAS 161), "Disclosures about Derivative Instruments and Hedging
Activities -- an amendment of FASB Statement No. 133," which requires enhanced
disclosures about a fund's derivative and hedging activities. SFAS 161
- --------------------------------------------------------------------------------
44 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
is effective for financial statements issued for fiscal years and interim
periods beginning after Nov. 15, 2008. As of Jan. 31, 2009, management does not
believe the adoption of SFAS 161 will impact the financial statement amounts;
however, additional footnote disclosures may be required about the use of
derivative instruments and hedging items.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date and interest income,
including amortization of premium, market discount and original issue discount
using the effective interest method, is accrued daily.
SECURITY LITIGATION SETTLEMENTS
Litigation proceeds from Enron Corp. related to portfolio securities no longer
included in the portfolio are recorded as realized gains. Proceeds received
during the six months ended Jan. 31, 2009 were $589,084.
2. EXPENSES AND SALES CHARGES
INVESTMENT MANAGEMENT SERVICES FEES
Under an Investment Management Services Agreement, the Investment Manager
determines which securities will be purchased, held or sold. The management fee
is a percentage of the Fund's average daily net assets that declines from 0.60%
to 0.375% annually as the Fund's assets increase. The fee may be adjusted upward
or downward by a performance incentive adjustment determined monthly by
measuring the percentage difference over a rolling 12-month period between the
annualized performance of one Class A share of the Fund and the annualized
performance of the Lipper Large-Cap Core Funds Index. In certain circumstances,
the Board may approve a change in the index. The maximum adjustment is 0.12% per
year. If the performance difference is less than 0.50%, the adjustment will be
zero. The adjustment decreased the management fee by $2,700,703 for the six
months ended Jan. 31, 2009. The management fee for the six months ended Jan. 31,
2009 was 0.39% of the Fund's average daily net assets, including the adjustment
under the terms of the performance incentive arrangement.
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 45
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.06% to 0.03% annually as the
Fund's assets increase. The fee for the six months ended Jan. 31, 2009 was 0.05%
of the Fund's average daily net assets.
OTHER FEES
Other expenses are for, among other things, certain expenses of the Fund or the
Board including: Fund boardroom and office expense, employee compensation,
employee health and retirement benefits, and certain other expenses. Payment of
these Fund and Board expenses is facilitated by a company providing limited
administrative services to the Fund and the Board. For the six months ended Jan.
31, 2009, other expenses paid to this company were $14,607.
COMPENSATION OF BOARD MEMBERS
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.
TRANSFER AGENCY FEES
Under a Transfer Agency Agreement, RiverSource Service Corporation (the Transfer
Agent) maintains shareholder accounts and records. The Fund pays the Transfer
Agent an annual account-based fee at a rate equal to $19.50 for Class A, $20.50
for Class B and $20.00 for Class C for this service. The Fund also pays the
Transfer Agent an annual asset-based fee at a rate of 0.05% of the Fund's
average daily net assets attributable to Class R2, Class R3, Class R4 and Class
R5 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.
PLAN ADMINISTRATION SERVICES FEES
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund
pays an annual fee at a rate of 0.25% of the Fund's average daily net assets
attributable to Class R2, Class R3 and Class R4 shares for the provision of
various administrative, recordkeeping, communication and educational services.
- --------------------------------------------------------------------------------
46 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
DISTRIBUTION FEES
The Fund has an agreement with RiverSource Distributors, Inc. and RiverSource
Fund Distributors, Inc. (collectively, the Distributor) for distribution and
shareholder services. Under a Plan and Agreement of Distribution pursuant to
Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund's
average daily net assets attributable to Class A and Class R3 shares, a fee at
an annual rate of up to 0.50% of the Fund's average daily net assets
attributable to Class R2 shares and a fee at an annual rate of up to 1.00% of
the Fund's average daily net assets attributable to Class B and Class C shares.
For Class B and Class C shares, up to 0.75% of the fee is reimbursed for
distribution expenses.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed ("unreimbursed expense") was approximately $11,663,000 and $169,000
for Class B and Class C shares, respectively. These amounts are based on the
most recent information available as of Jan. 31, 2009, and may be recovered from
future payments under the distribution plan or CDSC. To the extent the
unreimbursed expense has been fully recovered, the distribution fee is reduced.
