UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-2591
RIVERSOURCE MONEY MARKET SERIES, INC.
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-1947
Date of fiscal year end: 7/31
Date of reporting period: 1/31
Semiannual Report
(RIVERSOURCE INVESTMENTS LOGO)
RIVERSOURCE
CASH MANAGEMENT FUND
SEMIANNUAL REPORT FOR
THE PERIOD ENDED
JANUARY 31, 2009
RIVERSOURCE CASH MANAGEMENT FUND SEEKS TO PROVIDE
SHAREHOLDERS WITH MAXIMUM CURRENT INCOME CONSISTENT
WITH LIQUIDITY AND STABILITY OF PRINCIPAL.
(SINGLE STRATEGY FUNDS ICON)
TABLE OF CONTENTS --------------------------------------------------------------
<Table>
Your Fund at a Glance.............. 2
Fund Expenses Example.............. 5
Portfolio of Investments........... 7
Statement of Assets and
Liabilities...................... 13
Statement of Operations............ 14
Statements of Changes in Net
Assets........................... 15
Financial Highlights............... 17
Notes to Financial Statements...... 24
Proxy Voting....................... 36
</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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 1
YOUR FUND AT A GLANCE ----------------------------------------------------------
(UNAUDITED)
FUND SUMMARY
- --------------------------------------------------------------------------------
> RiverSource Cash Management Fund (the Fund) Class A shares advanced 0.75% for
the semiannual period.
> The Fund's annualized simple yield was 0.18% and its annualized compound yield
was also 0.18% for the seven-day period ended Jan. 31, 2009. The 7-day yields
reflect more closely the earnings of the Fund than the total return. Short-
term yields may be higher or lower than the figures shown.
ANNUALIZED TOTAL RETURNS (for period ended Jan. 31, 2009)
- --------------------------------------------------------------------------------
<Table>
<Caption>
6 months* 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------
RiverSource Cash Management
Fund Class A +0.75% +1.93% +3.74% +2.93% +3.05%
- ----------------------------------------------------------------------------
</Table>
* Not annualized.
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 performance information shown represents past performance and is not a
guarantee of future results. The investment return and principal value of your
investment will fluctuate so that your shares, when redeemed, may be worth more
or less than their original cost. Current performance may be lower or higher
than the performance information shown. You may obtain performance information
current to the most recent month-end by contacting your financial institution or
visiting riversource.com/funds.
THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
- --------------------------------------------------------------------------------
2 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
- --------------------------------------------------------------------------------
<Table>
<Caption>
AT JAN. 31, 2009
SINCE
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION**
Class A (inception
10/6/75) +0.75% +1.93% +3.74% +2.93% +3.05% N/A
- ------------------------------------------------------------------------------------
Class B (inception
3/20/95) +0.45% +1.29% +3.07% +2.30% +2.39% N/A
- ------------------------------------------------------------------------------------
Class C (inception
6/26/00) +0.45% +1.30% +3.08% +2.31% N/A +2.11%
- ------------------------------------------------------------------------------------
Class I (inception
3/4/04) +0.90% +2.22% +4.05% N/A N/A +3.32%
- ------------------------------------------------------------------------------------
Class R5 (inception
12/11/06) +0.87% +2.15% N/A N/A N/A +3.66%
- ------------------------------------------------------------------------------------
Class W (inception
12/1/06) +0.75% +1.92% N/A N/A N/A +3.41%
- ------------------------------------------------------------------------------------
Class Y (inception
3/20/95) +0.80% +2.02% +3.84% +3.05% +3.13% N/A
- ------------------------------------------------------------------------------------
With sales charge
Class B (inception
3/20/95) -4.55% -3.71% +1.80% +1.93% +2.39% N/A
- ------------------------------------------------------------------------------------
Class C (inception
6/26/00) -0.55% +0.30% +3.08% +2.31% N/A +2.11%
- ------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
AT DEC. 31, 2008
SINCE
Without sales charge 6 MONTHS* 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION**
Class A (inception
10/6/75) +0.89% +2.26% +3.84% +2.93% +3.09% N/A
- ------------------------------------------------------------------------------------
Class B (inception
3/20/95) +0.56% +1.59% +3.15% +2.30% +2.42% N/A
- ------------------------------------------------------------------------------------
Class C (inception
6/26/00) +0.57% +1.61% +3.16% +2.31% N/A +2.13%
- ------------------------------------------------------------------------------------
Class I (inception
3/4/04) +1.04% +2.55% +4.15% N/A N/A +3.37%
- ------------------------------------------------------------------------------------
Class R5 (inception
12/11/06) +1.00% +2.47% N/A N/A N/A +3.79%
- ------------------------------------------------------------------------------------
Class W (inception
12/1/06) +0.88% +2.25% N/A N/A N/A +3.53%
- ------------------------------------------------------------------------------------
Class Y (inception
3/20/95) +0.93% +2.34% +3.94% +3.04% +3.16% N/A
- ------------------------------------------------------------------------------------
With sales charge
Class B (inception
3/20/95) -4.44% -3.41% +1.89% +1.93% +2.42% N/A
- ------------------------------------------------------------------------------------
Class C (inception
6/26/00) -0.43% +0.61% +3.16% +2.31% N/A +2.13%
- ------------------------------------------------------------------------------------
</Table>
Sales charges do not apply to Class A, Class I, Class R5, Class W and Class Y
shares. Class B share performance reflects a contingent deferred sales charge
(CDSC) applied as follows: first year 5%; second and third years 4%; fourth year
3%; fifth year 2%; sixth year 1%; no sales charge thereafter. Class C shares may
be subject to a 1% CDSC if shares are sold within one year after purchase. Class
I, Class R5 and Class Y are available to institutional investors only. Class W
shares are offered through qualifying discretionary accounts.
*Not annualized.
**For classes with less than 10 years performance.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 3
YOUR FUND AT A GLANCE (continued) ----------------------------------------------
STYLE MATRIX
- --------------------------------------------------------------------------------
LOGO
<Table>
<Caption>
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
</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.
