UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5696
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RIVERSOURCE GLOBAL SERIES, INC.
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(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
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(Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474
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(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-1947
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Date of fiscal year end: 10/31
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Date of reporting period: 10/31
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<Page>
ANNUAL REPORT
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
ABSOLUTE RETURN CURRENCY AND INCOME FUND
ANNUAL REPORT FOR
THE PERIOD ENDED
OCT. 31, 2006
- - RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND SEEKS TO PROVIDE
SHAREHOLDERS WITH POSITIVE ABSOLUTE RETURN.
TABLE OF CONTENTS
<Table>
Fund Snapshot 3
Questions & Answers with Portfolio Management 5
Investments in Securities 7
Financial Statements 11
Notes to Financial Statements 14
Report of Independent Registered Public Accounting Firm 29
Federal Income Tax Information 30
Fund Expenses Example 32
Board Members and Officers 34
Approval of Investment Management Services Agreement 37
Proxy Voting 38
</Table>
2 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
FUND SNAPSHOT AT OCT. 31, 2006
FUND OVERVIEW
RiverSource Absolute Return Currency and Income Fund seeks to achieve "absolute"
positive returns in both up and down markets. This is in contrast with a
relative return strategy, in which a fund's performance is typically measured
against a market benchmark or index. The Fund invests primarily in short-term
debt obligations and forward currency contracts. The Fund uses long and short
positions in forward foreign currency contracts (relative to the U.S. dollar) to
seek an absolute return that is unrelated to general movements in the U.S.
dollar.
[PIE CHART]
SECTOR BREAKDOWN
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Cash & Cash Equivalents 56.7%
Asset-Backed 19.1%
Corporate Bond(1) 15.8%
Mortgage-Backed 7.0%
Commercial Mortgage-Backed 1.4%
</Table>
(1) Includes Financials 12.9%, Industrials 1.3%, Consumer Staples 0.8%,
Consumer Discretionary 0.5% and Telecommunication 0.3%.
[PIE CHART]
QUALITY BREAKDOWN
PERCENTAGE OF BOND PORTFOLIO ASSETS
<Table>
AAA bonds 67.4%
AA bonds 19.1%
A bonds 13.5%
</Table>
Bond ratings apply to underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
RiverSource Investments, LLC, Fund's investment manager, rates a security using
an internal rating system when Moody's doesn't provide a rating.
The Fund's investment objective and strategy employs the use of forward foreign
currency contracts. See Notes 1 and 5 in the Notes to Financial Statements of
this report for more detail on these financial instruments.
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.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 3
<Page>
FUND SNAPSHOT AT OCT. 31, 2006
SEC YIELDS
<Table>
<Caption>
AT SEPT. 29, 2006* AT OCT. 31, 2006
Class A 3.80% 3.80%
Class B 3.22% 3.18%
Class C 3.22% 3.18%
Class I 4.36% 4.13%
Class Y 4.15% 4.11%
</Table>
* Last business day of the quarter.
The Securities and Exchange Commission (SEC) yield is calculated by dividing
anticipated net investment income during a 31-day period by the public offering
price (POP) per share on the last day of the period, and converting the results
to yearly figures.
PORTFOLIO MANAGER
<Table>
<Caption>
YEARS IN INDUSTRY
Nicholas Pifer, CFA 16
</Table>
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A -- 6/15/06
Class B -- 6/15/06
Class C -- 6/15/06
Class I RVAIX 6/15/06
Class Y -- 6/15/06
Total net assets $78.2 million
Number of holdings 62
</Table>
4 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
BELOW, NIC PIFER, PORTFOLIO MANAGER FOR RIVERSOURCE ABSOLUTE RETURN CURRENCY AND
INCOME FUND, DISCUSSES THE FUND'S RESULTS AND POSITIONING FOR THE PERIOD SINCE
ITS INCEPTION ON JUNE 15, 2006 THROUGH OCT. 31, 2006.
AT OCT. 31, 2006, APPROXIMATELY 87% OF THE FUND'S SHARES WERE OWNED IN THE
AGGREGATE BY AFFILIATED FUNDS-OF-FUNDS MANAGED BY RIVERSOURCE INVESTMENTS, LLC
(RIVERSOURCE). AS A RESULT OF ASSET ALLOCATION DECISIONS BY RIVERSOURCE, IT IS
POSSIBLE THAT RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND MAY
EXPERIENCE RELATIVELY LARGE PURCHASES OR REDEMPTIONS FROM AFFILIATED
FUNDS-OF-FUNDS (SEE PAGE 21, CLASS I CAPITAL SHARE TRANSACTIONS FOR RELATED
ACTIVITY DURING THE MOST RECENT FISCAL PERIOD). RIVERSOURCE SEEKS TO MINIMIZE
THE IMPACT OF THESE TRANSACTIONS BY STRUCTURING THEM OVER A REASONABLE PERIOD OF
TIME. RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND MAY EXPERIENCE
INCREASED EXPENSES AS IT BUYS AND SELLS SECURITIES AS A RESULT OF PURCHASES OR
REDEMPTIONS BY AFFILIATED FUNDS-OF-FUNDS.
FOR MORE INFORMATION ON THE FUND'S EXPENSES, SEE THE DISCUSSIONS BEGINNING ON
PAGES 19 AND 32.
Q: What factors most significantly affected the Fund's performance?
A: We utilize a two-part investment process. The first part is investments in
high-quality, short-term fixed income securities with minimal interest rate
risk with a goal to generate positive total return. These short-term
investments are also designated, as necessary, to cover obligations invested
through the second component of our strategy, which is based on a
quantitative, proprietary model. Our model uses various fundamental and
technical factors, including current and historical data, to rank the
anticipated value of nine developed countries' currencies relative to the
U.S. dollar. Based on that ranking, we enter into long forward currency
contracts for the three most attractive currencies compared to the U.S.
dollar and enter into short forward currency contracts for the three least
attractive currencies compared to the U.S. dollar. The Fund experiences
profits or losses to the extent the value of the currency appreciates or
depreciates relative to the U.S. dollar.
During the period, we were able to generate positive total return from our
investment in short-term fixed income securities, and we were able to add
additional value through the use of our proprietary quantitative model. From
the period since the Fund's inception on June 15, 2006 through Oct. 31, 2006,
the Fund's positioning in the Japanese yen, euro, British pound, Canadian
dollar,
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 5
<Page>
QUESTIONS & ANSWERS
New Zealand dollar and Swiss franc benefited the Fund's results. Positioning
in the Norwegian Krone and, to a lesser extent, in the Australian dollar and
Swedish Krona detracted from the Fund's performance.
DURING THE PERIOD, WE WERE ABLE TO GENERATE POSITIVE TOTAL RETURN FROM OUR
INVESTMENT IN SHORT-TERM FIXED INCOME SECURITIES, AND WE WERE ABLE TO ADD
ADDITIONAL VALUE THROUGH THE USE OF OUR PROPRIETARY QUANTITATIVE MODEL.
Q: How would you describe your current investment strategy?
A: We run our quantitative model weekly and reset currency positions as needed,
applying the output of this model on a systematic basis. We generally seek
neutral exposure to the U.S. dollar, which is the base currency. In our view,
remaining neutral to the U.S. dollar helps control overall volatility of the
investment strategy. We also use an externally developed but fully integrated
risk management system to help us monitor and manage market risk.
Q: How do you intend to manage the Fund in the coming months?
A: We intend to stay disciplined to our systematic investment strategy. Through
the use of our proprietary quantitative model, which determines the Fund's
positions in forward foreign currency contracts relative to the U.S. dollar,
we will continue to seek an absolute return that is unrelated to general
movements in the U.S. dollar and other types of financial assets. Overall, we
will continue to seek to generate positive total returns from the income
produced by the Fund's investments in short-term debt obligations, plus or
minus the gain or loss resulting from the fluctuations in the values of
various foreign currencies relative to the U.S. dollar.
It is important to remember that the Fund does not actually take ownership of
foreign currencies or sell actual foreign currencies. Rather, through forward
currency contracts, the Fund gains economic exposure comparable to the
exposure that it would have if it had bought or sold the currencies directly.
Because the establishment of the Fund's forward foreign currency contracts
requires little cash outlay, the Fund's assets will consist primarily of
short-term U.S. dollar-denominated corporate debt securities rated investment
grade, or, if unrated, determined to be of comparable quality.
6 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
INVESTMENTS IN SECURITIES
OCT 31, 2006
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
BONDS (44.0%)
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED (19.4%)
AmeriCredit Automobile Receivables Trust
Series 2004-CA Cl A3 (AMBAC)
03-06-09 3.00% $ 746,950(g) $ 743,215
Capital Auto Receivables Asset Trust
Series 2006-SN1A Cl A4B
03-20-10 5.44 1,500,000(d,e) 1,500,000
Citibank Credit Card Issuance Trust
Series 2003-A4 Cl A4
03-20-09 5.46 500,000(e) 500,157
Citibank Credit Card Issuance Trust
Series 2003-A9 Cl A9
11-22-10 5.47 455,000(e) 455,707
College Loan Corp Trust
Series 2004-1 Cl A2
04-25-16 5.49 2,500,000(e) 2,507,700
Countrywide Home Equity Loan Trust
Series 2005-H Cl 2A (FGIC)
12-15-35 5.56 373,578(e,g) 374,395
Countrywide Home Equity Loan Trust
Series 2005-M Cl A2 (MBIA)
02-15-36 5.44 2,082,887(e,g) 2,083,539
Harley-Davidson Motorcycle Trust
Series 2005-1 Cl A1
07-15-09 3.28 460,686 457,591
Residential Asset Securities
Series 2006-KS2 Cl A2
03-25-36 5.45 800,000(e) 800,375
SLM Student Loan Trust
Series 2003-2 Cl A3
12-15-15 5.49 150,878(e) 150,925
SLM Student Loan Trust
Series 2003-4 Cl A3
12-15-15 5.49 189,324(e) 189,402
SLM Student Loan Trust
Series 2004-3 Cl A3
04-25-16 5.47 1,500,000(e) 1,503,124
SLM Student Loan Trust
Series 2005-5 Cl A1
01-25-18 5.38 196,691(e) 196,739
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
ASSET-BACKED (CONT.)
SLM Student Loan Trust
Series 2006-2 Cl A2
01-25-17 5.38% $ 500,000(e) $ 499,990
SLM Student Loan Trust
Series 2006-5 Cl A2
07-25-17 5.37 1,500,000(e) 1,500,000
SLM Student Loan Trust
Series 2006-A Cl A1
03-16-20 5.41 981,890(e) 981,870
Structured Asset Investment Loan Trust
Series 2006-1 Cl A1
01-25-36 5.40 332,970(e) 332,970
Volkswagen Auto Lease Trust
Series 2005-A Cl A3
05-20-08 3.82 400,433 398,325
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Total 15,176,024
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COMMERCIAL MORTGAGE-BACKED (1.5%)(f)
GE Capital Commercial Mtge
Series 2000-1 Cl A1
01-15-33 6.32 933,009 932,192
JPMorgan Chase Commercial Mtge Securities
Series 2004-CBX Cl A1
01-12-37 3.18 208,752 208,077
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Total 1,140,269
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MORTGAGE-BACKED (7.1%)(f)
American Home Mtge Assets
Collateralized Mtge Obligation
Series 2006-2 Cl 2A2
09-25-46 5.56 488,665(b) 488,245
American Home Mtge Assets
Collateralized Mtge Obligation
Series 2006-3 Cl 3A2
10-25-46 5.58 685,611(b) 685,611
Downey Savings & Loan Assn Mtge Loan Trust
Collateralized Mtge Obligation
Series 2006-AR2 Cl 2AB1
11-19-37 5.42 1,440,156(b) 1,439,969
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 7
<Page>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
MORTGAGE-BACKED (CONT.)
Harborview Mtge Loan Trust
Collateralized Mtge Obligation
Series 2006-12 Cl 2A11
12-19-37 5.41% $ 1,500,000(b),(j) $ 1,500,000
Harborview Mtge Loan Trust
Collateralized Mtge Obligation
Series 2006-8 Cl 2A1B
08-21-46 5.58 1,452,298(b) 1,452,298
------------
Total 5,566,123
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AUTOMOTIVE (0.5%)
American Honda Finance
07-11-08 5.45 400,000(d),(e) 400,678
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BANKING (5.1%)
Bank of America
Sr Nts
02-17-09 5.58 640,000(e) 641,905
Citigroup
06-09-09 5.53 640,000(e) 641,723
JPMorgan Chase & Co
Sr Nts
12-22-08 5.44 400,000(e) 400,550
Santander US Debt Unipersonal
Bank Guaranteed
09-19-08 5.45 640,000(c),(d),(e) 640,698
Wachovia
Sr Nts
10-28-08 5.43 640,000(e) 640,612
Wells Fargo
03-10-08 5.43 640,000(e) 640,514
World Savings Bank FSB
Sr Nts
03-02-09 5.52 400,000(e) 401,086
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Total 4,007,088
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BROKERAGE (3.3%)
Credit Suisse First Boston USA
Sr Nts
12-09-08 5.52 640,000(e) 641,038
Lehman Brothers Holdings
10-22-08 5.46 640,000(e) 640,627
Merrill Lynch & Co
08-22-08 5.49 640,000(e) 640,623
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BROKERAGE (CONT)
Morgan Stanley
Sr Nts
02-09-09 5.55% $ 640,000(e) $ 640,788
------------
Total 2,563,076
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CONSTRUCTION MACHINERY (1.3%)
Caterpillar Financial Services
10-28-08 5.45 400,000(e) 400,533
John Deere Capital
06-10-08 5.52 640,000(e) 641,225
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Total 1,041,758
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FOOD AND BEVERAGE (0.8%)
Diageo Capital
11-10-08 5.55 640,000(c),(e) 640,232
- ------------------------------------------------------------------------------------------------------------
LIFE INSURANCE (2.2%)
ING Security Life Institutional Funding
01-14-08 5.45 640,000(d),(e) 640,874
Pacific Life Global Funding
11-13-08 5.49 400,000(d),(e) 400,668
Pricoa Global Funding 1
09-12-08 5.40 640,000(d),(e) 640,036
------------
Total 1,681,578
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NON CAPTIVE DIVERSIFIED (0.8%)
General Electric Capital
12-01-08 5.55 640,000(e) 641,468
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OTHER FINANCIAL INSTITUTIONS (0.8%)
Berkshire Hathaway Finance
01-11-08 5.42 640,000(e) 640,842
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PROPERTY & CASUALTY (0.8%)
Allstate Life Global Funding Trusts
Secured
11-14-07 5.42 640,000(e) 640,298
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WIRELINES (0.3%)
BellSouth
Sr Unsecured
08-15-08 5.58 250,000(e) 250,078
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TOTAL BONDS
(Cost: $34,378,966) $ 34,389,512
- ------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
8 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
SHORT-TERM SECURITIES (37.2%)
<Table>
<Caption>
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
COMMERCIAL PAPER
AIB North America
02-28-07 5.28% $ 3,000,000(h) $ 2,948,136
Bryant Park Funding LLC
11-13-06 5.17 2,700,000(h) 2,694,965
Cheyne Finance LLC
01-23-07 5.24 1,600,000 1,580,670
Citibank Credit Card Dakota Nts
11-14-06 5.17 2,800,000(h) 2,794,377
Cullinan Finance
01-30-07 5.25 2,200,000 2,171,180
Deer Valley Funding LLC
01-12-07 5.22 3,000,000 2,968,560
Ebury Finance LLC
01-25-07 5.24 3,000,000 2,962,883
Emerald Ctfs MBNA MCCT
11-16-06 5.26 2,800,000(h) 2,793,467
Fairway Finance
12-11-06 5.17 500,000(h) 497,071
Grampian Funding LLC
11-03-06 5.35 2,000,000(h) 1,999,109
Irish Life & Permanent
04-04-07 5.29 400,000(h) 391,085
SHORT-TERM SECURITIES (CONTINUED)
AMOUNT
EFFECTIVE PAYABLE AT
ISSUER YIELD MATURITY VALUE(a)
COMMERCIAL PAPER (CONT.)
Nieuw Amsterdam
01-30-07 5.25% $ 1,200,000(h) $ 1,184,280
Old Line Funding
11-01-06 5.17 2,800,000(h) 2,799,598
Thunder Bay Funding
11-07-06 5.27 1,300,000(h) 1,298,669
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TOTAL SHORT-TERM SECURITIES
(Cost: $29,084,233) $ 29,084,050
- -------------------------------------------------------------------------------------------------------
</Table>
MONEY MARKET FUND (20.2%)
<Table>
<Caption>
SHARES VALUE(a)
RiverSource Short-Term
Cash Fund 15,787,124(i) $ 15,787,124
- -------------------------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $15,787,124) $ 15,787,124
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $79,250,323)(k) $ 79,260,686
=======================================================================================================
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Adjustable rate mortgage; interest rate varies to reflect current market
conditions; rate shown is the effective rate on Oct. 31, 2006.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted. At Oct. 31, 2006, the value of foreign securities represented 1.6%
of net assets.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At Oct. 31,
2006, the value of these securities amounted to $4,222,954 or 5.4% of net
assets.
(e) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on Oct. 31,
2006.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 9
<Page>
NOTES TO INVESTMENTS IN SECURITIES (CONTINUED)
(f) Mortgage-backed securities represent direct or indirect participations in,
or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by private
issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment
bankers and special purpose entities. The maturity dates shown represent
the original maturity of the underlying obligation. Actual maturity may
vary based upon prepayment activity on these obligations. Unless otherwise
noted, the coupon rates presented are fixed rates.
(g) The following abbreviation is used in the portfolio security description to
identify the insurer of the issue:
AMBAC -- Ambac Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
MBIA -- MBIA Insurance Corporation
(h) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid
under guidelines established by the Fund's Board of Directors. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At Oct. 31, 2006, the value of these
securities amounted to $19,400,757 or 24.8% of net assets.
(i) Affiliated Money Market Fund -- See Note 6 to the financial statements.
(j) At Oct. 31, 2006, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$1,500,000.
(k) At Oct. 31, 2006, the cost of securities for federal income tax purposes
was $79,250,323 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $ 14,691
Unrealized depreciation (4,328)
------------------------------------------------------------------------
Net unrealized appreciation $ 10,363
------------------------------------------------------------------------
</Table>
The Fund's investment objective and strategy employs the use of forward foreign
currency contracts. See Notes 1 and 5 in the Notes to Financial Statements of
this report for more detail on these financial instruments.
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.
10 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCT. 31, 2006
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $63,463,199) $ 63,473,562
Affiliated money market fund (identified cost $15,787,124) (Note 6) 15,787,124
- -----------------------------------------------------------------------------------------------------------------
Total investments in securities (identified cost $79,250,323) 79,260,686
Cash in bank on demand deposit 8,954
Dividends and accrued interest receivable 151,462
Receivable for investment securities sold 301,203
Unrealized appreciation on foreign currency contracts held, at value (Note 5) 489,701
- -----------------------------------------------------------------------------------------------------------------
Total assets 80,212,006
- -----------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investment securities purchased 1,533,602
Unrealized depreciation on foreign currency contracts held, at value (Note 5) 424,543
Accrued investment management services fee 1,897
Accrued distribution fee 69
Accrued administrative services fee 171
Other accrued expenses 38,284
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 1,998,566
- -----------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 78,213,440
=================================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 77,421
Additional paid-in capital 77,271,348
Undistributed net investment income 50,581
Accumulated net realized gain (loss) 738,569
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies (Note 5) 75,521
- -----------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $ 78,213,440
=================================================================================================================
Net assets applicable to outstanding shares: Class A $ 10,053,611
Class B $ 10,093
Class C $ 10,093
Class I $ 68,129,549
Class Y $ 10,094
Net asset value per share of outstanding capital stock: Class A shares 996,000 $ 10.09
Class B shares 1,000 $ 10.09
Class C shares 1,000 $ 10.09
Class I shares 6,743,149 $ 10.10
Class Y shares 1,000 $ 10.09
- -----------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 11
<Page>
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM JUNE 15, 2006* TO OCT. 31, 2006
<Table>
INVESTMENT INCOME
Income:
Interest $ 1,025,679
Income distributions from affiliated money market fund (Note 6) 51,544
Less foreign taxes withheld (596)
- -------------------------------------------------------------------------------------------------------
Total income 1,076,627
- -------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 176,149
Distribution fee
Class A 9,416
Class B 38
Class C 38
Transfer agency fee 28
Incremental transfer agency fee
Class A 1
Class B 1
Class C 1
Service fee -- Class Y 4
Administrative services fees and expenses 15,823
Compensation of board members 465
Custodian fees 11,730
Printing and postage 3,450
Registration fees 690
Audit fees 23,000
Other 9,008
- -------------------------------------------------------------------------------------------------------
Total expenses 249,842
Expenses waived/reimbursed by the Investment Manager and its affiliates (Note 2) (18,736)
- -------------------------------------------------------------------------------------------------------
231,106
Earnings and bank fee credits on cash balances (Note 2) (700)
- -------------------------------------------------------------------------------------------------------
Total net expenses 230,406
- -------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 846,221
- -------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 2,525
Foreign currency transactions 736,044
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 738,569
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 107,402
- -------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 845,971
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 1,692,192
=======================================================================================================
</Table>
* When shares became publicly available.
See accompanying notes to financial statements.
12 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM JUNE 15, 2006* TO OCT. 31, 2006
<Table>
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 846,221
Net realized gain (loss) on investments 738,569
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 107,402
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 1,692,192
- -------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (124,233)
Class B (95)
Class C (95)
Class I (684,162)
Class Y (130)
- -------------------------------------------------------------------------------------------------------
Total distributions (808,715)
- -------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class I shares 67,145,518
Reinvestment of distributions at net asset value
Class I shares 684,028
Payments for redemptions
Class I shares (475,083)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 67,354,463
- -------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 68,237,940
Net assets at beginning of period (Note 1) 9,975,500**
- -------------------------------------------------------------------------------------------------------
Net assets at end of period $ 78,213,440
=======================================================================================================
Undistributed net investment income $ 50,581
- -------------------------------------------------------------------------------------------------------
</Table>
* When shares became publicly available.
** Initial capital of $10,000,000 was contributed on June 8, 2006. The Fund had
a decrease in net assets resulting from operations of $24,500 during the
period from June 8, 2006 to June 15, 2006 (when shares became publicly
available).
See accompanying notes to financial statements.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 13
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) as a non-diversified, open-end
management investment company. RiverSource Global Series, Inc. has 10 billion
authorized shares of capital stock that can be allocated among the separate
series as designated by the Board. The Fund invests primarily in short-duration
debt obligations and forward foreign currency contracts. On June 8, 2006,
Ameriprise Financial, Inc. (Ameriprise Financial) invested $10,000,000 in the
Fund (996,000 shares for Class A, 1,000 shares for Class B, 1,000 shares for
Class C, 1,000 shares for Class I and 1,000 shares for Class Y), which
represented the initial capital for each class at $10 per share. Operations
commenced on June 15, 2006.
As of the date of this report the Fund is only available to certain limited
institutional investors.
The Fund offers Class A, Class B, Class C, Class I and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class Y shares have no sales charge and are offered only to
qualifying institutional investors.
In September 2006, the Board approved renaming Class Y as Class R4, terminating
the shareholder servicing agreement, revising the fee structure under the
transfer agent agreement from account-based to asset-based, and adopting a plan
administration services agreement. These changes are effective Dec. 11, 2006.
At Oct. 31, 2006, Ameriprise Financial and the affiliated funds-of-funds owned
100% of Class I shares, which represents 87% of the Fund's net assets.
At Oct. 31, 2006, Ameriprise Financial and the affiliated funds-of-funds owned
100% of the total outstanding Fund shares.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) 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.
14 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Directors of the funds, Ameriprise Financial utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Fund on a
forward-commitment basis, including when-issued securities and other
forward-commitments, can take place one month or more after the transaction
date. During this period, such securities are subject to market fluctuations,
and they may affect the Fund's net assets the same as owned securities. The Fund
designates cash or liquid securities at least equal to the amount of its
forward-commitments. At Oct. 31, 2006, the Fund has entered into outstanding
when-issued securities of $1,500,000.
The Fund also enters into transactions to sell purchase commitments to third
parties at current market values and concurrently acquires other purchase
commitments for similar securities at later dates. As an inducement for the Fund
to "roll over" its purchase commitments, the Fund receives negotiated amounts in
the form of reductions of the purchase price of the commitment.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 15
<Page>
OPTION TRANSACTIONS
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Fund may buy and write options traded
on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
The Fund also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised. The Fund also has
the additional risk of being unable to enter into a closing transaction if a
liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed
16 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
forward contracts, exchange gains or losses realized between the trade date and
settlement date on securities transactions, and other translation gains or
losses on dividends, interest income and foreign withholding taxes.
The Fund may enter into forward foreign currency exchange contracts to produce
incremental earnings, for operational purposes, or to protect against adverse
exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Fund is subject to the
credit risk that the other party will not complete its contract obligations.
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.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of the deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by $5,694
resulting in a net reclassification adjustment to decrease paid-in capital by
$5,694.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 17
<Page>
The tax character of distributions paid for the period indicated is as follows:
FOR THE PERIOD FROM JUNE 15, 2006* TO OCT. 31, 2006
<Table>
CLASS A
Distributions paid from:
Ordinary income $ 124,233
Long-term capital gain --
CLASS B
Distributions paid from:
Ordinary income 95
Long-term capital gain --
CLASS C
Distributions paid from:
Ordinary income 95
Long-term capital gain --
CLASS I
Distributions paid from:
Ordinary income 684,162
Long-term capital gain --
CLASS Y
Distributions paid from:
Ordinary income 130
Long-term capital gain --
</Table>
* When shares became publicly available.
At Oct. 31, 2006, the components of distributable earnings on a tax basis are
as follows:
<Table>
Undistributed ordinary income $ 373,587
Accumulated long-term gain (loss) $ 480,721
Unrealized appreciation (depreciation) $ 10,363
</Table>
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
("SFAS 157"). SFAS 157 establishes an authoritative definition of fair value,
sets out a framework for measuring fair value, and requires additional
disclosures about fair-value measurements. The application of SFAS 157 is
required for fiscal years beginning after Nov. 15, 2007 and interim periods
within those fiscal years. The impact of SFAS 157 on the Fund's financial
statements is being evaluated.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." FIN 48
clarifies the accounting for uncertainty in income taxes recognized in
accordance with FASB Statement 109, "Accounting for Income Taxes." FIN 48
prescribes a two-step process to recognize and measure a tax position taken or
expected to be taken in a tax return. The first step is to determine whether a
tax position has met
18 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
the more-likely-than-not recognition threshold and the second step is to measure
a tax position that meets the threshold to determine the amount of benefit to
recognize. FIN 48 also provides guidance on derecognition, classification,
interest and penalties, accounting in interim periods, disclosure and
transition. FIN 48 is effective for fiscal years beginning after Dec. 15, 2006.
Tax positions of the Fund are being evaluated to determine the impact, if any,
to the Fund. The adoption of FIN 48 is not anticipated to have a material impact
on the Fund.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, when
available, are reinvested in additional shares of the Fund at net asset value or
payable in cash. Capital gains, when available, are distributed along with the
last income dividend of the calendar year.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.89% to 0.70% annually as the Fund's assets increase.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses include, among other things, certain expenses of the Fund or the
Board (including its independent members) equal to $818 that are paid by the
Fund through Board Services Corporation, an entity that provides services to the
Board and the Fund pursuant to a separate agreement. These expenses include:
Fund boardroom expense, Board Services Corporation office expense, Board
Services Corporation employee compensation, including employee health and
retirement benefits, Board Services Corporation audit and legal fees, Fund legal
fees, certain taxes, filing fees and certain other expenses.
Compensation of board members includes compensation as well as retirement
benefits. Certain other aspects of the Board Chair's compensation, including
health benefits and payment of certain other expenses, are included under other
expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 19
<Page>
dollar amounts had been invested in shares of the Fund or other RiverSource
funds. The Fund's liability for these amounts is adjusted for market value
changes and remains in the Fund until distributed in accordance with the Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation (the
Transfer Agent) maintains shareholder accounts and records. The Fund pays the
Transfer Agent an annual fee per shareholder account for this service as
follows:
- - Class A $20.50
- - Class B $21.50
- - Class C $21.00
- - Class Y $18.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (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 up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by Distributor and other servicing agents with
respect to those shares. The fee is calculated at a rate of 0.10% of the Fund's
average daily net assets attributable to Class Y shares.
For the period ended Oct. 31, 2006, the Investment Manager and its affiliates
waived certain fees and expenses to 1.37% for Class A, 2.16% for Class B, 2.16%
for Class C, 1.12% for Class I and 1.23% for Class Y. Of these waived fees and
expenses, the management fees waived at the Fund level were $18,736. In
addition, the Investment Manager and its affiliates have agreed to waive certain
fees and expenses until Oct. 31, 2007, unless sooner terminated at the
discretion of the Board, such that net expenses will not exceed 1.47% for Class
A, 2.23% for Class B, 2.23% for Class C, 1.12% for Class I and 1.31% for Class Y
of the Fund's average daily net assets.
During the period ended Oct. 31, 2006, the Fund's custodian and transfer agency
fees were reduced by $700 as a result of earnings and bank fee credits from
overnight cash balances. The Fund also pays custodian fees to Ameriprise Trust
Company, an affiliate of Ameriprise Financial.
20 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $31,882,184 and $2,985,211, respectively, for the period
from June 15, 2006 (when shares became publicly available) to Oct. 31, 2006.
Realized gains and losses are determined on an identified cost basis.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the period from June 15, 2006* to
Oct. 31, 2006 are as follows:
<Table>
<Caption>
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ---------------------------------------------------------------------------------------
Sold -- -- -- 6,721,344 --
Issued for reinvested distributions -- -- -- 67,960 --
Redeemed -- -- -- (47,155) --
- ---------------------------------------------------------------------------------------
Net increase (decrease) -- -- -- 6,742,149 --
- ---------------------------------------------------------------------------------------
</Table>
* When shares became publicly available.
5. FORWARD FOREIGN CURRENCY CONTRACTS
At Oct. 31, 2006, the Fund has forward foreign currency exchange contracts that
obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------
Nov. 29, 2006 8,375,000 7,437,239 $ -- $ 30,278
Canadian Dollar U.S. Dollar
Nov. 29, 2006 4,343,000 3,870,422 -- 1,987
Canadian Dollar U.S. Dollar
Nov. 29, 2006 7,446,323 5,922,000 124,544 --
U.S. Dollar European Monetary Unit
Nov. 29, 2006 19,103 15,000 73 --
U.S. Dollar European Monetary Unit
Nov. 29, 2006 2,216,468,000 18,666,880 -- 359,702
Japanese Yen U.S. Dollar
Nov. 29, 2006 269,000 2,299 -- 11
Japanese Yen U.S. Dollar
Nov. 29, 2006 11,095,840 74,275,000 285,071 --
U.S. Dollar Norwegian Krone
Nov. 29, 2006 54,721,000 7,560,133 -- 32,565
Swedish Krona U.S. Dollar
Nov. 29, 2006 18,934,607 23,584,000 80,013 --
U.S. Dollar Swiss Franc
- ---------------------------------------------------------------------------------------------
Total $ 489,701 $ 424,543
- ---------------------------------------------------------------------------------------------
</Table>
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 21
<Page>
6. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
7. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 19, 2006. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.06%
per annum. Prior to this agreement, the Fund paid a commitment fee equal to its
pro rata share of the amount of the credit facility at a rate of 0.07% per
annum. The Fund had no borrowings outstanding during the period ended Oct. 31,
2006.
8. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
22 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
As a result of the Orders, AEFC was censured and ordered to cease and desist
from committing or causing any violations of certain provisions of the
Investment Advisers Act of 1940, the Investment Company Act of 1940, and various
Minnesota laws. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings,
including routine litigation, class actions, and governmental actions,
concerning matters arising in connection with the conduct of their business
activities. Ameriprise Financial believes that the Funds are not currently
the subject of, and that neither Ameriprise Financial nor any of its
affiliates are the subject of, any pending legal, arbitration or regulatory
proceedings that are likely to have a material adverse effect on the Funds or
the ability of Ameriprise Financial or its affiliates to perform under their
contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K
and, as necessary, 8-K filings with the Securities and Exchange Commission on
legal and regulatory matters that relate to Ameriprise Financial and its
affiliates. Copies of these filings may be obtained by accessing the SEC
website at www.sec.gov.
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.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 23
<Page>
9. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2006(b)
Net asset value, beginning of period $ 9.98
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .12
Net gains (losses) (both realized and unrealized) .11
- ---------------------------------------------------------------------------
Total from investment operations .23
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.12)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.09
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 10
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.37%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 3.89%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 12%
- ---------------------------------------------------------------------------
Total return(f) 2.37%(g)
- ---------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available) to
Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class A would have been 1.59% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
24 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
CLASS B
<Table>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2006(b)
Net asset value, beginning of period $ 9.97
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .09
Net gains (losses) (both realized and unrealized) .12
- ---------------------------------------------------------------------------
Total from investment operations .21
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.09)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.09
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ --
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 2.16%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 3.11%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 12%
- ---------------------------------------------------------------------------
Total return(f) 2.16%(g)
- ---------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available) to
Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class B would have been 2.38% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 25
<Page>
CLASS C
<Table>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2006(b)
Net asset value, beginning of period $ 9.97
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .09
Net gains (losses) (both realized and unrealized) .12
- ---------------------------------------------------------------------------
Total from investment operations .21
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.09)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.09
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ --
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 2.16%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 3.11%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 12%
- ---------------------------------------------------------------------------
Total return(f) 2.16%(g)
- ---------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available) to
Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class C would have been 2.38% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
26 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
CLASS I
<Table>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2006(b)
Net asset value, beginning of period $ 9.98
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13
Net gains (losses) (both realized and unrealized) .12
- ---------------------------------------------------------------------------
Total from investment operations .25
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.13)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.10
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 68
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.12%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 4.37%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 12%
- ---------------------------------------------------------------------------
Total return(f) 2.56%(g)
- ---------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available) to
Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class I would have been 1.34% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 27
<Page>
CLASS Y*
<Table>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2006(b)
Net asset value, beginning of period $ 9.98
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13
Net gains (losses) (both realized and unrealized) .11
- ---------------------------------------------------------------------------
Total from investment operations .24
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.13)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.09
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ --
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.23%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 4.04%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 12%
- ---------------------------------------------------------------------------
Total return(f) 2.42%(g)
- ---------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) For the period from June 15, 2006 (when shares became publicly available) to
Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class Y would have been 1.45% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
28 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
RIVERSOURCE GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of RiverSource Absolute Return
Currency and Income Fund (a series of RiverSource Global Series, Inc.) as of
October 31, 2006, and the related statements of operations, changes in net
assets and the financial highlights for the period from June 15, 2006 (when
shares became publicly available) to October 31, 2006. These financial
statements and the financial highlights are the responsibility of fund
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2006, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Absolute Return Currency and Income Fund as of October 31, 2006, and
the results of its operations, changes in its net assets and the financial
highlights for the period stated in the first paragraph above, in conformity
with U.S. generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2006
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 29
<Page>
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
FISCAL PERIOD ENDED OCT. 31, 2006
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
June 26, 2006 $ 0.01490
July 26, 2006 0.01216
Aug. 28, 2006 0.03370
Sept. 25, 2006 0.03083
Oct. 26, 2006 0.03315
TOTAL DISTRIBUTIONS $ 0.12474
</Table>
CLASS B
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
June 26, 2006 $ 0.01134
July 26, 2006 0.00571
Aug. 28, 2006 0.02659
Sept. 25, 2006 0.02476
Oct. 26, 2006 0.02638
TOTAL DISTRIBUTIONS $ 0.09478
</Table>
30 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
June 26, 2006 $ 0.01134
July 26, 2006 0.00572
Aug. 28, 2006 0.02659
Sept. 25, 2006 0.02476
Oct. 26, 2006 0.02638
TOTAL DISTRIBUTIONS $ 0.09479
</Table>
CLASS I
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
June 26, 2006 $ 0.01577
July 26, 2006 0.01451
Aug. 28, 2006 0.03596
Sept. 25, 2006 0.03275
Oct. 26, 2006 0.03529
TOTAL DISTRIBUTIONS $ 0.13428
</Table>
CLASS Y
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
June 26, 2006 $ 0.01625
July 26, 2006 0.01270
Aug. 28, 2006 0.03502
Sept. 25, 2006 0.03195
Oct. 26, 2006 0.03440
TOTAL DISTRIBUTIONS $ 0.13032
</Table>
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 31
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund 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 Oct. 31, 2006.
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.
32 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2006 OCT. 31, 2006 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) N/A N/A N/A N/A
Hypothetical
(5% return before expenses) $ 1,000 $ 1,018.50 $ 7.05 1.37%
Class B
Actual(b) N/A N/A N/A N/A
Hypothetical
(5% return before expenses) $ 1,000 $ 1,014.47 $ 11.09 2.16%
Class C
Actual(b) N/A N/A N/A N/A
Hypothetical
(5% return before expenses) $ 1,000 $ 1,014.47 $ 11.09 2.16%
Class I
Actual(b) N/A N/A N/A N/A
Hypothetical
(5% return before expenses) $ 1,000 $ 1,019.77 $ 5.76 1.12%
Class Y
Actual(b) N/A N/A N/A N/A
Hypothetical
(5% return before expenses) $ 1,000 $ 1,019.21 $ 6.33(c) 1.23%
</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 186/365 (to reflect the one-half year period).