SALES CHARGES
Sales charges received by the Distributor for distributing Fund shares were
$970,964 for Class A, $188,560 for Class B and $799 for Class C for the six
months ended Jan. 31, 2009.
EXPENSES WAIVED/REIMBURSED BY THE INVESTMENT MANAGER AND ITS AFFILIATES
For the six months ended Jan. 31, 2009, the Investment Manager and its
affiliates waived/reimbursed certain fees and expenses such that net expenses
(excluding fees and expenses of acquired funds*), including the adjustment under
the terms of a performance incentive arrangement, were as follows:
<Table>
Class A............................................. 0.86%
Class B............................................. 1.63
Class C............................................. 1.62
Class I............................................. 0.44
Class R2............................................ 0.98
Class R3............................................ 0.73
Class R4............................................ 0.72
Class R5............................................ 0.45
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 47
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
The waived/reimbursed fees and expenses for the transfer agency fees at the
class level were as follows:
<Table>
Class A......................................... $1,810,132
Class B......................................... 237,081
Class C......................................... 11,378
Class R4........................................ 12,742
</Table>
The waived/reimbursed fees and expenses for the plan administration services
fees at the class level were as follows:
<Table>
Class R2........................................... $ 4
Class R3........................................... 4
Class R4........................................... 917
</Table>
The management fees waived/reimbursed at the Fund level were $951,738.
The Investment Manager and its affiliates have contractually agreed to waive
certain fees and expenses until July 31, 2009, unless sooner terminated at the
discretion of the Board, such that net expenses (excluding fees and expenses of
acquired funds*), before giving effect to any performance incentive adjustment,
will not exceed the following percentage of the Fund's average daily net assets:
<Table>
Class A............................................. 1.04%
Class B............................................. 1.81
Class C............................................. 1.80
Class I............................................. 0.62
Class R2............................................ 1.42
Class R3............................................ 1.17
Class R4............................................ 0.90
Class R5............................................ 0.67
</Table>
* In addition to the fees and expenses which the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of the funds in
which it invests (also referred to as "acquired funds"), including
affiliated and non-affiliated pooled investment vehicles (including mutual
funds and exchange traded funds). Because the acquired funds have varied
expense and fee levels and the Fund may own different proportions of
acquired funds at different times, the amount of fees and expenses incurred
indirectly by the Fund will vary.
BANK FEE CREDITS
During the six months ended Jan. 31, 2009, the Fund's transfer agency fees were
reduced by $27,696 as a result of bank fee credits from overnight cash balances.
CUSTODIAN FEES
Effective Dec. 15, 2008, the fund pays custodian fees to JPMorgan Chase Bank,
N.A. Prior to Dec. 15, 2008, the Fund paid custodian fees amounting to $160,746
to Ameriprise Trust Company, a subsidiary of Ameriprise Financial.
- --------------------------------------------------------------------------------
48 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $2,374,454,240 and $2,722,612,153, respectively, for the
six months ended Jan. 31, 2009. Realized gains and losses are determined on an
identified cost basis.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
<Table>
<Caption>
SIX MONTHS ENDED JAN. 31, 2009
ISSUED FOR
REINVESTED NET
SOLD DISTRIBUTIONS REDEEMED INCREASE (DECREASE)
- ----------------------------------------------------------------------------------
Class A 11,615,736 28,486,839 (117,055,540) (76,952,965)
Class B 2,675,934 2,442,851 (14,086,006) (8,967,221)
Class C 304,494 135,221 (808,411) (368,696)
Class I 2,085,809 489,247 (252,037) 2,323,019
Class R4 3,446,396 1,723,888 (17,774,327) (12,604,043)
Class R5 6,886,248 -- (123,399) 6,762,849
- ----------------------------------------------------------------------------------
<Caption>
YEAR ENDED JULY 31, 2008
ISSUED FOR
REINVESTED NET
SOLD DISTRIBUTIONS REDEEMED INCREASE (DECREASE)
- ----------------------------------------------------------------------------------
Class A 43,972,212 98,990,509 (225,955,886) (82,993,165)
Class B 6,351,542 16,421,985 (65,543,343) (42,769,816)
Class C 430,927 611,708 (1,682,294) (639,659)
Class I 2,016,152 1,585,654 (6,198,548) (2,596,742)
Class R4 6,389,837 6,289,817 (27,462,232) (14,782,578)
Class R5 -- -- (4,152,231) (4,152,231)
- ----------------------------------------------------------------------------------