PORTFOLIO STATISTICS
- --------------------------------------------------------------------------------
<Table>
Weighted average
maturity(1) 35 days
- ------------------------------------
</Table>
ANNUAL OPERATING EXPENSE RATIO
(as of the current prospectus)
- --------------------------------------------------------------------------------
<Table>
<Caption>
Total fund Net fund
expenses expenses(a)
- -----------------------------------------
Class A 0.65% 0.65%
- -----------------------------------------
Class B 1.40% 1.30%
- -----------------------------------------
Class C 1.30% 1.30%
- -----------------------------------------
Class I 0.37% 0.37%
- -----------------------------------------
Class R5 0.41% 0.41%
- -----------------------------------------
Class W 0.67% 0.67%
- -----------------------------------------
Class Y 0.57% 0.57%
- -----------------------------------------
</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
will not exceed 0.66% for Class A, 1.32% for Class B, 1.31% for Class C,
0.43% for Class I, 0.48% for Class R5, 0.73% for Class W and 0.63% for Class
Y.
(1) WEIGHTED AVERAGE MATURITY is the amount of time remaining before securities
are due and principal must be repaid.
PORTFOLIO COMPOSITION (at Jan. 31, 2009; % of portfolio assets)
- ---------------------------------------------------------------------
<Table>
<Caption>
Certificates of Deposit 9.9%
- ------------------------------------------------
Commercial Paper 40.3%
- ------------------------------------------------
FDIC-Insured Debt* 1.7%
- ------------------------------------------------
Floating Rate Notes 5.4%
- ------------------------------------------------
U.S. Government Agencies 42.7%
- ------------------------------------------------
</Table>
* Debt guaranteed under the FDIC's Temporary Liquidity Guarantee Program
(TLGP).
- --------------------------------------------------------------------------------
4 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
FUND EXPENSES EXAMPLE ----------------------------------------------------------
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads); and (2) ongoing costs, which may include
management fees; distribution and service (12b-1) fees; and other Fund fees and
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the six months ended Jan. 31, 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.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 5
FUND EXPENSES EXAMPLE (continued) ----------------------------------------------
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
AUG. 1, 2008 JAN. 31, 2009 THE PERIOD(A) EXPENSE RATIO
- ------------------------------------------------------------------------------------------
Class A
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,007.50 $3.57 .71%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.51 $3.60 .71%
- ------------------------------------------------------------------------------------------
Class B
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,004.50 $6.63 1.32%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.45 $6.68 1.32%
- ------------------------------------------------------------------------------------------
Class C
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,004.50 $6.58 1.31%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,018.50 $6.63 1.31%
- ------------------------------------------------------------------------------------------
Class I
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,009.00 $2.12 .42%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.96 $2.13 .42%
- ------------------------------------------------------------------------------------------
Class R5
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,008.70 $2.52 .50%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,022.56 $2.54 .50%
- ------------------------------------------------------------------------------------------
Class W
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,007.50 $3.57 .71%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.51 $3.60 .71%
- ------------------------------------------------------------------------------------------
Class Y
- ------------------------------------------------------------------------------------------
Actual(b) $1,000 $1,008.00 $3.12 .62%
- ------------------------------------------------------------------------------------------
Hypothetical
(5% return before expenses) $1,000 $1,021.96 $3.14 .62%
- ------------------------------------------------------------------------------------------
</Table>
(a) Expenses are equal to the Fund's annualized expense ratio as indicated
above, multiplied by the average account value over the period, multiplied
by 183/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Jan. 31, 2009: +0.75%
for Class A, +0.45% for Class B, +0.45% for Class C, +0.90% for Class I,
+0.87% for Class R5, +0.75% for Class W and +0.80% for Class Y.
- --------------------------------------------------------------------------------
6 RIVERSOURCE CASH MANAGEMENT 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>
U.S. GOVERNMENT AGENCIES (42.6%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Federal Home Loan Bank Disc Nts
02-04-09 1.83% $35,000,000 $34,991,250
02-05-09 0.03 75,000,000 74,999,583
02-12-09 0.05 40,000,000 39,999,333
02-17-09 0.16 45,600,000 45,596,339
02-18-09 0.96 38,000,000 37,981,000
02-19-09 0.17 40,000,000 39,996,200
02-23-09 0.19 35,000,000 34,995,528
02-24-09 0.20 35,000,000 34,995,287
02-27-09 0.20 55,000,000 54,991,750
03-05-09 0.22 35,000,000 34,992,942
03-10-09 0.25 35,000,000 34,990,764
03-12-09 0.15 22,000,000 21,996,333
03-18-09 0.25 35,000,000 34,988,819
04-08-09 0.18 35,000,000 34,988,275
04-13-09 0.35 57,000,000 56,960,100
04-14-09 0.19 35,000,000 34,986,515
04-17-09 0.26 10,900,000 10,894,017
04-20-09 0.20 35,000,000 34,984,639
07-07-09 0.57 75,000,000(b) 75,000,000
Federal Home Loan Mtge Corp Disc Nts
02-09-09 0.82 30,000,000 29,993,250
02-10-09 0.83 14,800,000 14,796,300
02-17-09 2.09 255,300,000 255,037,762
03-02-09 1.34 95,000,000 94,891,875
03-03-09 1.97 41,000,000 40,929,389
03-06-09 1.04 40,000,000 39,959,578
03-09-09 0.15 22,000,000 21,996,586
03-10-09 1.93 65,000,000 64,866,219
03-11-09 0.89 75,000,000 74,926,875
03-12-09 1.14 29,400,000 29,362,466
03-16-09 2.64 40,000,000 39,870,444
03-19-09 1.39 35,000,000 34,936,028
04-13-09 0.20 63,000,000 62,974,380
04-27-09 1.16 90,000,000(b) 90,000,000
Federal Natl Mtge Assn Disc Nts
02-02-09 0.71 50,000,000 49,997,083
03-19-09 1.19 5,000,000 4,992,167
03-23-09 1.30 34,200,000 34,137,015
03-27-09 0.15 35,000,000 34,991,979
04-01-09 0.16 28,000,000 27,992,533