(b) The actual values and expenses paid are not presented because the Fund does
not have a full six months of history. The inception date of the Fund is
June 15, 2006.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement. In addition, the
investment manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until Oct. 31, 2007, unless
sooner terminated at the discretion of the Fund's Board, such that net
expenses will not exceed 1.31% for Class R4. Any amounts waived will not be
reimbursed by the Fund. These changes are effective Dec. 11, 2006. If these
changes had been in place for the six-month period ended Oct. 31, 2006, the
hypothetical expenses paid for Class Y would have been $6.74.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 33
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund' s operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund' s Board members. Each member oversees 100
RiverSource funds. Board members serve until the next regular shareholders'
meeting or until he or she reaches the mandatory retirement age established by
the Board. Under the current Board policy, members may serve until the end of
the meeting following their 75th birthday, or the fifteenth anniversary of the
first Board meeting they attended as members of the Board, whichever occurs
first. This policy does not apply to Ms. Jones who may retire after her 75th
birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member Chief Justice, Minnesota Supreme
901 S. Marquette Ave. since 2006 Court, 1998-2005
Minneapolis, MN 55402
Age 52
Arne H. Carlson Board member and Chair, Board Services Corporation
901 S. Marquette Ave. Chair of the Board (provides administrative services
Minneapolis, MN 55402 since 1999 to boards); former Governor of
Age 72 Minnesota
Patricia M. Flynn Board member Trustee Professor of Economics and
901 S. Marquette Ave. since 2004 Management, Bentley College;
Minneapolis, MN 55402 former Dean, McCallum Graduate
Age 56 School of Business, Bentley
College
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 71
Jeffrey Laikind Board member Former Managing Director, Shikiar American Progressive
901 S. Marquette Ave. since 2005 Asset Management Insurance
Minneapolis, MN 55402
Age 71
Stephen R. Lewis, Jr.* Board member President Emeritus and Professor Valmont Industries, Inc.
901 S. Marquette Ave. since 2002 of Economics, Carleton College (manufactures irrigation
Minneapolis, MN 55402 systems)
Age 67
</Table>
* As of Jan. 1, 2007 Stephen Lewis will replace Arne Carlson as Chair of the
Board.
34 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Asset Strategic Distribution,
901 S. Marquette Ave. since 2004 Management, Inc. (private real Inc. (transportation,
Minneapolis, MN 55402 estate and asset management distribution and
Age 54 company) logistics consultants)
Vikki L. Pryor Board member President and Chief Executive
901 S. Marquette Ave. since 2006 Officer, SBLI USA Mutual Life
Minneapolis, MN 55402 Insurance Company, Inc. since 1999
Age 53
Alison Taunton-Rigby Board member Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. since 2002 RiboNovix, Inc. since 2003 (biotechnology);
Minneapolis, MN 55402 (biotechnology); former President, American Healthways,
Age 62 Forester Biotech Inc. (health management
programs)
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS*
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
William F. Truscott Board member President, Ameriprise Certificate
53600 Ameriprise since 2001, Company since 2006; President -
Financial Center Vice President U.S. Asset Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer, Ameriprise
Age 46 Financial, Inc. and President,
Chairman of the Board and Chief
Investment Officer, RiverSource
Investments, LLC since 2005;
Senior Vice President - Chief
Investment Officer, Ameriprise
Financial, Inc. and Chairman of
the Board and Chief Investment
Officer, RiverSource Investments,
LLC, 2001-2005
</Table>
* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 35
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund' s other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Compliance Director and Anti-Money Laundering Officer,
2934 Ameriprise Prevention Officer since Ameriprise Financial, Inc. since 2004; Manager
Financial Center 2004 Anti-Money Laundering, Ameriprise Financial, Inc.,
Minneapolis, MN 55474 2003-2004; Compliance Director and Bank Secrecy Act
Age 42 Officer, American Express Centurion Bank, 2000-2003
Patrick T. Bannigan President since 2006 Senior Vice President - Asset Management, RiverSource
172 Ameriprise Investments, LLC since 2006; Managing Director and
Financial Center Global Head of Product, Morgan Stanley Investment
Minneapolis, MN 55474 Management, 2004-2006; President, Touchstone
Age 41 Investments, 2002-2004; Director of Strategic
Planning, Evergreen Investments, 1995-2002
Jeffrey P. Fox Treasurer since 2002 Vice President - Investment Accounting, Ameriprise
105 Ameriprise Financial, Inc., since 2002; Vice President - Finance,
Financial Center American Express Company, 2000-2002
Minneapolis, MN 55474
Age 51
Amy K. Johnson Vice President since 2006 Vice President - Asset Management and Trust Company
5228 Ameriprise Services, RiverSource Investments, LLC, since 2006;
Financial Center Vice President - Operations and Compliance,
Minneapolis, MN 55474 RiverSource Investments, LLC, 2004-2006; Director of
Age 41 Product Development - Mutual Funds, American Express
Financial Corporation, 2001-2004
Michelle M. Keeley Vice President since 2004 Executive Vice President - Equity and Fixed Income,
172 Ameriprise Ameriprise Financial, Inc. and RiverSource
Financial Center Investments, LLC since 2006; Vice President -
Minneapolis, MN 55474 Investments, Ameriprise Certificate Company since
Age 42 2003; Senior Vice President - Fixed Income, Ameriprise
Financial, Inc., 2002-2006 and RiverSource
Investments, LLC, 2004-2006; Managing Director, Zurich
Global Assets, 2001-2002
Jennifer D. Lammers Chief Compliance Officer U.S. Asset Management Chief Compliance Officer,
172 Ameriprise since 2006 RiverSource Investments, LLC since 2006; Director -
Financial Center Mutual Funds, Voyageur Asset Management, 2003-2006;
Minneapolis, MN 55474 Director of Finance, Voyageur Asset Management,
Age 46 2000-2003
Scott R. Plummer Vice President, General Vice President and Chief Counsel - Asset Management,
5228 Ameriprise Counsel and Secretary Ameriprise Financial, Inc. since 2005; Vice President,
Financial Center since 2006 General Counsel and Secretary, Ameriprise Certificate
Minneapolis, MN 55474 Company since 2005; Vice President - Asset Management
Age 47 Compliance, Ameriprise Financial, Inc., 2004-2005;
Senior Vice President and Chief Compliance Officer,
U.S. Bancorp Asset Management, 2002-2004; Second Vice
President and Assistant General Counsel, Hartford
Life, 2001-2002
</Table>
The SAI has additional information about the Fund' s directors and is available,
without charge, upon request by calling RiverSource Funds at (888) 791-3380;
contacting your financial institution; or visiting riversource.com/funds.
36 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
<Page>
APPROVAL OF INVESTMENT MANAGEMENT SERVICES AGREEMENT
RiverSource Investments, LLC (RiverSource Investments), a wholly-owned
subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the
investment manager to the fund. Under an investment management services
agreement (the IMS Agreement), the investment manager provides investment advice
and other services to the fund. The fund's Board of Directors (the Board) and
the Board's Investment Review and Contracts Committees monitor these services.
The independent Board members determined to approve the IMS Agreement based on
the following factors:
In addition to portfolio management and investment research, RiverSource
Investments and its affiliates provide portfolio trading, daily net asset value
calculation, management of cash flows, product development, administration of
its compliance and legal departments, access to distribution, accounting and
recordkeeping, and reporting to the Board and shareholders. The Board also noted
RiverSource Investments' commitment to a culture that adheres to ethical
business practice, assigns accountability to senior management and seeks to
identify conflicts and propose appropriate action to minimize the risks posed by
the conflicts. The Board concluded that the services to be provided are
consistent with services provided by investment managers to comparable mutual
funds (as compiled by Lipper Analytical Services).
The Board also evaluated the price for the services to be provided by
RiverSource Investments, noting the existence of a pricing philosophy,
established by the Board and RiverSource Investments, that seeks to maintain
total fund expenses within a range of the median expenses charged to comparable
funds sold through financial advisers. It also noted that RiverSource
Investments has agreed to voluntarily impose expense caps, if necessary, to
achieve this pricing objective.
The Board considered the economies of scale that might be realized by
RiverSource Investments as the fund grows and took note of the extent to which
fund shareholders also might benefit from such growth. The Board considered that
the IMS Agreement provides for lower fees as assets increase at pre-established
breakpoints and concluded that the IMS Agreement satisfactorily provided for
sharing these economies of scale.
The Board took into account the Contracts Committee's discussion comparing the
fees RiverSource Investments will charge to the fund with those it charges to
institutional clients, noting that the relatively higher fees to be paid by the
fund are principally attributable to the additional services required to manage
a regulated mutual fund such as the fund, and the operation of a large mutual
fund family. The Board also considered the profitability of RiverSource
Investments and its affiliates. The Board concluded that RiverSource
Investments' overall costs and profitability were appropriate.
RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT 37
<Page>
The Board considered that the fees paid by the fund should help permit
RiverSource Investments to offer competitive compensation to its personnel, make
necessary investments in its business and earn an appropriate profit. Based on
the foregoing, the Board concluded that the fees paid to RiverSource Investments
under the IMS Agreement were fair and reasonable and determined to approve the
IMS Agreement.
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities during the 12-month period
ended June 30, 2006 is available without charge by visiting
riversource.com/funds; or searching the website of the SEC at www.sec.gov.
38 RIVERSOURCE ABSOLUTE RETURN CURRENCY AND INCOME FUND - 2006 ANNUAL REPORT
RIVERSOURCE(SM) ABSOLUTE RETURN CURRENCY AND INCOME FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
riversource.com/funds
[RIVERSOURCE(SM) INVESTMENTS LOGO]
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource(SM) mutual funds are distributed by RiverSource Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and managed by
RiverSource Investments, LLC. These companies are part of Ameriprise Financial,
Inc.
S-6502 C (12/06)
<Page>
ANNUAL REPORT
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
EMERGING MARKETS BOND FUND
ANNUAL REPORT FOR THE PERIOD ENDED OCT. 31, 2006
- - RIVERSOURCE EMERGING MARKETS BOND FUND SEEKS TO PROVIDE SHAREHOLDERS
WITH HIGH TOTAL RETURN THROUGH CURRENT INCOME AND CAPITAL APPRECIATION.
TABLE OF CONTENTS
<Table>
Fund Snapshot 3
Performance Summary 5
Questions & Answers with Portfolio Management 7
The Fund's Long-term Performance 12
Investments in Securities 14
Financial Statements 18
Notes to Financial Statements 21
Report of Independent Registered Public Accounting Firm 36
Federal Income Tax Information 37
Fund Expenses Example 39
Board Members and Officers 41
Proxy Voting 44
</Table>
2 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
FUND SNAPSHOT AT OCT. 31, 2006
FUND OVERVIEW
RiverSource Emerging Markets Bond Fund invests primarily in fixed income
securities of emerging markets issuers. The Fund offers exposure to countries
that appear to have strong fundamentals and attractive value investment
opportunities. Foreign currency investments also make up the Fund's portfolio to
take advantage of attractive local interest rates and undervalued currencies.
[PIE CHART]
COUNTRY BREAKDOWN
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Other(1) 37.1%
Argentina 7.2%
Philippine Islands 7.8%
Brazil 15.6%
Mexico 12.7%
Cash & Cash Equivalents 10.5%
Russia 9.1%
</Table>
(1) Includes Turkey 5.9%, Colombia 5.2%, Venezuela 5.2%, Peru 4.4%, Panama 2.9%,
Uruguay 2.7%, Indonesia 1.9%, El Salvador 1.7%, Dominican Republic 1.4%,
Ukraine 1.2%, Luxembourg 1.0%, Netherlands 0.9%, Costa Rica 0.8%, South
Africa 0.8%, Kazakhstan 0.6%, United States 0.3% and Malaysia 0.2%.
[PIE CHART]
QUALITY BREAKDOWN
PERCENTAGE OF BOND PORTFOLIO ASSETS
<Table>
Non-rated bonds 3.0%
B bonds 14.5%
BB bonds 58.5%
AAA bonds 0.3%
A bonds 1.6%
BBB bonds 22.1%
</Table>
Bond ratings apply to underlying holdings of the Fund and not the Fund itself.
Whenever possible, the Standard and Poor's rating is used to determine the
credit quality of a security. Standard and Poor's rates the creditworthiness of
corporate bonds, with 15 categories, ranging from AAA (highest) to D (lowest).
Ratings from AA to CCC may be modified by the addition of a plus (+) or minus
(-) sign to show relative standing within the major rating categories. If
Standard and Poor's doesn't rate a security, then Moody's rating is used.
RiverSource Investments, LLC, Fund's investment manager, rates a security using
an internal rating system when Moody's doesn't provide a rating.
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund. In
general, bond prices rise when interest rates fall and vice versa. This effect
is usually more pronounced for longer-term securities. Non-investment grade
securities, commonly called "high-yield" or "junk" bonds, generally have more
volatile prices and carry more risk to principal and income than investment
grade securities.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 3
[CHART]
STYLE MATRIX
DURATION
SHORT INT. LONG
HIGH
MEDIUM QUALITY
X LOW
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
SEC YIELDS
<Table>
<Caption>
AT SEPT. 29, 2006* AT OCT. 31, 2006
Class A 4.94% 4.97%
Class B 4.41% 4.49%
Class C 4.56% 4.43%
Class I 5.51% 5.52%
Class Y 5.33% 5.36%
</Table>
* The last business day of the period
The Securities and Exchange Commission (SEC) yield is calculated by dividing
anticipated net investment income during a 31-day period by the public offering
price (POP) per share on the last day of the period, and converting the results
to yearly figures. See Average Annual Total Returns on page 6 for additional
performance information.
PORTFOLIO MANAGER
<Table>
<Caption>
YEARS IN INDUSTRY
Nicholas Pifer, CFA* 16
</Table>
* The Fund is managed by a team of portfolio managers led by Nicholas Pifer.
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A -- 2/16/06
Class B -- 2/16/06
Class C -- 2/16/06
Class I RSMIX 2/16/06
Class Y -- 2/16/06
Total net assets $59.6 million
Number of holdings 92
Weighted average life(1) 11 years
Effective duration(2) 6.5 years
Weighted average bond rating(3) BB
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels of
interest rates from two years out to 30 years). Positive duration means that
as rates rise, the price decreases, and negative duration means that as
rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
4 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE PERIOD ENDED OCT. 31, 2006
<Table>
RiverSource Emerging Markets Bond Fund +5.25%
Class A (excluding sales charge)
(since inception 2/16/06)
J.P. Morgan Emerging Markets Bond Index-Global +5.32%
(unmanaged) (since inception 2/16/06)
Lipper Emerging Markets Debt Funds Index +5.64%
(since inception 2/16/06)
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CONTACTING YOUR FINANCIAL INSTITUTION OR
VISITING riversource.com/funds.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 5
<Page>
PERFORMANCE SUMMARY
TOTAL RETURNS
AT OCT. 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
WITHOUT SALES CHARGE
Class A (INCEPTION 2/16/06) +5.25%
Class B (INCEPTION 2/16/06) +4.80%
Class C (INCEPTION 2/16/06) +4.75%
Class I (INCEPTION 2/16/06) +5.44%
Class Y (INCEPTION 2/16/06) +5.36%
WITH SALES CHARGE
Class A (INCEPTION 2/16/06) +0.25%
Class B (INCEPTION 2/16/06) -0.20%
Class C (INCEPTION 2/16/06) +3.75%
</Table>
AT SEPT. 30, 2006
<Table>
<Caption>
SINCE
INCEPTION
WITHOUT SALES CHARGE
Class A (INCEPTION 2/16/06) +4.95%
Class B (INCEPTION 2/16/06) +4.33%
Class C (INCEPTION 2/16/06) +4.26%
Class I (INCEPTION 2/16/06) +5.20%
Class Y (INCEPTION 2/16/06) +5.11%
WITH SALES CHARGE
Class A (INCEPTION 2/16/06) -2.98%
Class B (INCEPTION 2/16/06) -3.75%
Class C (INCEPTION 2/16/06) +2.62%
</Table>
CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. CLASS B
SHARE PERFORMANCE REFLECTS A CONTINGENT DEFERRED SALES CHARGE (CDSC) APPLIED AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEARS 4%; FOURTH YEAR 3%; FIFTH YEAR
2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER. CLASS C SHARES MAY BE SUBJECT TO
A 1% CDSC IF SHARES ARE SOLD WITHIN ONE YEAR AFTER PURCHASE. SALES CHARGES DO
NOT APPLY TO CLASS I AND CLASS Y SHARES. THESE SHARE CLASSES ARE AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
6 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
BELOW, NIC PIFER, PORTFOLIO MANAGER FOR RIVERSOURCE EMERGING MARKETS BOND FUND,
DISCUSSES THE FUND'S RESULTS AND POSITIONING FOR THE PERIOD SINCE THE FUND'S
INCEPTION ON FEB. 16, 2006 THROUGH OCT. 31, 2006.
AT OCT. 31, 2006, APPROXIMATELY 79% OF THE FUND'S SHARES WERE OWNED IN THE
AGGREGATE BY AFFILIATED FUNDS-OF-FUNDS MANAGED BY RIVERSOURCE INVESTMENTS, LLC
(RIVERSOURCE). AS A RESULT OF ASSET ALLOCATION DECISIONS BY RIVERSOURCE, IT IS
POSSIBLE THE RIVERSOURCE EMERGING MARKETS BOND FUND MAY EXPERIENCE RELATIVELY
LARGE PURCHASES OR REDEMPTIONS FROM AFFILIATED FUNDS-OF-FUNDS (SEE PAGE 28,
CLASS I CAPITAL SHARE TRANSACTIONS FOR RELATED ACTIVITY DURING THE MOST RECENT
FISCAL PERIOD). RIVERSOURCE SEEKS TO MINIMIZE THE IMPACT OF THESE TRANSACTIONS
BY STRUCTURING THEM OVER A REASONABLE PERIOD OF TIME. RIVERSOURCE EMERGING
MARKETS BOND FUND MAY EXPERIENCE INCREASED EXPENSES AS IT BUYS AND SELLS
SECURITIES AS A RESULT OF PURCHASES OR REDEMPTIONS BY AFFILIATED FUNDS-OF-FUNDS.
FOR MORE INFORMATION ON THE FUND'S EXPENSES, SEE THE DISCUSSIONS BEGINNING ON
PAGES 26 AND 39.
Q: How did RiverSource Emerging Markets Bond Fund perform for the period since
its inception?
A: RiverSource Emerging Markets Bond Fund began operations on Feb. 16, 2006. The
Fund's Class A shares gained 5.25% (excluding sales charge) from the Fund's
inception through Oct. 31, 2006. The Fund underperformed its benchmark, the
J.P. Morgan Emerging Markets Bond Index-Global (J.P. Morgan EMBI-Global),
which rose 5.32%, and the Lipper Emerging Markets Debt Funds Index,
representing the Fund's peer group, which advanced 5.64% during the same
period.
SIGNIFICANT EXPOSURE TO DEBT MARKETS IN THE LATIN AMERICAN REGION AND A
MODEST ALLOCATION TO DEBT MARKETS IN EASTERN EUROPE BENEFITED THE FUND'S
PERFORMANCE MOST RELATIVE TO THE J.P. MORGAN EMBI-GLOBAL.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 7
<Page>
QUESTIONS & ANSWERS
Q: What factors most significantly affected the Fund's performance?
A: Significant exposure to debt markets in the Latin American region and a
modest allocation to debt markets in Eastern Europe benefited the Fund's
performance most relative to the J.P. Morgan EMBI-Global. From a country
selection perspective, sizable allocations to the bond markets of Argentina,
Colombia, the Dominican Republic and the Philippines and moderate positions
in the bond markets of Brazil, Russia and Turkey contributed positively to
the Fund's results. There were no major bond market detractors during the
period.
Also benefiting the Fund's returns during the period was having a greater
exposure to investments in local currency-denominated bonds with higher
coupons compared to the J.P. Morgan EMBI-Global. In other words, the Fund's
portfolio carried a higher level of yield than the benchmark index.
Detracting somewhat from the Fund's results was its position in emerging
market corporate bonds, whose performance generally lagged the J.P. Morgan
EMBI-Global. To a more modest degree, the Fund's duration, a principal
measure of interest rate risk, also detracted from the Fund's returns. We
maintained the Fund's duration shorter than that of the J.P. Morgan
EMBI-Global through the reporting period. This stance was based on our view
that the world's major central banks would raise interest rates given the
pace of economic growth. The U.S. Federal Reserve Board (the Fed) did, in
fact, raise the targeted federal funds rate by an additional 75 basis points
(0.75%) during the period. The European Central Bank also raised its interest
rates four more times during the period, for a total of 100 basis points
(1.00%). In the spring, the Bank of Japan took the first step to move away
from its zero interest rate policy and raised interest rates for the first
time in five years in July 2006 by 25 basis points (0.25%). As global bond
yields generally moved up only moderately over the reporting period as a
whole, the Fund's short duration positioning had a modestly negative effect
on results.
8 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Q: What changes did you make to the Fund's portfolio during the period and how
is it currently positioned?
A: In the months since the Fund's inception, we gradually increased the
portfolio's foreign currency exposure. The U.S. dollar remained virtually
unchanged during the reporting period against most of the emerging markets'
currencies. Also, during the reporting period, we reduced the Fund's
allocations to the bond markets of Russia and Mexico from significant to
moderate positions, based primarily on relative value analysis.
These first eight months or so of the Fund's operation were a
portfolio-building process, analyzing the creditworthiness of each country in
the emerging markets universe and developing judgments on the fundamental
attractiveness of each country's sovereign debt. We compared opportunities
between countries and evaluated each country's capitalization in the J.P.
Morgan EMBI-Global to help determine the size of our investment positions.
Finally, in choosing individual debt securities, we analyzed the differences
between each country's short-term and long-term interest rates for relative
value opportunities. We also looked for local market opportunities to make
investments where we viewed the local interest rates as attractive, believed
the local currency was undervalued and liked a country's fundamentals.
As of Oct. 31, 2006, approximately 80% of the Fund's net assets were invested
in sovereign debt and approximately 12% in corporate debt with the remainder
in cash and cash equivalents. The Fund had its most significant allocations
relative to the J.P. Morgan EMBI-Global in the bond markets of Colombia, the
Philippines, Argentina, Peru and El Salvador. Conversely, it had its most
modest exposures relative to the benchmark index in the bond markets of
China, Venezuela, Malaysia, Turkey and Russia.
WE CONTINUE TO FAVOR THE LATIN AMERICAN REGION FOR THE FUND DUE TO ITS
IMPROVING FUNDAMENTALS, STATUS AS A COMMODITY EXPORTER AND ATTRACTIVE
VALUATIONS.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 9
<Page>
QUESTIONS & ANSWERS
Q: How do you intend to manage the Fund in the coming months?
A: We continue to favor the Latin American region for the Fund due to its
improving fundamentals, status as a commodity exporter and attractive
valuations. With a few exceptions, the countries in the region have run solid
economic policies, maintained flexible exchange rates and have used the
recent period of high petroleum and commodity prices to reduce their external
indebtedness. We also continue to see value in the currency assets of
emerging markets and in Eastern European corporate bonds and expect to look
for opportunities to increase the Fund's exposure to both in the coming
months.
Overall, emerging markets fundamentals are strong. Many developing countries
have low budget deficits, healthy current account balances and their lowest
debt load in ten years. With flexible exchange rates and lower reliance on
international capital, many of the vulnerabilities that triggered past
periods of volatility in the sector are less of an issue today.
10 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
While fundamentals remain solid and continue to improve, three years of
double-digit annual returns likely suggest more modest returns for 2007, as
we have already seen since the Fund's inception. Nonetheless, we believe more
developing countries will continue to move into the emerging markets debt
sector and seek access to capital markets, presenting new investment
opportunities. As existing emerging markets countries continue to grow and
rely less on debt denominated in U.S. dollars, local corporations will begin
to utilize the capital markets. We expect that many existing emerging markets
countries will continue to deepen their local capital markets, which should
present more liquid foreign currency investment opportunities to investors as
well.
Using our top-down investment approach, we intend to continually re-evaluate
the creditworthiness of each country, the strength of its economic policies
and its fundamentals, and the attractiveness of its local interest rates, as
we seek to identify countries, individual securities and local currency
investments that present attractive relative value opportunities.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 11
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Emerging Markets Bond Fund Class A shares (from
2/16/06 to 10/31/06)* as compared to the performance of two widely cited
performance indices, the J.P. Morgan EMBI-Global and the Lipper Emerging Markets
Debt Funds Index. In comparing the Fund's Class A shares to these indices, you
should take into account the fact that the Fund's performance reflects the
maximum sales charge of 4.75%, while such charges are not reflected in the
performance of the indices. Returns for the Fund include the reinvestment of any
distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE TABLE BELOW AND THE CHART ON THE FACING PAGE DO
NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. 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. ALSO
SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT PROSPECTUS.
* Fund data is from Feb. 16, 2006. J.P. Morgan EMBI-Global and Lipper peer group
data is from March 1, 2006.
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2006
<Table>
<Caption>
SINCE
INCEPTION(3)
RIVERSOURCE EMERGING MARKETS BOND FUND
(INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $ 10,025
Average annual total return +0.25%
J.P. MORGAN EMERGING MARKETS BOND INDEX-GLOBAL(1)
Cumulative value of $10,000 $ 10,419
Average annual total return +4.19%
LIPPER EMERGING MARKETS DEBT FUNDS INDEX(2)
Cumulative value of $10,000 $ 10,433
Average annual total return +4.33%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 6.
12 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN
RIVERSOURCE EMERGING MARKETS BOND FUND
[CHART]
<Table>
<Caption>
RiverSource Emerging Markets Bond J.P. Morgan Emerging Lipper Emerging Markets
Fund Class A (includes sales charge) Bond Index-Global(1) Debt Funds Index(2)
3/1/2006 $9,525 $10,000 $10,000
3/31/2006 $9,444 $9,810 $9,832
4/30/2006 $9,446 $9,801 $9,863
5/31/2006 $9,219 $9,600 $9,588
6/30/2006 $9,193 $9,599 $9,584
7/31/2006 $9,508 $9,913 $9,916
8/31/2006 $9,767 $10,171 $10,169
9/30/2006 $9,815 $10,228 $10,212
10/31/2006 $10,025 $10,419 $10,433
</Table>
(1) When available, the Fund intends to compare its performance to the
J.P. Morgan Emerging Markets Bond Index-Global (J.P. Morgan EMBI-Global),
which is an unmanaged index based on U.S. dollar-denominated debt
instruments issued by emerging market sovereign and quasi-sovereign
entities, such as Brady bonds, Eurobonds and loans. The index reflects
reinvestment of all distributions and changes in market prices, but excludes
brokerage commissions or other fees.
(2) The Fund also intends to compare its performance to the Lipper Emerging
Markets Debt Funds Index, an index published by Lipper Inc., which includes
the 10 largest funds that have similar investment objectives to the Fund,
although some funds in the index may have somewhat different investment
policies or objectives.
(3) Fund data is from Feb. 16, 2006. J.P. Morgan EMBI-Global Index and Lipper
peer group data is from March 1, 2006.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 13
<Page>
INVESTMENTS IN SECURITIES
OCT. 31, 2006
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (89.2%)(c)
ARGENTINA (7.2%)
Banco Hipotecario
Sr Unsecured
04-27-16 9.75% $ 575,000(d) $ 595,124
Banco Hipotecario
Sr Unsub
11-16-10 9.75 100,000 104,912
City of Buenos Aires
Sr Unsub
04-11-11 7.88 250,000(d) 251,575
Province of Buenos Aires
04-15-17 9.25 200,000(d) 201,000
09-14-18 9.38 500,000(d) 501,000
Province of Mendoza
09-04-18 5.50 330,953(d) 275,932
Republic of Argentina
03-28-11 7.00 1,025,000 1,008,600
08-03-12 5.59 590,000(g) 420,965
09-12-13 7.00 350,000 331,975
12-31-33 8.28 489,498 492,925
12-15-35 5.00 750,000(f) 83,625
-----------------
Total 4,267,633
- --------------------------------------------------------------------------------------------
BRAZIL (15.5%)
Banco ABN AMRO Real
(Brazilian Real)
02-22-10 16.20 1,350,000 674,747
Banco BMG
01-15-16 9.15 150,000(d) 150,750
Banco Bradesco
01-04-10 14.80 800,000(d) 384,903
BIE Bank & Trust
02-02-09 14.10 250,000 118,239
Centrais Eletricas Brasileiras
Sr Nts
11-30-15 7.75 486,000(d) 504,225
Eletropaulo Metropolitana de Sao Paulo
06-28-10 19.13 400,000(d) 208,333
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BRAZIL (CONT.)
Federative Republic of Brazil
10-22-10 9.25% $ 75,000 $ 84,750
03-07-15 7.88 530,000 586,975
01-15-18 8.00 195,000 215,573
10-14-19 8.88 1,748,000 2,113,331
04-15-24 8.88 1,312,000 1,601,952
02-04-25 8.75 260,000 314,600
01-20-34 8.25 623,000 728,287
08-17-40 11.00 894,000 1,177,398
JBS
08-04-16 10.50 400,000(d) 417,000
-----------------
Total 9,281,063
- --------------------------------------------------------------------------------------------
COLOMBIA (5.2%)
Republic of Colombia
12-22-14 8.25 95,000 106,590
01-27-17 7.38 670,000 710,870
05-21-24 8.13 352,000 396,176
09-18-37 7.38 650,000(b) 672,100
Republic of Colombia
(Colombian Peso)
03-01-10 11.75 1,000,000,000 468,750
10-22-15 12.00 1,408,000,000 720,622
-----------------
Total 3,075,108
- --------------------------------------------------------------------------------------------
COSTA RICA (0.8%)
Republic of Costa Rica
02-01-12 8.11 290,000(d) 314,650
03-20-14 6.55 180,000(d) 181,980
-----------------
Total 496,630
- --------------------------------------------------------------------------------------------
DOMINICAN REPUBLIC (1.4%)
Dominican Republic
01-23-18 9.04 473,935(d) 541,470
04-20-27 8.63 250,000(d) 277,125
-----------------
Total 818,595
- --------------------------------------------------------------------------------------------
EL SALVADOR (1.7%)
Republic of El Salvador
06-15-35 7.65 940,000(d) 1,029,770
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
14 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
INDONESIA (1.9%)
Republic of Indonesia
04-20-15 7.25% $ 360,000(d) $ 380,700
01-15-16 7.50 413,000(d) 444,491
03-09-17 6.88 300,000(d) 309,750
-----------------
Total 1,134,941
- --------------------------------------------------------------------------------------------
KAZAKHSTAN (0.6%)
Kazkommerts Intl
11-03-15 8.00 300,000(d) 308,625
Kazkommerts Intl
Bank Guaranty
04-07-14 7.88 70,000(d) 72,013
-----------------
Total 380,638
- --------------------------------------------------------------------------------------------
LUXEMBOURG (1.0%)
Gazprom Intl
02-01-20 7.20 100,000(d) 105,050
UBS (Vimplecom)
05-23-16 8.25 500,000(d) 518,125
-----------------
Total 623,175
- --------------------------------------------------------------------------------------------
MALAYSIA (0.2%)
TNB Capital
05-05-15 5.25 117,000(d) 115,439
- --------------------------------------------------------------------------------------------
MEXICO (12.7%)
Mexican Fixed Rate
(Mexican Peso)
12-20-12 9.00 5,500,000 537,596
Pemex Project Funding Master Trust
11-15-11 8.00 130,000 143,000
12-15-15 5.75 2,693,000 2,659,338
02-01-22 8.63 2,943,000 3,590,460
06-15-35 6.63 509,000 513,581
United Mexican States
03-03-15 6.63 100,000 107,300
-----------------
Total 7,551,275
- --------------------------------------------------------------------------------------------
NETHERLANDS (0.8%)
Majapahit Holding
10-17-16 7.75 200,000(d) 205,000
Turanalem Finance
04-25-13 7.75 300,000(d) 300,750
-----------------
Total 505,750
- --------------------------------------------------------------------------------------------
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
PANAMA (2.9%)
Republic of Panama
03-15-15 7.25% $ 753,000 $ 808,346
09-30-27 8.88 350,000 435,750
04-28-34 8.13 400,000 466,000
-----------------
Total 1,710,096
- --------------------------------------------------------------------------------------------
PERU (4.4%)
Republic of Peru
05-03-16 8.38 1,385,000 1,620,449
03-07-17 5.00 163,400(d),(g) 162,175
07-21-25 7.35 389,000 424,983
11-21-33 8.75 315,000 399,263
-----------------
Total 2,606,870
- --------------------------------------------------------------------------------------------
PHILIPPINE ISLANDS (7.8%)
Natl Power
11-02-16 6.88 400,000(b),(d) 403,884
Republic of Philippines
01-15-14 8.25 150,000 166,965
03-17-15 8.88 387,000 449,404
01-15-16 8.00 150,000 166,688
01-15-19 9.88 710,000 903,475
10-21-24 9.50 1,101,000 1,398,270
01-14-31 7.75 1,046,000 1,142,755
-----------------
Total 4,631,441
- --------------------------------------------------------------------------------------------
RUSSIA (9.1%)
Gazstream
07-22-13 5.63 551,474(d) 548,992
Russian Federation
03-31-10 8.25 178,892(d) 187,479
03-31-30 5.00 3,056,000(d),(g) 3,422,719
Russian Ministry of Finance
05-14-11 3.00 220,000 197,188
Russian Standard Finance
Sr Unsub
05-05-11 8.63 450,000(d) 447,750
TNK-BP Finance
07-18-16 7.50 600,000(d) 630,022
-----------------
Total 5,434,150
- --------------------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 15
<Page>
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
BONDS (CONTINUED)
SOUTH AFRICA (0.8%)
Republic of South Africa
06-02-14 6.50% $ 140,000 $ 147,000
Republic of South Africa
(South African Rand)
02-28-08 10.00 2,200,000 303,652
-----------------
Total 450,652
- --------------------------------------------------------------------------------------------
TURKEY (5.9%)
Republic of Turkey
01-15-14 9.50 290,000 333,863
03-15-15 7.25 2,369,000 2,428,224
09-26-16 7.00 750,000 753,750
-----------------
Total 3,515,837
- --------------------------------------------------------------------------------------------
UKRAINE (1.2%)
Credit Suisse First Boston Intl for City of Kiev Ukraine
11-06-15 8.00 100,000(d) 102,000
CS Intl
02-09-16 8.40 100,000 101,130
Govt of Ukraine
06-11-13 7.65 200,000(d) 214,000
Naftogaz Ukrainy
09-30-09 8.13 300,000 289,701
-----------------
Total 706,831
- --------------------------------------------------------------------------------------------
UNITED STATES (0.2%)
U.S. Treasury
02-15-16 4.50 150,000 148,816
- --------------------------------------------------------------------------------------------
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
URUGUAY (2.7%)
Republic of Uruguay
03-15-15 7.50% $ 334,000 $ 356,545
05-17-17 9.25 200,000 238,000
11-18-22 8.00 600,000 649,500
03-21-36 7.63 350,000 360,150
-----------------
Total 1,604,195
- --------------------------------------------------------------------------------------------
VENEZUELA (5.2%)
Petrozuata Finance
04-01-17 8.22 250,000(d) 245,000
Republic of Venezuela
10-08-14 8.50 864,000 959,904
02-26-16 5.75 1,655,000 1,539,316
01-13-34 9.38 291,000 364,187
-----------------
Total 3,108,407
- --------------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $51,030,973) $ 53,197,312
- --------------------------------------------------------------------------------------------
<Caption>
SHARES VALUE(a)
MONEY MARKET FUND (10.5%)
RiverSource Short-Term Cash Fund 6,250,644(e) $ 6,250,644
- --------------------------------------------------------------------------------------------
Total Money Market Fund
(Cost: $6,250,644) $ 6,250,644
- --------------------------------------------------------------------------------------------
Total Investments in Securities
(Cost: $57,281,617)(h) $ 59,447,956
============================================================================================
</Table>
See accompanying notes to investments in securities.
16 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) At Oct. 31, 2006, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$919,394.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless otherwise
noted.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the
Fund's Board of Directors. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
Oct. 31, 2006, the value of these securities amounted to $14,958,801 or
25.1% of net assets.
(e) Affiliated Money Market Fund -- See Note 5 to the financial statements.
(f) This is a variable rate security that entitles holders to receive only
interest payments. Interest is paid annually, and the rate is 5% of
Argentina GDP growth that exceeds the projected real GDP from Dec. 31,
2004, at an annual growth rate of 3%.
(g) Interest rate varies either based on a predetermined schedule or to
reflect current market conditions; rate shown is the effective rate on
Oct. 31, 2006.