</Table>
5. LENDING OF PORTFOLIO SECURITIES
Effective Dec. 1, 2008, the Fund has entered into a Master Securities Lending
Agreement ("the Agreement") with JPMorgan Chase Bank, National Association
("JPMorgan"). The Agreement authorizes JPMorgan as lending agent to lend
securities to authorized borrowers on behalf of the Fund. Pursuant to the
Agreement, all loaned securities are initially collateralized in an amount
equivalent to 102% (for securities denominated in U.S. dollars) or 105% (for all
other securities) of the value of the loaned securities, including accrued
interest in the case of fixed income securities. Collateral is maintained over
the life of the loan thereafter in an amount not less than 100% of the market
value of loaned
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 49
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
securities, as determined at the close of each business day, except to the
extent that a collateral shortfall is due to a diminution in the market value of
authorized investments in which cash collateral is invested. Any additional
collateral required to maintain those levels due to market fluctuations of the
loaned securities is delivered the following business day. Collateral is either
in the form of cash or U.S. government securities. Cash collateral received is
invested by the lending agent on behalf of the Fund into authorized investments
pursuant to the Agreement. The investments made with the cash collateral are
listed on the Portfolio of Investments and the value of cash collateral received
at period end is disclosed on the Statement of Assets and Liabilities along with
the related obligation to return the collateral upon return of the securities
loaned. At Jan. 31, 2009, securities valued at $190,109,786 were on loan secured
by cash collateral of $203,391,339 invested in short-term securities or cash
equivalents.
Pursuant to the Agreement, the Fund receives income for lending its securities
either in the form of fees or by earning interest on invested cash collateral,
net of negotiated rebates paid to borrowers and fees paid to the lending agent
for services provided and any other securities lending expenses. Income of
$98,787 earned from securities lending from Dec. 1, 2008 through Jan. 31, 2009
is included in the Statement of Operations. The Fund also continues to earn
interest and dividends on the securities loaned.
Risks of delay in recovery of securities or even loss of rights in the
securities may occur should the borrower of the securities fail financially.
Risks may also arise to the extent that the value of the securities loaned
increases above the value of the collateral received. JPMorgan will indemnify
the Fund from losses resulting from a borrower's failure to return a loaned
security when due. Such indemnification does not extend to losses associated
with declines in the value of cash collateral investments. Loans are subject to
termination by the Funds or the borrower at any time, and are, therefore, not
considered to be illiquid investments.
Prior to Dec. 1, 2008, RiverSource Investments, LLC served as securities lending
agent for the Fund under the Securities Lending Agency Agreement pursuant to
which the Fund agreed to reimburse RiverSource Investments, LLC for expenses
incurred by it in connection with the lending program. Expenses paid to
RiverSource Investments, LLC as securities lending agent were $8,577 through
Nov. 30, 2008 and are included in other expenses on the Statement of Operations.
Cash collateral received on loaned securities had been invested in an affiliated
money market fund. Income of $81,290 earned from securities lending from Aug. 1,
2008 through Nov. 30, 2008 is included in the Statement of Operations.
- --------------------------------------------------------------------------------
50 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
6. OPTIONS CONTRACTS WRITTEN
Contracts and premiums associated with options contracts written during the six
months ended Jan. 31, 2009, are as follows:
<Table>
<Caption>
PUTS CALLS
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
- ---------------------------------------------------------------------------
Balance July 31, 2008 3,427 $ 2,454,994 16,411 $ 1,328,757
Opened 21,362 4,207,566 75,902 6,191,236
Closed (24,789) (6,662,560) (44,412) (5,545,057)
Expired -- -- (47,901) (1,974,936)
- ---------------------------------------------------------------------------
Balance Jan. 31, 2009 -- $ -- -- $ --
- ---------------------------------------------------------------------------
</Table>
7. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments. The cost of the
Fund's purchases and proceeds from sales of shares of the RiverSource Short-Term
Cash fund aggregated $869,988,866 and $928,435,784, respectively, for the six
months ended Jan. 31, 2009. The income distributions received with respect to
the Fund's investment in RiverSource Short-Term Cash Fund can be found in the
Statement of Operations and the Fund's invested balance in RiverSource Short-
Term Cash Fund at Jan. 31, 2009, can be found in the Portfolio of Investments.