04-15-09 1.29 75,000,000 74,799,583
10-26-09 0.78 40,000,000 39,770,711
- -------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost: $1,934,550,897) $1,934,550,897
- -------------------------------------------------------------------------------------
<Caption>
FDIC-INSURED DEBT (1.7%)(f)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
General Electric Capital
FDIC Govt Guaranty
03-17-09 1.89% $35,000,000 $34,916,876
Goldman Sachs Group
FDIC Govt Guaranty
12-17-09 2.00 40,000,000(b) 40,000,000
- -------------------------------------------------------------------------------------
TOTAL FDIC-INSURED
(Cost: $74,916,876) $74,916,876
- -------------------------------------------------------------------------------------
<Caption>
CERTIFICATES OF DEPOSIT (9.9%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of America
02-09-09 1.89% $40,000,000 $40,000,000
02-11-09 1.74 40,000,000 40,000,000
Barclays Bank
05-27-09 2.52 40,000,000(b) 40,000,000
05-28-09 2.62 38,000,000(b) 38,000,000
Chase Bank USA
02-18-09 1.74 20,000,000 20,000,000
02-19-09 1.74 48,000,000 48,000,000
03-30-09 0.40 25,000,000 25,000,000
04-02-09 0.40 79,100,000 79,100,000
04-06-09 0.40 10,000,000 10,000,000
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 7
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
<Table>
<Caption>
CERTIFICATES OF DEPOSIT (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Citibank
02-09-09 0.25% $60,000,000 $60,000,000
02-20-09 0.30 50,000,000 50,000,000
- -------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost: $450,100,000) $450,100,000
- -------------------------------------------------------------------------------------
<Caption>
FLOATING RATE NOTES (5.4%)(b)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
Bank of America
07-30-09 1.37% $35,000,000 $35,000,000
General Electric Capital
09-24-09 0.42 10,000,000 10,000,000
HSBC USA
08-14-09 2.53 40,000,000 40,000,000
New York Life Global Funding
09-04-09 2.31 50,000,000 50,000,000
US Bank
08-19-09 2.30 60,000,000 60,000,000
09-10-09 2.29 32,000,000 32,000,000
Wells Fargo & Co
09-03-09 0.50 20,000,000 20,000,000
- -------------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost: $247,000,000) $247,000,000
- -------------------------------------------------------------------------------------
<Caption>
COMMERCIAL PAPER (40.3%)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
ASSET-BACKED (21.7%)
Amsterdam Funding
04-06-09 0.50% $60,000,000(c) $59,945,832
04-07-09 0.50 35,000,000(c) 34,967,917
04-16-09 0.50 35,000,000(c) 34,963,542
Bryant Park Funding LLC
02-06-09 0.26 35,000,000(c) 34,998,250
02-12-09 0.23 25,000,000(c) 24,997,917
04-01-09 0.50 20,000,000(c) 19,983,333
Chariot Funding LLC
02-13-09 0.24 25,000,000(c) 24,997,743
Enterprise Funding LLC
04-14-09 0.52 25,000,000(c) 24,973,639
Falcon Asset Securitization LLC
02-02-09 1.01 40,000,000(c) 39,996,667
Jupiter Securitization LLC
02-03-09 0.19 20,000,000(c) 19,999,583
02-10-09 0.23 13,600,000(c) 13,599,056
03-02-09 0.44 35,000,000(c) 34,986,875
Kitty Hawk Funding
02-18-09 0.72 45,500,000(c) 45,483,038
03-19-09 0.75 35,000,000(c) 34,965,729
04-23-09 0.62 30,000,000(c) 29,957,633
Old Line Funding LLC
03-04-09 0.49 35,000,000(c) 34,984,444
Park Avenue Receivables LLC
02-02-09 0.98 35,000,000(c) 34,997,181
Ranger Funding LLC
03-05-09 0.49 33,309,000(c) 33,293,733
04-14-09 0.50 35,000,000(c) 34,964,514
Salisbury Receivables LLC
02-03-09 0.19 20,000,000(c) 19,999,583
02-04-09 0.20 34,800,000(c) 34,799,033
02-12-09 0.23 25,000,000(c) 24,997,917
02-13-09 0.33 35,000,000(c) 34,995,576
Sheffield Receivables
02-10-09 1.48 25,000,000(c) 24,988,889
02-19-09 0.48 35,000,000(c) 34,990,764
Thunder Bay Funding LLC
02-04-09 0.24 28,700,000(c) 28,699,043
02-11-09 0.83 43,000,000(c) 42,988,282
04-03-09 0.55 32,000,000(c) 31,969,689
04-06-09 0.50 35,000,000(c) 34,968,403
WhistleJacket Capital LLC
02-25-08 3.12 26,922,459(b,d,e) 26,922,459
03-20-08 2.50 30,765,766(b,d,e) 30,765,766
---------------
Total 988,142,030
- -------------------------------------------------------------------------------------
BANKING (10.6%)
Bank of America
02-02-09 0.20 22,000,000 21,999,633
02-11-09 0.33 12,000,000 11,998,680
</Table>
See accompanying Notes to Portfolio of Investments.
- --------------------------------------------------------------------------------
8 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
<Table>
<Caption>
COMMERCIAL PAPER (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
BANKING (CONT.)
02-12-09 1.59% $10,700,000 $10,693,937
02-20-09 0.39 20,000,000 19,995,556
Bank of Scotland
02-13-09 0.31 31,700,000 31,696,222
HSBC Finance
02-06-09 0.26 100,500,000 100,494,974
02-09-09 0.25 45,000,000 44,996,400
02-12-09 0.23 33,100,000 33,097,242
Rabobank USA Financial
02-03-09 0.11 32,800,000 32,799,590
Royal Bank of Scotland
02-03-09 0.21 48,200,000 48,198,916
02-06-09 0.26 70,000,000 69,996,500
02-10-09 0.23 35,000,000 34,997,569
02-17-09 0.48 20,000,000 19,995,278
---------------
Total 480,960,497
- -------------------------------------------------------------------------------------
CONSUMER PRODUCTS (2.4%)
Procter & Gamble
02-05-09 0.13 68,000,000(c) 67,998,584
03-06-09 0.20 40,000,000(c) 39,992,444
---------------
Total 107,991,028
- -------------------------------------------------------------------------------------
ELECTRIC (1.6%)
FPL Fuels
02-25-09 0.34 40,000,000 39,990,278
02-26-09 0.34 31,000,000 30,992,164
---------------
Total 70,982,442
- -------------------------------------------------------------------------------------
NON CAPTIVE DIVERSIFIED (2.3%)
General Electric Capital
02-13-09 0.24 21,000,000 20,998,104
General Electric Capital Services
02-10-09 0.46 20,000,000 19,997,222
02-13-09 0.22 33,000,000 32,997,259
03-03-09 0.29 32,000,000 31,991,733
---------------
Total 105,984,318
- -------------------------------------------------------------------------------------
OTHER FINANCIAL INSTITUTIONS (0.8%)
Southern Company Funding
02-04-09 0.16 15,000,000(c) 14,999,667
02-09-09 0.18 20,000,000(c) 19,999,000
---------------
Total 34,998,667
- -------------------------------------------------------------------------------------
WIRELINES (0.9%)
AT&T
02-03-09 0.17 26,500,000(c) 26,499,492
03-02-09 0.20 13,700,000(c) 13,697,717
---------------
Total 40,197,209
- -------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $1,829,256,191) $1,829,256,191
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $4,535,823,964)(g) $4,535,823,964
=====================================================================================
</Table>
NOTES TO PORTFOLIO OF INVESTMENTS
(a) Securities are valued by using procedures described in Note 1 to the
financial statements.