(h) At Oct. 31, 2006, the cost of securities for federal income tax purposes
was $57,390,584 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $ 2,122,406
Unrealized depreciation (65,034)
-------------------------------------------------------------------------
Net unrealized appreciation $ 2,057,372
-------------------------------------------------------------------------
</Table>
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 17
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCT. 31, 2006
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $51,030,973) $ 53,197,312
Affiliated money market fund (identified cost $6,250,644) (Note 5) 6,250,644
- ----------------------------------------------------------------------------------------------------------------------
Total investments in securities (identified cost $57,281,617) 59,447,956
Foreign currency holdings (identified cost $18,787) (Note 1) 19,042
Capital shares receivable 11,000
Dividends and accrued interest receivable 917,787
Receivable for investment securities sold 319,750
- ----------------------------------------------------------------------------------------------------------------------
Total assets 60,715,535
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investment securities purchased 1,036,839
Accrued investment management services fee 1,167
Accrued distribution fee 95
Accrued transfer agency fee 19
Accrued administrative services fee 130
Other accrued expenses 50,456
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 1,088,706
- ----------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 59,626,829
======================================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 58,669
Additional paid-in capital 57,374,503
Undistributed net investment income 52,106
Accumulated net realized gain (loss) (29,751)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 2,171,302
- ----------------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $ 59,626,829
======================================================================================================================
Net assets applicable to outstanding shares: Class A $ 11,663,305
Class B $ 510,005
Class C $ 38,734
Class I $ 47,400,407
Class Y $ 14,378
Net asset value per share of outstanding capital stock: Class A shares 1,147,539 $ 10.16
Class B shares 50,209 $ 10.16
Class C shares 3,818 $ 10.15
Class I shares 4,663,886 $ 10.16
Class Y shares 1,415 $ 10.16
- ----------------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
18 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM FEB. 16, 2006* TO OCT. 31, 2006
<Table>
Investment income
Income:
Interest $ 1,786,685
Income distributions from affiliated money market fund (Note 5) 24,531
Less foreign taxes withheld (23,942)
- ----------------------------------------------------------------------------------------------------------------------
Total income 1,787,274
- ----------------------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 191,237
Distribution fee
Class A 18,917
Class B 2,217
Class C 212
Transfer agency fee 3,167
Incremental transfer agency fee
Class A 235
Class B 128
Class C 9
Service fee -- Class Y 10
Administrative services fees and expenses 21,248
Compensation of board members 3,897
Custodian fees 28,090
Printing and postage 8,020
Registration fees 73,685
Audit fees 22,500
Other 5,202
- ----------------------------------------------------------------------------------------------------------------------
Total expenses 378,774
Expenses waived/reimbursed by the Investment Manager and its affiliates (Note 2) (61,711)
- ----------------------------------------------------------------------------------------------------------------------
317,063
Earnings and bank fee credits on cash balances (Note 2) (1,911)
- ----------------------------------------------------------------------------------------------------------------------
Total net expenses 315,152
- ----------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 1,472,122
- ----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) (29,751)
Foreign currency transactions 5,465
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (24,286)
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 2,200,317
- ----------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 2,176,031
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 3,648,153
======================================================================================================================
</Table>
* When shares became publicly available.
See accompanying notes to financial statements.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 19
<Page>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM FEB. 16, 2006* TO OCT. 31, 2006
<Table>
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 1,472,122
Net realized gain (loss) on investments (24,286)
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 2,200,317
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 3,648,153
- ----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (361,037)
Class B (9,533)
Class C (927)
Class I (1,064,373)
Class Y (456)
- ----------------------------------------------------------------------------------------------------------------------
Total distributions (1,436,326)
- ----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 1,661,325
Class B shares 633,827
Class C shares 50,525
Class I shares 48,766,475
Class Y shares 3,950
Reinvestment of distributions at net asset value
Class A shares 33,503
Class B shares 8,237
Class C shares 483
Class I shares 1,064,028
Class Y shares 119
Payments for redemptions
Class A shares (199,501)
Class B shares (Note 2) (152,644)
Class C shares (Note 2) (23,086)
Class I shares (4,452,607)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 47,394,634
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 49,606,461
Net assets at beginning of period (Note 1) 10,020,368**
- ----------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 59,626,829
======================================================================================================================
Undistributed net investment income $ 52,106
- ----------------------------------------------------------------------------------------------------------------------
</Table>
* When shares became publicly available
** Initial capital of $10,045,040 was contributed on Feb. 9, 2006. The Fund had
a decrease in net assets resulting from operations of $24,672 during the
period from Feb. 9, 2006 to Feb. 16, 2006 (when shares became publicly
available).
See accompanying notes to financial statements.
20 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. (formerly AXP Global
Series, Inc.) and is registered under the Investment Company Act of 1940 (as
amended) as a non-diversified, open-end management investment company.
RiverSource Global Series, Inc. has 10 billion authorized shares of capital
stock that can be allocated among the separate series as designated by the
Board. The Fund invests primarily in fixed income securities of emerging market
issuers. On Feb. 9, 2006, Ameriprise Financial, Inc. (Ameriprise Financial)
invested $10,045,040* in the Fund (996,000 shares for Class A, 1,000 shares for
Class B, 1,000 shares for Class C, 5,504** shares for Class I and 1,000 shares
for Class Y), which represented the initial capital for each class at $10 per
share. Shares of the Fund were first offered to the public on Feb. 16, 2006.
The Fund offers Class A, Class B, Class C, Class I and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class Y shares have no sales charge and are offered only to
qualifying institutional investors.
In September 2006, the Board approved renaming Class Y as Class R4, terminating
the shareholder servicing agreement, revising the fee structure under the
transfer agent agreement from account-based to asset-based, and adopting a plan
administration services agreement. These changes are effective Dec. 11, 2006.
At Oct. 31, 2006, Ameriprise Financial and the affiliated funds-of-funds owned
100% of Class I shares, which represents 79.50% of the Fund's net assets.
At Oct. 31, 2006, Ameriprise Financial and the affiliated funds-of-funds owned
approximately 97% of the total outstanding Fund shares.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
* Includes $45,040 invested by the RiverSource Income Builder Funds.
** Includes 4,504 shares purchased by the RiverSource Income Builder Funds.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 21
<Page>
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Directors of the funds, Ameriprise Financial utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Fund on a
forward-commitment basis, including when-issued securities and other
forward-commitments, can take place one month or more after the transaction
date. During this period, such securities are subject to market fluctuations,
and they may affect the Fund's net assets the same as owned securities. The Fund
designates cash or liquid securities at least equal to the amount of its
forward-commitments. At Oct. 31, 2006, the Fund has entered into outstanding
when-issued securities of $400,000 and other forward-commitments of $519,394.
22 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
The Fund also enters into transactions to sell purchase commitments to third
parties at current market values and concurrently acquires other purchase
commitments for similar securities at later dates. As an inducement for the Fund
to "roll over" its purchase commitments, the Fund receives negotiated amounts in
the form of reductions of the purchase price of the commitment.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Fund may buy and write options traded
on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
The Fund also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised. The Fund also has
the additional risk of being unable to enter into a closing transaction if a
liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 23
<Page>
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2006, foreign currency holdings were entirely
comprised of Mexican pesos.
The Fund may enter into forward foreign currency exchange contracts to produce
incremental earnings, for operational purposes, or to protect against adverse
exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Fund is subject to the
credit risk that the other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of the deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
24 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by $11,967
and accumulated net realized loss has been increased by $5,465 resulting in a
net reclassification adjustment to decrease paid-in capital by $6,502.
FOR THE PERIOD FROM FEB. 16, 2006* TO OCT. 31, 2006
<Table>
CLASS A
Distributions paid from:
Ordinary income $ 361,037
Long-term capital gain --
CLASS B
Distributions paid from:
Ordinary income 9,533
Long-term capital gain --
CLASS C
Distributions paid from:
Ordinary income 927
Long-term capital gain --
CLASS I
Distributions paid from:
Ordinary income 1,064,373
Long-term capital gain --
CLASS Y
Distributions paid from:
Ordinary income 456
Long-term capital gain --
</Table>
* When shares became publicly available.
At Oct. 31, 2006, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $ 131,322
Accumulated long-term gain (loss) $ -
Unrealized appreciation (depreciation) $ 2,062,335
</Table>
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 25
<Page>
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
("SFAS 157"). SFAS 157 establishes an authoritative definition of fair value,
sets out a framework for measuring fair value, and requires additional
disclosures about fair-value measurements. The application of SFAS 157 is
required for fiscal years beginning after Nov. 15, 2007 and interim periods
within those fiscal years. The impact of SFAS 157 on the Fund's financial
statements is being evaluated.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." FIN 48
clarifies the accounting for uncertainty in income taxes recognized in
accordance with FASB Statement 109, "Accounting for Income Taxes." FIN 48
prescribes a two-step process to recognize and measure a tax position taken or
expected to be taken in a tax return. The first step is to determine whether a
tax position has met the more-likely-than-not recognition threshold and the
second step is to measure a tax position that meets the threshold to determine
the amount of benefit to recognize. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared daily and payable monthly, when
available, are reinvested in additional shares of the Fund at net asset value or
payable in cash. Capital gains, when available, are distributed along with the
last income dividend of the calendar year.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.72% to 0.52% annually as the Fund's assets increase.
26 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses include, among other things, certain expenses of the Fund or the
Board (including its independent members) that are paid by the Fund through
Board Services Corporation, an entity that provides services to the Board and
the Fund pursuant to a separate agreement. These expenses include: Fund
boardroom expense, Board Services Corporation office expense, Board Services
Corporation employee compensation, including employee health and retirement
benefits, Board Services Corporation audit and legal fees, Fund legal fees,
certain taxes, filing fees and certain other expenses. For the period ended Oct.
31, 2006, there were no expenses incurred for these particular items.
Compensation of board members includes compensation as well as retirement
benefits. Certain other aspects of the Board Chair's compensation, including
health benefits and payment of certain other expenses, are included under other
expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation (the
Transfer Agent) maintains shareholder accounts and records. The Fund pays the
Transfer Agent an annual fee per shareholder account for this service as
follows:
- - Class A $20.50
- - Class B $21.50
- - Class C $21.00
- - Class Y $18.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 27
<Page>
The Fund has agreements with Ameriprise Financial Services, Inc. (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 up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by the Distributor and other servicing agents
with respect to those shares. The fee is calculated at a rate of 0.10% of the
Fund's average daily net assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$10,854 for Class A and $494 for Class B for the period ended Oct. 31, 2006.
For the period ended Oct. 31, 2006, the Investment Manager and its affiliates
waived certain fees and expenses to 1.39% for Class A, 2.20% for Class B, 2.19%
for Class C, 1.10% for Class I and 1.25% for Class Y. Of these waived fees and
expenses, the management fees waived at the Fund level were $61,711. In
addition, the Investment Manager and its affiliates have agreed to waive certain
fees and expenses until Oct. 31, 2007, unless sooner terminated at the
discretion of the board, such that, net expenses will not exceed 1.45% for Class
A, 2.21% for Class B, 2.21% for Class C, 1.10% for Class I and 1.29% for Class Y
of the Fund's average daily net assets.
During the period ended Oct. 31, 2006, the Fund's custodian and transfer agency
fees were reduced by $1,911 as a result of earnings and bank fee credits from
overnight cash balances. The Fund also pays custodian fees to Ameriprise Trust
Company, an affiliate of Ameriprise Financial.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $53,518,205 and $10,827,047, respectively, for the
period from Feb. 16, 2006 (when shares became publicly available) to Oct. 31,
2006. Realized gains and losses are determined on an identified cost basis.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the period from Feb. 16, 2006* to
Oct. 31, 2006 are as follows:
<Table>
<Caption>
CLASS A CLASS B CLASS C CLASS I CLASS Y
- -------------------------------------------------------------------------------
Sold 168,404 64,048 5,108 4,998,724 403
Issued for reinvested
distributions 3,416 840 49 108,529 12
Redeemed (20,281) (15,679) (2,339) (448,871) --
- -------------------------------------------------------------------------------
Net increase (decrease) 151,539 49,209 2,818 4,658,382 415
- -------------------------------------------------------------------------------
</Table>
* When shares became publicly available.
28 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
5. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
6. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 19, 2006. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.06%
per annum. Prior to this agreement, the Fund paid a commitment fee equal to its
pro rata share of the amount of the credit facility at a rate of 0.07% per
annum. The Fund had no borrowings outstanding during the period ended Oct. 31,
2006.
7. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 29
<Page>
As a result of the Orders, AEFC was censured and ordered to cease and desist
from committing or causing any violations of certain provisions of the
Investment Advisers Act of 1940, the Investment Company Act of 1940, and various
Minnesota laws. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
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.
30 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
8. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 9.98
- --------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .33
Net gains (losses) (both realized and unrealized) .18
- --------------------------------------------------------------------------
Total from investment operations .51
- --------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.33)
- --------------------------------------------------------------------------
Net asset value, end of period $ 10.16
- --------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 12
- --------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.39%(d),(e)
- --------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 5.20%(d)
- --------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 32%
- --------------------------------------------------------------------------
Total return(f) 5.25%(g)
- --------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class A would have been 1.81% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 31
<Page>
CLASS B
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 9.97
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .28
Net gains (losses) (both realized and unrealized) .19
- ---------------------------------------------------------------------------
Total from investment operations .47
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.28)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.16
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 1
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 2.20%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 4.51%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 32%
- ---------------------------------------------------------------------------
Total return(f) 4.80%(g)
- ---------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class B would have been 2.62% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
32 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
CLASS C
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 9.97
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .28
Net gains (losses) (both realized and unrealized) .18
- ---------------------------------------------------------------------------
Total from investment operations .46
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.28)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.15
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ --
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 2.19%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 4.46%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 32%
- ---------------------------------------------------------------------------
Total return(f) 4.75%(g)
- ---------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class C would have been 2.61% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 33
<Page>
CLASS I
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 9.98
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .35
Net gains (losses) (both realized and unrealized) .17
- ---------------------------------------------------------------------------
Total from investment operations .52
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.34)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.16
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 47
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.10%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 5.70%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 32%
- ---------------------------------------------------------------------------
Total return(f) 5.44%(g)
- ---------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class I would have been 1.52% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
34 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
CLASS Y*
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 9.98
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .34
Net gains (losses) (both realized and unrealized) .18
- ---------------------------------------------------------------------------
Total from investment operations .52
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.34)
- ---------------------------------------------------------------------------
Net asset value, end of period $ 10.16
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ --
- ---------------------------------------------------------------------------
Ratio of expenses to average daily net assets(c) 1.25%(d),(e)
- ---------------------------------------------------------------------------
Ratio of net investment income (loss) to average daily net assets 5.37%(d)
- ---------------------------------------------------------------------------
Portfolio turnover rate (excluding short-term securities) 32%
- ---------------------------------------------------------------------------
Total return(f) 5.36%(g)
- ---------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) For the period from Feb. 16, 2006 (when shares became publicly available)
to Oct. 31, 2006.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratio of expenses for
Class Y would have been 1.67% for the period ended Oct. 31, 2006.
(f) Total return does not reflect payment of a sales charge.
(g) Not annualized.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 35
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
RIVERSOURCE GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of RiverSource Emerging Markets Bond
Fund (a series of RiverSource Global Series, Inc.) as of October 31, 2006, and
the related statements of operations, changes in net assets and the financial
highlights for the period from February 16, 2006 (when shares became publicly
available) to October 31, 2006. These financial statements and the financial
highlights are the responsibility of fund management. Our responsibility is to
express an opinion on these financial statements and the financial highlights
based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2006, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Emerging Markets Bond Fund as of October 31, 2006, and the results
of its operations, changes in its net assets and the financial highlights for
the period stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2006
36 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
FISCAL PERIOD ENDED OCT. 31, 2006
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Feb. 27, 2006 $ 0.01214
March 27, 2006 0.03354
April 26, 2006 0.03199
May 25, 2006 0.03405
June 26, 2006 0.04311
July 26, 2006 0.04374
Aug. 28, 2006 0.04576
Sept. 25, 2006 0.03825
Oct. 26, 2006 0.04464
TOTAL DISTRIBUTIONS $ 0.32722
</Table>
CLASS B
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Feb. 27, 2006 $ 0.00783
March 27, 2006 0.02911
April 26, 2006 0.02715
May 25, 2006 0.02852
June 26, 2006 0.03633
July 26, 2006 0.03652
Aug. 28, 2006 0.03860
Sept. 25, 2006 0.03273
Oct. 26, 2006 0.03841
TOTAL DISTRIBUTIONS $ 0.27520
</Table>
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 37
<Page>
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Feb. 27, 2006 $ 0.00849
March 27, 2006 0.03163
April 26, 2006 0.02925
May 25, 2006 0.02720
June 26, 2006 0.03644
July 26, 2006 0.03750
Aug. 28, 2006 0.03868
Sept. 25, 2006 0.03267
Oct. 26, 2006 0.03791
TOTAL DISTRIBUTIONS $ 0.27977
</Table>
CLASS I
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Feb. 27, 2006 $ 0.01007
March 27, 2006 0.03555
April 26, 2006 0.03424
May 25, 2006 0.03631
June 26, 2006 0.04560
July 26, 2006 0.04610
Aug. 28, 2006 0.04844
Sept. 25, 2006 0.04057
Oct. 26, 2006 0.04723
TOTAL DISTRIBUTIONS $ 0.34411
</Table>
CLASS Y
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Feb. 27, 2006 $ 0.01284
March 27, 2006 0.03464
April 26, 2006 0.03327
May 25, 2006 0.03520
June 26, 2006 0.04431
July 26, 2006 0.04489
Aug. 28, 2006 0.04709
Sept. 25, 2006 0.03940
Oct. 26, 2006 0.04591
TOTAL DISTRIBUTIONS $ 0.33755
</Table>
38 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund 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 Oct. 31, 2006.
ACTUAL EXPENSES
The first line of the table provides information about actual account values
and actual expenses. You may use the information in this line, together with
the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading titled "Expenses paid during the period"
to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder
reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transactional
costs were included, your costs would have been higher.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 39
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2006 OCT. 31, 2006 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $ 1,000 $ 1,061.30 $ 7.35 1.40%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,018.35 $ 7.20 1.40%
Class B
Actual(b) $ 1,000 $ 1,057.20 $ 11.58 2.21%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,014.22 $ 11.34 2.21%
Class C
Actual(b) $ 1,000 $ 1,057.20 $ 11.53 2.20%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,014.27 $ 11.29 2.20%
Class I
Actual(b) $ 1,000 $ 1,062.90 $ 5.78 1.10%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,019.87 $ 5.66 1.10%
Class Y
Actual(b) $ 1,000 $ 1,062.10 $ 6.57(c) 1.25%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,019.11 $ 6.43(c) 1.25%
</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 186/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2006: +6.13%
for Class A, +5.72% for Class B, +5.72% for Class C, +6.29% for Class I
and +6.21% for Class Y.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee
structure under the transfer agent agreement from account-based to
asset-based, and adopting a plan administration services agreement. In
addition, the investment manager and its affiliates have contractually
agreed to waive certain fees and to absorb certain expenses until Oct. 31,
2007, unless sooner terminated at the discretion of the Fund's Board, such
that net expenses will not exceed 1.29% for Class R4. Any amounts waived
will not be reimbursed by the Fund. These changes are effective Dec. 11,
2006. If these changes had been in place for the six-month period ended
Oct. 31, 2006, the actual expenses paid would have been $6.78 and the
hypothetical expenses paid would have been $6.64.
40 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund' s operations. The Board
appoints officers who are responsible for day-to-day business decisions based
on policies set by the Board.
The following is a list of the Fund' s Board members. Each member oversees 100
RiverSource funds. Board members serve until the next regular shareholders'
meeting or until he or she reaches the mandatory retirement age established by
the Board. Under the current Board policy, members may serve until the end of
the meeting following their 75th birthday, or the fifteenth anniversary of the
first Board meeting they attended as members of the Board, whichever occurs
first. This policy does not apply to Ms. Jones who may retire after her 75th
birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member Chief Justice, Minnesota Supreme
901 S.Marquette Ave. since 2006 Court, 1998-2005
Minneapolis, MN 55402
Age 52
Arne H.Carlson Board member and Chair, Board Services Corporation
901 S.Marquette Ave. Chair of the Board (provides administrative services
Minneapolis, MN 55402 since 1999 to boards); former Governor
Age 72 of Minnesota
Patricia M.Flynn Board member Trustee Professor of Economics and
901 S.Marquette Ave. since 2004 Management, Bentley College;
Minneapolis, MN 55402 former Dean, McCallum Graduate
Age 56 School of Business, Bentley College
Anne P.Jones Board member Attorney and Consultant
901 S.Marquette Ave. since 1985
Minneapolis, MN 55402
Age 71
Jeffrey Laikind Board member Former Managing Director, American Progressive
901 S.Marquette Ave. since 2005 Shikiar Asset Management Insurance
Minneapolis, MN 55402
Age 71
Stephen R.Lewis, Jr.* Board member President Emeritus and Valmont Industries,Inc.
901 S.Marquette Ave. since 2002 Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 67
</Table>
* As of Jan. 1, 2007 Stephen Lewis will replace Arne Carlson as Chair of the
Board.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 41
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Asset Strategic Distribution,
901 S.Marquette Ave. since 2004 Management, Inc.(private real Inc. (transportation,
Minneapolis, MN 55402 estate and asset management distribution and logistics
Age 54 company) consultants)
Vikki L.Pryor Board member President and Chief Executive
901 S.Marquette Ave. since 2006 Officer, SBLI USA Mutual Life
Minneapolis, MN 55402 Insurance Company, Inc. since 1999
Age 53
Alison Taunton-Rigby Board member Chief Executive Officer,RiboNovix, Hybridon,Inc.
901 S.Marquette Ave. since 2002 Inc.since 2003 (biotechnology); (biotechnology);
Minneapolis, MN 55402 former President, Forester Biotech American Healthways,
Age 62 Inc. (health management
programs)
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS*
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
William F.Truscott Board member President,Ameriprise Certificate
53600 Ameriprise since 2001, Company since 2006; President -
Financial Center Vice President U.S. Asset Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer, Ameriprise
Age 46 Financial, Inc. and President,
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC since
2005; Senior Vice
President - Chief
Investment
Officer, Ameriprise
Financial, Inc. and
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC, 2001-2005
</Table>
* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
42 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund' s other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Compliance Director and Anti-Money Laundering Officer,
2934 Ameriprise Prevention Officer Ameriprise Financial,Inc.since 2004; Manager Anti-Money
Financial Center since 2004 Laundering,Ameriprise Financial, Inc., 2003-2004; Compliance
Minneapolis, MN 55474 Director and Bank Secrecy Act Officer,American Express
Age 42 Centurion Bank, 2000-2003
Patrick T. Bannigan President Senior Vice President - Asset Management,RiverSource
172 Ameriprise since 2006 Investments, LLC since 2006; Managing Director and Global
Financial Center Head of Product, Morgan Stanley Investment Management,
Minneapolis, MN 55474 2004-2006; President, Touchstone Investments, 2002-2004;
Age 41 Director of Strategic Planning, Evergreen Investments, 1995-2002
Jeffrey P. Fox Treasurer Vice President - Investment Accounting, Ameriprise Financial,
105 Ameriprise since 2002 Inc., since 2002; Vice President - Finance, American Express
Financial Center Company,2000-2002
Minneapolis, MN 55474
Age 51
Amy K. Johnson Vice President Vice President - Asset Management and Trust Company Services,
5228 Ameriprise since 2006 RiverSource Investments, LLC, since 2006; Vice President -
Financial Center Operations and Compliance, RiverSource Investments,LLC,
Minneapolis, MN 55474 2004-2006; Director of Product Development - Mutual Funds,
Age 41 American Express Financial Corporation, 2001-2004
Michelle M. Keeley Vice President Executive Vice President - Equity and Fixed Income,
172 Ameriprise since 2004 Ameriprise Financial,Inc.and RiverSource Investments, LLC since
Financial Center 2006; Vice President - Investments,Ameriprise Certificate
Minneapolis, MN 55474 Company since 2003; Senior Vice President - Fixed Income,
Age 42 Ameriprise Financial, Inc., 2002-2006 and RiverSource
Investments, LLC,2004-2006; Managing Director, Zurich Global
Assets, 2001-2002
Jennifer D. Lammers Chief Compliance U.S. Asset Management Chief Compliance Officer,RiverSource
172 Ameriprise Officer since 2006 Investments,LLC since 2006; Director - Mutual Funds,
Financial Center Voyageur Asset Management, 2003-2006; Director of Finance,
Minneapolis, MN 55474 Voyageur Asset Management, 2000-2003
Age 46
Scott R.Plummer Vice President, Vice President and Chief Counsel - Asset Management,
5228 Ameriprise General Counsel Ameriprise Financial,Inc. since 2005; Vice President,
Financial Center and Secretary General Counsel and Secretary,Ameriprise Certificate Company
Minneapolis, MN 55474 since 2006 since 2005; Vice President - Asset Management Compliance,
Age 47 Ameriprise Financial,Inc., 2004-2005; Senior Vice President and
Chief Compliance Officer, U.S. Bancorp Asset Management,
2002-2004; Second Vice President and Assistant General
Counsel, Hartford Life,2001-2002
</Table>
The SAI has additional information about the Fund' s directors and is
available, without charge, upon request by calling RiverSource Funds at (888)
791-3380; contacting your financial institution; or visiting
riversource.com/funds.
RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT 43
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities during the 12-month period
ended June 30, 2006 is available without charge by visiting
riversource.com/funds; or searching the website of the SEC at www.sec.gov.
44 RIVERSOURCE EMERGING MARKETS BOND FUND - 2006 ANNUAL REPORT
RIVERSOURCE(SM) EMERGING MARKETS BOND FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
riversource.com/funds
[RIVERSOURCE(SM) INVESTMENTS LOGO]
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource(SM) mutual funds are distributed by RiverSource Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and managed by
RiverSource Investments, LLC. These companies are part of Ameriprise Financial,
Inc.
S-6398 C (12/06)
<Page>
ANNUAL REPORT
RIVERSOURCE [LOGO](SM)
INVESTMENTS
RIVERSOURCE (SM)
EMERGING MARKETS FUND
ANNUAL REPORT FOR THE PERIOD ENDED OCT. 31, 2006
o RIVERSOURCE EMERGING MARKETS FUND SEEKS TO PROVIDE SHAREHOLDERS WITH
LONG-TERM CAPITAL GROWTH.
TABLE OF CONTENTS
<Table>
Fund Snapshot 3
Performance Summary 5
Questions & Answers with Portfolio Management 7
The Fund's Long-term Performance 10
Investments in Securities 12
Financial Statements 17
Notes to Financial Statements 21
Report of Independent Registered Public Accounting Firm 36
Federal Income Tax Information 37
Fund Expenses Example 38
Board Members and Officers 40
Proxy Voting 43
</Table>
[LOGO]
DALBAR RATED
2006
FOR COMMUNICATION
The RiverSource mutual fund shareholder reports have been awarded the
Communications Seal from Dalbar Inc., an independent financial services research
firm. The Seal recognizes communications demonstrating a level of excellence in
the industry.
2 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
FUND SNAPSHOT AT OCT. 31, 2006
FUND OVERVIEW
RiverSource Emerging Markets Fund invests in some of the world's fastest growing
countries and companies in the developing world. The Fund focuses on large-cap
companies but has the flexibility to invest in companies of any size. The
portfolio management team employs a "dynamic style" that lets them determine the
most effective focus during particular economic and market conditions, moving
the balance between "value" and "growth" as the business cycle changes.
COUNTRY BREAKDOWN
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Brazil 20.9%
Russia 15.7%
South Korea 10.0%
South Africa 8.1% [PIE CHART]
Mexico 7.8%
Other(1) 30.7%
Taiwan 6.8%
</Table>
(1) Includes Hong Kong 6.4%, China 5.4%, India 2.6%, Indonesia 2.2%, Chile
1.9%, Bermuda 1.8%, Luxembourg 1.8%, Argentina 1.3%, Singapore 1.2%, Canada
1.1%, Colombia 1.0%, Hungary 1.0%, Philippine Islands 0.7%, Netherlands
0.6%, Thailand 0.6%, Poland 0.5% and Cash & Cash Equivalents 0.6%.
TOP TEN HOLDINGS
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Gazprom ADR (Russia) 5.3%
Petroleo Brasileiro ADR (Brazil) 5.1%
Companhia Vale do Rio Doce ADR (Brazil) 4.8%
China Mobile (Hong Kong) 3.1%
Impala Platinum Holdings (South Africa) 3.1%
Taiwan Semiconductor Mfg (Taiwan) 2.9%
Samsung Electronics (South Korea) 2.7%
China Merchants Bank Series H (China) 2.2%
LUKOIL ADR (Russia) 2.1%
Cyrela Brazil Realty (Brazil) 1.9%
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 3
FUND SNAPSHOT AT OCT. 31, 2006
STYLE MATRIX
[chart] Shading within the style matrix indicates areas in which the Fund
generally invests.
STYLE
VALUE BLEND GROWTH
X LARGE
MEDIUM SIZE
SMALL
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO MANAGERS
<Table>
<Caption>
YEARS IN INDUSTRY
Julian Thompson 13
Jules Mort 9
</Table>
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A IDEAX 11/13/96
Class B IEMBX 11/13/96
Class C -- 6/26/00
Class I RSRIX 3/4/04
Class Y -- 11/13/96
Total net assets $553.5 million
Number of holdings 85
</Table>
4 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2006
<Table>
<Caption>
MORGAN STANLEY CAPITAL
RIVERSOURCE EMERGING INTERNATIONAL (MSCI)
MARKETS FUND CLASS A EMERGING MARKETS INDEX LIPPER EMERGING MARKETS
(EXCLUDING SALES CHARGE) (UNMANAGED) FUNDS INDEX
+37.85% +35.42% +34.61%
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CONTACTING YOUR FINANCIAL INSTITUTION OR
VISITING riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
AT OCT. 31, 2006
<Table>
<Caption>
SINCE
WITHOUT SALES CHARGE 1 YEAR 3 YEARS 5 YEARS INCEPTION
Class A (INCEPTION 11/13/96) +37.85% +28.25% +25.57% +9.06%
Class B (INCEPTION 11/13/96) +36.81% +27.24% +24.60% +8.23%
Class C (INCEPTION 6/26/00) +36.84% +27.26% +24.66% +10.64%
Class I (INCEPTION 3/4/04) +38.36% N/A N/A +24.25%
Class Y (INCEPTION 11/13/96) +38.06% +28.48% +25.77% +9.26%
WITH SALES CHARGE
Class A (INCEPTION 11/13/96) +29.92% +25.75% +24.09% +8.41%
Class B (INCEPTION 11/13/96) +31.81% +26.41% +24.43% +8.23%
Class C (INCEPTION 6/26/00) +35.84% +27.26% +24.66% +10.64%
</Table>
AT SEPT. 30, 2006
<Table>
<Caption>
SINCE
WITHOUT SALES CHARGE 1 YEAR 3 YEARS 5 YEARS INCEPTION
Class A (INCEPTION 11/13/96) +20.49% +28.96% +25.34% +8.40%
Class B (INCEPTION 11/13/96) +19.47% +27.93% +24.34% +7.56%
Class C (INCEPTION 6/26/00) +19.54% +27.91% +24.43% +9.62%
Class I (INCEPTION 3/4/04) +21.07% N/A N/A +21.87%
Class Y (INCEPTION 11/13/96) +20.54% +29.11% +25.51% +8.59%
WITH SALES CHARGE
Class A (INCEPTION 11/13/96) +13.56% +26.44% +23.87% +7.75%
Class B (INCEPTION 11/13/96) +14.47% +27.11% +24.17% +7.56%
Class C (INCEPTION 6/26/00) +18.54% +27.91% +24.43% +9.62%
</Table>
CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM SALES CHARGE OF 5.75%. CLASS B
SHARE PERFORMANCE REFLECTS A CONTINGENT DEFERRED SALES CHARGE (CDSC) APPLIED AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEARS 4%; FOURTH YEAR 3%; FIFTH YEAR
2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER. CLASS C SHARES MAY BE SUBJECT TO
A 1% CDSC IF SHARES ARE SOLD WITHIN ONE YEAR AFTER PURCHASE. SALES CHARGES DO
NOT APPLY TO CLASS I AND CLASS Y SHARES. THESE SHARE CLASSES ARE AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
6 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
BELOW, RIVERSOURCE EMERGING MARKETS FUND PORTFOLIO MANAGERS JULIAN THOMPSON AND
JULES MORT OF THREADNEEDLE INTERNATIONAL LIMITED (THREADNEEDLE) DISCUSS THE
FUND'S RESULTS AND POSITIONING FOR THE 12 MONTHS ENDED OCT. 31, 2006.
THREADNEEDLE, AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF AMERIPRISE FINANCIAL, INC.,
ACTS AS THE SUBADVISER TO THE FUND.
Q: How did RiverSource Emerging Markets Fund perform for the 2006 fiscal year?
A: The Fund returned 37.85% (Class A shares excluding sales charge) for the
12-month period ended Oct. 31, 2006. The Fund outperformed its benchmark,
the Morgan Stanley Capital International (MSCI) Emerging Markets Index
(MSCI Index), which returned 35.42%. The Fund also outperformed its peer
group, the Lipper Emerging Markets Funds Index, which rose 34.61% for the
12-month time frame.
Q: What factors most significantly affected performance?
A: Asset allocation, sector selection and stock selection contributed to
performance over the Fund's fiscal year. Throughout the year, asset
allocation was the key driver of performance. Regionally, Asia, Latin
America, and EuropeMiddleEast and Africa (EMEA) were up 38.7%, 38.5% and
27.5%, respectively.
Standout contributors included Brazil (20.9% of the Fund) and Russia (15.7%
of the Fund), the two largest allocations in the Fund. Brazil turned in
very strong performance for the period up more than 37% and Russia was up
more than 54% over the period. The Fund's overweight position in both
Brazil and Russia relative to the MSCI Index's weighting helped
performance.
Throughout the year, we have focused on key investment themes, which have
benefited the Fund, namely commodities and domestic consumption. Both
Brazil and Russia are commodity producing economies and continued to
benefit from very strong commodity prices and from what we believe is a
long-term growth trend in China. The outlook for China's appetite for
commodities, such as iron ore from Brazil and oil from Russia, remains
strong in light of China's projected growth and perpetual building of
infrastructure and other projects.
Profits from selling commodities and commodity-related products have
brought benefits to the domestic economies of exporting countries, such as
Brazil and Russia. Among the industries that have indirectly benefited are
the banking sector, media and telecom in Russia; and airlines, retail and
real estate in Brazil.
BOTH BRAZIL AND RUSSIA ARE COMMODITY PRODUCING ECONOMIES AND CONTINUED TO
BENEFIT FROM VERY STRONG COMMODITY PRICES AND FROM WHAT WE BELIEVE IS A
LONG-TERM GROWTH TREND IN CHINA.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 7
QUESTIONS & ANSWERS
Several other countries detracted from performance. South Africa was one of
the Fund's main detractors through much of the period. Over the year, the
Fund has built a sizeable South African position, and midway through the
period, it underperformed but rebounded by the end of the period. Another
disappointment to the Fund was India. We have been underweight relative to
the MSCI Index in India because we considered stocks in India to be
expensive and also riskier compared to other places, such as Brazil. We
felt that our money could work harder elsewhere, so we reduced the Fund's
position in India and missed out on much of its market appreciation. India
was up 66.8% over the period. Finally, the Fund had a sizable position in
the banking sector in Turkey. The market there peaked in February 2006, and
we retained the position. Shortly after, the market sold off on fears that
U.S. interest rates would rise, and we sold out of the Fund's position.
Individual stocks in various sectors that contributed to performance over
the period included mining company Companhia Vale do Rio Doce (Brazil),
Samsung Electronics (South Korea), LUKOIL (Russia), America Movil (Mexico)
and Gazprom (Russia). Some stocks that hindered performance included
retailer Truworths Intl (South Africa), commercial bank Akbank (Turkey),
technology company Lipman (Israel) and food retailer Pyaterochka (Russia).
Q: What changes did you make to the Fund and how is it currently positioned?
A: We reduced the Fund's position in Asia, although the region, which includes
South Korea, Taiwan, Hong Kong, China and other countries, remained the
largest part of the portfolio. We lessened the Fund's exposure to India and
Thailand. As mentioned above, we felt India has become overpriced; also we
believed that the interest rate cycle in Thailand was not favorable for
investments and had concerns with Thailand's political environment. Also,
we reduced the Fund's overall position in technology, which impacted the
Fund's weighting in Asia. We decreased the Fund's exposure to Taiwan
Semiconductor Mfg. We reduced the Fund's exposure to South Korea because
growth there has slowed and the country's economy acted more like a
developed market than an emerging one. Early in the period, we added South
Korean company, Samsung Heavy Inds, specialized shipbuilders that enjoyed
strong demand for their products. We later reduced the Fund's substantial
holding in semiconductor manufacturer Samsung Electronics after its
disappointing results from the first calendar quarter in 2006.
WE REDUCED THE FUND'S EXPOSURE TO SOUTH KOREA BECAUSE GROWTH THERE HAS
SLOWED AND THE COUNTRY'S ECONOMY ACTED MORE LIKE A DEVELOPED MARKET THAN AN
EMERGING ONE.