8. BANK BORROWINGS
The Fund has entered into a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund
may borrow for the temporary funding of shareholder redemptions or for other
temporary or emergency purposes. The credit facility became effective on Oct.
16, 2008, 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 $475
million. The borrowers shall have the right, upon written notice to the
Administrative Agent to request an increase of up to $175 million in the
aggregate amount of the credit facility from new or existing lenders, provided
that the aggregate amount of the credit facility shall at no time exceed $650
million. Participation in such increase by any existing lender shall be at such
lender's sole discretion. Interest is charged to each Fund based on its
borrowings at a rate equal to the federal funds rate plus 0.75%. Each borrowing
under the credit facility matures no later than 60 days after the date of
borrowing. The Fund also pays a
- --------------------------------------------------------------------------------
RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 51
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
commitment fee equal to its pro rata share of the amount of the credit facility
at a rate of 0.06% per annum, in addition to an upfront fee equal to its pro
rata share of 0.02% of the amount of the credit facility. The Fund had no
borrowings during the six months ended Jan. 31, 2009.
Under the prior credit facility which was effective until Oct. 15, 2008, the
Fund had entered into a revolving credit facility with a syndicate of banks
headed by JPMorgan Chase Bank, N.A., whereby the Fund was permitted to borrow
for the temporary funding of shareholder redemptions or for other temporary or
emergency purposes. The credit facility agreement, which was a collective
agreement between the Fund and certain other RiverSource funds, severally and
not jointly, permitted collective borrowings up to $500 million. Interest was
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 matured no later
than 60 days after the date of borrowing. The Fund also paid a commitment fee
equal to its pro rata share of the amount of the credit facility at a rate of
0.06% per annum.
9. CAPITAL LOSS CARRY-OVER AND POST-OCTOBER LOSS
For federal income tax purposes, the Fund had a capital loss carry-over of
$91,172,850 at July 31, 2008, that if not offset by capital gains will expire as
follows:
<Table>
<Caption>
2009 2010 2011
$60,717,128 $20,982,455 $9,473,267
</Table>
Because the measurement periods for a regulated investment company's income are
different for excise tax purposes versus income tax purposes, special rules are
in place to protect the amount of earnings and profits needed to support excise
tax distributions. As a result, the Fund is permitted to treat net capital
losses realized between Nov. 1, 2007 and its fiscal year end ("post-October
loss") as occurring on the first day of the following tax year. At July 31,
2008, the Fund had a post-October loss of $143,836,621 that is treated for
income tax purposes as occurring on Aug. 1, 2008.
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
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52 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
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10. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc., was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company mutual funds and
they purport to bring the action derivatively on behalf of those funds under the
Investment Company Act of 1940. The plaintiffs allege that fees allegedly paid
to the defendants by the funds for investment advisory and administrative
services are excessive. The plaintiffs seek remedies including restitution and
rescission of investment advisory and distribution agreements. The plaintiffs
voluntarily agreed to transfer this case to the United States District Court for
the District of Minnesota. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007. 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.
On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise
Financial, Inc., acquired J. & W. Seligman & Co., Inc. (Seligman). In late 2003,
Seligman conducted an extensive internal review concerning mutual fund trading
practices. Seligman's review, which covered the period 2001-2003, noted one
arrangement that permitted frequent trading in certain open-end registered
investment companies managed by Seligman (the Seligman Funds);
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RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 53
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
this arrangement was in the process of being closed down by Seligman before
September 2003. Seligman identified three other arrangements that permitted
frequent trading, all of which had been terminated by September 2002. In January
2004, Seligman, on a voluntary basis, publicly disclosed these four arrangements
to its clients and to shareholders of the Seligman Funds. Seligman also provided
information concerning mutual fund trading practices to the SEC and the Office
of the Attorney General of the State of New York (NYAG). In September 2005, the
New York staff of the SEC indicated that it was considering recommending to the
Commissioners of the SEC the instituting of a formal action against Seligman and
the distributor of the Seligman Funds, Seligman Advisors, Inc. (which is now
know as RiverSource Fund Distributors, Inc.), relating to frequent trading in
the Seligman Funds. Seligman responded to the staff in October 2005 that it
believed that any action would be both inappropriate and unnecessary, especially
in light of the fact that Seligman had previously resolved the underlying issue
with the Independent Directors of the Seligman Funds and made recompense to the
affected Seligman Funds.