(b) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on Jan. 31,
2009. The maturity date disclosed represents the final maturity. For
purposes of Rule 2a-7, maturity is the later of the next put or interest
rate reset date.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 9
PORTFOLIO OF INVESTMENTS (continued) -------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
(c) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid
under guidelines established by the Fund's Board of Directors. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At Jan. 31, 2009, the value of these
securities amounted to $1,113,640,709 or 24.5% of net assets.
(d) Denotes investments in structured investment vehicles ("SIVs"). See Note 5
to the financial statements.
(e) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). Information concerning such security
holdings at Jan. 31, 2009, is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
-----------------------------------------------------------------
WhistleJacket Capital LLC
2.50% Commercial Paper 2008 03-16-07 $30,765,766
WhistleJacket Capital LLC
3.12% Commercial Paper 2008 03-23-07 26,922,459
</Table>
(f) This debt is guaranteed under the FDIC's Temporary Liquidity Guarantee
Program (TLGP) and is backed by the full faith and credit of the United
States.
(g) Also represents the cost of securities for federal income tax purposes at
Jan. 31, 2009.
- --------------------------------------------------------------------------------
10 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 $-- $4,535,823,964 $-- $4,535,823,964
</Table>
Short-term securities are valued using amortized cost, as permitted under Rule
2a-7 of the Investment Company Act of 1940. Generally, amortized cost
approximates the current fair value of these securities, but because the value
is not obtained from a quoted price in an active market, such securities are
reflected as Level 2.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 11
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.
- --------------------------------------------------------------------------------
12 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES -------------------------------------------
JAN. 31, 2009 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value (identified cost
$4,535,823,964) $4,535,823,964
Cash 353,627
Capital shares receivable 22,956,226
Accrued interest receivable 2,051,181
Prepaid expenses 693,702
- ---------------------------------------------------------------------------------
Total assets 4,561,878,700
- ---------------------------------------------------------------------------------
LIABILITIES
Dividends payable to shareholders 161,489
Capital shares payable 23,078,349
Accrued investment management services fees 35,754
Accrued distribution fees 14,578
Accrued transfer agency fees 24,562
Accrued administrative services fees 6,010
Accrued plan administration services fees 141
Other accrued expenses 336,468
- ---------------------------------------------------------------------------------
Total liabilities 23,657,351
- ---------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $4,538,221,349
- ---------------------------------------------------------------------------------
REPRESENTED BY
Capital stock -- $.01 par value $ 45,470,782
Additional paid-in capital 4,501,530,821
Excess of distributions over net investment income (265,224)
Accumulated net realized gain (loss) (8,515,030)
- ---------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding
capital stock $4,538,221,349
- ---------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NET ASSET VALUE PER SHARE
NET ASSETS SHARES OUTSTANDING NET ASSET VALUE PER SHARE
Class A $4,190,953,485 4,199,487,375 $1.00
Class B $ 129,157,152 129,332,965 $1.00
Class C $ 11,958,368 11,971,826 $1.00
Class I $ 113,565,686 113,646,912 $1.00
Class R5 $ 4,989 5,000 $1.00
Class W $ 58,311,967 58,345,326 $1.00
Class Y $ 34,269,702 34,288,839 $1.00
- -------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 13
STATEMENT OF OPERATIONS --------------------------------------------------------
SIX MONTHS ENDED JAN. 31, 2009 (UNAUDITED)
<Table>
<Caption>
INVESTMENT INCOME
Income:
Interest $ 52,640,683
- -------------------------------------------------------------------------------
Expenses:
Investment management services fees 6,830,844
Distribution fees
Class A 2,224,895
Class B 425,728
Class C 41,365
Class W 27,540
Transfer agency fees
Class A 4,279,875
Class B 114,705
Class C 10,881
Class R5 2
Class W 55,081
Class Y 8,659
Administrative services fees 1,143,825
Plan administration services fees -- Class Y 25,976
Compensation of board members 76,935
Custodian fees 220,500
Printing and postage 279,700
Registration fees 138,700
Professional fees 64,290
Temporary Guarantee Program participation fees 1,126,787
Other 38,272
- -------------------------------------------------------------------------------
Total expenses 17,134,560
Expenses waived/reimbursed by the Investment Manager and its
affiliates (33,089)
Earnings and bank fee credits on cash balances (104,225)
- -------------------------------------------------------------------------------
Total net expenses 16,997,246
- -------------------------------------------------------------------------------
Investment income (loss) -- net 35,643,437
- -------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (30,798,785)
Reimbursement from affiliate 30,374,589
- -------------------------------------------------------------------------------
Net realized gain (loss) on investments (424,196)
Net change in unrealized appreciation (depreciation) on
investments (550)
- -------------------------------------------------------------------------------
Net gain (loss) on investments (424,746)
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 35,218,691
- -------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
14 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2009 JULY 31, 2008
(UNAUDITED)
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 35,643,437 $ 184,140,829
Net realized gain (loss) on investments (424,196) (8,094,906)
Net change in unrealized appreciation (depreciation) on
investments (550) 550
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 35,218,691 176,046,473
- ----------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (33,687,932) (171,368,411)
Class B (465,107) (2,575,404)
Class C (45,670) (158,354)
Class I (1,030,060) (2,309,724)
Class R5 (43) (184)
Class W (394,506) (6,219,639)
Class Y (274,643) (1,519,813)
- ----------------------------------------------------------------------------------------------------
Total distributions (35,897,961) (184,151,529)
- ----------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 15
STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
JAN. 31, 2009 JULY 31, 2008
(UNAUDITED)
CAPITAL SHARE TRANSACTIONS AT CONSTANT $1 NET ASSET VALUE
Proceeds from sales
Class A shares $ 2,500,518,665 $ 6,261,111,060
Class B shares 98,248,626 149,043,654
Class C shares 10,924,877 11,406,548
Class I shares 84,143,907 69,619,538
Class W shares 30,289,007 262,346,697
Class Y shares 13,021,043 31,789,940
Reinvestment of distributions at net asset value
Class A shares 33,223,690 169,223,091
Class B shares 450,734 2,478,948
Class C shares 42,633 147,067
Class I shares 1,035,691 2,334,442
Class W shares 398,427 6,299,678
Class Y shares 278,554 1,548,457
Payments for redemptions
Class A shares (3,070,240,467) (6,356,977,383)
Class B shares (55,489,572) (141,125,181)
Class C shares (6,705,169) (7,446,382)
Class I shares (58,105,669) (34,549,208)
Class W shares (10,649,205) (350,166,325)
Class Y shares (12,309,990) (43,531,805)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (440,924,218) 33,552,836