8 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
QUESTIONS & ANSWERS
Commodities and domestic consumption themes are evidenced in the high level
of exports, growing trade surpluses and rise in consumer-facing industries,
such as airlines and banking, in Brazil and Russia, the two largest country
allocations in the Fund. In Brazil, mining company Companhia Vale do Rio
Doce is among the Fund's largest holdings and continues to benefit through
its global exports, including iron ore sales to China. In the first half of
the period, we bought paper and pulp producer Aracruz Celulose, which has
extremely low production costs. We also added Cyrela Brazil Realty, a real
estate developer.
In Russia, the oil sector has contributed significantly to performance, and
we see this continuing. Russian oil company Gazprom was added during the
period and, as of this writing, is the Fund's largest holding. We have also
added to Sberbank, a Russian bank that has approximately 45% of the market
share in Russia. Loans are a big part of its business and growth prospects,
particularly in the mortgage market, looked so promising to us. We consider
Sberbank a core holding within the Fund's allocation to Russia.
Q: How do you intend to manage the Fund in the coming months?
A: We believe that emerging markets will continue to perform well within
periods of volatility, and with that in mind, the Fund is, in our view,
suitably positioned. We believe the shape of the portfolio and the sector
allocations that we have in place are unlikely to change much because we
still favor commodity producers over commodity importers. We also intend to
keep the Fund's strategy largely focused on growth companies.
We continue to see the best opportunities in Latin America and in Russia.
We are considering the Fund's exposure in South Africa at this point, and
we are very aware that the retail sector in South Africa is looking very
cheap. However, the macroeconomic environment does not look favorable.
China, in our view, offers significant opportunities within Asia, and we
currently expect to have a relatively sizeable position in China. We also
like India's prospects over the longer term, even though we find valuations
quite expensive in the short-term.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 9
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Emerging Markets Fund Class A shares (from 12/1/96 to
10/31/06)* as compared to the performance of two widely cited performance
indices, the Morgan Stanley Capital International (MSCI) Emerging Markets Index
and the Lipper Emerging Markets Funds Index. In comparing the Fund's Class A
shares to these indices, you should take into account the fact that the Fund's
performance reflects the maximum sales charge of 5.75%, while such charges are
not reflected in the performance of the indices. Returns for the Fund include
the reinvestment of any distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE TABLE BELOW AND THE CHART ON THE FACING PAGE DO
NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. 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. ALSO
SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT PROSPECTUS.
* Fund data is from Nov. 13, 1996. MSCI Emerging Markets Index and Lipper
peer group data is from Dec. 1, 1996.
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION(3)
RIVERSOURCE EMERGING MARKETS FUND
(INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $12,992 $19,885 $29,423 $22,365
Average annual total return +29.92% +25.75% +24.09% +8.41%
MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) EMERGING MARKETS INDEX(1)
Cumulative value of $10,000 $13,542 $21,723 $35,173 $21,969
Average annual total return +35.42% +29.51% +28.60% +8.26%
LIPPER EMERGING MARKETS FUNDS INDEX(2)
Cumulative value of $10,000 $13,461 $21,763 $34,589 $22,076
Average annual total return +34.61% +29.59% +28.17% +8.31%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 6.
10 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE EMERGING MARKETS FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
<Table>
<Caption>
RIVERSOURCE EMERGING MORGAN STANLEY CAPITAL LIPPER EMERGING
MARKETS FUND CLASS A INTERNATIONAL (MSCI) MARKETS FUNDS
(INCLUDES SALES CHARGE) EMERGING MARKETS INDEX(1) INDEX(2)
9425 10000 10000
10070 9001 9402
6672 6212 6283
9687 8984 8571
9339 8192 8204
7165 6270 6382
7766 6800 6837
10601 10114 10144
12307 12076 12333
16224 16223 16400
22365 21969 22076
</Table>
(1) The Morgan Stanley Capital International (MSCI) Emerging Markets Index, an
unmanaged market capitalization-weighted index, is designed to measure
equity market performance in the global emerging markets. The index
reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.
(2) The Lipper Emerging Markets Funds Index includes the 30 largest emerging
markets funds tracked by Lipper Inc. The index's returns include net
reinvested dividends. The Fund's performance is currently measured against
this index for purposes of determining the performance incentive
adjustment.
(3) Fund data is from Nov. 13, 1996. MSCI Emerging Markets Index and Lipper
peer group data is from Dec. 1, 1996.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 11
INVESTMENTS IN SECURITIES
OCT. 31, 2006
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
COMMON STOCKS (93.5%)(c)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
ARGENTINA (1.3%)
REAL ESTATE MANAGEMENT & DEVELOPMENT
IRSA Inversiones y
Representaciones GDR 491,906(b) $ 7,068,688
- --------------------------------------------------------------------------------
BERMUDA (1.8%)
MEDIA (1.0%)
Central European
Media Enterprises
Series A 76,859(b) 5,673,731
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (0.8%)
Hongkong Land
Holdings 1,123,000 4,222,480
- --------------------------------------------------------------------------------
BRAZIL (18.8%)
BEVERAGES (0.7%)
AmBev ADR 92,218 4,026,237
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.4%)
American BankNote 275,058 2,254,890
- --------------------------------------------------------------------------------
CONSUMER FINANCE (0.3%)
CSU Cardsystem 244,936(b) 1,417,581
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.4%)
Terna Participacoes
Unit 209,524(b) 2,209,946
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES (2.5%)
Cyrela Brazil Realty 496,600 10,113,863
Gafisa 248,400(b) 3,654,989
-----------
Total 13,768,852
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.7%)
Submarino 200,100 4,089,301
- --------------------------------------------------------------------------------
METALS & MINING (4.7%)
Companhia Vale do Rio
Doce ADR 1,009,075 25,670,869
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (5.1%)
Petroleo Brasileiro ADR 333,157 27,549,248
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
BRAZIL (CONT.)
PAPER & FOREST PRODUCTS (1.0%)
Aracruz Celulose ADR 101,043 $ 5,559,385
- --------------------------------------------------------------------------------
ROAD & RAIL (1.6%)
Localiza Rent A Car 363,291 9,044,941
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.4%)
TIM Participacoes ADR 237,378 7,975,901
- --------------------------------------------------------------------------------
CANADA (1.0%)
METALS & MINING
Aur Resources 170,000 3,293,059
Corriente Resources 552,600(b) 2,466,832
-----------
Total 5,759,891
- --------------------------------------------------------------------------------
CHILE (1.8%)
COMMERCIAL BANKS (0.9%)
Banco Santander
Chile ADR 112,305 5,416,470
- --------------------------------------------------------------------------------
METALS & MINING (0.9%)
Antofagasta 490,566 4,744,280
- --------------------------------------------------------------------------------
CHINA (5.2%)
COMMERCIAL BANKS (3.3%)
China Merchants Bank
Series H 7,416,999(b) 11,578,481
Industrial and
Commercial Bank of
China Series H 14,119,008(b) 6,318,123
-----------
Total 17,896,604
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.2%)
China Telecom Cl H 18,156,000 6,840,573
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (0.7%)
China Shenhua Energy
Series H 2,307,000 4,058,246
- --------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
12 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
COLOMBIA (1.0%)
COMMERCIAL BANKS
BanColombia ADR 182,758 $ 5,586,912
- --------------------------------------------------------------------------------
HONG KONG (6.1%)
DISTRIBUTORS (0.7%)
Huabao Intl Holdings 8,240,000(b) 3,676,726
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.7%)
Lee & Man Paper Mfg 2,040,000 4,144,689
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.1%)
China Overseas Land &
Investment 6,780,000 6,181,311
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.6%)
Prime Success
Intl Group 4,226,973 3,467,806
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (3.0%)
China Mobile 2,036,500 16,550,310
- --------------------------------------------------------------------------------
HUNGARY (1.0%)
OIL, GAS & CONSUMABLE FUELS
MOL Magyar Olaj-es
Gazipari 55,694 5,544,001
- --------------------------------------------------------------------------------
INDIA (2.5%)
ELECTRICAL EQUIPMENT (1.0%)
Bharat Heavy Electricals 60,595 3,256,990
Suzlon Energy 92,576 2,689,587
-----------
Total 5,946,577
- --------------------------------------------------------------------------------
FOOD PRODUCTS (0.6%)
Bajaj Hindusthan 491,308 3,401,237
- --------------------------------------------------------------------------------
IT SERVICES (0.9%)
Satyam Computer
Services 487,828 4,765,058
- --------------------------------------------------------------------------------
INDONESIA (2.2%)
AUTOMOBILES (1.2%)
PT Astra Intl 4,203,000 6,181,561
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%)
Telekomunikasi
Indonesia ADR 13,381 489,209
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
INDONESIA (CONT.)
MACHINERY (0.5%)
United Tractors 4,046,635 $ 2,909,171
- --------------------------------------------------------------------------------
MARINE (0.4%)
Berlian Laju Tanker 11,942,000(b) 2,378,579
- --------------------------------------------------------------------------------
LUXEMBOURG (1.7%)
ENERGY EQUIPMENT & SERVICES (1.0%)
Tenaris ADR 145,243 5,604,927
- --------------------------------------------------------------------------------
METALS & MINING (0.7%)
Ternium ADR 155,378(b) 3,791,223
- --------------------------------------------------------------------------------
MEXICO (7.5%)
COMMERCIAL BANKS (1.4%)
Grupo Financiero Banorte
Series O 2,061,500 7,477,191
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (1.2%)
CEMEX ADR 211,212(b) 6,492,657
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (0.5%)
AXTEL Series CPO 1,403,566(b) 3,002,280
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (1.0%)
Wal-Mart de Mexico
Series V 1,571,700 5,466,782
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.8%)
Corporacion GEO
Series B 986,200(b) 4,522,625
- --------------------------------------------------------------------------------
MEDIA (1.2%)
Grupo Televisa ADR 273,247 6,743,736
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.4%)
America Movil ADR
Series L 187,686 8,046,099
- --------------------------------------------------------------------------------
NETHERLANDS (0.6%)
BEVERAGES
Efes Breweries Intl GDR 112,049(b,d,e) 3,417,495
- --------------------------------------------------------------------------------
PHILIPPINE ISLANDS (0.7%)
REAL ESTATE MANAGEMENT & DEVELOPMENT
Ayala Land 12,641,620 3,874,291
- --------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 13
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
POLAND (0.5%)
DIVERSIFIED TELECOMMUNICATION SERVICES
Telekomunikacja Polska 388,416 $ 2,860,055
- --------------------------------------------------------------------------------
RUSSIA (13.9%)
COMMERCIAL BANKS (1.5%)
Sberbank 3,687 8,295,750
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.2%)
Sayano-Shushenskaya Hydro-Power Station 1,569,693 1,290,112
- --------------------------------------------------------------------------------
MEDIA (0.8%)
CTC Media 190,828(b) 4,631,396
- --------------------------------------------------------------------------------
METALS & MINING (2.0%)
MMC Norilsk Nickel ADR 38,964 5,756,931
TMK OAO Series S 1,000,237(b) 5,401,280
------------
Total 11,158,211
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (7.3%)
Gazprom ADR 674,801 28,584,571
LUKOIL ADR 137,080 11,089,772
------------
Total 39,674,343
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (2.1%)
Mobile Telesystems ADR 139,933 6,168,247
Vimpel-Communications ADR 86,013(b) 5,675,998
------------
Total 11,844,245
- --------------------------------------------------------------------------------
SINGAPORE (1.2%)
INDUSTRIAL CONGLOMERATES
Keppel 660,000 6,700,077
- --------------------------------------------------------------------------------
SOUTH AFRICA (7.9%)
FOOD & STAPLES RETAILING (0.9%)
Massmart Holdings 643,607 5,183,823
- --------------------------------------------------------------------------------
MEDIA (1.2%)
Naspers Series N 363,743 6,585,663
- --------------------------------------------------------------------------------
METALS & MINING (4.3%)
Anglo Platinum 62,044 6,657,353
Impala Platinum Holdings 94,056 16,543,636
------------
Total 23,200,989
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
SOUTH AFRICA (CONT.)
OIL, GAS & CONSUMABLE FUELS (1.5%)
Sasol 248,308 $ 8,525,944
- --------------------------------------------------------------------------------
SOUTH KOREA (9.7%)
COMMERCIAL BANKS (1.7%)
Shinhan Financial Group 82,640 3,812,602
Woori Finance Holdings 272,880 5,838,323
------------
Total 9,650,925
- --------------------------------------------------------------------------------
MACHINERY (2.4%)
Doosan Infracore 230,120 4,434,782
Samsung Heavy Inds 322,860 8,655,994
------------
Total 13,090,776
- --------------------------------------------------------------------------------
MULTILINE RETAIL (0.9%)
Hyundai Department Store 62,361 5,224,339
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (0.9%)
SK 68,744 5,043,757
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (3.8%)
Hynix Semiconductor 167,549(b) 6,084,281
Samsung Electronics 22,113 14,345,979
------------
Total 20,430,260
- --------------------------------------------------------------------------------
TAIWAN (6.6%)
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.3%)
Hon Hai Precision Industry 1,118,772 7,248,808
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES (0.5%)
Chong Hong Construction 1,074,418 2,871,791
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (0.5%)
Huaku Construction 1,319,700 2,682,253
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (4.3%)
MediaTek 301,400 2,940,598
Powertech Technology 926,000 2,664,408
Taiwan Semiconductor Mfg 8,586,235 15,747,454
Vanguard Intl Semiconductor 3,561,000 2,387,562
------------
Total 23,740,022
- --------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
14 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
<Table>
<Caption>
COMMON STOCKS (CONTINUED)
ISSUER SHARES VALUE(a)
THAILAND (0.5%)
HEALTH CARE PROVIDERS & SERVICES
Bumrungrad Hospital 2,929,000 $ 2,953,925
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $441,973,826) $517,798,031
- --------------------------------------------------------------------------------
PREFERRED STOCKS & OTHER (2.9%)(c)
BRAZIL (1.5%)
Eletropaulo Metropolitana de Sao Paulo Series B 193,866,000(b) $ 8,421,869
- --------------------------------------------------------------------------------
HONG KONG (0.1%)
China Overseas Land & Investment Warrants 827,000(b,e) $ 277,556
- --------------------------------------------------------------------------------
RUSSIA (1.3%)
Transneft 3,492 7,368,120
- --------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS & OTHER
(Cost: $13,689,505) $ 16,067,545
- --------------------------------------------------------------------------------
MONEY MARKET FUND (0.5%)
RiverSource Short-Term Cash Fund 3,001,614(f) $ 3,001,614
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $3,001,614) $ 3,001,614
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $458,664,945)(g) $536,867,190
================================================================================
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 15
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Fund's
Board of Directors. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At Oct. 31,
2006, the value of these securities amounted to $3,417,495 or 0.6% of net
assets.
(e) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities may be valued at fair
value according to methods selected in good faith by the Fund's Board of
Directors. Information concerning such security holdings at Oct. 31, 2006,
is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
- --------------------------------------------------------------------------------
China Overseas Land & Investments
Warrants 06-29-06 $ --
Efes Breweries Intl GDR* 10-15-04 thru 01-25-06 3,030,355
</Table>
* Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended.
(f) Affiliated Money Market Fund -- See Note 5 to the financial statements.
(g) At Oct. 31, 2006, the cost of securities for federal income tax purposes
was $459,931,388 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $82,989,151
Unrealized depreciation (6,053,349)
- --------------------------------------------------------------------------------
Net unrealized appreciation $76,935,802
- --------------------------------------------------------------------------------
</Table>
THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) WAS DEVELOPED BY AND IS THE
EXCLUSIVE PROPERTY OF MORGAN STANLEY CAPITAL INTERNATIONAL INC. AND STANDARD &
POOR'S, A DIVISION OF THE MCGRAW-HILL COMPANIES, INC.
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
16 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCT. 31, 2006
<Table>
<Caption>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $455,663,331) $533,865,576
Affiliated money market fund (identified cost $3,001,614) (Note 5) 3,001,614
- ----------------------------------------------------------------------------------------
Total investments in securities (identified cost $458,664,945) 536,867,190
Cash in bank on demand deposit 485
Foreign currency holdings (identified cost $469,244) (Note 1) 468,783
Capital shares receivable 242,629
Dividends and accrued interest receivable 455,071
Receivable for investment securities sold 22,931,926
- ----------------------------------------------------------------------------------------
Total assets 560,966,084
- ----------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 70,039
Payable for investment securities purchased 7,007,852
Accrued investment management services fee 16,253
Accrued distribution fee 5,069
Accrued service fee 15
Accrued transfer agency fee 887
Accrued administrative services fee 1,189
Other accrued expenses 352,714
- ----------------------------------------------------------------------------------------
Total liabilities 7,454,018
- ----------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $553,512,066
========================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 493,012
Additional paid-in capital 346,783,468
Accumulated net realized gain (loss) 128,037,185
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 78,198,401
- ----------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $553,512,066
========================================================================================
Net assets applicable to outstanding shares: Class A $425,229,317
Class B $ 76,605,821
Class C $ 4,798,555
Class I $ 41,144,243
Class Y $ 5,734,130
Net asset value per share of outstanding
capital stock: Class A shares 37,571,472 $ 11.32
Class B shares 7,204,484 $ 10.63
Class C shares 450,159 $ 10.66
Class I shares 3,576,427 $ 11.50
Class Y shares 498,653 $ 11.50
- ----------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 17
STATEMENT OF OPERATIONS
<Table>
<Caption>
PERIOD FROM PERIOD FROM TOTAL
NOV. 1, 2005 TO NOV. 8, 2005 TO NOV. 1, 2005 TO
NOV. 7, 2005 (NOTE 1) OCT. 31, 2006 OCT. 31, 2006
INVESTMENT INCOME
Income:
Dividends $ 11,475 $10,637,335 $10,648,810
Interest 8,336 324,920 333,256
Income distributions from affiliated
money market fund (Note 5) -- 25,802 25,802
Fee income from securities lending (Note 3) -- 5,854 5,854
Less foreign taxes withheld (20,848) (812,813) (833,661)
- -------------------------------------------------------------------------------------------------------
Total income (1,037) 10,181,098 10,180,061
- -------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 74,408 5,585,272 5,659,680
Distribution fee
Class A 14,552 948,112 962,664
Class B 14,591 860,368 874,959
Class C 527 40,444 40,971
Transfer agency fee 16,242 926,402 942,644
Incremental transfer agency fee
Class A 1,323 76,827 78,150
Class B 595 32,100 32,695
Class C 20 1,454 1,474
Service fee -- Class Y 49 4,885 4,934
Administrative services fees and expenses 6,351 400,640 406,991
Compensation of board members -- 13,518 13,518
Custodian fees 6,521 474,603 481,124
Printing and postage 2,730 134,585 137,315
Registration fees 441 61,356 61,797
Audit fees 791 30,709 31,500
Other 388 49,478 49,866
- -------------------------------------------------------------------------------------------------------
Total expenses 139,529 9,640,753 9,780,282
Earnings and bank fee credits on cash
balances (Note 2) (228) (29,646) (29,874)
- -------------------------------------------------------------------------------------------------------
Total net expenses 139,301 9,611,107 9,750,408
- -------------------------------------------------------------------------------------------------------
Investment income (loss) -- net (140,338) 569,991 429,653
- -------------------------------------------------------------------------------------------------------
</Table>
18 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
STATEMENT OF OPERATIONS (CONTINUED)
<Table>
<Caption>
PERIOD FROM PERIOD FROM TOTAL
NOV. 1, 2005 TO NOV. 8, 2005 TO NOV. 1, 2005 TO
NOV. 7, 2005 (NOTE 1) OCT. 31, 2006 OCT. 31, 2006
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) $ 500,120 $129,587,556 $130,087,676
Foreign currency transactions (51,352) (1,100,656) (1,152,008)
Payment from affiliate (Note 2) -- 21,081 21,081
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 448,768 128,507,981 128,956,749
Net change in unrealized appreciation
(depreciation) on investments and on
translation of assets and liabilities in
foreign currencies 12,482,917 7,397,865 19,880,782
- -------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and
foreign currencies 12,931,685 135,905,846 148,837,531
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $12,791,347 $136,475,837 $149,267,184
=======================================================================================================
</Table>
See accompanying notes to financial statements.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 19
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 429,653 $ 1,455,102
Net realized gain (loss) on investments 128,956,749 73,838,970
Net change in unrealized appreciation (depreciation) on
investments and on translation of assets and liabilities in
foreign currencies 19,880,782 21,800,849
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 149,267,184 97,094,921
- ------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (740,974) (923,069)
Class C -- (588)
Class I (108,672) (128,053)
Class Y -- (98,442)
- ------------------------------------------------------------------------------------------------
Total distributions (849,646) (1,150,152)
- ------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 119,913,683 97,558,207
Class B shares 21,718,034 21,386,977
Class C shares 1,820,806 1,561,783
Class I shares 18,275,459 18,475,923
Class Y shares 3,740,915 3,414,988
Reinvestment of distributions at net asset value
Class A shares 733,024 913,364
Class C shares -- 561
Class I shares 108,604 127,968
Class Y shares -- 98,442
Payments for redemptions
Class A shares (102,794,692) (56,764,158)
Class B shares (Note 2) (43,209,233) (42,751,811)
Class C shares (Note 2) (758,449) (601,925)
Class I shares (5,997,277) (16,210,992)
Class Y shares (1,609,906) (25,688,414)
- ------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 11,940,968 1,520,913
- ------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 160,358,506 97,465,682
Net assets at beginning of year 393,153,560 295,687,878
- ------------------------------------------------------------------------------------------------
Net assets at end of year $ 553,512,066 $393,153,560
================================================================================================
Undistributed net investment income $ -- $ 485,800
- ------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
20 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. (formerly AXP Global
Series, Inc.) and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. RiverSource
Global Series, Inc. has 10 billion authorized shares of capital stock that can
be allocated among the separate series as designated by the Board. The Fund
invests primarily in equity securities of emerging markets companies.
The Fund offers Class A, Class B, Class C, Class I and Class Y shares.
o Class A shares are sold with a front-end sales charge.
o 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.
o Class C shares may be subject to a CDSC.
o Class I and Class Y shares have no sales charge and are offered only to
qualifying institutional investors.
In September 2006, the Board approved renaming Class Y as Class R4, terminating
the shareholder servicing agreement, revising the fee structure under the
transfer agent agreement from account-based to asset-based, and adopting a plan
administration services agreement. These changes are effective Dec. 11, 2006.
At Oct. 31, 2006, Ameriprise Financial, Inc. (Ameriprise Financial) and the
affiliated funds-of-funds owned 100% of Class I shares, which represents 7.43%
of the Fund's net assets.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) 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.
Prior to Nov. 8, 2005, the Fund invested all of its assets in the Emerging
Markets Portfolio (the Portfolio). The Fund recorded its daily share of the
Portfolio's income, expenses and realized and unrealized gains and losses.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 21
Effective at the close of business on Nov. 7, 2005, the Portfolio was liquidated
and the Fund exchanged its interest in the Portfolio for its proportionate share
(99.96%) of the Portfolio's assets and liabilities. Within the statement of
operations for the period from Nov. 1, 2005 to Nov. 7, 2005, income and expense
amounts include allocations from the Portfolio in the following amounts:
<Table>
Dividends $11,475
Interest income $ 8,336
Foreign taxes withheld $20,848
Investment management services fee $74,408
Custodian fees $ 6,508
Audit fees $ 350
Other $ 207
Earnings and bank fee credits on cash balances $ 7
</Table>
All realized and unrealized gains (losses) presented for the period from Nov. 1,
2005 to Nov. 7, 2005 were as a result of allocations from the Portfolio.
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which securities are normally traded. Pursuant to procedures adopted by the
Board of Directors of the funds, Ameriprise Financial utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the closed of the applicable foreign market,
may be adjusted to reflect the fair value of the affected foreign securities as
of the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than
22 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
60 days from the valuation date are valued at the market price or approximate
market value based on current interest rates; those maturing in 60 days or less
are valued at amortized cost.
ILLIQUID SECURITIES
At Oct. 31, 2006, 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 Oct. 31, 2006 was
$3,695,051 representing 0.67% of net assets. These securities are valued at fair
value according to methods selected in good faith by the Board. According to
board guidelines, certain unregistered securities are determined to be liquid
and are not included within the 10% limitation specified above. Assets are
liquid if they can be sold or disposed of in the ordinary course of business
within seven days at approximately the value at which the asset is valued by the
Fund.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Fund may buy and write options traded on any
U.S. or foreign exchange or in the over-the-counter market where completing the
obligation depends upon the credit standing of the other party. The Fund also
may buy and sell put and call options and write covered call options on
portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Fund gives up the opportunity for profit if
the market price of the security increases. The risk in writing a put option is
that the Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 23
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2006, foreign currency holdings consisted of
multiple denominations, primarily Taiwan dollars.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
24 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been decreased by $65,807
and accumulated net realized gain has been increased by $104,556 resulting in a
net reclassification adjustment to decrease paid-in capital by $38,749.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
- --------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $740,974 $ 923,069
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income -- 588
Long-term capital gain -- --
CLASS I
Distributions paid from:
Ordinary income 108,672 128,053
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income -- 98,442
Long-term capital gain -- --
</Table>
At Oct. 31, 2006, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $56,757,662
Accumulated long-term gain (loss) $72,545,966
Unrealized appreciation (depreciation) $76,931,958
</Table>
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 25
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
("SFAS 157"). SFAS 157 establishes an authoritative definition of fair value,
sets out a framework for measuring fair value, and requires additional
disclosures about fair-value measurements. The application of SFAS 157 is
required for fiscal years beginning after Nov. 15, 2007 and interim periods
within those fiscal years. The impact of SFAS 157 on the Fund's financial
statements is being evaluated.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." FIN 48
clarifies the accounting for uncertainty in income taxes recognized in
accordance with FASB Statement 109, "Accounting for Income Taxes." FIN 48
prescribes a two-step process to recognize and measure a tax position taken or
expected to be taken in a tax return. The first step is to determine whether a
tax position has met the more-likely-than-not recognition threshold and the
second step is to measure a tax position that meets the threshold to determine
the amount of benefit to recognize. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 1.10% to 0.90% annually as the Fund's assets increase. Prior
to March 1, 2006, the management fee percentage of the Fund's average daily net
assets declined from 1.10% to 1.00% annually as the Fund's assets increased.
Prior to Nov. 8, 2005, World Trust, on behalf of the Portfolio, had an
Investment Management Services Agreement with Ameriprise Financial. The
management fee was assessed at
26 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
the Portfolio level. The fee may be adjusted upward or downward by a performance
incentive adjustment based on a comparison of the performance of Class A shares
of the Fund to the Lipper Emerging Markets Funds Index. In certain
circumstances, the Board may approve a change in the index. The maximum
adjustment is 0.12% per year. If the performance difference is less than 0.50%,
the adjustment will be zero. For the period from Nov. 1, 2005 to Nov. 7, 2005,
the adjustment decreased the fee by $10,446 and for the period from Nov. 8, 2005
to Oct. 31, 2006, the adjustment increased the fee by $116,104.
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the fund.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses include, among other things, certain expenses of the Fund or the
Board (including its independent members) equal to $14,316 that are paid by the
Fund through Board Services Corporation, an entity that provides services to the
Board and the Fund pursuant to a separate agreement. These expenses include:
Fund boardroom expense, Board Services Corporation office expense, Board
Services Corporation employee compensation, including employee health and
retirement benefits, Board Services Corporation audit and legal fees, Fund legal
fees, certain taxes, filing fees and certain other expenses.
Compensation of board members includes compensation as well as retirement
benefits. Certain other aspects of the Board Chair's compensation, including
health benefits and payment of certain other expenses, are included under other
expenses. Under a Deferred Compensation Plan (the Plan), non-interested board
members may defer receipt of their compensation. Deferred amounts are treated as
though equivalent dollar amounts had been invested in shares of the Fund or
other RiverSource funds. The Fund's liability for these amounts is adjusted for
market value changes and remains in the Fund until distributed in accordance
with the Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation (the
Transfer Agent) maintains shareholder accounts and records. The Fund pays the
Transfer Agent an annual fee per shareholder account for this service as
follows:
o Class A $19.50
o Class B $20.50
o Class C $20.00
o Class Y $17.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 27
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (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 up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by the Distributor and other servicing agents
with respect to those shares. The fee is calculated at a rate of 0.10% of the
Fund's average daily net assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$1,014,243 for Class A, $60,777 for Class B and $566 for Class C for the year
ended Oct. 31, 2006.
Effective Dec. 11, 2006, with the renaming of Class Y as Class R4, the
Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2007, unless sooner terminated at the discretion of the
Board, such that, net expenses, before giving effect to any performance
incentive adjustment, will not exceed 1.64% for Class R4.
During the period from Nov. 1, 2005 to Nov. 7, 2005, the Fund's custodian and
transfer agency fees were reduced by $228 as a result of earnings and bank fee
credits from overnight cash balances. During the period from Nov. 8, 2005 to
Oct. 31, 2006, the Fund's custodian and transfer agency fees were reduced by
$29,646 as a result of earnings and bank fee credits from overnight cash
balances. The Fund also pays custodian fees to Ameriprise Trust Company, an
affiliate of Ameriprise Financial.
In addition, the Fund received a one time payment of $21,081 by Ameriprise
Financial for additional earnings from overnight cash balances determined to be
owed for prior years. This amount was insignificant to the Fund's net assets
value and total return.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $13,420,273 and $5,269,829, respectively, for the period
from Nov. 1, 2005 to Nov. 7, 2005 and $714,293,692 and $718,349,338,
respectively, for the period from Nov. 8, 2005 to Oct. 31, 2006. Realized gains
and losses are determined on an identified cost basis.
28 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
Income from securities lending amounted to $5,854 for the year ended Oct. 31,
2006. The risks to the Fund of securities lending are that the borrower may not
provide additional collateral when required or return the securities when due.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ------------------------------------------------------------------------------------------------
Sold 11,771,328 2,262,284 187,493 1,795,660 359,853
Issued for reinvested distributions 78,315 -- -- 11,456 --
Redeemed (10,104,721) (4,559,033) (78,887) (553,008) (155,126)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) 1,744,922 (2,296,749) 108,606 1,254,108 204,727
- ------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
YEAR ENDED OCT. 31,2005
CLASS A CLASS B CLASS C CLASS I CLASS Y
- --------------------------------------------------------------------------------------------------
Sold 12,930,006 3,046,847 222,252 2,524,461 464,075
Issued for reinvested distributions 132,757 -- 85 18,413 14,164
Redeemed (7,595,815) (5,861,794) (83,855) (2,219,970) (3,022,821)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) 5,466,948 (2,814,947) 138,482 322,904 (2,544,582)
- --------------------------------------------------------------------------------------------------
</Table>
5. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
6. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 19, 2006. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.06%
per annum. Prior to this agreement, the Fund paid a commitment fee equal to its
pro rata share of the amount of the credit facility at a rate of 0.07% per
annum. The Fund had no borrowings outstanding during the year ended Oct. 31,
2006.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 29
7. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
As a result of the Orders, AEFC was censured and ordered to cease and desist
from committing or causing any violations of certain provisions of the
Investment Advisers Act of 1940, the Investment Company Act of 1940, and various
Minnesota laws. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
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
30 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
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.
8. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
PER SHARE INCOME AND CAPITAL CHANGES (a)
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 8.23 $ 6.27 $ 5.46 $ 4.00 $3.69
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .04 .03 .02 (.01)
Net gains (losses) (both realized
and unrealized) 3.10 1.95 .84 1.44 .32
- -------------------------------------------------------------------------------------
Total from investment operations 3.11 1.99 .87 1.46 .31
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.02) (.03) (.06) -- --
- -------------------------------------------------------------------------------------
Net asset value, end of period $11.32 $ 8.23 $ 6.27 $ 5.46 $4.00
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 425 $ 295 $ 191 $ 155 $ 132
- -------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 1.81% 1.79% 1.83% 2.02% 2.05%
- -------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .19% .54% .41% .39% (.19%)
- -------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 145% 124% 128% 174% 226%
- -------------------------------------------------------------------------------------
Total return(c) 37.85% 31.83% 16.09% 36.50% 8.40%
- -------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 31
CLASS B
PER SHARE INCOME AND CAPITAL CHANGES(a)
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 7.77 $ 5.95 $ 5.19 $ 3.83 $3.56
- --------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.05) (.01) (.02) (.02) (.04)
Net gains (losses) (both realized and
unrealized) 2.91 1.83 .81 1.38 .31
- --------------------------------------------------------------------------------------
Total from investment operations 2.86 1.82 .79 1.36 .27
- --------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- (.03) -- --
- --------------------------------------------------------------------------------------
Net asset value, end of period $10.63 $ 7.77 $ 5.95 $ 5.19 $3.83
- --------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 77 $ 74 $ 73 $ 72 $ 65
- --------------------------------------------------------------------------------------
Ratio of expenses to average daily net
assets(b) 2.57% 2.55% 2.59% 2.80% 2.83%
- --------------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average daily net assets (.55%) (.24%) (.32%) (.39%) (.95%)
- --------------------------------------------------------------------------------------
Portfolio turnover rate (excluding
short-term securities) 145% 124% 128% 174% 226%
- --------------------------------------------------------------------------------------
Total return(c) 36.81% 30.59% 15.18% 35.51% 7.58%
- --------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
32 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
CLASS C
PER SHARE INCOME AND CAPITAL CHANGES (a)
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 7.79 $ 5.97 $ 5.20 $ 3.84 $ 3.56
- ---------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.06) -- (.01) (.02) (.03)
Net gains (losses) (both realized and
unrealized) 2.93 1.82 .81 1.38 .31
- ---------------------------------------------------------------------------------------
Total from investment operations 2.87 1.82 .80 1.36 .28
- ---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- (.03) -- --
- ---------------------------------------------------------------------------------------
Net asset value, end of period $10.66 $ 7.79 $ 5.97 $ 5.20 $ 3.84
- ---------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 5 $ 3 $ 1 $ 1 $ 1
- ---------------------------------------------------------------------------------------
Ratio of expenses to average daily net
assets(b) 2.58% 2.56% 2.60% 2.80% 2.85%
- ---------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.57%) (.19%) (.34%) (.41%) (1.13%)
- ---------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 145% 124% 128% 174% 226%
- ---------------------------------------------------------------------------------------
Total return(c) 36.84% 30.54% 15.37% 35.42% 7.87%
- ---------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 33
CLASS I
PER SHARE INCOME AND CAPITAL CHANGES (a)
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004(b)
Net asset value, beginning of period $ 8.35 $ 6.36 $ 6.54
- -----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .06 .01
Net gains (losses) (both realized
and unrealized) 3.16 1.98 (.19)
- -----------------------------------------------------------------------------
Total from investment operations 3.19 2.04 (.18)
- -----------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.04) (.05) --
- -----------------------------------------------------------------------------
Net asset value, end of period $11.50 $ 8.35 $ 6.36
- -----------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 41 $ 19 $ 13
- -----------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(c) 1.35% 1.30% 1.35%(d)
- -----------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .63% .97% .79%(d)
- -----------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 145% 124% 128%
- -----------------------------------------------------------------------------
Total return(e) 38.36% 32.32% (2.75%)(f)
- -----------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Inception date is March 4, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
34 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
CLASS Y*
PER SHARE INCOME AND CAPITAL CHANGES (a)
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 8.33 $ 6.35 $ 5.52 $ 4.04 $3.72
- ------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .03 .05 .04 .03 --
Net gains (losses) (both realized
and unrealized) 3.14 1.97 .86 1.45 .32
- ------------------------------------------------------------------------------------
Total from investment operations 3.17 2.02 .90 1.48 .32
- -----------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- (.04) (.07) -- --
- ------------------------------------------------------------------------------------
Net asset value, end of period $11.50 $ 8.33 $ 6.35 $ 5.52 $4.04
- ------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 6 $ 2 $ 18 $ 18 $ --
- ------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 1.63% 1.59% 1.65% 1.87% 1.59%
- ------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .41% .81% .61% .54% .19%
- ------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 145% 124% 128% 174% 226%
- ------------------------------------------------------------------------------------
Total return(c) 38.06% 31.87% 16.50% 36.63% 8.60%
- ------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 35
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
RIVERSOURCE GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities of
RiverSource Emerging Markets Fund (a series of RiverSource Global Series, Inc.)
as of October 31, 2006, including the schedule of investments in securities, the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period ended October
31, 2006, and the financial highlights for each of the years in the five-year
period ended October 31, 2006. These financial statements and the financial
highlights are the responsibility of fund management. Our responsibility is to
express an opinion on these financial statements and the financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2006, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Emerging Markets Fund as of October 31, 2006, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2006
36 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
FISCAL YEAR ENDED OCT. 31, 2006
<Table>
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 0.00%
PAYABLE DATE PER SHARE
Dec. 21, 2005 $0.02044
CLASS I
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 0.00%
PAYABLE DATE PER SHARE
Dec. 21, 2005 $0.04374
</Table>
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 37
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund 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 Oct. 31, 2006.
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.