In September 2006, the NYAG commenced a civil action in New York State Supreme
Court against Seligman, Seligman Advisors, Inc., Seligman Data Corp. and Brian
T. Zino (collectively, the Seligman Parties), alleging, in substance, that the
Seligman Parties permitted various persons to engage in frequent trading and, as
a result, the prospectus disclosure used by the registered investment companies
then managed by Seligman is and has been misleading. The NYAG included other
related claims and also claimed that the fees charged by Seligman to the
Seligman Funds were excessive. On March 13, 2009, without admitting or denying
any violations of law or wrongdoing, the Seligman Parties entered into a
stipulation of settlement with the NYAG and settled the claims made by the NYAG.
Under the terms of the settlement, Seligman will pay $11.3 million to four
Seligman Funds. This settlement resolved all outstanding matters between the
Seligman Parties and the NYAG. In addition to the foregoing matter, the New York
staff of the SEC indicated in September 2005 that it was considering
recommending to the Commissioners of the SEC the instituting of a formal action
against Seligman and Seligman Advisors, Inc. relating to frequent trading in the
Seligman Funds. Seligman responded to the staff in October 2005 that it believed
that any action would be both inappropriate and unnecessary, especially in light
of the fact that Seligman had previously resolved the underlying issue with the
Independent Directors of the Seligman Funds and made recompense to the affected
Seligman Funds. There have been no further developments with the SEC on this
matter.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine
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54 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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.
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RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT 55
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.
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56 RIVERSOURCE LARGE CAP EQUITY FUND -- 2009 SEMIANNUAL REPORT
NOTES --------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT
THROUGH THE RIVERSOURCE INVESTMENTS FAMILY OF FUNDS, YOU CAN BUILD A DIVERSIFIED
PORTFOLIO THAT IS DESIGNED TO HELP YOU REACH YOUR GOALS.
<Table>
ADVANCED ALPHA(SM) STRATEGIES
RiverSource 120/20 Contrarian Equity Fund
RiverSource Absolute Return Currency and Income Fund
Threadneedle Global Extended Alpha Fund
ADVICE-BUILT(SM) SOLUTIONS
RIVERSOURCE INCOME BUILDER SERIES
RiverSource Income Builder Basic Income Fund
RiverSource Income Builder Enhanced Income Fund
RiverSource Income Builder Moderate Income Fund
RIVERSOURCE PORTFOLIO BUILDER SERIES
RiverSource Portfolio Builder Aggressive Fund
RiverSource Portfolio Builder Conservative Fund
RiverSource Portfolio Builder Moderate Fund
RiverSource Portfolio Builder Moderate Aggressive Fund
RiverSource Portfolio Builder Moderate Conservative Fund
RiverSource Portfolio Builder Total Equity Fund
RIVERSOURCE RETIREMENT PLUS(R) SERIES
RiverSource Retirement Plus 2010 Fund
RiverSource Retirement Plus 2015 Fund
RiverSource Retirement Plus 2020 Fund
RiverSource Retirement Plus 2025 Fund
RiverSource Retirement Plus 2030 Fund
RiverSource Retirement Plus 2035 Fund
RiverSource Retirement Plus 2040 Fund
RiverSource Retirement Plus 2045 Fund
RIVERSOURCE STRATEGIC ALLOCATION FUND
RIVERSOURCE BALANCED FUND
SINGLE-STRATEGY FUNDS
GROWTH FUNDS
RiverSource Partners Aggressive Growth Fund
RiverSource Disciplined Large Cap Growth Fund
RiverSource Global Technology Fund
RiverSource Growth Fund
RiverSource Mid Cap Growth Fund
RiverSource Partners Small Cap Growth Fund
BLEND FUNDS
RiverSource Disciplined Equity Fund
RiverSource Disciplined Small and Mid Cap Equity Fund
RiverSource Large Cap Equity Fund
RiverSource Precious Metals and Mining Fund