- ----------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (441,603,488) 25,447,780
Net assets at beginning of period 4,979,824,837 4,954,377,057
- ----------------------------------------------------------------------------------------------------
Net assets at end of period $ 4,538,221,349 $ 4,979,824,837
- ----------------------------------------------------------------------------------------------------
Excess of distributions over net investment income $ (265,224) $ (10,700)
- ----------------------------------------------------------------------------------------------------
</Table>
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
16 RIVERSOURCE CASH MANAGEMENT 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 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .01(b) .03(b) .05(b) .04 .02
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (.01) (.03) (.05) (.04) (.02)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $4,191 $4,728 $4,662 $3,692 $3,054
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .71%(d) .65% .70% .83% .80%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(f) .71%(d) .65% .70% .75% .80%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.50%(d) 3.45% 4.65% 3.75% 1.58%
- --------------------------------------------------------------------------------------------------------------
Total return .75%(g),(h) 3.52% 4.80% 3.82%(i) 1.63%
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(f) 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 reduction for earnings and bank fee credits was 0.63% for the year
ended July 31, 2008.
(g) During the six months ended Jan. 31, 2009, the Fund received a reimbursement
from an affiliate. Had the Fund not received this reimbursement, the total
return would have been lower by 0.63%.
(h) Not annualized.
(i) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior years.
Had the Fund not received this payment, the total return would have been
lower by 0.06%.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 17
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(l) 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .00(b),(c) .03(b) .04(b) .03 .01
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income .00(c) (.03) (.04) (.03) (.01)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $129 $86 $76 $103 $129
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d) 1.37%(e) 1.30% 1.36% 1.49% 1.45%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f),(g) 1.32%(e) 1.30% 1.36% 1.40% 1.44%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) .80%(e) 2.70% 3.98% 3.05% .91%
- --------------------------------------------------------------------------------------------------------------
Total return(h) .45%(i),(j) 2.84% 4.11% 3.14%(k) .98%
- --------------------------------------------------------------------------------------------------------------
</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) Rounds to zero.
(d) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(g) 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 reduction for earnings and bank fee credits was 1.29% for the year
ended July 31, 2008.
(h) Total return does not reflect payment of a sales charge.
(i) During the six months ended Jan. 31, 2009, the Fund received a reimbursement
from an affiliate. Had the Fund not received this reimbursement, the total
return would have been lower by 0.63%.
(j) Not annualized.
(k) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior years.
Had the Fund not received this payment, the total return would have been
lower by 0.06%.
(l) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
18 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
Fiscal period ended July 31, 2009(l) 2008 2007 2006 2005
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .00(b),(c) .03(b) .04(b) .03 .01
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income .00(c) (.03) (.04) (.03) (.01)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $12 $8 $4 $3 $2
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d) 1.37%(e) 1.30% 1.36% 1.49% 1.45%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f),(g) 1.31%(e) 1.30% 1.36% 1.41% 1.44%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) .81%(e) 2.60% 4.00% 3.05% .91%
- --------------------------------------------------------------------------------------------------------------
Total return(h) .45%(i),(j) 2.85% 4.12% 3.14%(k) .98%
- --------------------------------------------------------------------------------------------------------------
</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) Rounds to zero.
(d) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(g) 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 reduction for earnings and bank fee credits was 1.29% for the year
ended July 31, 2008.
(h) Total return does not reflect payment of a sales charge.
(i) During the six months ended Jan. 31, 2009, the Fund received a reimbursement
from an affiliate. Had the Fund not received this reimbursement, the total
return would have been lower by 0.63%.
(j) Not annualized.
(k) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior years.
Had the Fund not received this payment, the total return would have been
lower by 0.06%.
(l) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 19
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS I
<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 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .01(b) .04(b) .05(b) .04 .02
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (.01) (.04) (.05) (.04) (.02)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $114 $87 $49 $63 $12
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .42%(d) .37% .38% .42% .39%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(f) .42%(d) .37% .38% .42% .39%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.74%(d) 3.55% 4.97% 4.42% 2.21%
- --------------------------------------------------------------------------------------------------------------
Total return .90%(g),(h) 3.81% 5.14% 4.16%(i) 2.04%
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(f) 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 reduction for earnings and bank fee credits was 0.36% for the year
ended July 31, 2008.
(g) During the six months ended Jan. 31, 2009, the Fund received a reimbursement
from an affiliate. Had the Fund not received this reimbursement, the total
return would have been lower by 0.63%.
(h) Not annualized.
(i) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior years.
Had the Fund not received this payment, the total return would have been
lower by 0.06%.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
20 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss)(c) .01 .04 .03
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (.01) (.04) (.03)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $-- $-- $--
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d) .50%(e) .41% .44%(e)
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f),(g) .50%(e) .41% .44%(e)
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.69%(e) 3.68% 4.90%(e)
- --------------------------------------------------------------------------------------------------------------
Total return .87%(h),(i) 3.75% 3.20%(i)
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) From the period from Dec. 11, 2006 (inception date) to July 31, 2007.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(g) Expense ratio is before reduction for earnings and bank fee credits on cash
balances. Earnings and bank fee credits were less than 0.01% of average net
assets for the six months ended Jan. 31, 2009 and for the year ended July
31, 2008.