38 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2006 OCT. 31, 2006 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $1,000 $ 990.40 $ 9.28 1.83%
Hypothetical
(5% return before expenses) $1,000 $1,016.15 $ 9.40 1.83%
Class B
Actual(b) $1,000 $ 986.10 $13.06 2.58%
Hypothetical
(5% return before expenses) $1,000 $1,012.33 $13.23 2.58%
Class C
Actual(b) $1,000 $ 986.10 $13.11 2.59%
Hypothetical
(5% return before expenses) $1,000 $1,012.28 $13.28 2.59%
Class I
Actual(b) $1,000 $ 993.10 $ 6.96 1.37%
Hypothetical
(5% return before expenses) $1,000 $1,018.50 $ 7.05 1.37%
Class Y
Actual(b) $1,000 $ 990.50 $ 8.32(c) 1.64%
Hypothetical
(5% return before expenses) $1,000 $1,017.12 $ 8.43(c) 1.64%
</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 186/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2006: -0.96%
for Class A, -1.39% for Class B, -1.39% for Class C, -0.69% for Class I and
-0.95% for Class Y.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement. In addition, the
investment manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until Oct. 31, 2007, unless
sooner terminated at the discretion of the Fund's Board, such that net
expenses, before giving effect to any performance incentive adjustment,
will not exceed 1.64% for Class R4. Any amounts waived will not be
reimbursed by the Fund. These changes are effective Dec. 11, 2006. If these
changes had been in place for the six-month period ended Oct. 31, 2006, the
actual expenses paid for Class Y would have been $8.37 and the hypothetical
expenses paid for Class Y would have been $8.48.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 39
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund' s operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund' s Board members. Each member oversees 100
RiverSource funds. Board members serve until the next regular shareholders'
meeting or until he or she reaches the mandatory retirement age established by
the Board. Under the current Board policy, members may serve until the end of
the meeting following their 75th birthday, or the fifteenth anniversary of the
first Board meeting they attended as members of the Board, whichever occurs
first. This policy does not apply to Ms. Jones who may retire after her 75th
birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
POSITION HELD
WITH FUND AND PRINCIPAL OCCUPATION
NAME, ADDRESS, AGE LENGTH OF SERVICE DURING PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member Chief Justice, Minnesota Supreme
901 S. Marquette Ave. since 2006 Court, 1998-2005
Minneapolis, MN 55402
Age 52
- -----------------------------------------------------------------------------------------------------------
Arne H. Carlson Board member and Chair, Board Services Corporation
901 S. Marquette Ave. Chair of the Board (provides administrative services
Minneapolis, MN 55402 since 1999 to boards); former Governor
Age 72 of Minnesota
- -----------------------------------------------------------------------------------------------------------
Patricia M. Flynn Board member Trustee Professor of Economics and
901 S. Marquette Ave. since 2004 Management, Bentley College;
Minneapolis, MN 55402 former Dean, McCallum Graduate
Age 56 School of Business, Bentley
College
- -----------------------------------------------------------------------------------------------------------
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 71
- -----------------------------------------------------------------------------------------------------------
Jeffrey Laikind Board member Former Managing Director, American Progressive
901 S. Marquette Ave. since 2005 Shikiar Asset Management Insurance
Minneapolis, MN 55402
Age 71
- -----------------------------------------------------------------------------------------------------------
Stephen R. Lewis, Jr.* Board member President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. since 2002 Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 67
- -----------------------------------------------------------------------------------------------------------
</Table>
* As of Jan. 1, 2007 Stephen Lewis will replace Arne Carlson as Chair of the
Board.
40 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
POSITION HELD
WITH FUND AND PRINCIPAL OCCUPATION
NAME, ADDRESS, AGE LENGTH OF SERVICE DURING PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Asset Strategic Distribution,
901 S. Marquette Ave. since 2004 Management, Inc. (private real Inc. (transportation,
Minneapolis, MN 55402 estate and asset management distribution and
Age 54 company) logistics consultants)
Vikki L. Pryor Board member President and Chief Executive
901 S. Marquette Ave. since 2006 Officer, SBLI USA Mutual Life
Minneapolis, MN 55402 Insurance Company, Inc. since
Age 53 1999
Alison Taunton-Rigby Board member Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. since 2002 RiboNovix, Inc. since 2003 (biotechnology);
Minneapolis, MN 55402 (biotechnology); former President, American Healthways,
Age 62 Forester Biotech Inc. (health management
programs)
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS*
<Table>
<Caption>
POSITION HELD
WITH FUND AND PRINCIPAL OCCUPATION
NAME, ADDRESS, AGE LENGTH OF SERVICE DURING PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------------
William F. Truscott Board member President, Ameriprise Certificate
53600 Ameriprise since 2001, Company since 2006; President -
Financial Center Vice President U.S. Asset Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer, Ameriprise
Age 46 Financial, Inc. and President,
Chairman of the Board and Chief
Investment Officer, RiverSource
Investments, LLC since 2005;
Senior ice President - Chief
Investment Officer, Ameriprise
Financial, Inc. and Chairman of
the Board and Chief Investment
Officer, RiverSource Investments,
LLC, 2001-2005
</Table>
* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 41
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- ----------------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Compliance Director and Anti-Money Laundering Officer,
2934 Ameriprise Prevention Officer Ameriprise Financial, Inc. since 2004; Manager Anti-Money
Financial Center since 2004 Laundering, Ameriprise Financial, Inc., 2003-2004; Compliance
Minneapolis, MN 55474 Director and Bank Secrecy Act Officer, American Express
Age 42 Centurion Bank, 2000-2003
Patrick T. Bannigan President Senior Vice President - Asset Management, RiverSource
172 Ameriprise since 2006 Investments, LLC since 2006; Managing Director and Global
Financial Center Head of Product, Morgan Stanley Investment Management,
Minneapolis, MN 55474 2004-2006; President, Touchstone Investments, 2002-2004;
Age 41 Director of Strategic Planning, Evergreen Investments,
1995-2002
Jeffrey P. Fox Treasurer Vice President - Investment Accounting, Ameriprise
105 Ameriprise since 2002 Financial, Inc., since 2002; Vice President - Finance,
Financial Center American Express Company, 2000-2002
Minneapolis, MN 55474
Age 51
Amy K. Johnson Vice President Vice President - Asset Management and Trust Company
5228 Ameriprise since 2006 Services, RiverSource Investments, LLC, since 2006; Vice
Financial Center President - Operations and Compliance, RiverSource
Minneapolis, MN 55474 Investments, LLC, 2004-2006; Director of Product
Age 41 Development - Mutual Funds, American Express Financial
Corporation, 2001-2004
Michelle M. Keeley Vice President Executive Vice President - Equity and Fixed Income,
172 Ameriprise since 2004 Ameriprise Financial, Inc. and RiverSource Investments,
Financial Center LLC since 2006; Vice President - Investments, Ameriprise
Minneapolis, MN 55474 Certificate Company since 2003; Senior Vice President -
Age 42 Fixed Income, Ameriprise Financial, Inc., 2002-2006 and
RiverSource Investments, LLC, 2004-2006; Managing Director,
Zurich Global Assets, 2001-2002
Jennifer D. Lammers Chief Compliance U.S. Asset Management Chief Compliance Officer, RiverSource
172 Ameriprise Officer since 2006 Investments, LLC since 2006; Director - Mutual Funds,
Financial Center Voyageur Asset Management, 2003-2006; Director of Finance,
Minneapolis, MN 55474 Voyageur Asset Management, 2000-2003
Age 46
Scott R. Plummer Vice President, Vice President and Chief Counsel - Asset Management,
5228 Ameriprise General Counsel Ameriprise Financial, Inc. since 2005; Vice President,
Financial Center and Secretary General Counsel and Secretary, Ameriprise Certificate
Minneapolis, MN 55474 since 2006 Company since 2005; Vice President - Asset Management
Age 47 Compliance, Ameriprise Financial, Inc., 2004-2005; Senior
Vice President and Chief Compliance Officer, U.S. Bancorp
Asset Management, 2002-2004; Second Vice President and
Assistant General Counsel, Hartford Life, 2001-2002
</Table>
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling RiverSource Funds at (888) 791-3380;
contacting your financial institution; or visiting riversource.com/funds.
42 RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities during the 12-month period
ended June 30, 2006 is available without charge by visiting
riversource.com/funds; or searching the website of the SEC at www.sec.gov.
RIVERSOURCE EMERGING MARKETS FUND -- 2006 ANNUAL REPORT 43
RIVERSOURCE(SM) EMERGING MARKETS FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
riversource.com/funds
RIVERSOURCE [LOGO](SM)
INVESTMENTS
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource(SM) mutual funds are distributed by RiverSource Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and managed by
RiverSource Investments, LLC. These companies are part of Ameriprise Financial,
Inc.
S-6354 R (12/06)
<Page>
ANNUAL REPORT
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM) GLOBAL BOND FUND
ANNUAL REPORT FOR THE PERIOD ENDED OCT. 31, 2006
- - RIVERSOURCE GLOBAL BOND FUND SEEKS TO PROVIDE SHAREHOLDERS WITH
HIGH TOTAL RETURN THROUGH INCOME AND GROWTH OF CAPITAL.
TABLE OF CONTENTS
<Table>
Fund Snapshot 3
Performance Summary 5
Questions & Answers with Portfolio Management 7
The Fund's Long-term Performance 12
Investments in Securities 14
Financial Statements 24
Notes to Financial Statements 28
Report of Independent Registered Public Accounting Firm 46
Federal Income Tax Information 47
Fund Expenses Example 49
Board Members and Officers 51
Proxy Voting 54
</Table>
[LOGO]
DALBAR RATED
2006
FOR COMMUNICATION
The RiverSource mutual fund shareholder reports have been awarded the
Communications Seal from Dalbar Inc., an independent financial services
research firm. The Seal recognizes communications demonstrating a level of
excellence in the industry.
2 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
FUND SNAPSHOT AT OCT. 31, 2006
FUND OVERVIEW
RiverSource Global Bond Fund invests in high and medium quality corporate and
government bonds from countries around the world and the U.S. The Fund offers
the diversification benefits of global fixed income markets and foreign
currency exposure while providing access to all sectors of the global bond
market, including non-government securities.
[PIE CHART]
SECTOR BREAKDOWN
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Foreign Government 54.7%
Corporate Bonds(1) 13.3%
Mortgage-Backed 12.3%
Commercial Mortgage-Backed 9.0%
U.S. Government Obligations & Agencies 7.6%
Cash & Cash Equivalents(2) 1.9%
Asset-Backed 1.2%
</Table>
(1) Includes Financials 7.2%, Telecommunication 3.2%, Consumer Discretionary
0.9%, Energy 0.6%, Utilities 0.5%, Consumer Staples 0.4%, Health Care
0.3%, Industrials 0.1% and Materials 0.1%.
(2) Of the 1.9%, 1.5% is due to security lending activity and 0.4% is the
Fund's cash equivalent position.
TOP TEN COUNTRIES
<Table>
United States 37.8%
Japan 9.9%
Germany 9.3%
France 6.2%
United Kingdom 4.8%
Italy 3.9%
Spain 3.1%
Canada 3.0%
Netherlands 3.0%
Ireland 2.4%
</Table>
There are risks associated with an investment in a bond fund, including credit
risk, interest rate risk, and prepayment and extension risk. See the Fund's
prospectus for information on these and other risks associated with the Fund.
In general, bond prices rise when interest rates fall and vice versa. This
effect is usually more pronounced for longer-term securities. Non-investment
grade securities, commonly called "high-yield" or "junk" bonds, generally have
more volatile prices and carry more risk to principal and income than
investment grade securities.
International investing involves increased risk and volatility due to
potential political and economic instability, currency fluctuations, and
differences in financial reporting and accounting standards and oversight.
Risks are particularly significant in emerging markets.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 3
<Page>
FUND SNAPSHOT AT OCT. 31, 2006
[CHART]
STYLE MATRIX
DURATION
SHORT INT. LONG
X X HIGH
MEDIUM QUALITY
LOW
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
SEC YIELDS
<Table>
<Caption>
AT SEPT. 29, 2006* AT OCT. 31, 2006
Class A 2.94% 2.98%
Class B 2.32% 2.36%
Class C 2.31% 2.37%
Class I 3.50% 3.50%
Class Y 3.26% 3.29%
</Table>
*The last business day of the period
The Securities and Exchange Commission (SEC) yield is calculated by dividing
anticipated net investment income during a 31-day period by the public offering
price (POP) per share on the last day of the period, and converting the results
to yearly figures. See Average Annual Total Returns on page 6 for additional
performance information.
PORTFOLIO MANAGER
<Table>
<Caption>
YEARS IN INDUSTRY
Nicholas Pifer, CFA* 16
</Table>
*The Fund is managed by a team of portfolio managers led by Nicholas Pifer.
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A IGBFX 3/20/89
Class B IGLOX 3/20/95
Class C AGBCX 6/26/00
Class I AGBIX 3/4/04
Class Y -- 3/20/95
Total net assets $487.2 million
Number of holdings 245
Weighted average life(1) 6.1 years
Effective duration(2) 4.2 years
Weighted average bond rating(3) AAA
</Table>
(1) WEIGHTED AVERAGE LIFE measures a bond's maturity, which takes into
consideration the possibility that the issuer may call the bond before its
maturity date.
(2) EFFECTIVE DURATION measures the sensitivity of a security's price to
parallel shifts in the yield curve (the graphical depiction of the levels
of interest rates from two years out to 30 years). Positive duration means
that as rates rise, the price decreases, and negative duration means that
as rates rise, the price increases.
(3) WEIGHTED AVERAGE BOND RATING represents the average credit quality of the
underlying bonds in the portfolio.
4 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2006
<Table>
RiverSource Global Bond Fund Class A (excluding sales charge) +5.17%
Lehman Borthers Global Aggregate Index (unmanaged) +5.79%
Lipper Global Income Funds Index +6.21%
</Table>
(See "The Fund's Long-term Performance" for index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CONTACTING YOUR FINANCIAL INSTITUTION OR
VISITING riversource.com/funds.
The 4.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 5
<Page>
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
AT OCT. 31, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
WITHOUT SALES CHARGE
Class A (INCEPTION 3/20/89) +5.17% +4.78% +6.72% +4.86% +7.41%
Class B (INCEPTION 3/20/95) +4.45% +3.99% +5.94% +4.06% +5.18%
Class C (INCEPTION 6/26/00) +4.25% +3.94% +5.90% N/A +5.76%
Class I (INCEPTION 3/4/04) +5.52% N/A N/A N/A +4.10%
Class Y (INCEPTION 3/20/95) +5.29% +4.94% +6.96% +5.04% +6.01%
WITH SALES CHARGE
Class A (INCEPTION 3/20/89) +0.17% +3.09% +5.68% +4.35% +7.11%
Class B (INCEPTION 3/20/95) -0.55% +2.74% +5.62% +4.06% +5.18%
Class C (INCEPTION 6/26/00) +3.25% +3.94% +5.90% N/A +5.76%
</Table>
AT SEPT. 30, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
WITHOUT SALES CHARGE
Class A (INCEPTION 3/20/89) +2.97% +4.15% +6.87% +4.90% +7.39%
Class B (INCEPTION 3/20/95) +2.12% +3.36% +6.05% +4.10% +5.14%
Class C (INCEPTION 6/26/00) +2.22% +3.42% +6.09% N/A +5.71%
Class I (INCEPTION 3/4/04) +3.16% N/A N/A N/A +3.81%
Class Y (INCEPTION 3/20/95) +3.09% +4.36% +7.08% +5.08% +5.97%
WITH SALES CHARGE
Class A (INCEPTION 3/20/89) -1.93% +2.47% +5.84% +4.39% +7.09%
Class B (INCEPTION 3/20/95) -2.83% +2.10% +5.73% +4.10% +5.14%
Class C (INCEPTION 6/26/00) +1.23% +3.42% +6.09% N/A +5.71%
</Table>
CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM SALES CHARGE OF 4.75%. CLASS B
SHARE PERFORMANCE REFLECTS A CONTINGENT DEFERRED SALES CHARGE (CDSC) APPLIED AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEARS 4%; FOURTH YEAR 3%; FIFTH YEAR
2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER. CLASS C SHARES MAY BE SUBJECT TO
A 1% CDSC IF SHARES ARE SOLD WITHIN ONE YEAR AFTER PURCHASE. SALES CHARGES DO
NOT APPLY TO CLASS I AND CLASS Y SHARES. THESE SHARE CLASSES ARE AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
6 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
BELOW, NIC PIFER, PORTFOLIO MANAGER FOR RIVERSOURCE GLOBAL BOND FUND, DISCUSSES
THE FUND'S RESULTS AND POSITIONING FOR THE ANNUAL PERIOD ENDED OCT. 31, 2006.
AT OCT. 31, 2006, APPROXIMATELY 30% OF THE FUND'S SHARES WERE OWNED IN THE
AGGREGATE BY AFFILIATED FUNDS-OF-FUNDS MANAGED BY RIVERSOURCE INVESTMENTS, LLC
(RIVERSOURCE). AS A RESULT OF ASSET ALLOCATION DECISIONS BY RIVERSOURCE, IT IS
POSSIBLE THAT RIVERSOURCE GLOBAL BOND FUND MAY EXPERIENCE RELATIVELY LARGE
PURCHASES OR REDEMPTIONS FROM AFFILIATED FUNDS-OF-FUNDS (SEE PAGE 36, CLASS I
CAPITAL SHARE TRANSACTIONS FOR RELATED ACTIVITY DURING THE MOST RECENT FISCAL
PERIOD). RIVERSOURCE SEEKS TO MINIMIZE THE IMPACT OF THESE TRANSACTIONS BY
STRUCTURING THEM OVER A REASONABLE PERIOD OF TIME. RIVERSOURCE GLOBAL BOND FUND
MAY EXPERIENCE INCREASED EXPENSES AS IT BUYS AND SELLS SECURITIES AS A RESULT OF
PURCHASES OR REDEMPTIONS BY AFFILIATED FUNDS-OF-FUNDS. FOR MORE INFORMATION ON
THE FUND'S EXPENSES, SEE THE DISCUSSIONS BEGINNING ON PAGES 34 AND 49.
Q: How did RiverSource Global Bond Fund perform for the annual period?
A: RiverSource Global Bond Fund's Class A shares gained 5.17% (excluding sales
charge) for the 12 months ended Oct. 31, 2006. The Fund underperformed its
benchmark, the Lehman Brothers Global Aggregate Index (Lehman Global Index),
which rose 5.79%. The Fund also underperformed the Lipper Global Income Funds
Index, representing the Fund's peer group, which increased 6.21% during the
same period.
RELATIVE TO THE LEHMAN GLOBAL INDEX, THE FUND BENEFITED MOST FROM EFFECTIVE
CURRENCY POSITIONING.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 7
<Page>
QUESTIONS & ANSWERS
Q: What factors most significantly affected the Fund's performance?
A: Currency markets had the most positive impact on the Fund's annual
performance, as the U.S. dollar fell 3.83% on a trade-weighted basis for the
12 months ended Oct. 31, 2006. As the value of the U.S. dollar decreases, the
dollar value of foreign investments typically increases and vice versa.
Offsetting the positive effect of the falling U.S. dollar to some extent was
the impact of rising bond yields in all the major markets, which partially
negated the coupon income from the bonds themselves. Remember, there is an
inverse relationship between bond prices and interest rate movements, so that
bond prices decline when interest rates rise and increase when interest rates
fall. Global bonds produced only modestly positive returns in local currency
terms for the fiscal year overall.
Relative to the Lehman Global Index, the Fund benefited most from effective
currency positioning. The Fund maintained its significant exposure to the
euro and several other European currencies as well as to the "dollar bloc"
currencies of Canada, Australia and New Zealand during the annual period. The
Fund also maintained its modest exposure to the U.S. dollar and the Japanese
yen. The Fund benefited most from its weightings in the U.S. dollar, the
euro, other European currencies and the Japanese yen, as the U.S. dollar
weakened vs. the euro and the British pound and strengthened vs. the Japanese
yen. The Fund's positioning in the "dollar bloc" currencies detracted
somewhat.
On a sector basis, the Fund benefited from its allocation to and issue
selection within mortgage-backed securities and commercial mortgage-backed
securities (CMBS). Throughout the period, the Fund benefited from its
exposure to high yield corporate bonds, especially during the first half of
the fiscal year. The majority of the Fund's holdings remained in the
government bond sector.
8 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Detracting most from the Fund's results relative to the Lehman Global Index
was its yield curve positioning in the U.K. and Japanese bond markets, that
is, the way the Fund was positioned to respond to changes in short-term vs.
long-term interest rates. The Fund underperformed its Lipper Global Income
Funds Index due primarily to the Fund's more conservative risk profile during
the period than many of its peers. For example, the Fund had just a small
exposure to emerging market bonds, which performed quite well, especially
during the last months of 2005 and the first few months of 2006.
We maintained the Fund's duration, a principal measure of interest rate risk,
shorter than that of the Lehman Global Index for much of the annual period.
This stance was based on our view that the world's major central banks would
raise interest rates given the pace of economic growth. The U.S. Federal
Reserve Board (the Fed) did, in fact, raise the targeted federal funds rate
by an additional 150 basis points (1.50%) during the period. The European
Central Bank also raised its interest rates in early December 2005 for the
first time in more than two years and then did so again four more times
during the period, for a total of 125 basis points (1.25%). In the spring,
the Bank of Japan took the first step to move away from its zero interest
rate policy, and raised its interest rates for the first time in five years
in July 2006 by 25 basis points (0.25%). As global bond yields generally
moved up only moderately over the annual period as a whole, the Fund's short
duration positioning had a rather neutral effect on results.
Q: What changes did you make to the Fund's portfolio during the period?
A: While still maintaining a significant exposure, we pared back the Fund's
position in the euro and other European currencies following the U.S.
dollar's significant decline in late April and early May. We redeployed most
of those assets into the U.S. dollar. This strategy proved prudent, as the
U.S. dollar subsequently strengthened somewhat.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 9
<Page>
QUESTIONS & ANSWERS
Within sectors, we further reduced the Fund's already modest positions in
U.S. and European investment grade corporate bonds, and we increased the
Fund's already sizable positions in AAA-rated CMBS, pass-through mortgages
and European covered bonds. We view CMBS as high-quality substitutes for
corporate bonds. Pass-through mortgage securities consist of a pool of
residential mortgage loans, where homeowners' monthly payments of principal,
interest and prepayments pass from the original bank through a government
agency or investment bank to investors. European covered bonds are debt
instruments secured by a cover pool of mortgage loans (property as
collateral) or public-sector debt to which investors have a preferential
claim in the event of default. This added exposure to mortgages proved
well-timed, having implemented the strategy just before a strong run in the
sector.
Q: How do you intend to manage the Fund in the coming months?
A: While the tightening policies of central banks dominated the global bond
markets during the past couple of years, we believe we are now entering a
period of neutral or static bank policy shifts and thus largely range-bound
moves in bond yields, especially in the U.S. During the coming months, we may
still see some upward movement of yields in the Japanese and European bond
markets, given that the Bank of Japan has indicated a steady, but notably
slow, path to higher interest rates and that the European Central Bank may
hike interest rates a couple more times before likely going on hold some time
in 2007. However, in our view, the Fed's pause in interest rate increases in
early August was likely the start of an extended period with the targeted
federal funds rate at 5.25%. Global economic growth appears to be slowing to
near-trend levels, which should ultimately reduce inflation pressures.
10 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Given our benign view for the major central banks, we feel comfortable with
the Fund's current positioning. We intend to maintain the Fund's generally
conservative profile, a stance that we believe will benefit the Fund during
the coming months. We intend to maintain the Fund's comparatively short
duration and its neutral position on the U.S. dollar.
As always, we are monitoring the market for changing conditions and regularly
re-evaluate the Fund's duration, sector, country, yield curve, and currency
positioning in an effort to seek an attractive trade-off between risk and
potential return. Our sector teams remain focused on careful individual
security selection, as we continue to seek opportunities to capitalize on
attractively valued bonds.
WE INTEND TO MAINTAIN THE FUND'S GENERALLY CONSERVATIVE PROFILE, A STANCE
THAT WE BELIEVE WILL BENEFIT THE FUND DURING THE COMING MONTHS.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 11
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Global Bond Fund Class A shares (from 11/1/96 to
10/31/06) as compared to the performance of two widely cited performance
indices, the Lehman Brothers Global Aggregate Index and the Lipper Global Income
Funds Index. In comparing the Fund's Class A shares to these indices, you should
take into account the fact that the Fund's performance reflects the maximum
sales charge of 4.75%, while such charges are not reflected in the performance
of the indices. Returns for the Fund include the reinvestment of any
distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE TABLE BELOW AND THE CHART ON THE FACING PAGE DO
NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. 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. ALSO
SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT PROSPECTUS.
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION(3)
RIVERSOURCE GLOBAL BOND FUND
(INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $ 10,017 $ 10,956 $ 13,181 $ 15,250 $ 33,535
Average annual total return +0.17% +3.09% +5.68% +4.35% +7.11%
LEHMAN BROTHERS GLOBAL AGGREGATE INDEX(1)
Cumulative value of $10,000 $ 10,579 $ 11,520 $ 13,973 $ 17,073 N/A
Average annual total return +5.79% +4.83% +6.92% +5.50% N/A
LIPPER GLOBAL INCOME FUNDS INDEX(2)
Cumulative value of $10,000 $ 10,621 $ 11,702 $ 13,901 $ 16,599 $ 31,803
Average annual total return +6.21% +5.38% +6.81% +5.20% +6.80%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 6.
12 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE GLOBAL BOND FUND
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
RIVERSOURCE GLOBAL BOND
FUND CLASS A
(INCLUDES SALES CHARGE) ($15,250) $9,525 9,993 10,518 10,481 9,941 11,017 11,705 13,256 14,674 14,501 15,250
Lehman Brothers Global
Aggregate Index(1) ($17,073) $10,000 10,504 11,793 11,451 11,126 12,220 13,209 14,821 16,255 16,138 17,073
Lipper Global Income
Funds Index(2) ($16,599) $10,000 10,552 11,023 10,953 10,847 11,942 12,528 14,183 15,449 15,628 16,599
(1) The Lehman Brothers Global Aggregate Index, an unmanaged market
capitalization weighted benchmark, tracks the performance of investment
grade fixed income securities denominated in 13 currencies. The index
reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.
(2) The Lipper Global Income Funds Index includes the 30 largest global income
funds tracked by Lipper Inc. The index's returns include net reinvested
dividends.
(3) Fund data is from March 20, 1989. Lipper peer group data is from April 1,
1989. The Fund began operating before the inception of the Lehman Brothers
Global Aggregate Index.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 13
<Page>
INVESTMENTS IN SECURITIES
OCT. 31, 2006
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
BONDS (98.3%)(c)
<Table>
<Caption>
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
AUSTRALIA (1.6%)
Commonwealth Bank of Australia
(European Monetary Unit)
Sr Unsub
11-12-09 3.38% 570,000 $ 716,223
New South Wales Treasury
(Australian Dollar)
03-01-08 8.00 5,570,000 4,405,017
Queensland Treasury
(Australian Dollar)
05-14-10 5.50 2,580,000 1,956,418
Telstra
04-01-12 6.38 500,000 512,971
-------------
Total 7,590,629
- -----------------------------------------------------------------------------------
AUSTRIA (1.1%)
Republic of Austria
(European Monetary Unit)
01-15-10 5.50 3,900,000 5,245,329
- -----------------------------------------------------------------------------------
BELGIUM (2.0%)
Kingdom of Belgium
(European Monetary Unit)
03-28-10 3.00 7,890,000 9,857,613
- -----------------------------------------------------------------------------------
BRAZIL (0.3%)
Federative Republic of Brazil
01-15-18 8.00 1,129,000 1,248,110
- -----------------------------------------------------------------------------------
CANADA (3.0%)
Aquila Canada Finance
06-15-11 7.75 70,000 73,921
Canadian Pacific Railway
(Canadian Dollar)
06-15-10 4.90 380,000(d) 345,169
EnCana
Sr Nts
10-15-13 4.75 750,000 713,693
Province of British Columbia
(Canadian Dollar)
08-23-10 6.38 4,735,000 4,558,687
BONDS (98.3%)(c)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
CANADA (CONT.)
Province of Ontario
(Canadian Dollar)
03-08-14 5.00% 6,000,000 $ 5,625,448
Sun Media
02-15-13 7.63 100,000 101,000
TELUS
06-01-11 8.00 2,900,000 3,198,570
Videotron Ltee
01-15-14 6.88 180,000 178,650
-------------
Total 14,795,138
- -----------------------------------------------------------------------------------
CZECHOSLOVAKIA FEDERATED REPUBLIC (0.3%)
Republic of Czechoslovakia
(Czech Crown)
06-16-13 3.70 28,500,000 1,294,885
- -----------------------------------------------------------------------------------
DENMARK (0.5%)
Realkredit Danmark
(Danish Krone) Series 10D
01-01-08 4.00 12,860,000 2,202,896
- -----------------------------------------------------------------------------------
FRANCE (6.2%)
Dexia Municipal Agency
(European Monetary Unit)
09-03-07 4.25 510,000 653,417
Govt of France
(European Monetary Unit)
04-25-12 5.00 7,520,000 10,216,390
04-25-13 4.00 7,835,000 10,169,010
10-25-16 5.00 6,525,000 9,171,944
-------------
Total 30,210,761
- -----------------------------------------------------------------------------------
GERMANY (9.3%)
Allgemeine Hypothekenbank Rheinboden
(European Monetary Unit) Series 501
09-02-09 5.00 1,800,000(d) 2,365,346
Bayerische Landesbank
(Japanese Yen) Sr Nts
04-22-13 1.40 266,000,000 2,268,438
</Table>
See accompanying notes to investments in securities.
14 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
BONDS (98.3%)(c)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
GERMANY (CONT.)
Bundesrepublik Deutschland
(European Monetary Unit)
07-04-13 3.75% 10,120,000 $ 12,953,472
07-04-27 6.50 6,470,000 11,310,586
07-04-28 4.75 1,595,000 2,298,770
07-04-34 4.75 4,425,000 6,491,670
DEPFA Deutsche Pfandbriefbank
(European Monetary Unit) Series G6
01-15-10 5.50 1,800,000 2,414,447
Deutsche Bank
(European Monetary Unit)
Sr Unsub
07-28-09 4.25 500,000 645,756
Landesbank Berlin Girozentrale
(European Monetary Unit)
04-30-07 5.00 1,780,000 2,284,326
Rheinische Hypothekenbank
(European Monetary Unit) Series 803
07-05-10 5.75 1,825,000(d) 2,481,998
-------------
Total 45,514,809
- -----------------------------------------------------------------------------------
GREECE (1.9%)
Hellenic Republic
(European Monetary Unit)
04-19-07 4.65 2,950,000 3,780,293
10-22-22 5.90 3,540,000 5,451,972
-------------
Total 9,232,265
- -----------------------------------------------------------------------------------
IRELAND (2.4%)
Irish Govt
(European Monetary Unit)
10-18-07 4.25 9,220,000 11,825,492
- -----------------------------------------------------------------------------------
ITALY (3.9%)
Buoni Poliennali Del Tesoro
(European Monetary Unit)
11-01-07 6.00 9,360,000 12,214,727
11-01-26 7.25 2,871,283 5,210,656
Telecom Italia Capital
10-01-15 5.25 1,885,000 1,762,707
-------------
Total 19,188,090
- -----------------------------------------------------------------------------------
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
JAPAN (10.0%)
Development Bank of Japan
(Japanese Yen)
06-20-12 1.40% 538,000,000 $ 4,622,366
Govt of Japan
(Japanese Yen)
12-21-09 1.70 2,024,000,000 17,734,098
09-20-10 0.80 862,000,000 7,305,227
12-20-12 1.00 1,227,000,000 10,283,655
12-20-14 1.30 247,000,000 2,066,314
12-20-34 2.40 61,000,000 518,925
Govt of Japan
(Japanese Yen) Series 239
06-20-12 1.40 700,000,000 6,029,248
-------------
Total 48,559,833
- -----------------------------------------------------------------------------------
MALAYSIA (0.3%)
Petronas Capital
05-22-12 7.00 1,500,000(d) 1,623,617
- -----------------------------------------------------------------------------------
MEXICO (0.8%)
Mexican Fixed Rate
(Mexican Peso)
12-24-09 9.00 14,000,000 1,356,968
12-20-12 9.00 22,870,000 2,235,422
United Mexican States
09-27-34 6.75 270,000 290,925
-------------
Total 3,883,315
- -----------------------------------------------------------------------------------
NETHERLANDS (3.0%)
Bank Nederlandse Gemeenten
(British Pound) Sr Unsub
08-06-07 7.38 980,000 1,895,795
Govt of Netherlands
(European Monetary Unit)
01-15-08 2.50 7,670,000 9,653,815
07-15-12 5.00 2,365,000 3,217,197
-------------
Total 14,766,807
- -----------------------------------------------------------------------------------
NEW ZEALAND (1.0%)
Govt of New Zealand
(New Zealand Dollar)
07-15-09 7.00 7,275,000 4,922,717
- -----------------------------------------------------------------------------------
NORWAY (1.2%)
Govt of Norway
(Norwegian Krone)
05-16-11 6.00 36,600,000 6,028,317
- -----------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 15
<Page>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
POLAND (1.4%)
Republic of Poland
(Polish Zloty)
03-24-10 5.75% 20,855,000 $ 7,042,827
- --------------------------------------------------------------------------------------------
SOUTH AFRICA (0.5%)
Republic of South Africa
(South African Rand)
02-28-08 10.00 7,400,000 1,021,376
08-31-10 13.00 10,357,500 1,622,452
-------------
Total 2,643,828
- --------------------------------------------------------------------------------------------
SOUTH KOREA (0.1%)
Korea Development Bank
(Japanese Yen) Series 21RG
06-25-08 0.98 70,000,000 598,661
- --------------------------------------------------------------------------------------------
SPAIN (3.2%)
Caja de Ahorros y Monte de Piedad de Madrid
(European Monetary Unit)
03-25-11 3.50 2,400,000 3,019,372
Govt of Spain
(European Monetary Unit)
07-30-09 5.15 9,320,000 12,349,295
-------------
Total 15,368,667
- --------------------------------------------------------------------------------------------
SUPRA-NATIONAL (1.0%)
European Investment Bank
(British Pound)
12-07-11 5.50 2,385,000 4,635,188
- --------------------------------------------------------------------------------------------
SWEDEN (0.5%)
Govt of Sweden
(Swedish Krona)
03-15-11 5.25 16,620,000 2,451,890
- --------------------------------------------------------------------------------------------
UNITED KINGDOM (4.8%)
BT Group
12-15-10 8.38 550,000 617,724
HBOS Treasury Services
(European Monetary Unit)
02-12-09 3.50 1,600,000 2,029,659
United Kingdom Treasury
(British Pound)
03-07-12 5.00 5,630,000 10,874,547
09-07-14 5.00 5,010,000 9,808,876
-------------
Total 23,330,806
- --------------------------------------------------------------------------------------------
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (38.0%)
American Tower
Sr Nts
10-15-12 7.13% $ 35,000 $ 35,700
ANR Pipeline
03-15-10 8.88 45,000 47,272
Baltimore Gas & Electric
Sr Unsecured
10-01-36 6.35 485,000(d) 503,599
Banc of America Commercial Mtge
Series 2005-1 Cl A4
11-10-42 4.89 750,000(f) 746,711
Banc of America Commercial Mtge
Series 2005-4 Cl ASB
07-10-45 4.87 725,000(f) 711,344
Banc of America Commercial Mtge
Series 2006-2 Cl AAB
05-10-45 5.72 950,000(f) 978,794
Banc of America Commercial Mtge
Series 2006-4 Cl AAB
07-10-46 5.60 950,000(f) 968,498
Banc of America Large Loan
Series 2006-LAQ Cl E
02-09-21 5.70 575,000(b),(d),(f) 577,346
Banc of America Large Loan
Series 2006-LAQ Cl F
02-09-21 5.76 625,000(b),(d),(f) 627,074
Banc of America Large Loan
Series 2006-LAQ Cl G
02-09-21 5.85 450,000(b),(d),(f) 450,811
Bank of America
Sub Nts
10-15-36 6.00 1,500,000 1,555,395
Bear Stearns Commercial Mtge Securities
Series 2003-T10 Cl A1
03-13-40 4.00 551,830(f) 534,436
Bear Stearns Commercial Mtge Securities
Series 2005-PW10 Cl A4
12-11-40 5.41 900,000(f) 907,101
Bear Stearns Commercial Mtge Securities
Series 2005-T20 Cl E
10-12-42 5.16 500,000(f) 487,150
Cadbury Schweppes US Finance LLC
10-01-08 3.88 1,640,000(d) 1,596,607
</Table>
See accompanying notes to investments in securities.