RiverSource Recovery and Infrastructure Fund
RiverSource S&P 500 Index Fund*
RiverSource Small Cap Advantage Fund
RiverSource Partners Small Cap Equity Fund
RiverSource Small Company Index Fund
VALUE FUNDS
RiverSource Disciplined Large Cap Value Fund
RiverSource Disciplined Small Cap Value Fund
RiverSource Diversified Equity Income Fund
RiverSource Dividend Opportunity Fund
RiverSource Equity Value Fund
RiverSource Partners Fundamental Value Fund
RiverSource Large Cap Value Fund
RiverSource Mid Cap Value Fund
RiverSource Real Estate Fund
RiverSource Partners Select Value Fund
RiverSource Partners Small Cap Value Fund
GLOBAL/INTERNATIONAL FUNDS
RiverSource Disciplined International Equity Fund
Threadneedle Emerging Markets Fund
Threadneedle European Equity Fund
Threadneedle Global Equity Fund
Threadneedle Global Equity Income Fund
RiverSource Partners International Select Growth Fund
Threadneedle International Opportunity Fund
RiverSource Partners International Select Value Fund
RiverSource Partners International Small Cap Fund
</Table>
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THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT
<Table>
TAXABLE INCOME FUNDS
RiverSource Cash Management Fund**
RiverSource Diversified Bond Fund
RiverSource Emerging Markets Bond Fund
RiverSource Floating Rate Fund
RiverSource Global Bond Fund
RiverSource High Yield Bond Fund
RiverSource Income Opportunities Fund
RiverSource Inflation Protected Securities Fund
RiverSource Limited Duration Bond Fund
RiverSource Short Duration U.S. Government Fund
RiverSource Strategic Income Allocation Fund
RiverSource U.S. Government Mortgage Fund
TAX-EXEMPT FUNDS
RiverSource California Tax-Exempt Fund
RiverSource Intermediate Tax-Exempt Fund
RiverSource Minnesota Tax-Exempt Fund
RiverSource New York Tax-Exempt Fund
RiverSource Tax-Exempt Bond Fund
RiverSource Tax-Exempt High Income Fund
RiverSource Tax-Exempt Money Market Fund**
</Table>
You should consider the investment objectives, risks, charges and expenses of a
mutual fund carefully before investing. For a free prospectus of any of the
funds listed above, which contains this and other important information about
the funds, contact your financial institution or visit riversource.com/funds.
Read the prospectus carefully before investing.
Investment products, including shares of mutual funds, involve risks including
possible loss of principal and fluctuation in value. Investing in certain funds
involves special risks, such as those related to investments in foreign
securities, small- and mid-capitalization stocks, fixed income securities
(especially high-yield securities), and funds which focus their investments in a
particular sector, such as real estate, technology and precious metals. See each
fund's prospectus for specific risks associated with the fund.
* "Standard & Poors(R)," "S&P," "S&P 500(R)," and "Standard & Poor's 500(R)"
are trademarks of the McGraw-Hill Companies, Inc. These trademarks have been
licensed for use by Ameriprise Financial, Inc. The fund is not sponsored,
endorsed, sold or promoted by Standard & Poor's or any of their subsidiaries
or affiliates (the "Licensors") and the Licensors make no representation
regarding the advisability of investing in the fund.
** AN INVESTMENT IN MONEY MARKET FUNDS 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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THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT
RIVERSOURCE LARGE CAP EQUITY FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus. RiverSource(R) mutual funds are
distributed by RiverSource Distributors, Inc., and
RiverSource Fund Distributors, Inc., Members FINRA, and
managed by RiverSource Investments, LLC. RiverSource is part
of Ameriprise Financial, Inc.
(RIVERSOURCE INVESTMENTS LOGO) (C) 2009 RiverSource Investments, LLC. S-6255 H (4/09)
</Table>