(h) During the six months ended Jan. 31, 2009, the Fund received a reimbursement
from an affiliate. Had the Fund not received this reimbursement, the total
return would have been lower by 0.63%.
(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 CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 21
FINANCIAL HIGHLIGHTS (continued) -----------------------------------------------
CLASS W
<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 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss)(c) .01 .04 .03
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (.01) (.04) (.03)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $58 $38 $120
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(d) .71%(e) .67% .65%(e)
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(f),(g) .71%(e) .67% .65%(e)
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.42%(e) 4.05% 4.46%(e)
- --------------------------------------------------------------------------------------------------------------
Total return .75%(h),(i) 3.49% 3.13%(i)
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) From the period from Dec. 1, 2006 (inception date) to July 31, 2007.
(c) Per share amounts have been calculated using the average shares outstanding
method.
(d) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(e) Adjusted to an annual basis.
(f) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(g) 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 reduction for earnings and bank fee credits was 0.65% for the year
ended July 31, 2008.
(h) During the six months ended Jan. 31, 2009, the Fund received a reimbursement
from an affiliate. Had the Fund not received this reimbursement, the total
return would have been lower by 0.63%.
(i) Not annualized.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
22 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
CLASS Y
<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 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .01(b) .04(b) .05(b) .04 .02
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (.01) (.04) (.05) (.04) (.02)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $34 $33 $44 $84 $140
- --------------------------------------------------------------------------------------------------------------
Gross expenses prior to expense
waiver/reimbursement(c) .62%(d) .57% .59% .68% .66%
- --------------------------------------------------------------------------------------------------------------
Net expenses after expense
waiver/reimbursement(e),(f) .62%(d) .57% .59% .62% .66%
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.57%(d) 3.73% 4.75% 3.78% 1.55%
- --------------------------------------------------------------------------------------------------------------
Total return .80%(g),(h) 3.60% 4.92% 3.95%(i) 1.76%
- --------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Per share amounts have been calculated using the average shares outstanding
method.
(c) Expense ratio is before reduction for earnings and bank fee credits on cash
balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates have agreed to waive/reimburse
certain fees and expenses, excluding expenses related to the Fund's
participation in the U.S. Department of Treasury's Temporary Guarantee
Program for Money Market Funds.
(f) 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 reduction for earnings and bank fee credits was 0.55% for the year
ended July 31, 2008.
(g) During the six months ended Jan. 31, 2009, the Fund received a reimbursement
from an affiliate. Had the Fund not received this reimbursement, the total
return would have been lower by 0.63%.
(h) Not annualized.
(i) The Fund received a one time payment by Ameriprise Financial for additional
earnings from overnight cash balances determined to be owed for prior years.
Had the Fund not received this payment, the total return would have been
lower by 0.06%.
(j) Six months ended Jan. 31, 2009 (Unaudited).
The accompanying Notes to Financial Statements are an integral part of this
statement.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 23
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
(UNAUDITED AS TO JAN. 31, 2009)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RiverSource Cash Management Fund (the Fund) is a series of RiverSource Money
Market Series, Inc. and is registered under the Investment Company Act of 1940
(as amended) (the 1940 Act) as a diversified, open-end management investment
company. RiverSource Money Market Series, Inc. has 10 billion authorized shares
of capital stock that can be allocated among the separate series as designated
by the Board of Directors (the Board). The Fund invests primarily in money
market instruments.
The Fund offers Class A, Class B, Class C, Class I, Class R5, Class W and Class
Y shares.
- - Class A shares have no sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I, Class R5 and Class Y shares are sold without a front-end sales
charge or CDSC and are offered to qualifying institutional investors.
- - Class W shares are sold without a front-end sales charge or CDSC and are
offered through qualifying discretionary accounts.
At Jan. 31, 2009, RiverSource Investments, LLC (the Investment Manager) and the
RiverSource affiliated funds-of-funds owned 100% of Class I shares, and the
Investment Manager owned 100% of Class R5 shares.
All classes of shares have identical voting, dividend and liquidation rights.
Class specific expenses (e.g., distribution and service fees, transfer agency
fees, plan administration services fees) differ among classes. Income, expenses
(other than class specific expenses) and realized and unrealized gains or losses
on investments are allocated to each class of shares based upon its relative net
assets.
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
- --------------------------------------------------------------------------------
24 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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.
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at
amortized cost, which approximates market value, in order to maintain a constant
net asset value of $1 per share.
ILLIQUID SECURITIES
At Jan. 31, 2009, investments in securities included issues that are illiquid
which the Fund currently limits to 10% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at Jan. 31, 2009 was
$57,688,225 representing 1.27% 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 10%
limitation specified above. Assets are liquid if they can be sold or disposed of
in the ordinary course of business within seven days at approximately the value
at which the asset is valued by the Fund.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to shareholders. No provision for income or excise
taxes is thus required.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 25
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 post-October losses.
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.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, are
reinvested in additional shares of the Fund at net asset value or payable in
cash.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Interest income, including amortization of premium and discount, is
recognized daily.
2. EXPENSES AND SALES CHARGES
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 0.33%
to 0.15% annually as the Fund's assets increase. The management fee for the six
months ended Jan. 31, 2009 was 0.29% of the Fund's average daily net assets.
ADMINISTRATIVE SERVICES FEES
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial,
Inc. (Ameriprise Financial), parent company of the Investment Manager, a fee for
administration and accounting services at a percentage of the Fund's average
daily net assets that declines from 0.06% to 0.03% annually as the Fund's assets
increase. The fee for six months ended Jan. 31, 2009 was 0.05% of the Fund's
average daily net assets.
- --------------------------------------------------------------------------------
26 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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 $14,745.
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 $22.00 for Class A, $23.00
for Class B and $22.50 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 R5 and Class Y shares and an
annual asset-based fee at a rate of 0.20% of the Fund's average daily net assets
attributable to Class W shares.
The Transfer Agent charges an annual fee of $5 per inactive account, charged on
a pro rata basis for 12 months from the date the account becomes inactive. These
fees are included in the transfer agency fees on the Statement of Operations.