16 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
California State Teachers' Retirement System Trust
Series 2002-C6 Cl A3
11-20-14 4.46% $ 1,850,397(d),(f) $ 1,820,963
Capital Auto Receivables Asset Trust
Series 2004-1 Cl CTFS
09-15-10 2.84 700,000 686,986
Cardinal Health
06-15-15 4.00 905,000 805,897
CDC Commercial Mtge Trust
Series 2002-FX1 Cl A2
11-15-30 5.68 2,050,000(f) 2,094,374
Citigroup Commercial Mtge Trust
Series 2005-EMG Cl A1
09-20-51 4.15 1,163,077(d),(f) 1,142,977
Citigroup
(European Monetary Unit) Sr Nts
05-21-10 3.88 2,410,000 3,072,505
CMS Energy
Sr Nts
01-15-09 7.50 140,000 143,850
Colorado Interstate Gas
Sr Nts
03-15-15 5.95 35,000 33,643
11-15-15 6.80 200,000 203,253
Comcast Cable Communications Holdings
03-15-13 8.38 106,000 121,085
Commercial Mtge Pass-Through Ctfs
Series 2006-CN2A Cl BFL
02-05-19 5.63 400,000(b),(d),(f) 402,151
Cott Beverages USA
12-15-11 8.00 305,000 311,863
Countrywide Alternative Loan Trust
Collateralized Mtge Obligation
Series 2005-64CB Cl 1A1
12-25-35 5.50 1,982,924(f) 1,989,042
Countrywide Alternative Loan Trust
Collateralized Mtge Obligation
Series 2005-6CB Cl 1A1
04-25-35 7.50 1,067,416(f) 1,111,999
Countrywide Alternative Loan Trust
Collateralized Mtge Obligation
Series 2006-22R Cl 1A2
05-25-36 6.00 1,880,000(f) 1,898,221
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Credit Suisse Mtge Capital Ctfs
Series 2006-C2 Cl A3
03-15-39 5.66% $ 900,000(f) $927,081
CS First Boston Mtge Securities
Series 2003-CPN1 Cl A2
03-15-35 4.60 600,000(f) 580,252
DaimlerChrysler NA Holding
(European Monetary Unit)
01-16-07 5.63 670,000 858,169
Denbury Resources
Sr Sub Nts
12-15-15 7.50 20,000 20,000
Dex Media West LLC/Finance
Sr Nts Series B
08-15-10 8.50 85,000 88,081
Drive Auto Receivables Trust
Series 2006-2 Cl A2 (MBIA)
07-15-11 5.30 1,125,000(d),(k) 1,125,000
DRS Technologies
02-01-16 6.63 190,000 188,100
Dunkin Securitization
Series 2006-1 Cl A2 (AMBAC)
06-20-31 5.78 1,600,000(d),(k) 1,626,903
Dynegy Holdings
05-15-18 7.13 20,000 18,600
Dynegy Holdings
Sr Unsecured
05-01-16 8.38 70,000 71,925
Edison Mission Energy
Sr Nts
06-15-13 7.50 120,000(d) 123,300
EXCO Resources
01-15-11 7.25 260,000 250,250
Federal Home Loan Mtge Corp
07-12-10 4.13 5,261,000 5,130,580
Federal Home Loan Mtge Corp #A11799
08-01-33 6.50 236,055(f) 241,324
Federal Home Loan Mtge Corp #A15881
11-01-33 5.00 1,285,445(f) 1,245,763
Federal Home Loan Mtge Corp #E91486
09-01-17 6.50 341,697(f) 348,861
Federal Home Loan Mtge Corp #E99684
10-01-18 5.00 709,915(f) 700,558
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 17
<Page>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Federal Home Loan Mtge Corp #G01535
04-01-33 6.00% $ 1,703,559(f) $ 1,725,310
Federal Home Loan Mtge Corp
(European Monetary Unit)
02-15-07 4.63 3,200,000 4,095,282
Federal Natl Mtge Assn #254632
02-01-18 5.50 1,587,403(f) 1,592,669
Federal Natl Mtge Assn #254686
04-01-18 5.50 1,779,312(f) 1,784,600
Federal Natl Mtge Assn #254722
05-01-18 5.50 923,883(f) 926,628
Federal Natl Mtge Assn #360800
01-01-09 5.74 1,155,887(f) 1,162,951
Federal Natl Mtge Assn #545874
08-01-32 6.50 265,430(f) 272,443
Federal Natl Mtge Assn #555528
04-01-33 6.00 1,279,309(f) 1,290,881
Federal Natl Mtge Assn #555734
07-01-23 5.00 995,098(f) 972,237
Federal Natl Mtge Assn #555740
08-01-18 4.50 1,579,949(f) 1,533,167
Federal Natl Mtge Assn #555851
01-01-33 6.50 1,549,968(f) 1,588,803
Federal Natl Mtge Assn #575487
04-01-17 6.50 787,498(f) 806,237
Federal Natl Mtge Assn #621581
12-01-31 6.50 319,564(f) 329,229
Federal Natl Mtge Assn #633966
03-01-17 6.00 220,455(f) 224,104
Federal Natl Mtge Assn #634749
03-01-17 5.50 805,919(f) 809,170
Federal Natl Mtge Assn #640996
05-01-32 7.50 537,107(f) 558,609
Federal Natl Mtge Assn #643381
06-01-17 6.00 504,865(f) 513,221
Federal Natl Mtge Assn #645053
05-01-32 7.00 1,062,364(f) 1,096,399
Federal Natl Mtge Assn #646147
06-01-32 7.00 429,807(f) 445,996
Federal Natl Mtge Assn #652284
08-01-32 6.50 452,610(f) 463,659
Federal Natl Mtge Assn #653145
07-01-17 6.00 289,908(f) 294,978
Federal Natl Mtge Assn #653730
09-01-32 6.50 203,969(f) 209,461
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Federal Natl Mtge Assn #655589
08-01-32 6.50% $ 1,731,401(f) $ 1,783,355
Federal Natl Mtge Assn #666424
08-01-32 6.50 285,243(f) 292,206
Federal Natl Mtge Assn #670461
11-01-32 7.50 322,498(f) 335,408
Federal Natl Mtge Assn #677333
01-01-33 6.00 4,632,885(f) 4,674,791
Federal Natl Mtge Assn #684595
03-01-33 6.00 1,829,979(f) 1,846,532
Federal Natl Mtge Assn #688034
03-01-33 5.50 583,823(f) 579,482
Federal Natl Mtge Assn #688691
03-01-33 5.50 931,468(f) 922,979
Federal Natl Mtge Assn #703818
05-01-33 6.00 476,321(f) 480,977
Federal Natl Mtge Assn #711503
06-01-33 5.50 1,285,081(f) 1,278,277
Federal Natl Mtge Assn #735029
09-01-13 5.28 854,258(f) 857,724
Federal Natl Mtge Assn #741850
09-01-33 5.50 2,122,886(f) 2,103,539
Federal Natl Mtge Assn #753507
12-01-18 5.00 2,905,264(f) 2,868,321
Federal Natl Mtge Assn #755498
11-01-18 5.50 1,342,525(f) 1,347,063
Federal Natl Mtge Assn #756236
01-01-34 6.00 4,711,942(f) 4,766,009
Federal Natl Mtge Assn #756788
11-01-33 6.50 222,486(f) 227,651
Federal Natl Mtge Assn #759336
01-01-34 6.00 4,691,487(f) 4,744,691
Federal Natl Mtge Assn #886292
07-01-36 7.00 4,907,861(f) 5,063,157
General Electric Capital Assurance
Series 2003-1 Cl A3
05-12-35 4.77 1,800,000(d),(f) 1,773,849
General Electric Capital
(European Monetary Unit) Sr Unsub
06-20-07 5.13 500,000 642,888
General Electric Capital
(New Zealand Dollar)
02-04-10 6.63 2,765,000 1,816,459
</Table>
See accompanying notes to investments in securities.
18 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Genworth Financial
(Japanese Yen)
06-20-11 1.60% 95,000,000 $ 809,088
GMAC LLC
09-15-11 6.88 135,000 135,927
Govt Natl Mtge Assn #604708
10-15-33 5.50 1,174,069(f) 1,170,595
Govt Natl Mtge Assn
Collateralized Mtge Obligation
Interest Only
Series 2002-80 Cl CI
01-20-32 20.00 961,186(f),(g) 94,415
Greenwich Capital Commercial Funding
Series 2004-GG1 Cl A5
06-10-36 4.88 500,000(f) 494,856
Greenwich Capital Commercial Funding
Series 2006-GG7 Cl AAB
07-10-38 6.11 350,000(f) 364,975
GS Mtge Securities II
Series 2004-GG2 Cl A4
08-10-38 4.96 950,000(f) 942,552
Hertz Vehicle Financing LLC
Series 2004-1A Cl A3 (MBIA)
05-25-09 2.85 400,000(d),(k) 388,166
IPALCO Enterprises
Secured
11-14-08 8.38 250,000 258,750
JPMorgan Chase Commercial Mtge Securities
Series 2002-CIB5 Cl A1
10-12-37 4.37 1,046,545(f) 1,029,396
JPMorgan Chase Commercial Mtge Securities
Series 2003-CB6 Cl A2
07-12-37 5.26 900,000(f) 901,967
JPMorgan Chase Commercial Mtge Securities
Series 2003-LN1 Cl A1
10-15-37 4.13 378,852(f) 367,299
JPMorgan Chase Commercial Mtge Securities
Series 2003-ML1A Cl A1
03-12-39 3.97 391,354(f) 380,490
JPMorgan Chase Commercial Mtge Securities
Series 2003-ML1A Cl A2
03-12-39 4.77 1,200,000(f) 1,170,646
JPMorgan Chase Commercial Mtge Securities
Series 2006-CB16 Cl A4
05-12-45 5.55 1,425,000(f) 1,450,589
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
JPMorgan Chase Commercial Mtge Securities
Series 2006-LDP6 Cl A4
04-15-43 5.48% $ 825,000(f) $ 835,126
JPMorgan Chase Commercial Mtge Securities
Series 2006-LDP6 Cl ASB
04-15-43 5.49 1,150,000(f) 1,164,304
JPMorgan Chase Commercial Mtge Securities
Series 2006-LDP8 Cl A4
05-15-45 5.40 950,000(f) 956,030
L-3 Communications
06-15-12 7.63 80,000 83,100
L-3 Communications
Sr Sub Nts
Series B
10-15-15 6.38 160,000 157,600
LaBranche & Co
Sr Nts
05-15-12 11.00 160,000 172,800
Lamar Media
01-01-13 7.25 32,000 32,160
LB-UBS Commercial Mtge Trust
Series 2004-C2 Cl A3
03-15-29 3.97 750,000(f) 708,840
LB-UBS Commercial Mtge Trust
Series 2004-C8 Cl A2
12-15-29 4.20 1,300,000(f) 1,266,590
LB-UBS Commercial Mtge Trust
Series 2005-C5 Cl AAB
09-15-30 4.93 1,375,000(f) 1,352,546
LB-UBS Commercial Mtge Trust
Series 2006-C4 Cl AAB
06-15-32 5.87 750,000(f) 780,829
Lincoln Natl
Sr Unsecured
04-07-36 6.15 660,000 685,710
MGM MIRAGE
10-01-09 6.00 45,000 44,438
Michaels Stores
Tranche B Term Loan
10-31-13 8.38 250,000(e),(m) 253,125
Midwest Generation LLC
Series B
01-02-16 8.56 28,383 30,654
Mohegan Tribal Gaming Authority
02-15-15 6.88 115,000 114,137
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 19
<Page>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Mohegan Tribal Gaming Authority
Sr Nts
02-15-13 6.13% $ 45,000 $ 44,606
Mohegan Tribal Gaming Authority
Sr Sub Nts
04-01-12 8.00 75,000 78,188
Morgan Stanley Capital I
Series 2003-T11 Cl A2
06-13-41 4.34 775,000(f) 758,519
Morgan Stanley Capital I
Series 2004-HQ4 Cl A5
04-14-40 4.59 750,000(f) 728,610
Morgan Stanley Capital I
Series 2006-T23 Cl AAB
08-12-41 5.80 575,000(f) 596,005
Morgan Stanley Capital I
Series 2006-XLF Cl A2
07-15-19 5.45 1,150,000(b),(d),(f) 1,149,993
Morgan Stanley Dean Witter Capital I
Series 2002-TOP7 Cl A2
01-15-39 5.98 2,200,000(f) 2,279,259
Morgan Stanley
Sr Unsecured
10-18-16 5.75 355,000 360,721
Natl Collegiate Student Loan Trust
Collateralized Mtge Obligation
Interest Only
Series 2006-3 Cl AIO
01-25-12 5.70 2,400,000(g) 751,032
News America
12-15-35 6.40 1,095,000 1,097,960
Nextel Communications
Series F
03-15-14 5.95 1,485,000 1,458,199
NRG Energy
02-01-14 7.25 165,000 166,856
NXP Funding LLC
Secured
10-15-13 8.12 185,000(b),(d) 186,619
Omnicare
Sr Sub Nts
12-15-13 6.75 235,000 230,300
12-15-15 6.88 120,000 117,600
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Overseas Private Investment
U.S. Govt Guaranty Series 1996A
09-15-08 6.99% $ 1,666,666 $ 1,697,066
Owens Corning
Sr Unsecured
12-01-16 6.50 220,000(d) 223,715
Peabody Energy
Sr Nts
11-01-16 7.38 95,000 98,800
Pioneer Natural Resources
05-01-18 6.88 460,000 454,084
Pokagon Gaming Authority
Sr Nts
06-15-14 10.38 40,000(d) 42,900
Popular ABS Mtge Pass-Through Trust
Series 2005-A Cl AF2
06-25-35 4.49 615,000 607,064
Pride Intl
Sr Nts
07-15-14 7.38 90,000 92,925
Principal Financial Group
10-15-36 6.05 290,000 299,379
Prudential Commercial Mtge Trust
Series 2003-PWR1 Cl A1
02-11-36 3.67 809,823(f) 779,703
Prudential Financial
09-20-14 5.10 945,000 925,494
Qwest
03-15-12 8.88 130,000 143,000
Qwest
Sr Nts
10-01-14 7.50 165,000(d) 172,013
Range Resources
03-15-15 6.38 70,000 67,200
Renaissance Home Equity Loan Trust
Series 2005-4 Cl A3
02-25-36 5.57 800,000 798,296
Sinclair Broadcast Group
03-15-12 8.00 125,000 128,750
Southern Star Central
Sr Nts
03-01-16 6.75 205,000 203,463
Toyota Motor Credit
(Japanese Yen) Sr Unsub
06-09-08 0.75 297,000,000 2,541,375
</Table>
See accompanying notes to investments in securities.
20 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Transcontinental Gas Pipe Line
Sr Unsecured
04-15-16 6.40% $ 154,000 $ 153,230
Triad Hospitals
Sr Nts
05-15-12 7.00 115,000 114,138
Triad Hospitals
Sr Sub Nts
11-15-13 7.00 140,000 136,150
U.S. Treasury
11-30-07 4.25 2,000,000 1,986,562
02-15-08 3.38 775,000 761,165
05-31-08 4.88 755,000 756,268
08-15-09 4.88 2,235,000 2,249,492
10-31-11 4.63 3,615,000(e) 3,624,038
08-15-16 4.88 11,355,000(h) 11,590,967
08-15-23 6.25 3,385,000(j) 3,939,294
02-15-26 6.00 515,000(j) 591,043
U.S. Treasury Inflation-Indexed Bond
01-15-07 3.38 5,018,832(o) 4,960,129
United Auto Group
03-15-12 9.63 130,000 136,988
Valor Telecommunications Enterprises
LLC/Finance
02-15-15 7.75 35,000 37,319
Verizon New York
Series A
04-01-12 6.88 1,390,000 1,450,731
Verizon Pennsylvania
Series A
11-15-11 5.65 4,155,000(j) 4,185,289
Wachovia Bank Commercial Mtge Trust
Series 2003-C8 Cl A2
11-15-35 3.89 1,250,000(f) 1,217,934
Wachovia Bank Commercial Mtge Trust
Series 2005-C18 Cl A4
04-15-42 4.94 750,000(f) 731,930
Wachovia Bank Commercial Mtge Trust
Series 2005-C20 Cl A5
07-15-42 5.09 800,000(f) 795,890
Wachovia Bank Commercial Mtge Trust
Series 2006-C24 Cl APB
03-15-45 5.58 775,000(f) 788,647
Wachovia Bank Commercial Mtge Trust
Series 2006-C27 Cl A3
07-15-45 5.77 525,000(f) 542,268
BONDS (CONTINUED)
COUPON PRINCIPAL
ISSUER RATE AMOUNT VALUE(a)
UNITED STATES (CONT.)
Wachovia Bank Commercial Mtge Trust
Series 2006-C27 Cl APB
07-15-45 5.73% $ 900,000(f) $ 923,613
Washington Mutual
Collateralized Mtge Obligation
Series 2005-AR17 Cl A1C1
12-25-45 5.51 559,212(f),(n) 559,398
Wells Fargo Bank
Sub Nts
08-26-36 5.95 1,400,000 1,453,816
Williams Companies
Sr Nts
07-15-19 7.63 426,000 448,365
Windstream
Sr Nts
08-01-16 8.63 315,000(d) 339,806
XTO Energy
01-31-15 5.00 1,130,000 1,078,453
-------------
Total 184,643,103
- -----------------------------------------------------------------------------------------
TOTAL BONDS
(Cost: $464,448,640) $ 478,705,593
- -----------------------------------------------------------------------------------------
</Table>
MONEY MARKET FUND (1.9%)(i)
<Table>
<Caption>
SHARES VALUE(a)
MONEY MARKET FUND (1.9)(i)
RiverSource Short-Term
Cash Fund 9,422,846(l) $ 9,422,846
- -----------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $9,422,846) $ 9,422,846
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $473,871,486)(p) $ 488,128,439
=========================================================================================
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 21
<Page>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by 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
Oct. 31, 2006.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in U.S. dollar currency unless
otherwise noted.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the
Fund's Board of Directors. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
Oct. 31, 2006, the value of these securities amounted to $21,089,922 or
4.3% of net assets.
(e) At Oct. 31, 2006, the cost of securities purchased, including interest
purchased, on a when-issued and/or other forward-commitment basis was
$3,870,828.
(f) Mortgage-backed securities represent direct or indirect participations
in, or are secured by and payable from, mortgage loans secured by real
property, and include single- and multi-class pass-through securities and
collateralized mortgage obligations. These securities may be issued or
guaranteed by U.S. government agencies or instrumentalities, or by
private issuers, generally originators and investors in mortgage loans,
including savings associations, mortgage bankers, commercial banks,
investment bankers and special purpose entities. The maturity dates shown
represent the original maturity of the underlying obligation. Actual
maturity may vary based upon prepayment activity on these obligations.
Unless otherwise noted, the coupon rates presented are fixed rates.
(g) Interest only represents securities that entitle holders to receive only
interest payments on the underlying mortgages. The yield to maturity of
an interest only is extremely sensitive to the rate of principal payments
on the underlying mortgage assets. A rapid (slow) rate of principal
repayments may have an adverse (positive) effect on yield to maturity.
The principal amount shown is the notional amount of the underlying
mortgages. Interest rate disclosed represents yield based upon the
estimated timing and amount of future cash flows at Oct. 31, 2006.
(h) At Oct. 31, 2006, security was partially or fully on loan. See Note 7 to
the financial statements.
(i) Cash collateral received from security lending activity is invested in an
affiliated money market fund and represents 1.5% of net assets. See Note
7 to the financial statements. 0.4% of net assets is the Fund's cash
equivalent position.
(j) Partially pledged as initial deposit on the following open interest rate
futures contracts (see Note 6 to the financial statements):
<Table>
<Caption>
TYPE OF SECURITY NOTIONAL AMOUNT
-------------------------------------------------------------------------
PURCHASE CONTRACTS
Euro-Bund, Dec. 2006, 10-year $ 6,600,000
Japanese Govt Bond, Dec. 2006, 10-year 300,000,000
U.S. Long Bond, Dec. 2006, 20-year 4,700,000
U.S. Treasury Note, Dec. 2006, 2-year 28,200,000
SALE CONTRACTS
U.S. Treasury Note, Dec. 2006, 5-year 1,000,000
U.S. Treasury Note, Dec. 2006, 10-year 26,600,000
</Table>
(k) The following abbreviation(s) is (are) used in the portfolio security
description(s) to identify the insurer of the issue:
AMBAC -- Ambac Assurance Corporation
MBIA -- MBIA Insurance Corporation
22 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
NOTES TO INVESTMENTS IN SECURITIES (CONTINUED)
(l) Affiliated Money Market Fund -- See Note 8 to the financial statements.
(m) Senior loans have rates of interest that float periodically based
primarily on the London Interbank Offered Rate ("LIBOR") and other
short-term rates. Remaining maturities of senior loans may be less than
the stated maturities shown as a result of contractual or optional
prepayments by the borrower. Such prepayments cannot be predicted with
certainty.
(n) Adjustable rate mortgage; interest rate varies to reflect current market
conditions; rate shown is the effective rate on Oct. 31, 2006.
(o) Inflation-indexed bonds are securities in which the principal amount is
adjusted for inflation and the semiannual interest payments equal a fixed
percentage of the inflation-adjusted principal amount.
(p) At Oct. 31, 2006, the cost of securities for federal income tax purposes
was $474,255,983 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
<Caption>
Unrealized appreciation $ 21,075,584
Unrealized depreciation (7,203,128)
-------------------------------------------------------------------
Net unrealized appreciation $ 13,872,456
-------------------------------------------------------------------
</Table>
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's
Public Reference Room in Washington, DC (information on the operations of
the Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 23
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCT. 31, 2006
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers* (identified cost $464,448,640) $ 478,705,593
Affiliated money market fund (identified cost $9,422,846) (Note 8) 9,422,846
- ---------------------------------------------------------------------------------------------------
Total investments in securities (identified cost $473,871,486) 488,128,439
Foreign currency holdings (identified cost $678,006) (Note 1) 683,013
Capital shares receivable 46,636
Dividends and accrued interest receivable 6,077,680
Receivable for investment securities sold 3,987,025
Unrealized appreciation on foreign currency contracts held, at value (Note 5) 96,359
- ---------------------------------------------------------------------------------------------------
Total assets 499,019,152
- ---------------------------------------------------------------------------------------------------
LIABILITIES
Disbursements in excess of cash on demand deposit 11,938
Capital shares payable 99,654
Payable for investment securities purchased 3,975,094
Payable upon return of securities loaned (Note 7) 7,253,750
Unrealized depreciation on foreign currency contracts held, at value (Note 5) 313,843
Accrued investment management services fee 9,416
Accrued distribution fee 3,701
Accrued transfer agency fee 2,457
Accrued administrative services fee 1,064
Other accrued expenses 130,592
- ---------------------------------------------------------------------------------------------------
Total liabilities 11,801,509
- ---------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 487,217,643
===================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 737,563
Additional paid-in capital 473,136,340
Undistributed net investment income 6,181,660
Accumulated net realized gain (loss) (Note 10) (7,007,129)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in
foreign currencies (Notes 5 and 6) 14,169,209
- ---------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $ 487,217,643
===================================================================================================
Net assets applicable to outstanding shares: Class A $ 276,081,128
Class B $ 63,316,660
Class C $ 3,116,080
Class I $ 144,623,214
Class Y $ 80,561
Net asset value per share of outstanding capital stock: Class A shares 41,822,802 $ 6.60
Class B shares 9,495,713 $ 6.67
Class C shares 470,447 $ 6.62
Class I shares 21,955,114 $ 6.59
Class Y shares 12,204 $ 6.60
- ---------------------------------------------------------------------------------------------------
*Including securities on loan, at value (Note 7) $ 7,145,460
- ---------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
24 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
PERIOD FROM PERIOD FROM TOTAL
NOV. 1, 2005 TO NOV. 8, 2005 TO NOV. 1, 2005 TO
NOV. 7, 2005 OCT. 31, 2006 OCT. 31, 2006
(NOTE 1)
INVESTMENT INCOME
Income:
Interest $ 429,116 $ 20,321,457 $ 20,750,573
Income distributions from
affiliated money market fund (Note 8) -- 25,140 25,140
Fee income from securities lending (Note 7) -- 7,847 7,847
Less foreign taxes withheld (1,305) (14,670) (15,975)
- ----------------------------------------------------------------------------------------------------------------------------------
Total income 427,811 20,339,774 20,767,585
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 79,875 3,654,801 3,734,676
Distribution fee
Class A 16,787 745,837 762,624
Class B 21,011 829,860 850,871
Class C 807 34,803 35,610
Transfer agency fee 19,890 895,641 915,531
Incremental transfer agency fee
Class A 1,428 63,988 65,416
Class B 817 34,067 34,884
Class C 33 1,400 1,433
Service fee -- Class Y 2 87 89
Administrative services fees and expenses 9,059 403,724 412,783
Custodian fees 3,538 152,805 156,343
Compensation of board members -- 13,252 13,252
Printing and postage 2,310 144,660 146,970
Registration fees 1,120 49,280 50,400
Audit fees 875 34,125 35,000
Other 1,334 26,854 28,188
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses 158,886 7,085,184 7,244,070
Expenses waived/reimbursed by the
Investment Manager and its affiliates (Note 2) (15,149) (542,624) (557,773)
- ----------------------------------------------------------------------------------------------------------------------------------
143,737 6,542,560 6,686,297
Earnings and bank fee credits on cash balances (Note 2) (376) (31,720) (32,096)
- ----------------------------------------------------------------------------------------------------------------------------------
Total net expenses 143,361 6,510,840 6,654,201
- ----------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net 284,450 13,828,934 14,113,384
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 25
<Page>
STATEMENT OF OPERATIONS (CONTINUED)
<Table>
<Caption>
PERIOD FROM PERIOD FROM TOTAL
NOV. 1, 2005 TO NOV. 8, 2005 TO NOV. 1, 2005 TO
NOV. 7, 2005 OCT. 31, 2006 OCT. 31, 2006
(NOTE 1)
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Security transactions (Note 3) $ (140,417) $ 3,767,619 $ 3,627,202
Foreign currency transactions (35,569) (370,643) (406,212)
Futures contracts 556,228 473,983 1,030,211
Payment from affiliate (Note 2) -- 53,693 53,693
Swap transactions (42,226) 45,242 3,016
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 338,016 3,969,894 4,307,910
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies (8,190,369) 14,827,641 6,637,272
- ----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and
foreign currencies (7,852,353) 18,797,535 10,945,182
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ (7,567,903) $ 32,626,469 $ 25,058,566
==================================================================================================================================
</Table>
See accompanying notes to financial statements.
26 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 14,113,384 $ 13,170,793
Net realized gain (loss) on investments 4,307,910 17,596,445
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 6,637,272 (38,272,090)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 25,058,566 (7,504,852)
- ----------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (15,319,991) (19,756,566)
Class B (2,907,320) (6,142,688)
Class C (127,417) (200,996)
Class I (6,261,680) (2,313,524)
Class Y (4,811) (3,814)
- ----------------------------------------------------------------------------------------------------------
Total distributions (24,621,219) (28,417,588)
- ----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 47,932,918 88,281,344
Class B shares 8,983,786 31,813,617
Class C shares 679,733 1,377,503
Class I shares 74,810,942 68,619,250
Class Y shares 10,801 62,732
Reinvestment of distributions at net asset value
Class A shares 14,313,214 18,374,858
Class B shares 2,699,471 5,728,791
Class C shares 111,372 176,818
Class I shares 6,261,148 2,312,955
Class Y shares 4,811 3,814
Payments for redemptions
Class A shares (138,853,002) (118,593,333)
Class B shares (Note 2) (59,219,298) (60,508,139)
Class C shares (Note 2) (1,955,029) (1,728,928)
Class I shares (25,820,432) (2,478,963)
Class Y shares (19,002) (56,092)
- ----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (70,058,567) 33,386,227
- ----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (69,621,220) (2,536,213)
Net assets at beginning of year 556,838,863 559,375,076
- ----------------------------------------------------------------------------------------------------------
Net assets at end of year $ 487,217,643 $ 556,838,863
==========================================================================================================
Undistributed net investment income $ 6,181,660 $ 11,782,029
- ----------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 27
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. (formerly AXP Global
Series, Inc.) and is registered under the Investment Company Act of 1940 (as
amended) as a non-diversified, open-end management investment company.
RiverSource Global Series, Inc. has 10 billion authorized shares of capital
stock that can be allocated among the separate series as designated by the
Board. The Fund invests primarily in debt obligations of U.S. and foreign
issuers.
The Fund offers Class A, Class B, Class C, Class I and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class Y shares have no sales charge and are offered only to
qualifying institutional investors.
In September 2006, the Board approved renaming Class Y as Class R4, terminating
the shareholder servicing agreement, revising the fee structure under the
transfer agent agreement from account-based to asset-based, and adopting a plan
administration services agreement. These changes are effective Dec. 11, 2006.
At Oct. 31, 2006, Ameriprise Financial, Inc. (Ameriprise Financial) and the
affiliated funds-of-funds owned 100% of Class I shares, which represents 29.68%
of the Fund's net assets.
At Oct. 31, 2006, Ameriprise Financial and the affiliated funds-of-funds owned
approximately 30% of the total outstanding Fund shares.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) 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.
Prior to Nov. 8, 2005, the Fund invested all of its assets in World Income
Portfolio (the Portfolio). The Fund recorded its daily share of the Portfolio's
income, expenses and realized and unrealized gains and losses.
Effective at the close of business on Nov. 7, 2005, the Portfolio was liquidated
and the Fund exchanged its interest in the Portfolio for its proportionate share
(99.99%) of the Portfolio's assets and liabilities. Within the statement of
operations for the period from Nov. 1, 2005 to Nov. 7, 2005, income and expense
amounts include allocations from the Portfolio in the following amounts:
28 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
<Table>
Interest Income $ 429,119
Foreign taxes withheld $ 1,305
Investment management services fee $ 79,875
Custodian fees $ 3,499
Audit fees $ 630
Other $ 1,234
Earnings and bank fee credits on cash balances $ 4
</Table>
All realized and unrealized gains (losses) presented for the period from Nov. 1,
2005 to Nov. 7, 2005 were as a result of allocations from the Portfolio.
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Directors of the funds, Ameriprise Financial utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the closed of the applicable foreign market,
may be adjusted to reflect the fair value of the affected foreign securities as
of the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 29
<Page>
SECURITIES PURCHASED ON A FORWARD-COMMITMENT BASIS
Delivery and payment for securities that have been purchased by the Fund on a
forward-commitment basis, including when-issued securities and other
forward-commitments, can take place one month or more after the transaction
date. During this period, such securities are subject to market fluctuations,
and they may affect the Fund's net assets the same as owned securities. The Fund
designates cash or liquid securities at least equal to the amount of its
forward-commitments. At Oct. 31, 2006, the Fund has entered into outstanding
when-issued securities of $3,870,828.
The Fund also enters into transactions to sell purchase commitments to third
parties at current market values and concurrently acquires other purchase
commitments for similar securities at later dates. As an inducement for the Fund
to "roll over" its purchase commitments, the Fund receives negotiated amounts in
the form of reductions of the purchase price of the commitment.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Fund may buy and write options traded on any
U.S. or foreign exchange or in the over-the-counter market where completing the
obligation depends upon the credit standing of the other party. The Fund also
may buy and sell put and call options and write covered call options on
portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Fund gives up the opportunity for profit if
the market price of the security increases. The risk in writing a put option is
that the Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
30 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2006, foreign currency holdings were entirely
comprised of European monetary units.
The Fund may enter into forward foreign currency exchange contracts to produce
incremental earnings, for operational purposes, or to protect against adverse
exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the resulting
unrealized appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Fund is subject to the
credit risk that the other party will not complete its contract obligations.
CMBS TOTAL RETURN SWAP TRANSACTIONS
The Fund may enter into swap agreements to earn the total return on a specified
security or index of fixed income securities. CBMS total return swaps are
bilateral financial contracts designed to replicate synthetically the total
returns of collateralized mortgage-backed securities. Under the terms of the
swaps, the Fund either receives or pays the total return on a reference security
or index applied to a notional principal amount. In return, the Fund agrees to
pay or receive from the counterparty a floating rate, which is reset
periodically based on short-term interest rates, applied to the same notional
amount.
The notional amounts of swap contracts are not recorded in the financial
statements. Swaps are valued daily, and the change in value is recorded as
unrealized appreciation (depreciation) until the termination of the swap, at
which time realized gain (loss) is recorded. Payments received or made are
recorded as realized gains (losses).
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 31
<Page>
Swap agreements may be subject to liquidity risk, which exists when a particular
swap is difficult to purchase or sell. It may not be possible for the Fund to
initiate a transaction or liquidate a position at an advantageous time or price,
which may result in significant losses. Total return swaps are subject to the
risk that the counterparty will default on its obligation to pay net amounts due
to the Fund.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purpose and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by
$4,907,466 and accumulated net realized loss has been increased by $4,877,119
resulting in a net reclassification adjustment to decrease paid-in capital by
$30,347.
32 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
- ---------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $ 15,319,991 $ 19,756,566
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income 2,907,320 6,142,688
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income 127,417 200,996
Long-term capital gain -- --
CLASS I
Distributions paid from:
Ordinary income 6,261,680 2,313,524
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income 4,811 3,814
Long-term capital gain -- --
</Table>
At Oct. 31, 2006, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $ 7,529,645
Accumulated long-term gain (loss) $ (6,599,145)
Unrealized appreciation (depreciation) $ 12,413,240
</Table>
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
("SFAS 157"). SFAS 157 establishes an authoritative definition of fair value,
sets out a framework for measuring fair value, and requires additional
disclosures about fair-value measurements. The application of SFAS 157 is
required for fiscal years beginning after Nov. 15, 2007 and interim periods
within those fiscal years. The impact of SFAS 157 on the Fund's financial
statements is being evaluated.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." FIN 48
clarifies the accounting for uncertainty in income taxes recognized in
accordance with FASB Statement 109, "Accounting for Income Taxes." FIN 48
prescribes a two-step process to recognize and measure a tax position taken or
expected to be taken in a tax return. The first step is to determine whether a
tax position has met
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 33
<Page>
the more-likely-than-not recognition threshold and the second step is to measure
a tax position that meets the threshold to determine the amount of benefit to
recognize. FIN 48 also provides guidance on derecognition, classification,
interest and penalties, accounting in interim periods, disclosure and
transition. FIN 48 is effective for fiscal years beginning after Dec. 15, 2006.
Tax positions of the Fund are being evaluated to determine the impact, if any,
to the Fund. The adoption of FIN 48 is not anticipated to have a material impact
on the Fund.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income, declared and paid each calendar quarter,
when available, are reinvested in additional shares of the Fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the last income dividend of the calendar year.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.72% to 0.52% annually as the Fund's assets increase. Prior
to Dec. 6, 2005, World Trust, on behalf of the Portfolio, had an Investment
Management Services Agreement with Ameriprise Financial. The management fee was
assessed at the Portfolio level. Prior to March 1, 2006, the management fee
percentage of the Fund's average daily net assets declined from 0.77% to 0.67%
annually as the Fund's assets increased.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses include, among other things, certain expenses of the Fund or the
Board (including its independent members) equal to $3,693 that are paid by the
Fund through Board Services Corporation, an entity that provides services to the
Board and the Fund pursuant to a separate agreement. These expenses include:
Fund boardroom expense, Board Services Corporation office expense, Board
Services Corporation employee compensation, including employee health and
retirement benefits, Board Services Corporation audit and legal fees, Fund legal
fees, certain taxes, filing fees and certain other expenses.
34 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
Compensation of board members includes compensation as well as retirement
benefits. Certain other aspects of the Board Chair's compensation, including
health benefits and payment of certain other expenses, are included under other
expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation
(the Transfer Agent) maintains shareholder accounts and records. The Fund pays
the Transfer Agent an annual fee per shareholder account for this service as
follows:
- - Class A $20.50
- - Class B $21.50
- - Class C $21.00
- - Class Y $18.50
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (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 up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by the Distributor and other servicing agents
with respect to those shares. The fee is calculated at a rate of 0.10% of the
Fund's average daily net assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$287,200 for Class A, $159,151 for Class B and $656 for Class C for the year
ended Oct. 31, 2006.
For the year ended Oct. 31, 2006, the Investment Manager and its affiliates
waived certain fees and expenses to 1.25% for Class A, 2.02% for Class B, 2.02%
for Class C and 1.08% for Class Y. Of these waived fees and expenses, the
transfer agency fees waived for Class A, Class B, Class C and Class Y were
$432,021, $120,646, $5,003 and $103, respectively. Under this agreement which
was effective
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 35
<Page>
until Feb. 28, 2006, net expenses would not exceed 1.25% for Class A, 2.02% for
Class B, 2.02% for Class C, 0.95% for Class I and 1.08% for Class Y of the
Fund's average daily net assets. Effective as of March 1, 2006, the Investment
Manager and its affiliates have agreed to waive certain fees and expenses until
Oct. 31, 2007, unless sooner terminated at the discretion of the Board, such
that net expenses will not exceed 1.25% for Class A, 2.02% for Class B, 2.02%
for Class C, 0.90% for Class I and 1.08% for Class Y of the Fund's average daily
net assets.
During the period from Nov. 1, 2005 to Nov. 7, 2005, the Fund's custodian and
transfer agency fees were reduced by $376 as a result of earnings and bank fee
credits from overnight cash balances. During the period from Nov. 8, 2005 to
Oct. 31, 2006, the Fund's custodian and transfer agency fees were reduced by
$31,720 as a result of earnings and bank fee credits from overnight cash
balances. The Fund also pays custodian fees to Ameriprise Trust Company, an
affiliate of Ameriprise Financial.