PLAN ADMINISTRATION SERVICES FEES
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund
pays an annual fee at a rate of 0.15% of the Fund's average daily net assets
attributable to Class Y shares for the provision of various administrative,
recordkeeping, communication and educational services.
DISTRIBUTION FEES
The Fund has agreements 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 0.10% of the Fund's
average daily net assets attributable to Class A and Class W shares and a fee at
an annual rate of up to 0.85% and 0.75% of the Fund's average daily net assets
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 27
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
attributable to Class B and Class C shares, respectively. At Jan. 31, 2009, the
Fund paid an annual rate of 0.75% of the Fund's average daily net assets
attributable to Class B and Class C shares.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed ("unreimbursed expense") was approximately $7,314,000 and $82,000 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
$207,970 for Class B and $6,928 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
were as follows:
<Table>
Class B............................................. 1.32%
Class C............................................. 1.31
</Table>
The waived/reimbursed fees and expenses for the transfer agency fees at the
class level were as follows:
<Table>
Class B........................................... $29,952
Class C........................................... 3,137
</Table>
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 will not exceed the following
percentage of the Fund's average daily net assets:
<Table>
Class A............................................. 0.66%
Class B............................................. 1.32
Class C............................................. 1.31
Class I............................................. 0.43
Class R5............................................ 0.48
Class W............................................. 0.73
Class Y............................................. 0.63
</Table>
EARNINGS AND BANK FEE CREDITS
During the six months ended Jan. 31, 2009, the Fund's custodian and transfer
agency fees were reduced by $104,225 as a result of earnings and bank fee
- --------------------------------------------------------------------------------
28 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
credits from overnight cash balances. 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 $135,836 to Ameriprise Trust Company, a subsidiary
of Ameriprise Financial.
TEMPORARY MONEY MARKET FUND GUARANTEE PROGRAM
On Oct. 6, 2008, the Fund applied to participate in the initial term of the U.S.
Department of Treasury's Temporary Guarantee Program for Money Market Funds (the
Program), through Dec. 18, 2008, after obtaining the approval of the Board,
including a majority of the independent directors. On Dec. 2, 2008, the Board
approved the Fund's filing for participation in an extension of the Program
through April 30, 2009. The Fund filed the extension notice with the U.S.
Department of Treasury on Dec. 4, 2008.
The Program covers shareholders of each participating money market fund for
amounts they held in such funds as of the close of business on Sept. 19, 2008.
Any increase in the number of shares of that fund held by a shareholder after
the close of business on Sept. 19, 2008 will not be guaranteed. Any purchase of
shares of a participating money market fund after the close of business on Sept.
19, 2008 will not be guaranteed. If shares of a participating fund held by a
shareholder as of the close of business on Sept. 19, 2008 are sold before the
guarantee is called upon, then the guarantee will only cover the lesser of (i)
the number of fund shares held by the shareholder as of the close of business on
Sept. 19, 2008, or (ii) the number of fund shares held by the shareholder on the
date the guarantee is called upon. A participating fund shareholder who sells
all of his or her shares after Sept. 19, 2008 (and before the guarantee is
called upon) will no longer be covered by the guarantee, even if the shareholder
subsequently reinvests in the fund or in another fund that is participating in
the Program.
Under the terms of the Program, the guarantee is called upon with respect to a
fund if the Board of the Fund makes a determination to liquidate that Fund. For
shares covered by the guarantee, any difference between the amount a shareholder
received in connection with the liquidation and $1.00 per share (a guarantee
payment) will be covered by the U.S. Department of Treasury under the Program,
subject to the overall amount available to all funds participating in the
Program. Guarantee payments under the Program will not exceed the amount
available in the Program (at inception of the Program, approximately $50 billion
was available to support guarantee payments).
During the six months ended Jan. 31, 2009, the Fund paid upfront fees to the
U.S. Department of Treasury to participate in the Program. For the initial
three-month term of the Program that expired on Dec. 18, 2008, the fee incurred
by the Fund was 0.015% of its net asset value as of the close of business Sept.
19,
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 29
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
2008. The fee to participate in the extended term of the Program through April
30, 2009 required an additional payment in the amount of 0.022% of its net asset
value as of Sept. 19, 2008. The fees are being amortized over the period of the
participation in the Program and are shown on the Statement of Operations. The
cost to participate will be borne by the Fund without regard to any expense
limitation currently in effect. The U.S. Treasury Department has the option to
extend the Program beyond April 30, 2009 through the close of business Sept. 19,
2009. If extended, the Board will consider whether the Fund should continue to
participate in the Program and, if so, the Fund will incur additional
participation fees.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities aggregated
$24,455,561,897 and $24,924,264,111, respectively, for the six months ended Jan.
31, 2009. Realized gains and losses are determined on an identified cost basis.
4. BANK BORROWINGS
The Fund has entered into a revolving credit facility with a syndicate of banks
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 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
- --------------------------------------------------------------------------------
30 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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.
5. INVESTMENTS IN STRUCTURED INVESTMENT VEHICLES
In 2007 and 2008 structured investment vehicles ("SIVs") generally experienced a
significant decrease in liquidity as a result of the reduction in demand for
asset-backed commercial paper as well as the lack of liquidity and overall
volatility in the markets for the collateral underlying these investment
structures. As of Jan. 31, 2009, the Fund held remaining SIV positions in
WhistleJacket Capital LLC (WJC). As of Jan. 31, 2009, the Fund valued these WJC
positions at $57.7 million, representing 1.3% of the Fund's net assets.
The Fund's two positions in WJC went into default as of their respective
maturity dates, Feb. 25, 2008 ($35 million) and March 20, 2008 ($40 million).
Subsequently, the Fund received a partial payment totaling $17.3 million from
WJC on Oct. 27, 2008 reducing the remaining total outstanding principal amount
for WJC to $57.7 million. The receivers continue to develop a restructuring plan
which will likely result in the Fund receiving less than the remaining principal
on its investment. Accordingly, these holdings have been determined to be
illiquid.
Pursuant to the Fund's pricing procedures, securities are valued utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act.
Rule 2a-7 also requires periodic monitoring ("Shadow Pricing") of the deviation
between the net asset value per share of the Fund using the amortized cost
method and the net asset value determined based on fair value to ensure that the
amortized cost method continues to provide an appropriate net asset value for
the Fund in accordance with Rule 2a-7.
As of Jan. 31, 2009, the Fund carried its investment in WJC at amortized cost of
$57.7 million. At that date, for purposes of the Rule 2a-7 monitoring procedure
described above, the fair value of WJC was determined to be $46.6 million.
Subsequently from March 6, 2009 through March 10, 2009, Ameriprise Financial
purchased $3.8 million par of WJC from the Fund for cash at a price equal to
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 31
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
amortized cost plus accrued interest in accordance with Rule 17a-9 of the 1940
Act. Consistent with the Fund's Shadow Pricing procedure as described above, the
Fund's remaining $53.9 million position in WJC has been fair valued at $43.1
million as of March 10, 2009. This difference between the fair value and the
amortized cost of WJC was not material to the Fund's $1 net asset value as of
March 10, 2009.
As of Jan. 31, 2009 and March 10, 2009, the fair value of the Fund's investments
(including WJC) continued to support the use of amortized cost, in accordance
with Rule 2a-7. For the six months ended Jan. 31, 2009 and continuing through
March 10, 2009 all investments held by the Fund, including WJC, were valued at
amortized cost in compliance with 2a-7 procedures. In addition, for the same
time periods the deviations resulting from the Shadow Pricing procedure were not
material to the Fund's $1 net asset value per share.
6. REIMBURSEMENT FROM AFFILIATE
On Sept. 15, 2008, Lehman Brothers Holdings Inc. (Lehman Brothers) filed a
Chapter 11 bankruptcy petition. At that time, the Fund owned $40 million in
medium term commercial paper issued by Lehman Brothers (the Lehman Notes). The
value of the Lehman Notes declined following Lehman Brothers filing of its
bankruptcy petition. From Sept. 16, 2008 through Sept. 30, 2008, Ameriprise
Financial purchased the total $40 million par of the Lehman Notes from the Fund
for cash at a price equal to amortized cost plus accrued interest in accordance
with Rule 17a-9 of the 1940 Act. The amount shown in the Fund's Statement of
Operations as a reimbursement from affiliate is equal to the difference between
the fair value of the Lehman Notes at purchase date and the cash received from
Ameriprise Financial.
7. CAPITAL LOSS CARRY-OVER AND POST-OCTOBER LOSS
For federal income tax purposes, the Fund had a capital loss carry-over of
$6,554 at July 31, 2008, that if not offset by capital gains will expire in
2016.
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 $8,094,908 that is treated for income
tax purposes as occurring on Aug. 1, 2008.
- --------------------------------------------------------------------------------
32 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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.
8. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In June 2004, an action captioned John E. Gallus et al. v. American Express
Financial Corp. and American Express Financial Advisors Inc., was filed in the
United States District Court for the District of Arizona. The plaintiffs allege
that they are investors in several American Express Company mutual funds and
they purport to bring the action derivatively on behalf of those funds under the
Investment Company Act of 1940. The plaintiffs allege that fees allegedly paid
to the defendants by the funds for investment advisory and administrative
services are excessive. The plaintiffs seek remedies including restitution and
rescission of investment advisory and distribution agreements. The plaintiffs
voluntarily agreed to transfer this case to the United States District Court for
the District of Minnesota. In response to defendants' motion to dismiss the
complaint, the Court dismissed one of plaintiffs' four claims and granted
plaintiffs limited discovery. Defendants moved for summary judgment in April
2007. Summary judgment was granted in the defendants' favor on July 9, 2007. The
plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals on
August 8, 2007.
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), entered into settlement agreements with the Securities
and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC)
related to market timing activities. As a result, AEFC was censured and ordered
to cease and desist from committing or causing any violations of certain
provisions of the Investment Advisers Act of 1940, the Investment Company Act of
1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million
and civil money penalties of $7 million. AEFC also agreed to retain an
independent distribution consultant to assist in developing a plan for
distribution of all disgorgement and civil penalties ordered by the SEC in
accordance with various undertakings detailed at
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,
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 33
NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------
noted one arrangement that permitted frequent trading in certain open-end
registered investment companies managed by Seligman (the Seligman Funds); 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
known 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.
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34 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity
associated with them, will not result in increased fund redemptions, reduced
sale of fund shares or other adverse consequences to the Funds. Further,
although we believe proceedings are not likely to have a material adverse effect
on the Funds or the ability of Ameriprise Financial or its affiliates to perform
under their contracts with the Funds, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range
of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief
that could have a material adverse effect on the consolidated financial
condition or results of operations of Ameriprise Financial.
- --------------------------------------------------------------------------------
RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT 35
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.
- --------------------------------------------------------------------------------
36 RIVERSOURCE CASH MANAGEMENT FUND -- 2009 SEMIANNUAL REPORT
RIVERSOURCE CASH MANAGEMENT FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
RIVERSOURCE.COM/FUNDS
<Table>
This report must be accompanied or preceded by the Fund's
current prospectus. RiverSource(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-6322 Z (4/09)
</Table>
Item 2. Code of Ethics. Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert. Not applicable for semi-annual
reports.
Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual
reports.
Item 5. Audit Committee of Listed Registrants. Not applicable.
Item 6. The complete schedule of investments is included in Item 1 of this Form
N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not
applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers. Not applicable.
Item 10. Submission of matters to a vote of security holders. Not applicable.
Item 11. Controls and Procedures.
(a) Based upon their evaluation of the registrant's disclosure controls and
procedures as conducted within 90 days of the filing date of this Form N-CSR,
the registrant's Principal Financial Officer and Principal Executive Officer
have concluded that those disclosure controls and procedures provide reasonable
assurance that the material information required to be disclosed by the
registrant on this report is recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's last fiscal half-year (the
registrant's second fiscal half-year in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable for semi-annual reports.
(a)(2) Separate certification for the Registrant's principal executive officer
and principal financial officer, as required by Section 302 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of
1940, are attached as EX.99.CERT.
(a)(3) Not applicable.
(b) A certification by the Registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940, is attached
as EX.99.906 CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) RiverSource Money Market Series, Inc.
By /s/ Patrick T. Bannigan
-----------------------------------------
Patrick T. Bannigan
President and Principal Executive Officer
Date April 1, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By /s/ Patrick T. Bannigan
-----------------------------------------
Patrick T. Bannigan
President and Principal Executive Officer
Date April 1, 2009
By /s/ Jeffrey P. Fox
-----------------------------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date April 1, 2009