In addition, the Fund received a one time payment of $53,693 by Ameriprise
Financial for additional earnings from overnight cash balances determined to be
owed for prior years. This amount was insignificant to the Fund's net assets
value and total return.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $5,156,591 and $7,648,747, respectively, for the period
from Nov. 1, 2005 to Nov. 7, 2005 and $335,827,284 and $407,371,238,
respectively, for the period from Nov. 8, 2005 to Oct. 31, 2006. Realized gains
and losses are determined on an identified cost basis.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS Y
- -------------------------------------------------------------------------------------------------------------
Sold 7,394,126 1,374,250 104,714 11,574,667 1,649
Issued for reinvested
distributions 2,234,083 417,094 17,325 977,816 751
Redeemed (21,409,456) (9,072,811) (300,714) (4,003,763) (2,933)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) (11,781,247) (7,281,467) (178,675) 8,548,720 (533)
- -------------------------------------------------------------------------------------------------------------
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS I CLASS Y
- -------------------------------------------------------------------------------------------------------------
Sold 12,792,108 4,572,740 200,644 10,013,472 9,106
Issued for reinvested
distributions 2,648,124 822,515 25,507 336,240 549
Redeemed (17,214,211) (8,827,651) (251,580) (357,832) (8,067)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,773,979) (3,432,396) (25,429) 9,991,880 1,588
- -------------------------------------------------------------------------------------------------------------
</Table>
36 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
5. FORWARD FOREIGN CURRENCY CONTRACTS
At Oct. 31, 2006, the Fund has forward foreign currency exchange contracts that
obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
<Table>
<Caption>
CURRENCY TO CURRENCY TO UNREALIZED UNREALIZED
EXCHANGE DATE BE DELIVERED BE RECEIVED APPRECIATION DEPRECIATION
- --------------------------------------------------------------------------------------------------------------------
Nov. 10, 2006 560,000 1,038,596 $ -- $ 29,676
British Pound U.S. Dollar
Nov. 15, 2006 13,665,000 17,171,849 -- 283,524
European Monetary Unit U.S. Dollar
Nov. 22, 2006 5,949,367 705,000,000 96,359 --
U.S. Dollar Japanese Yen
Dec. 4, 2006 2,700,000 2,405,131 -- 643
Canadian Dollar U.S. Dollar
- --------------------------------------------------------------------------------------------------------------------
Total $ 96,359 $ 313,843
- --------------------------------------------------------------------------------------------------------------------
</Table>
6. INTEREST RATE FUTURES CONTRACTS
At Oct. 31, 2006, investments in securities included securities valued at
$497,998 that were pledged as collateral to cover initial margin deposits on
open purchase and sale contracts. See "Summary of significant accounting
policies" and "Notes to investments in securities." The terms of the open
purchase and sale contracts are as follows:
<Table>
<Caption>
NUMBER OF NOTIONAL UNREALIZED
TYPE OF SECURITY CONTRACTS MARKET VALUE GAIN (LOSS)
- ---------------------------------------------------------------------------------------------------------
PURCHASE CONTRACTS
Euro-Bund, Dec. 2006, 10-year (European Monetary Unit) 66 $ 9,925,445 $ (19,229)
Japanese Govt Bond, Dec. 2006, 10-year (Japanese Yen) 3 3,449,679 5,049
U.S. Long Bond, Dec. 2006, 20-year (U.S. Dollar) 47 5,294,844 102,304
U.S. Treasury Note, Dec. 2006, 2-year (U.S. Dollar) 141 28,821,281 61,263
- ---------------------------------------------------------------------------------------------------------
Total $ 47,491,249 $ 149,387
- ---------------------------------------------------------------------------------------------------------
<Caption>
NUMBER OF NOTIONAL UNREALIZED
SALE CONTRACTS CONTRACTS MARKET VALUE GAIN (LOSS)
- ---------------------------------------------------------------------------------------------------------
U.S. Treasury Note, Dec. 2006, 5-year (U.S. Dollar) 10 $ 1,055,625 $ (7,217)
U.S. Treasury Note, Dec. 2006, 10-year (U.S. Dollar) 266 28,786,188 (71,157)
- ---------------------------------------------------------------------------------------------------------
Total $ 29,841,813 $ (78,374)
- ---------------------------------------------------------------------------------------------------------
</Table>
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 37
<Page>
7. LENDING OF PORTFOLIO SECURITIES
At Oct. 31, 2006, securities valued at $7,145,460 were on loan to brokers. For
collateral, the Fund received $7,253,750 in cash. Cash collateral received is
invested in an affiliated money market fund and short term securities, which are
included in the "Investments in securities." Income from securities lending
amounted to $7,847 for the year ended Oct. 31, 2006. The risks to the Fund of
securities lending are that the borrower may not provide additional collateral
when required or return the securities when due.
8. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
9. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 19, 2006. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.06%
per annum. Prior to this agreement, the Fund paid a commitment fee equal to its
pro rata share of the amount of the credit facility at a rate of 0.07% per
annum. The Fund had no borrowings outstanding during the year ended Oct. 31,
2006.
10. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$6,599,145 at Oct. 31, 2006, that if not offset by capital gains will expire as
follows:
<Table>
<Caption>
2010 2011
$ 6,100,374 $ 498,771
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
38 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
11. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
As a result of the Orders, AEFC was censured and ordered to cease and desist
from committing or causing any violations of certain provisions of the
Investment Advisers Act of 1940, the Investment Company Act of 1940, and various
Minnesota laws. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 39
<Page>
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.
40 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
12. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a) 2006 2005 2004 2003 2002
FISCAL PERIOD ENDED OCT. 31,
Net asset value, beginning of period $ 6.59 $ 7.02 $ 6.57 $ 6.00 $ 5.81
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .19 .16 .17 .18 .19
Net gains (losses) (both realized
and unrealized) .14 (.23) .52 .60 .17
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations .33 (.07) .69 .78 .36
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.32) (.36) (.24) (.21) (.17)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.60 $ 6.59 $ 7.02 $ 6.57 $ 6.00
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 276 $ 353 $ 389 $ 380 $ 348
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average daily net assets(b) 1.25%(c) 1.35%(c) 1.34% 1.36% 1.34%
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 2.77% 2.42% 2.66% 2.73% 3.12%
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 68% 73% 92% 117% 51%
- ----------------------------------------------------------------------------------------------------------------------------
Total return(d) 5.17% (1.18%) 10.70% 13.25% 6.24%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class A would have been 1.39% and 1.37% for the years ended Oct. 31, 2006
and 2005, respectively.
(d) Total return does not reflect payment of a sales charge.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 41
<Page>
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a) 2006 2005 2004 2003 2002
FISCAL PERIOD ENDED OCT. 31,
Net asset value, beginning of period $ 6.59 $ 7.02 $ 6.57 $ 5.99 $ 5.79
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .13 .10 .14 .12 .13
Net gains (losses) (both realized
and unrealized) .16 (.23) .50 .62 .19
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations .29 (.13) .64 .74 .32
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.21) (.30) (.19) (.16) (.12)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.67 $ 6.59 $ 7.02 $ 6.57 $ 5.99
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 63 $ 111 $ 142 $ 158 $ 152
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average daily net assets(b) 2.02%(c) 2.12%(c) 2.10% 2.12% 2.10%
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 1.98% 1.65% 1.90% 1.97% 2.36%
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 68% 73% 92% 117% 51%
- ----------------------------------------------------------------------------------------------------------------------------
Total return(d) 4.45% (1.98%) 9.83% 12.39% 5.59%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Then Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class B would have been 2.16% and 2.13% for the years ended Oct. 31, 2006
and 2005, respectively.
(d) Total return does not reflect payment of a sales charge.
42 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a) 2006 2005 2004 2003 2002
FISCAL PERIOD ENDED OCT. 31,
Net asset value, beginning of period $ 6.57 $ 6.99 $ 6.55 $ 5.98 $ 5.79
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .14 .11 .14 .13 .14
Net gains (losses) (both realized
and unrealized) .13 (.22) .49 .60 .18
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations .27 (.11) .63 .73 .32
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.22) (.31) (.19) (.16) (.13)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.62 $ 6.57 $ 6.99 $ 6.55 $ 5.98
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 3 $ 4 $ 5 $ 5 $ 3
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average daily net assets(b) 2.02%(c) 2.12%(c) 2.09% 2.14% 2.10%
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 2.00% 1.65% 1.91% 1.89% 2.29%
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 68% 73% 92% 117% 51%
- ----------------------------------------------------------------------------------------------------------------------------
Total return(d) 4.25% (1.83%) 9.72% 12.41% 5.51%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class C would have been 2.16% and 2.14% for the years ended Oct. 31, 2006
and 2005, respectively.
(d) Total return does not reflect payment of a sales charge.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 43
<Page>
CLASS I
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a) 2006 2005 2004(b)
FISCAL PERIOD ENDED OCT. 31,
Net asset value, beginning of period $ 6.61 $ 7.03 $ 6.77
- ----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .21 .19 .16
Net gains (losses) (both realized
and unrealized) .14 (.22) .24
- ----------------------------------------------------------------------------------------------
Total from investment operations .35 (.03) .40
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.37) (.39) (.14)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.59 $ 6.61 $ 7.03
- ----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 145 $ 89 $ 24
- ----------------------------------------------------------------------------------------------
Ratio of expenses to
average daily net assets(c) .88% .91% .89%(d)
- ----------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 3.18% 2.87% 3.07%(d)
- ----------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 68% 73% 92%
- ----------------------------------------------------------------------------------------------
Total return(e) 5.52% (.56%) 6.06%(f)
- ----------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Inception date is March 4, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
44 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
CLASS Y*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a) 2006 2005 2004 2003 2002
FISCAL PERIOD ENDED OCT. 31,
Net asset value, beginning of period $ 6.61 $ 7.04 $ 6.59 $ 6.01 $ 5.80
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .20 .16 .18 .19 .20
Net gains (losses) (both realized
and unrealized) .13 (.22) .52 .61 .19
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations .33 (.06) .70 .80 .39
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (.34) (.37) (.25) (.22) (.18)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.60 $ 6.61 $ 7.04 $ 6.59 $ 6.01
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ -- $ -- $ -- $ -- $ --
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average daily net assets(b) 1.08%(c) 1.18%(c) 1.17% 1.18% 1.17%
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets 2.95% 2.60% 2.83% 2.69% 3.29%
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 68% 73% 92% 117% 51%
- ----------------------------------------------------------------------------------------------------------------------------
Total return(d) 5.29% (1.00%) 10.86% 13.54% 6.72%
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) The Investment Manager and its affiliates waived/reimbursed the Fund for
certain expenses. Had they not done so, the annual ratios of expenses for
Class Y would have been 1.20% and 1.20% for the years ended Oct. 31, 2006
and 2005, respectively.
(d) Total return does not reflect payment of a sales charge.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 45
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
RIVERSOURCE GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of RiverSource Global Bond Fund (a
series of RiverSource Global Series, Inc.) as of October 31, 2006, the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period ended October 31, 2006,
and the financial highlights for each of the years in the five-year period ended
October 31, 2006. These financial statements and the financial highlights are
the responsibility of fund management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2006, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Global Bond Fund as of October 31, 2006, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2006
46 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
FISCAL YEAR ENDED OCT. 31, 2006
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2005 $ 0.18748
March 29, 2006 0.04136
June 27, 2006 0.04537
Sept. 27, 2006 0.04236
TOTAL DISTRIBUTIONS $ 0.31657
</Table>
CLASS B
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2005 $ 0.11870
March 29, 2006 0.02640
June 27, 2006 0.03223
Sept. 27, 2006 0.02813
TOTAL DISTRIBUTIONS $ 0.20546
</Table>
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2005 $ 0.13182
March 29, 2006 0.02719
June 27, 2006 0.03229
Sept. 27, 2006 0.02933
TOTAL DISTRIBUTIONS $ 0.22063
</Table>
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 47
<Page>
CLASS I
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2005 $ 0.21947
March 29, 2006 0.04751
June 27, 2006 0.05169
Sept. 27, 2006 0.04891
TOTAL DISTRIBUTIONS $ 0.36758
</Table>
CLASS Y
INCOME DISTRIBUTIONS -- taxable as dividend income:
<Table>
Qualified Dividend Income for individuals 0.00%
Dividends Received Deduction for corporations 0.00%
</Table>
<Table>
<Caption>
PAYABLE DATE PER SHARE
Dec. 22, 2005 $ 0.20599
March 29, 2006 0.04444
June 27, 2006 0.04837
Sept. 27, 2006 0.04501
Total distributions $ 0.34381
</Table>
48 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund 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 Oct. 31, 2006.
ACTUAL EXPENSES
The first line of the table provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading titled "Expenses paid during the period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 49
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2006 OCT. 31, 2006 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $ 1,000 $ 1,030.80 $ 6.47 1.25%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,019.11 $ 6.43 1.25%
Class B
Actual(b) $ 1,000 $ 1,027.80 $ 10.44 2.02%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,015.19 $ 10.37 2.02%
Class C
Actual(b) $ 1,000 $ 1,026.60 $ 10.43 2.02%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,015.19 $ 10.37 2.02%
Class I
Actual(b) $ 1,000 $ 1,032.90 $ 4.51 .87%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,021.05 $ 4.48 .87%
Class Y
Actual(b) $ 1,000 $ 1,031.70 $ 5.59(c) 1.08%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,019.98 $ 5.56(c) 1.08%
</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 186/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2006: +3.08%
for Class A, +2.78% for Class B, +2.66% for Class C, +3.29% for Class I and
+3.17% for Class Y.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement. In addition, the
investment manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until Oct. 31, 2007, unless
sooner terminated at the discretion of the Fund's Board such that net
expenses will not exceed 1.08% for Class R4. Any amounts waived will not be
reimbursed by the Fund. These changes are effective Dec. 11, 2006. If these
changes had been in place for the six-month period ended Oct. 31, 2006, the
actual and hypothetical expenses paid would have been the same as those
expenses presented in the table above.
50 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund' s Board members. Each member oversees 100
RiverSource funds. Board members serve until the next regular shareholders'
meeting or until he or she reaches the mandatory retirement age established by
the Board. Under the current Board policy, members may serve until the end of
the meeting following their 75th birthday, or the fifteenth anniversary of the
first Board meeting they attended as members of the Board, whichever occurs
first. This policy does not apply to Ms. Jones who may retire after her 75th
birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND OTHER OTHER
AGE LENGTH OF SERVICE DIRECTORSHIPS DIRECTORSHIPS
- -------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member Chief Justice, Minnesota
901 S. Marquette Ave. since 2006 Supreme Court, 1998-2005
Minneapolis, MN 55402
Age 52
Arne H. Carlson Board member and Chair, Board Services
901 S. Marquette Ave. Chair of the Board Corporation (provides
Minneapolis, MN 55402 since 1999 administrative services to
Age 72 boards); former Governor
of Minnesota
Patricia M. Flynn Board member Trustee Professor of
901 S. Marquette Ave. since 2004 Economics and Management,
Minneapolis, MN 55402 Bentley College; former
Age 56 Dean, McCallum Graduate
School of Business,
Bentley College
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 71
Jeffrey Laikind Board member Former Managing Director, American Progressive
901 S. Marquette Ave. since 2005 Shikiar Asset Management Insurance
Minneapolis, MN 55402
Age 71
Stephen R. Lewis, Jr.* Board member President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. since 2002 Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 67
</Table>
* As of Jan. 1, 2007 Stephen Lewis will replace Arne Carlson as Chair of the
Board.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 51
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Asset Strategic Distribution,
901 S. Marquette Ave. since 2004 Management, Inc. (private Inc. (transportation,
Minneapolis, MN 55402 real estate and asset distribution and logistics
Age 54 management company) consultants)
Vikki L. Pryor Board member President and Chief
901 S. Marquette Ave. since 2006 Executive Officer, SBLI
Minneapolis, MN 55402 USA Mutual Life Insurance
Age 53 Company, Inc. since 1999
Alison Taunton-Rigby Board member Chief Executive Officer, Hybridon, Inc.
901 S. Marquette Ave. since 2002 RiboNovix, Inc. since 2003 (biotechnology); American
Minneapolis, MN 55402 (biotechnology); former Healthways, Inc. (health
Age 62 President, Forester management programs)
Biotech
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS*
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
William F. Truscott Board member President, Ameriprise
53600 Ameriprise since 2001, Certificate Company since
Financial Center Vice President 2006; President - U.S.
Minneapolis, MN 55474 since 2002 Asset Management and Chief
Age 46 Investment Officer,
Ameriprise Financial, Inc.
and President, Chairman of
the Board and Chief
Investment Officer,
RiverSource Investments,
LLC since 2005; Senior
Vice President - Chief
Investment Officer,
Ameriprise Financial, Inc.
and Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC,
2001-2005
</Table>
* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
52 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott,who is Vice President,the
Fund's other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Compliance Director and Anti-Money Laundering Officer,
2934 Ameriprise Prevention Officer Ameriprise Financial, Inc. since 2004; Manager Anti-
Financial Center since 2004 Money Laundering, Ameriprise Financial, Inc., 2003-2004;
Minneapolis, MN 55474 Compliance Director and Bank Secrecy Act Officer,
Age 42 American Express Centurion Bank, 2000-2003
Patrick T. Bannigan President Senior Vice President - Asset Management, RiverSource
172 Ameriprise since 2006 Investments, LLC since 2006; Managing Director and
Financial Center Global Head of Product, Morgan Stanley Investment
Minneapolis, MN 55474 Management, 2004-2006; President, Touchstone
Age 41 Investments, 2002-2004; Director of Strategic Planning,
Evergreen Investments, 1995-2002
Jeffrey P. Fox Treasurer Vice President - Investment Accounting, Ameriprise
105 Ameriprise since 2002 Financial, Inc., since 2002; Vice President - Finance,
Financial Center American Express Company, 2000-2002
Minneapolis, MN 55474
Age 51
Amy K. Johnson Vice President Vice President - Asset Management and Trust Company
5228 Ameriprise since 2006 Services, RiverSource Investments, LLC, since 2006; Vice
Financial Center President -Operations and Compliance, RiverSource
Minneapolis, MN 55474 Investments, LLC, 2004-2006; Director of Product
Age 41 Development - Mutual Funds, American Express Financial
Corporation, 2001-2004
Michelle M. Keeley Vice President Executive Vice President - Equity and Fixed Income,
172 Ameriprise since 2004 Ameriprise Financial, Inc. and RiverSource Investments,
Financial Center LLC since 2006; Vice President - Investments, Ameriprise
Minneapolis, MN 55474 Certificate Company since 2003; Senior Vice President -
Age 42 Fixed Income, Ameriprise Financial, Inc., 2002-2006 and
RiverSource Investments, LLC, 2004-2006; Managing
Director, Zurich Global Assets, 2001-2002
Jennifer D. Lammers Chief Compliance U.S. Asset Management Chief Compliance Officer,
172 Ameriprise Officer since 2006 RiverSource Investments, LLC since 2006; Director -
Financial Center Mutual Funds, Voyageur Asset Management, 2003-2006;
Minneapolis, MN 55474 Director of Finance, Voyageur Asset Management,
Age 46 2000-2003
Scott R. Plummer Vice President, Vice President and Chief Counsel - Asset Management,
5228 Ameriprise General Counsel Ameriprise Financial, Inc. since 2005; Vice President,
Financial Center and Secretary General Counsel and Secretary, Ameriprise Certificate
Minneapolis, MN 55474 since 2006 Company since 2005; Vice President - Asset Management
Age 47 Compliance, Ameriprise Financial, Inc., 2004-2005;
Senior Vice President and Chief Compliance Officer, U.S.
Bancorp Asset Management, 2002-2004; Second Vice
President and Assistant General Counsel, Hartford Life,
2001-2002
</Table>
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling RiverSource Funds at (888) 791-3380;
contacting your financial institution; or visiting riversource.com/funds.
RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT 53
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities during the 12-month period
ended June 30, 2006 is available without charge by visiting
riversource.com/funds; or searching the website of the SEC at www.sec.gov.
54 RIVERSOURCE GLOBAL BOND FUND - 2006 ANNUAL REPORT
<Page>
RIVERSOURCE(SM) GLOBAL BOND FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
riversource.com/funds
[RIVERSOURCE(SM) INVESTMENTS LOGO]
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource(SM) mutual funds are distributed by RiverSource Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and managed by
RiverSource Investments, LLC. These companies are part of Ameriprise Financial,
Inc.
S-6309 AC (12/06)
<Page>
ANNUAL REPORT
RIVERSOURCE [LOGO](SM)
INVESTMENTS
RIVERSOURCE(SM)
GLOBAL EQUITY FUND
ANNUAL REPORT FOR THE PERIOD ENDED OCT. 31, 2006
o RIVERSOURCE GLOBAL EQUITY FUND SEEKS TO PROVIDE SHAREHOLDERS WITH
LONG-TERM CAPITAL GROWTH.
TABLE OF CONTENTS
<Table>
Fund Snapshot 3
Performance Summary 5
Questions & Answers with Portfolio Management 7
The Fund's Long-term Performance 12
Investments in Securities 14
Financial Statements 19
Notes to Financial Statements 23
Report of Independent Registered Public Accounting Firm 38
Federal Income Tax Information 39
Fund Expenses Example 40
Board Members and Officers 42
Proxy Voting 45
</Table>
[LOGO]
DALBAR RATED
2006
FOR COMMUNICATION
The RiverSource mutual fund shareholder reports have been awarded the
Communications Seal from Dalbar Inc., an independent financial services
research firm. The Seal recognizes communications demonstrating a level of
excellence in the industry.
2 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
FUND SNAPSHOT AT OCT. 31, 2006
FUND OVERVIEW
RiverSource Global Equity Fund focuses on equity securities of companies
around the world, including companies located in developed and emerging
countries. The Fund focuses on large-cap companies but has the flexibility to
invest in companies of any size. The portfolio management team employs a
"dynamic style" that lets them determine the most effective focus during
particular economic and market conditions, moving the balance between "value"
and "growth" as the business cycle changes.
COUNTRY BREAKDOWN
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
United States 41.3%
Japan 14.4%
United Kingdom 5.8%
Switzerland 4.2% [PIE CHART]
South Korea 3.6%
Germany 3.4%
Other(1) 27.3%
(1) Includes Hong Kong 3.2%, Brazil 3.0%, France 2.6%, Australia 2.0%, Canada
1.9%, South Africa 1.9%, Netherlands 1.6%, Norway 1.3%, Spain 1.3%,
Sweden 1.3%, Taiwan 1.2%, Chile 1.1%, Greece 1.0%, Bermuda 0.8%, Mexico
0.8%, Ireland 0.7%, Finland 0.5%, Luxembourg 0.5% and Cash & Cash
Equivalents 0.6%.
</Table>
TOP TEN HOLDINGS
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Google Cl A (United States) 2.2%
Roche Holding (Switzerland) 1.9%
Valero Energy (United States) 1.9%
UBS (Switzerland) 1.8%
Bank of America (United States) 1.7%
Esprit Holdings (Hong Kong) 1.7%
Mitsubishi UFJ Financial Group (Japan) 1.7%
Phelps Dodge (United States) 1.4%
WellPoint (United States) 1.4%
DR Horton (United States) 1.4%
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to
potential political and economic instability, currency fluctuations, and
differences in financial reporting and accounting standards and oversight.
Risks are particularly significant in emerging markets.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 3
FUND SNAPSHOT AT OCT. 31, 2006
STYLE MATRIX
[chart] Shading within the style matrix indicates areas in which the Fund
generally invests.
STYLE
VALUE BLEND GROWTH
X LARGE
MEDIUM SIZE
SMALL
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any
financial institution, and involve investment risks including possible loss of
principal and fluctuation in value.
PORTFOLIO MANAGERS
<Table>
<Caption>
YEARS IN INDUSTRY
Dominic Rossi 20
Steve Thornber 19
</Table>
FUND FACTS
<Table>
<Caption>
TICKER SYMBOL INCEPTION DATE
Class A IGLGX 5/29/90
Class B IDGBX 3/20/95
Class C -- 6/26/00
Class Y IDGYX 3/20/95
Total net assets $733.4 million
Number of holdings 115
</Table>
4 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
PERFORMANCE SUMMARY
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2006
<Table>
<Caption>
MORGAN STANLEY CAPITAL
RIVERSOURCE GLOBAL EQUITY INTERNATIONAL (MSCI)
FUND CLASS A ALL COUNTRY WORLD INDEX
(EXCLUDING SALES CHARGE) (UNMANAGED) LIPPER GLOBAL FUNDS INDEX
+21.01% +22.77% +20.75%
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE
INFORMATION CURRENT TO THE MOST RECENT MONTH-END BY CONTACTING YOUR FINANCIAL
INSTITUTION OR VISITING riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not
reflected in the bar chart. If reflected, returns would be lower than those
shown. The performance of other classes may vary from that shown because of
differences in expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 5
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
AT OCT. 31, 2006
<Table>
<Caption>
SINCE
WITHOUT SALES CHARGE 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (INCEPTION 5/29/90) +21.01% +17.98% +10.10% +5.42% +6.12%
Class B (INCEPTION 3/20/95) +20.07% +17.07% +9.28% +4.62% +5.90%
Class C (INCEPTION 6/26/00) +20.03% +17.07% +9.23% N/A -1.70%
Class Y (INCEPTION 3/20/95) +21.26% +18.20% +10.32% +5.59% +6.89%
WITH SALES CHARGE
Class A (INCEPTION 5/29/90) +14.05% +15.67% +8.80% +4.80% +5.74%
Class B (INCEPTION 3/20/95) +15.07% +16.09% +9.00% +4.62% +5.90%
Class C (INCEPTION 6/26/00) +19.03% +17.07% +9.23% N/A -1.70%
</Table>
AT SEPT. 30, 2006
<Table>
<Caption>
SINCE
WITHOUT SALES CHARGE 1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION
Class A (INCEPTION 5/29/90) +11.79% +18.11% +9.86% +4.60% +5.85%
Class B (INCEPTION 3/20/95) +11.04% +17.26% +9.05% +3.81% +5.52%
Class C (INCEPTION 6/26/00) +11.14% +17.22% +9.03% N/A -2.43%
Class Y (INCEPTION 3/20/95) +11.95% +18.34% +10.09% +4.77% +6.50%
WITH SALES CHARGE
Class A (INCEPTION 5/29/90) +5.37% +15.80% +8.57% +3.98% +5.47%
Class B (INCEPTION 3/20/95) +6.04% +16.29% +8.77% +3.81% +5.52%
Class C (INCEPTION 6/26/00) +10.14% +17.22% +9.03% N/A -2.43%
</Table>
CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM SALES CHARGE OF 5.75%. CLASS B
SHARE PERFORMANCE REFLECTS A CONTINGENT DEFERRED SALES CHARGE (CDSC) APPLIED
AS FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEARS 4%; FOURTH YEAR 3%; FIFTH
YEAR 2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER. CLASS C SHARES MAY BE
SUBJECT TO A 1% CDSC IF SHARES ARE SOLD WITHIN ONE YEAR AFTER PURCHASE. SALES
CHARGES DO NOT APPLY TO CLASS Y SHARES. THIS SHARE CLASS IS AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
6 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
BELOW, RIVERSOURCE GLOBAL EQUITY FUND PORTFOLIO MANAGERS DOMINIC ROSSI AND
STEPHEN THORNBER OF THREADNEEDLE INTERNATIONAL LIMITED (THREADNEEDLE) DISCUSS
THE FUND'S RESULTS AND POSITIONING FOR THE 12 MONTHS ENDED OCT. 31, 2006.
THREADNEEDLE, AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF AMERIPRISE FINANCIAL,
INC., ACTS AS THE SUBADVISER TO THE FUND.
Q: How did RiverSource Global Equity Fund perform for the fiscal year ended
Oct. 31, 2006?
A: The Fund gained 21.01% (Class A shares excluding sales charge) for the
12-month period ended Oct. 31, 2006. The Fund underperformed its
benchmark, the Morgan Stanley Capital International (MSCI) All Country
World Index (MSCI Index), which advanced 22.77% for the period. The Fund
outperformed the Lipper Global Funds Index, representing the Fund's peer
group, which rose 20.75% over the same time frame.
Q: What factors most significantly affected performance?
A: The Fund's performance over the year was mixed. The Fund outperformed in
the first half of the period with strong stock selection driving the
results. Stock selection during the first half of the period was the key
contributor to performance. Favorable asset allocation and sector
allocation also contributed to performance, but to a lesser degree. In
the second half of the year, the picture started changing and, through
the summer took its toll on the Fund's performance. In early summer, the
market leadership changed quite abruptly and moved away from cyclical
areas, such as the energy and commodity stocks. The Fund's overweight
position relative to the MSCI Index in the energy sector was the most
significant contributor to the Fund's poor performance in the second half
of the period. In September, for example, stocks such as Valero Energy --
one of the Fund's largest positions, Marathon Oil and Occidental
Petroleum fell sharply as oil and gas prices slid downwards. Weaker
prices also affected some commodity holdings in the Fund not related to
oil. Arch Coal, one of the largest coal producers in the U.S., is one
such example.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 7
QUESTIONS & ANSWERS
Market leadership changed from cyclical sectors to defensive sectors,
such as telecommunications and consumer staples. The Fund was underweight
relative to the MSCI Index in these sectors, so the Fund lagged the
market quite badly in July and August. By September, the leadership
changed back, and stocks in the cyclical sectors were again driving the
volatile market.
Furthermore, the Japanese holdings that we thought would counterbalance
the weakness of energy-related stocks failed to do so. We had based our
expectations on last year's experience: when oil stocks had been strong,
Japanese stocks had performed poorly, and when oil stocks had been weak,
Japanese equities had rallied. Yet despite the fall in oil prices that we
have seen since July, Japanese stocks have remained in the doldrums.
However, we remain convinced that a sustainable recovery is underway in
Japan and that Japanese equities offer good value. In fact, we added to
our holdings in the country in September, in anticipation of the rally
that we believe will take place toward the end of this year.
In October conditions began to improve quickly. The markets became far
more confident about world economies and some of the cyclical areas
bounced back. The Fund saw significant improvement in October, but not
enough to undo the underperformance from the volatile summer months.
THE FUND SAW SIGNIFICANT IMPROVEMENT IN OCTOBER, BUT NOT ENOUGH TO UNDO
THE UNDERPERFORMANCE FROM THE VOLATILE SUMMER MONTHS.
The Fund's lackluster performance in the last half of the period resulted
largely from falling oil prices, disappointing results in Japanese equity
markets and also from the performance of individual stocks in certain
sectors. So despite the strong performance delivered in the first half of
the period, the Fund ended its 2006 fiscal year by underperforming the
MSCI Index and only slightly outperformed its peers.
8 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
QUESTIONS & ANSWERS
Some stocks that benefited performance during the period include: U.S.
commercial real estate manager CB Richard Ellis Group; UK bank Standard
Chartered; South Korean commercial banks Kookmin Bank and Shinhan
Financial Group; Japanese brokers Nomura Holdings and Tokai Tokyo
Securities; Brazilian mining company Cia Vale do Rio Doce; and U.S. teen
clothing retailer Abercrombie & Fitch.
Some stocks that detracted from performance during the period include:
some key energy-related holdings (discussed above); U.S. medical device
maker Medtronic; Australia's Newcrest Mining; U.S. homebuilders DR Horton
and Centex; and German software maker SAP.
Q: What changes did you make to the Fund during the 12-month period?
A: The Fund's strategy did not change much over the period. We kept a sharp
focus on Europe and Asia, particularly in Japan. The three largest
sectors of the Fund are financials at more than 23%, consumer
discretionary at nearly 16% and health care at more than 11% of the Fund.
We did, however, make some subtle changes to our geographic and sector
strategies over the year and bought and sold stocks, as we felt
necessary.
We reduced our overall position in Japan, which at the end of the period
was our second largest country allocation at 14.4% of the Fund. Although
we still feel that the Japanese equity market holds promise, we felt that
the rewards simply were not outweighing the risks, so we sold out of some
of our Japanese holdings. When the market sold off during the summer we
took the opportunity to add to our Latin American position and stocks in
various potentially promising sectors. In the energy sector, we added to
the Fund's position in Petrobras, the oil company. In the materials
sector, we added to the Fund's position in Aracruz Celulose, the paper
manufacturer and we bought Ternium, a steel company. In the
telecommunications sector, we bought Grupo Televisa, a Mexican media
company.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 9
QUESTIONS & ANSWERS
At a sector level, we reduced our position in energy, due to the Fund's
large position in oil-related stocks and our desire to reduce the risk
there. The Fund increased its exposure to the industrials sector and
added stocks such as Swedish company Atlas Copco and U.S. company United
Technology which we believe will benefit from the continued upswing in
capital investment spending we expect to see in the coming year.
In the technology sector, the Fund took profits on its Internet search
engine Google stock in the first half of the period; later, we bought it
again. At the end of the period, Google was the largest single holding in
the Fund. Also late in the period, German software maker SAP announced
that it had missed its revenue targets and the market punished the stock
severely. We reduced our stake in SAP due to concerns about the outlook
for earnings growth.
In health care, we sold our stake in Myogen, a biotech company that was
purchased as an IPO. Myogen was acquired by a larger company. Early in
the period, U.S. biopharmaceutical company MGI PHARMA announced
disappointing trial data, which depressed the stock price. However, we
still believe the outlook for the company is good and have retained our
position.
In other sectors, we added to our position in the media sector in April
with Comcast and Clear Channel Communications, U.S. media companies that
we believe showed promise. They have since performed extremely well.
Also, in the consumer sector, we added U.S. teen clothing retailer
Abercrombie & Fitch to the Fund in August.
10 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
QUESTIONS & ANSWERS
Q: How is the Fund currently positioned and how do you intend to manage the
Fund in the months ahead?
A: Throughout the year, commodities have been a strong theme within our
overall strategy for the Fund. We believe that there is a long-term bull
market in commodities and that supply and demand will continue to
influence the markets. We currently expect to continue the Fund's large
positions in the energy and mining sectors.
THROUGHOUT THE YEAR, COMMODITIES HAVE BEEN A STRONG THEME WITHIN OUR
OVERALL STRATEGY FOR THE FUND.
Japan's recovery continues to be an important theme within the Fund. We
think the Japanese market will experience upgrades through the year and
that the market, although frustrating at times, will deliver solid
sustainable performance.
Looking forward, we believe the outlook for global equities remains
positive. We believe equities are cheap both in historical terms and in
comparison to bonds but recognize there are some concerns over the
direction of interest rates. High energy prices have yet to slow the
global economy, which continues to perform robustly while earnings are
also growing at a very healthy pace.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 11
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Global Equity Fund Class A shares (from 11/1/96 to
10/31/06) as compared to the performance of two widely cited performance
indices, the Morgan Stanley Capital International (MSCI) All Country World
Index and the Lipper Global Funds Index. In comparing the Fund's Class A
shares to these indices, you should take into account the fact that the Fund's
performance reflects the maximum sales charge of 5.75%, while such charges are
not reflected in the performance of the indices. Returns for the Fund include
the reinvestment of any distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE TABLE BELOW AND THE CHART ON THE FACING PAGE
DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. 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. ALSO
SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT PROSPECTUS.
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS INCEPTION(3)
RIVERSOURCE GLOBAL EQUITY FUND
(INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $11,405 $15,476 $15,246 $15,986 $25,010
Average annual total return +14.05% +15.67% +8.80% +4.80% +5.74%
MSCI ALL COUNTRY WORLD INDEX(1)
Cumulative value of $10,000 $12,277 $16,082 $17,404 $21,715 $38,055
Average annual total return +22.77% +17.16% +11.72% +8.06% +8.48%
LIPPER GLOBAL FUNDS INDEX(2)
Cumulative value of $10,000 $12,075 $15,686 $16,684 $22,035 $38,987
Average annual total return +20.75% +16.19% +10.78% +8.21% +8.64%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 6.
12 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN RIVERSOURCE GLOBAL EQUITY FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
<Table>
<Caption>
RIVERSOURCE GLOBAL MORGAN STANLEY CAPITAL
EQUITY FUND CLASS A INTERNATIONAL (MSCI) LIPPER GLOBAL FUNDS
(INCLUDES SALES CHARGE) ALL COUNTRY WORLD INDEX(1) INDEX(2)
9425 10000 10000
10011 11607 11793
11713 13119 12472
14476 16533 15453
15162 16665 17295
9881 12474 13200
8259 10781 11451
9734 13504 14044
10875 15398 15850
13211 17688 18247
15986 21715 22035
</Table>
(1) The Morgan Stanley Capital International (MSCI) All Country World Index,
an unmanaged index of equity securities, is designed to measure equity
market performance in the global developed and emerging markets. The
index reflects reinvestment of all distributions and changes in market
prices, but excludes brokerage commissions or other fees.
(2) The Lipper Global Funds Index includes the 30 largest global funds
tracked by Lipper Inc. The index's returns include net reinvested
dividends. The Fund's performance is currently measured against this
index for purposes of determining the performance incentive adjustment.
(3) Fund data is from May 29, 1990. MSCI All Country World Index and Lipper
peer group data is from June 1, 1990.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 13
INVESTMENTS IN SECURITIES
OCT. 31, 2006
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
COMMON STOCKS (99.3%)(c)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
AUSTRALIA (2.0%)
BIOTECHNOLOGY (1.1%)
CSL 173,476 $ 7,534,147
- --------------------------------------------------------------------------------
METALS & MINING (0.9%)
Zinifex 589,375 6,922,876
- --------------------------------------------------------------------------------
BERMUDA (0.8%)
INSURANCE
PartnerRe 82,902 5,796,508
- --------------------------------------------------------------------------------
BRAZIL (3.0%)
METALS & MINING (1.2%)
Cia Vale do Rio
Doce ADR 387,881 8,424,775
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (1.0%)
Petroleo Brasileiro ADR 85,884 7,623,064
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.8%)
Aracruz Celulose ADR 105,012 5,777,760
- --------------------------------------------------------------------------------
CANADA (1.9%)
METALS & MINING (1.0%)
Aur Resources 378,100 7,324,150
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (0.9%)
Canadian Natural
Resources 129,457 6,751,183
- --------------------------------------------------------------------------------
CHILE (1.1%)
METALS & MINING
Antofagasta 858,050 8,298,229
- --------------------------------------------------------------------------------
FINLAND (0.5%)
COMMUNICATIONS EQUIPMENT
Nokia 177,499 3,523,006
- --------------------------------------------------------------------------------
FRANCE (2.6%)
AUTOMOBILES (0.5%)
Renault 31,284 3,659,669
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
<Caption>
ISSUER SHARES VALUE(a)
FRANCE (CONT.)
COMMERCIAL BANKS (0.8%)
Societe Generale 36,688 $ 6,097,083
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (0.7%)
Schneider Electric 48,150 5,002,738
- --------------------------------------------------------------------------------
INSURANCE (0.3%)
Assurances Generales
de France 16,080 2,257,698
- --------------------------------------------------------------------------------
PHARMACEUTICALS (0.3%)
Sanofi-Aventis 27,046 2,299,134
- --------------------------------------------------------------------------------
GERMANY (3.4%)
HEALTH CARE PROVIDERS & SERVICES (0.7%)
Fresenius Medical
Care & Co 40,551 5,410,920
- --------------------------------------------------------------------------------
MULTI-UTILITIES (0.5%)
RWE 36,901 3,646,989
- --------------------------------------------------------------------------------
SOFTWARE (0.8%)
SAP 27,980 5,567,050
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE (1.4%)
Hypo Real Estate
Holding 165,000 10,372,352
- --------------------------------------------------------------------------------
GREECE (1.0%)
CONSTRUCTION MATERIALS
TITAN Cement 141,083 7,404,826
- --------------------------------------------------------------------------------
HONG KONG (3.1%)
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.5%)
China Overseas Land
& Investment 5,294,000 4,826,528
Hang Lung Properties 2,776,000 6,054,105
-----------
Total 10,880,633
- --------------------------------------------------------------------------------
SPECIALTY RETAIL (1.6%)
Esprit Holdings 1,259,000 12,190,608
- --------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
14 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
COMMON STOCKS (CONTINUED)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
IRELAND (0.7%)
COMMERCIAL BANKS
Bank of Ireland 252,723 $ 5,093,472
- --------------------------------------------------------------------------------
JAPAN (14.4%)
AUTOMOBILES (1.0%)
Honda Motor 206,400 7,306,507
- --------------------------------------------------------------------------------
BUILDING PRODUCTS (0.4%)
Asahi Glass 270,000 3,109,791
- --------------------------------------------------------------------------------
CAPITAL MARKETS (1.8%)
Nomura Holdings 419,400 7,405,395
Tokai Tokyo Securities 1,230,000 6,068,491
-----------
Total 13,473,886
- --------------------------------------------------------------------------------
COMMERCIAL BANKS (2.7%)
Mitsubishi UFJ
Financial Group 963 12,104,403
Mizuho Financial Group 919 7,158,691
-----------
Total 19,263,094
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.5%)
Hoya 92,200 3,563,437
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES (2.3%)
Daito Trust Construction 131,100 6,916,519
Daiwa House Industry 201,000 3,626,422
GOLDCREST 108,770 5,952,356
-----------
Total 16,495,297
- --------------------------------------------------------------------------------
INSURANCE (1.1%)
T&D Holdings 112,700 8,239,290
- --------------------------------------------------------------------------------
MACHINERY (1.7%)
AMADA 713,000 7,078,179
THK 220,900 5,619,303
-----------
Total 12,697,482
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS (1.1%)
Canon 149,700 8,025,814
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (1.8%)
Mitsubishi Estate 221,000 5,291,150
Mitsui Fudosan 330,000 8,126,550
-----------
Total 13,417,700
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
<Caption>
ISSUER SHARES VALUE(a)
LUXEMBOURG (0.5%)
METALS & MINING
Ternium ADR 143,594(b) $ 3,503,694
- --------------------------------------------------------------------------------
MEXICO (0.8%)
MEDIA
Grupo Televisa ADR 246,745 6,089,667
- --------------------------------------------------------------------------------
NETHERLANDS (1.6%)
DIVERSIFIED FINANCIAL SERVICES (1.1%)
ING Groep 184,072 8,155,102
- --------------------------------------------------------------------------------
FOOD PRODUCTS (0.5%)
Royal Numico 75,405 3,371,532
- --------------------------------------------------------------------------------
NORWAY (1.3%)
COMMERCIAL BANKS (0.6%)
DNB NOR 342,500 4,486,236
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.7%)
TGS NOPEC Geophysical 301,720(b) 5,378,705
- --------------------------------------------------------------------------------
SOUTH AFRICA (1.9%)
FOOD & STAPLES RETAILING (1.1%)
Massmart Holdings 982,404 7,912,606
- --------------------------------------------------------------------------------
METALS & MINING (0.8%)
Anglo American 126,379 5,698,850
- --------------------------------------------------------------------------------
SOUTH KOREA (3.6%)
COMMERCIAL BANKS (1.5%)
Kookmin Bank 61,470 4,888,621
Shinhan Financial Group 121,220 5,592,492
-----------
Total 10,481,113
- --------------------------------------------------------------------------------
MACHINERY (0.9%)
Hyundai Heavy Inds 46,140 6,785,294
- --------------------------------------------------------------------------------
METALS & MINING (0.5%)
POSCO 13,952 3,873,910
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.7%)
Hynix Semiconductor
GDR 136,881(b,d,e) 4,968,507
- --------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 15
COMMON STOCKS (CONTINUED)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
SPAIN (1.3%)
BIOTECHNOLOGY (0.7%)
Grifols 500,000(b) $ 5,233,243
- --------------------------------------------------------------------------------
SPECIALTY RETAIL (0.6%)
Inditex 95,648 4,573,311
- --------------------------------------------------------------------------------
SWEDEN (1.3%)
COMMUNICATIONS EQUIPMENT (0.5%)
Telefonaktiebolaget LM
Ericsson Series B 1,000,000 3,794,804
- --------------------------------------------------------------------------------
MACHINERY (0.8%)
Atlas Copco Series A 195,200 5,704,282
- --------------------------------------------------------------------------------
SWITZERLAND (4.2%)
CAPITAL MARKETS (1.8%)
UBS 218,854 13,071,425
- --------------------------------------------------------------------------------
CHEMICALS (0.5%)
Syngenta 23,906(b) 3,860,704
- --------------------------------------------------------------------------------
PHARMACEUTICALS (1.9%)
Roche Holding 80,112 14,019,600
- --------------------------------------------------------------------------------
TAIWAN (1.2%)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT
Taiwan Semiconductor
Mfg 1,750,983 3,211,364
Taiwan Semiconductor
Mfg ADR 568,598 5,515,400
-----------
Total 8,726,764
- --------------------------------------------------------------------------------
UNITED KINGDOM (5.8%)
CAPITAL MARKETS (0.4%)
3i Group 152,537 2,793,260
- --------------------------------------------------------------------------------
COMMERCIAL BANKS (1.8%)
HSBC Holdings 476,000 8,985,406
Standard Chartered 145,824 4,102,852
-----------
Total 13,088,258
- --------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (1.3%)
Drax Group 630,184 9,796,927
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (1.0%)
BG Group 568,138 7,537,301
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
<Caption>
ISSUER SHARES VALUE(a)
UNITED KINGDOM (CONT.)
SPECIALTY RETAIL (1.3%)
Carphone Warehouse
Group 1,717,961 $ 9,290,332
- --------------------------------------------------------------------------------
UNITED STATES (41.4%)
AEROSPACE & DEFENSE (1.1%)
United Technologies 117,435 7,717,828
- --------------------------------------------------------------------------------
BEVERAGES (1.6%)
Coca-Cola 117,947 5,510,484
PepsiCo 95,306 6,046,212
-----------
Total 11,556,696
- --------------------------------------------------------------------------------
BIOTECHNOLOGY (1.0%)
Amgen 98,237(b) 7,457,171
- --------------------------------------------------------------------------------
CAPITAL MARKETS (2.9%)
Bear Stearns Companies 39,364 5,957,741
E*TRADE Financial 258,737(b) 6,023,397
Goldman Sachs Group 47,076 8,934,554
-----------
Total 20,915,692
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (1.2%)
Cisco Systems 366,858(b) 8,852,283
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (3.2%)
Bank of America 234,379 12,625,997
CIT Group 108,524 5,648,674
Citigroup 105,767 5,305,273
-----------
Total 23,579,944
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (0.5%)
Weatherford Intl 86,357(b) 3,547,546
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING (0.5%)
CVS 106,903 3,354,616
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES (0.8%)
St. Jude Medical 167,569(b) 5,755,995
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (2.2%)
CIGNA 48,863 5,715,994
WellPoint 137,573(b) 10,499,571
-----------
Total 16,215,565
- --------------------------------------------------------------------------------
</Table>
See accompanying notes to investments in securities.
16 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
COMMON STOCKS (CONTINUED)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
UNITED STATES (CONT.)
HOUSEHOLD DURABLES (2.4%)
DR Horton 444,447 $ 10,413,394
Hovnanian Enterprises
Cl A 235,365(b) 7,261,010
------------
Total 17,674,404
- --------------------------------------------------------------------------------
INSURANCE (0.7%)
Genworth Financial Cl A 147,682 4,938,486
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (2.2%)
Google Cl A 33,840(b) 16,121,038
- --------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES (1.1%)
Exelixis 300,900(b) 2,918,730
Thermo Electron 123,238(b) 5,283,213
------------
Total 8,201,943
- --------------------------------------------------------------------------------
MEDIA (2.7%)
Clear Channel
Communications 181,664 6,330,990
Comcast Cl A 194,177(b) 7,897,178
RH Donnelley 98,289 5,918,964
------------
Total 20,147,132
- --------------------------------------------------------------------------------
METALS & MINING (1.4%)
Phelps Dodge 104,601 10,499,849
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (5.5%)
Arch Coal 148,490 5,142,209
Devon Energy 94,013 6,283,829
Marathon Oil 64,354 5,560,186
Occidental Petroleum 117,875 5,533,053
Ultra Petroleum 58,919(b) 3,144,507
Valero Energy 267,252 13,985,296
------------
Total 39,649,080
- --------------------------------------------------------------------------------
PHARMACEUTICALS (2.7%)
MGI PHARMA 260,624(b) 4,959,675
Pfizer 369,943 9,858,981
Wyeth 102,010 5,205,570
------------
Total 20,024,226
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT (0.8%)
Jones Lang LaSalle 61,203 5,630,676
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.4%)
Analog Devices 103,090 3,280,324
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
<Caption>
ISSUER SHARES VALUE(a)
UNITED STATES (CONT.)
SOFTWARE (1.3%)
Microsoft 322,533 $ 9,259,923
- --------------------------------------------------------------------------------
SPECIALTY RETAIL (2.9%)
Abercrombie & Fitch Cl A 94,864 7,271,326
Home Depot 229,416 8,564,098
Staples 205,468 5,299,020
------------
Total 21,134,444
- --------------------------------------------------------------------------------
TOBACCO (0.6%)
Altria Group 57,485 4,675,255
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.7%)
American Tower Cl A 140,046(b) 5,044,457
Leap Wireless Intl 137,294(b) 7,614,325
------------
Total 12,658,782
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $632,835,733) $728,495,493
- --------------------------------------------------------------------------------
</Table>
OTHER (--%)(c)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
HONG KONG
China Overseas Land & Investment 661,750(b,e) $ 222,095
Warrants
FRANCE
Societe Generale 36,688(b) $ 60,409
Rights
- --------------------------------------------------------------------------------
TOTAL OTHER
(Cost: $--) $ 282,504
- --------------------------------------------------------------------------------
</Table>
MONEY MARKET FUND (0.6%)
<Table>
<Caption>
SHARES VALUE(a)
RiverSource Short-Term
Cash Fund 4,419,497(f) $ 4,419,497
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $4,419,497) $ 4,419,497
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $637,255,230)(g) $733,197,494
================================================================================
</Table>
See accompanying notes to investments in securities.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 17
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the
Fund's Board of Directors. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
Oct. 31, 2006, the value of these securities amounted to $4,968,507 or
0.7% of net assets.
(e) Identifies issues considered to be illiquid as to their marketability
(see Note 1 to the financial statements). These securities may be valued
at fair value according to methods selected in good faith by the Fund's
Board of Directors. Information concerning such security holdings at Oct.
31, 2006, is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATES COST
- ----------------------------------------------------------------------
Hynix Semiconductor GDR* 06-26-06 thru 09-28-06 $4,263,986
China Overseas Land & Investment
Warrants 06-29-06 --
* Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended.
</Table>
(f) Affiliated Money Market Fund -- See Note 5 to the financial statements.
(g) At Oct. 31, 2006, the cost of securities for federal income tax purposes
was $641,987,595 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
<Caption>
Unrealized appreciation $101,912,295
Unrealized depreciation (10,702,396)
- ------------------------------------------------------------------------
Net unrealized appreciation $ 91,209,899
- ------------------------------------------------------------------------
</Table>
THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) WAS DEVELOPED BY AND IS THE
EXCLUSIVE PROPERTY OF MORGAN STANLEY CAPITAL INTERNATIONAL INC. AND STANDARD &
POOR'S, A DIVISION OF THE MCGRAW-HILL COMPANIES, INC.
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(I) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(II) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(III) The Fund's Forms N-Q may be reviewed and copied at the Commission's
Public Reference Room in Washington, DC (information on the operations
of the Public Reference Room may be obtained by calling 1-800-SEC-0330);
and
(IV) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form
N-Q, can be found at riversource.com/funds.
18 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCT. 31, 2006
<Table>
<Caption>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers (identified cost $632,835,733) $ 728,777,997
Affiliated money market fund (identified cost $4,419,497) (Note 5) 4,419,497
- ------------------------------------------------------------------------------------------------------------
Total investments in securities (identified cost $637,255,230) 733,197,494
Cash in bank on demand deposit 4,903
Foreign currency holdings (identified cost $1,259,554) (Note 1) 1,275,383
Capital shares receivable 215,345
Dividends and accrued interest receivable 882,990
Receivable for investment securities sold 8,592,761
- ------------------------------------------------------------------------------------------------------------
Total assets 744,168,876
- ------------------------------------------------------------------------------------------------------------
LIABILITIES
Capital shares payable 67,456
Payable for investment securities purchased 10,511,036
Accrued investment management services fee 15,565
Accrued distribution fee 7,329
Accrued service fee 26
Accrued transfer agency fee 3,306
Accrued administrative services fee 1,574
Other accrued expenses 158,149
- ------------------------------------------------------------------------------------------------------------
Total liabilities 10,764,441
- ------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 733,404,435
============================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 985,127
Additional paid-in capital 1,105,424,734
Undistributed net investment income 158,923
Accumulated net realized gain (loss) (Note 7) (469,155,876)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 95,991,527
- ------------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $ 733,404,435
============================================================================================================
Net assets applicable to outstanding shares: Class A $ 608,153,308
Class B $ 110,122,992
Class C $ 5,663,445
Class Y $ 9,464,690
Net asset value per share of outstanding capital stock: Class A shares 80,859,119 $ 7.52
Class B shares 15,600,152 $ 7.06
Class C shares 807,287 $ 7.02
Class Y shares 1,246,167 $ 7.60
</Table>
See accompanying notes to financial statements.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 19
STATEMENT OF OPERATIONS
<Table>
<Caption>
PERIOD FROM PERIOD FROM TOTAL
NOV. 1, 2005 TO NOV. 8, 2005 TO NOV. 1, 2005 TO
NOV. 7, 2005 (NOTE 1) OCT. 31, 2006 OCT. 31, 2006
INVESTMENT INCOME
Income:
Dividends $ 153,641 $ 12,104,360 $ 12,258,001
Interest 16,507 285,386 301,893
Income distributions from affiliated
money market fund (Note 5) -- 38,833 38,833
Fee income from securities lending (Note 3) -- 174,280 174,280
Less foreign taxes withheld -- (1,075,474) (1,075,474)
- --------------------------------------------------------------------------------------------------------------
Total income 170,148 11,527,385 11,697,533
- --------------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 136,210 5,654,806 5,791,016
Distribution fee
Class A 21,737 1,347,282 1,369,019
Class B 19,844 1,147,029 1,166,873
Class C 455 40,741 41,196
Transfer agency fee 26,649 1,434,403 1,461,052
Incremental transfer agency fee
Class A 2,149 117,670 119,819
Class B 964 50,195 51,159
Class C 18 1,420 1,438
Service fee -- Class Y 124 8,280 8,404
Administrative services fees and expenses 8,774 523,998 532,772
Compensation of board members -- 14,949 14,949
Custodian fees 4,068 205,187 209,255
Printing and postage 3,850 180,640 184,490
Registration fees 1,050 71,567 72,617
Audit fees 805 35,195 36,000
Other 391 47,785 48,176
- --------------------------------------------------------------------------------------------------------------
Total expenses 227,088 10,881,147 11,108,235
Earnings and bank fee credits on
cash balances (Note 2) (399) (47,168) (47,567)
- --------------------------------------------------------------------------------------------------------------
Total net expenses 226,689 10,833,979 11,060,668
- --------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net (56,541) 693,406 636,865
- --------------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
20 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
STATEMENT OF OPERATIONS (CONTINUED)
<Table>
<Caption>
PERIOD FROM PERIOD FROM TOTAL
NOV. 1, 2005 TO NOV. 8, 2005 TO NOV. 1, 2005 TO
NOV.7, 2005 (NOTE 1) OCT. 31, 2006 OCT. 31, 2006
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) $ 683,779 $ 97,482,172 $ 98,165,951
Foreign currency transactions 34,579 269,800 304,379
Payment from affiliate (Note 2) -- 84,953 84,953
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 718,358 97,836,925 98,555,283
Net change in unrealized appreciation (depreciation)
on investments and on translation of assets and
liabilities in foreign currencies 9,265,917 13,495,287 22,761,204
- ----------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign
currencies 9,984,275 111,332,212 121,316,487
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $9,927,734 $112,025,618 $121,953,352
================================================================================================================
</Table>
See accompanying notes to financial statements.
RIVERSOURCE 21 GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 21
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
OPERATIONS AND DISTRIBUTIONS
Investment income (loss) -- net $ 636,865 $ 885,873
Net realized gain (loss) on investments 98,555,283 66,693,054
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 22,761,204 30,979,613
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 121,953,352 98,558,540
- ---------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (1,251,232) (2,338,575)
Class C (867) (2,880)
Class Y (25,269) (38,052)
- ---------------------------------------------------------------------------------------------------
Total distributions (1,277,368) (2,379,507)
- ---------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 172,183,612 104,040,955
Class B shares 35,714,119 24,780,371
Class C shares 3,352,708 1,498,251
Class Y shares 3,186,241 1,968,825
Reinvestment of distributions at net asset value
Class A shares 1,230,861 2,297,175
Class C shares 850 2,823
Class Y shares 25,268 38,052
Payments for redemptions
Class A shares (110,583,690) (99,120,333)
Class B shares (Note 2) (46,861,081) (47,049,861)
Class C shares (Note 2) (685,303) (408,707)
Class Y shares (1,565,797) (1,162,458)
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions 55,997,788 (13,114,907)
- ---------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 176,673,772 83,064,126
Net assets at beginning of year 556,730,663 473,666,537
- ---------------------------------------------------------------------------------------------------
Net assets at end of year $733,404,435 $556,730,663
===================================================================================================
Undistributed (excess of distributions) net investment income $ 158,923 $ (1,367,979)
- ---------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
22 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. (formerly AXP Global
Series, Inc.) and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. RiverSource
Global Series, Inc. has 10 billion authorized shares of capital stock that can
be allocated among the separate series as designated by the Board. Under
normal market conditions, at least 80% of the Fund's net assets will be
invested in equity securities, including companies located in developed and
emerging countries.
The Fund offers Class A, Class B, Class C and Class Y shares.
o Class A shares are sold with a front-end sales charge.
o 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.
o Class C shares may be subject to a CDSC.
o Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement. These changes are effective
Dec. 11, 2006.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) 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.
Prior to Nov. 8, 2005, the Fund invested all of its assets in the World Growth
Portfolio (the Portfolio). The Fund recorded its daily share of the
Portfolio's income, expenses and realized and unrealized gains and losses.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 23
Effective at the close of business on Nov. 7, 2005, the Portfolio was
liquidated and the Fund exchanged its interest in the Portfolio for its
proportionate share (99.99%) of the Portfolio's assets and liabilities. Within
the statement of operations for the period from Nov. 1, 2005 to Nov. 7, 2005,
income and expense amounts include allocations from the Portfolio in the
following amounts:
<Table>
Dividends $153,641
Interest income $ 16,507
Investment management services fee $136,210
Custodian fees $ 4,024
Audit fees $ 630
Other $ 321
Earnings and bank fee credits on cash balances $ 24
</Table>
All realized and unrealized gains (losses) presented for the period from
Nov. 1, 2005 to Nov. 7, 2005 were as a result of allocations from the
Portfolio.
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from
actual results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by
the Board of Directors of the funds, Ameriprise Financial, Inc. (Ameriprise
Financial) utilizes Fair Value Pricing (FVP). FVP determinations are made in
good faith in accordance with these procedures. If a development or event is
so significant that there is a reasonably high degree of certainty that the
effect of the development or event has actually caused the closing price to no
longer reflect the actual value, the closing prices, as determined at the
close of the applicable foreign market, may be adjusted to reflect the fair
value of the affected foreign securities as of the close of the New York Stock
Exchange. Significant events include material movements in the U.S. securities
markets prior to the opening of foreign markets on the following trading day.
FVP results in an estimated price that reasonably reflects the current market
conditions in order to value the portfolio holdings such that shareholder
transactions receive a fair net asset value. Short-term securities maturing in
more than 60 days from the valuation date are valued at the market price or
approximate market value based on current interest rates; those maturing in 60
days or less are valued at amortized cost.
24 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
ILLIQUID SECURITIES
At Oct. 31, 2006, 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 Oct. 31, 2006 was
$5,190,602 representing 0.71% of net assets. These securities are valued at
fair value according to methods selected in good faith by the Board. According
to board guidelines, certain unregistered securities are determined to be
liquid and are not included within the 10% limitation specified above. Assets
are liquid if they can be sold or disposed of in the ordinary course of
business within seven days at approximately the value at which the asset is
valued by the Fund.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and
selling of securities for investments, the Fund may buy and write options
traded on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
The Fund also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a
put option is that the Fund may incur a loss if the market price of the
security decreases and the option is exercised. The risk in buying an option
is that the Fund pays a premium whether or not the option is exercised. The
Fund also has the additional risk of being unable to enter into a closing
transaction if a liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund
will realize a gain or loss when the option transaction expires or closes.
When an option is exercised, the proceeds on sales for a written call option,
the purchase cost for a written put option or the cost of a security for a
purchased put or call option is adjusted by the amount of premium received or
paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy
and sell financial futures contracts traded on any U.S. or foreign exchange.
The Fund also may buy and write put and call options on these future
contracts. Risks of entering into futures contracts and related options
include the possibility of an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 25
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to
the purchase or sale of securities and income and expenses are translated at
the exchange rate on the transaction date. The effect of changes in foreign
exchange rates on realized and unrealized security gains or losses is
reflected as a component of such gains or losses. In the statement of
operations, net realized gains or losses from foreign currency transactions,
if any, may arise from sales of foreign currency, closed forward contracts,
exchange gains or losses realized between the trade date and settlement date
on securities transactions, and other translation gains or losses on
dividends, interest income and foreign withholding taxes. At Oct. 31, 2006,
foreign currency holdings consisted of multiple denominations, primarily
British pounds.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of
their duties to the Fund. In addition, certain of the Fund's contracts with
its service providers contain general indemnification clauses. The Fund's
maximum exposure under these arrangements is unknown since the amount of any
future claims that may be made against the Fund cannot be determined and the
Fund has no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or
excise taxes is thus required.
26 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. Also, due to the
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gains
(losses) were recorded by the Fund.
On the statement of assets and liabilities, as a result of permanent
book-to-tax differences, undistributed net investment income has been
increased by $2,167,405 and accumulated net realized loss has been increased
by $2,167,778 resulting in a net reclassification adjustment to increase
paid-in capital by $373.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
- --------------------------------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $1,251,232 $2,338,575
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income 867 2,880
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income 25,269 38,052
Long-term capital gain -- --
</Table>
At Oct. 31, 2006, the components of distributable earnings on a tax basis are
as follows:
<Table>
Undistributed ordinary income $ 4,710,090
Accumulated long-term gain (loss) $(468,974,678)
Unrealized appreciation (depreciation) $ 91,259,162
</Table>
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 27
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
("SFAS 157"). SFAS 157 establishes an authoritative definition of fair value,
sets out a framework for measuring fair value, and requires additional
disclosures about fair-value measurements. The application of SFAS 157 is
required for fiscal years beginning after Nov. 15, 2007 and interim periods
within those fiscal years. The impact of SFAS 157 on the Fund's financial
statements is being evaluated.
In June 2006, the Financial Accounting Standards Board (FASB) issued
FASB Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes."
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in
accordance with FASB Statement 109, "Accounting for Income Taxes." FIN 48
prescribes a two-step process to recognize and measure a tax position taken or
expected to be taken in a tax return. The first step is to determine whether a
tax position has met the more-likely-than-not recognition threshold and the
second step is to measure a tax position that meets the threshold to determine
the amount of benefit to recognize. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated
to determine the impact, if any, to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
OTHER
Security transactions are accounted for on the date securities are purchased
or sold. Dividend income is recognized on the ex-dividend date or upon receipt
of ex-dividend notification in the case of certain foreign securities.
Interest income, including amortization of premium, market discount and
original issue discount using the effective interest method, is accrued daily.
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments,
LLC (the Investment Manager) determines which securities will be purchased,
held or sold. The management fee is a percentage of the Fund's average daily
net assets that declines from 0.80% to 0.57% annually as the Fund's assets
increase. Prior to March 1, 2006, the management fee percentage of the Fund's
average daily net assets declined from 0.80% to 0.675% annually as the Fund's
assets increased. Prior to Nov. 8, 2005, World Trust, on behalf of the
Portfolio,
28 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
had an Investment Management Services Agreement with Ameriprise Financial. The
management fee was assessed at the Portfolio level. The fee may be adjusted
upward or downward by a performance incentive adjustment based on a comparison
of the performance of Class A shares of the Fund to the Lipper Global Funds
Index. In certain circumstances, the Board may approve a change in the index.
The maximum adjustment is 0.12% per year. If the performance difference is
less than 0.50%, the adjustment will be zero. For the period from Nov. 1, 2005
to Nov. 7, 2005, the adjustment increased the fee by $51,279 and for the
period from Nov. 8, 2005 to Oct. 31, 2006, the adjustment increased the fee by
$476,235.
The Investment Manager has a Subadvisory Agreement with Threadneedle
International Limited, an indirect wholly-owned subsidiary of Ameriprise
Financial, to subadvise the assets of the fund.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial
a fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.08% to 0.05% annually as the
Fund's assets increase.
Other expenses include, among other things, certain expenses of the Fund or
the Board (including its independent members) equal to $17,644 that are paid
by the Fund through Board Services Corporation, an entity that provides
services to the Board and the Fund pursuant to a separate agreement. These
expenses include: Fund boardroom expense, Board Services Corporation office
expense, Board Services Corporation employee compensation, including employee
health and retirement benefits, Board Services Corporation audit and legal
fees, Fund legal fees, certain taxes, filing fees and certain other expenses.
Compensation of board members includes compensation as well as retirement
benefits. Certain other aspects of the Board Chair's compensation, including
health benefits and payment of certain other expenses, are included under
other expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members
may defer receipt of their compensation. Deferred amounts are treated as
though equivalent dollar amounts had been invested in shares of the Fund or
other RiverSource funds. The Fund's liability for these amounts is adjusted
for market value changes and remains in the Fund until distributed in
accordance with the Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation
(the Transfer Agent) maintains shareholder accounts and records. The Fund pays
the Transfer Agent an annual fee per shareholder account for this service as
follows:
o Class A $19.50
o Class B $20.50
o Class C $20.00
o Class Y $17.50
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 29
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (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 up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by the Distributor and other servicing agents
with respect to those shares. The fee is calculated at a rate of 0.10% of the
Fund's average daily net assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$1,207,473 for Class A, $63,544 for Class B and $1,067 for Class C for the
year ended Oct. 31, 2006.
Effective Dec. 11, 2006, with the renaming of Class Y as Class R4, the
Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2007, unless sooner terminated at the discretion of
the Board, such that, net expenses, before giving effect to any performance
incentive adjustment, will not exceed 1.27% for Class R4.
During the period from Nov. 1, 2005 to Nov. 7, 2005, the Fund's custodian and
transfer agency fees were reduced by $399 as a result of earnings and bank fee
credits from overnight cash balances. During the period from Nov. 8, 2005 to
Oct. 31, 2006, the Fund's custodian and transfer agency fees were reduced by
$47,168 as a result of earnings and bank fee credits from overnight cash
balances. The Fund also pays custodian fees to Ameriprise Trust Company, an
affiliate of Ameriprise Financial.
In addition, the Fund received a one time payment of $84,953 by Ameriprise
Financial for additional earnings from overnight cash balances determined to
be owed for prior years. This amount was insignificant to the Fund's net
assets value and total return.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $6,242,385 and $2,768,723, respectively, for the
period from Nov. 1, 2005 to Nov. 7, 2005 and $810,667,531 and $746,461,890,
respectively, for the period from Nov. 8, 2005 to Oct. 31, 2006. Realized
gains and losses are determined on an identified cost basis.
30 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
Income from securities lending amounted to $174,280 for the year ended Oct.
31, 2006. The risks to the Fund of securities lending are that the borrower
may not provide additional collateral when required or return the securities
when due.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as
follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS Y
- ------------------------------------------------------------------------------------
Sold 24,909,235 5,476,744 511,941 450,583
Issued for reinvested distributions 183,985 -- 135 3,744
Redeemed (15,810,293) (7,193,343) (104,104) (221,723)
- ------------------------------------------------------------------------------------
Net increase (decrease) 9,282,927 (1,716,599) 407,972 232,604
- ------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS Y
- ------------------------------------------------------------------------------------
Sold 17,716,088 4,520,559 276,626 343,576
Issued for reinvested distributions 417,668 -- 544 6,869
Redeemed (17,262,949) (8,504,166) (75,366) (199,031)
- ------------------------------------------------------------------------------------
Net increase (decrease) 870,807 (3,983,607) 201,804 151,414
- ------------------------------------------------------------------------------------
</Table>
5. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash
Fund, a money market fund established for the exclusive use of the RiverSource
funds and other institutional clients of RiverSource Investments.
6. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the
temporary funding of shareholder redemptions or for other temporary or
emergency purposes. The agreement went into effect Sept. 19, 2006. The Fund
must maintain asset coverage for borrowings of at least 300%. The agreement,
which enables the Fund to participate with other RiverSource funds, permits
borrowings up to $500 million, collectively. Interest is charged to each Fund
based on its borrowings at a rate equal to either the higher of the Federal
Funds Effective Rate plus 0.40% or the JPMCB Prime Commercial Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund
also pays a commitment fee equal to its pro rata share of the amount of the
credit facility at a rate of 0.06% per annum. Prior to this agreement, the
Fund paid a commitment fee equal to its pro rata share of the amount of the
credit facility at a rate of 0.07% per annum. The Fund had no borrowings
outstanding during the year ended Oct. 31, 2006.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 31
7. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund had a capital loss carry-over of
$468,974,678 at Oct. 31, 2006, that if not offset by capital gains will expire
as follows:
<Table>
<Caption>
2009 2010 2011
$294,829,842 $143,634,885 $30,509,951
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
8. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In December 2005, without admitting or denying the allegations, American
Express Financial Corporation (AEFC, which is now known as Ameriprise
Financial, Inc. (Ameriprise Financial)), the parent company of RiverSource
Investments, LLC (RiverSource Investments), entered into settlement agreements
with the Securities and Exchange Commission (SEC) and Minnesota Department of
Commerce (MDOC) related to market timing activities. In connection with these
matters, the SEC and MDOC issued orders (the Orders) alleging that AEFC
violated certain provisions of the federal and Minnesota securities laws by
failing to adequately disclose market timing activities by allowing certain
identified market timers to continue to market time contrary to disclosures in
mutual fund and variable annuity product prospectuses. The Orders also alleged
that AEFC failed to implement procedures to detect and prevent market timing
in 401(k) plans for employees of AEFC and related companies and failed to
adequately disclose that there were no such procedures. Pursuant to the MDOC
Order, the MDOC also alleged that AEFC allowed inappropriate market timing to
occur by failing to have written policies and procedures and failing to
properly supervise its employees.
32 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
As a result of the Orders, AEFC was censured and ordered to cease and desist
from committing or causing any violations of certain provisions of the
Investment Advisers Act of 1940, the Investment Company Act of 1940, and
various Minnesota laws. Pursuant to the terms of the Orders, AEFC agreed to
pay disgorgement of $10 million and civil money penalties of $7 million. AEFC
also agreed to make presentations at least annually to its board of directors
and the relevant mutual funds' board that include an overview of policies and
procedures to prevent market timing, material changes to these policies and
procedures and whether disclosures related to market timing are consistent
with the SEC order and federal securities laws. AEFC also agreed to retain an
independent distribution consultant to assist in developing a plan for
distribution of all disgorgement and civil penalties ordered by the SEC in
accordance with various undertakings detailed at
http://www.sec.gov/litigation/admin/ia-2451.pdf. In addition, AEFC agreed to
complete and submit to the MDOC a compliance review of its procedures
regarding market timing within one year of the MDOC Order, including a summary
of actions taken to ensure compliance with applicable laws and regulations and
certification by a senior officer regarding compliance and supervisory
procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings,
including routine litigation, class actions, and governmental actions,
concerning matters arising in connection with the conduct of their business
activities. Ameriprise Financial believes that the Funds are not currently the
subject of, and that neither Ameriprise Financial nor any of its affiliates
are the subject of, any pending legal, arbitration or regulatory proceedings
that are likely to have a material adverse effect on the Funds or the ability
of Ameriprise Financial or its affiliates to perform under their contracts
with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as
necessary, 8-K filings with the Securities and Exchange Commission on legal
and regulatory matters that relate to Ameriprise Financial and its affiliates.
Copies of these filings may be obtained by accessing the SEC website at
www.sec.gov.
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.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 33
9. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating
the Fund's results.
CLASS A
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES(a)
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 6.23 $ 5.16 $ 4.62 $ 3.92 $ 4.69
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .01 .02 -- .01 --
Net gains (losses) (both realized
and unrealized) 1.30 1.08 .54 .69 (.77)
- -------------------------------------------------------------------------------------
Total from investment operations 1.31 1.10 .54 .70 (.77)
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from and in excess of
net investment income (.02) (.03) -- -- --
- -------------------------------------------------------------------------------------
Net asset value, end of period $ 7.52 $ 6.23 $ 5.16 $ 4.62 $ 3.92
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 608 $ 446 $ 364 $ 366 $ 406
- -------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 1.51% 1.57% 1.41% 1.50% 1.39%
- -------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .23% .33% .07% .26% .01%
- -------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 112% 93% 104% 132% 123%
- -------------------------------------------------------------------------------------
Total return(c) 21.01% 21.48% 11.72% 17.86% (16.42%)
- -------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
</Table>
34 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
CLASS B
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES (a)
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 5.88 $ 4.87 $ 4.40 $ 3.76 $ 4.53
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.02) (.03) (.03) (.04)
Net gains (losses) (both realized
and unrealized) 1.19 1.03 .50 .67 (.73)
- -------------------------------------------------------------------------------------
Total from investment operations 1.18 1.01 .47 .64 (.77)
- -------------------------------------------------------------------------------------
Net asset value, end of period $ 7.06 $ 5.88 $ 4.87 $ 4.40 $ 3.76
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 110 $ 102 $ 104 $ 142 $ 173
- -------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 2.28% 2.34% 2.18% 2.27% 2.16%
- -------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.54%) (.41%) (.66%) (.52%) (.77%)
- -------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 112% 93% 104% 132% 123%
- -------------------------------------------------------------------------------------
Total return(c) 20.07% 20.74% 10.68% 17.02% (17.00%)
- -------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
</Table>
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 35
CLASS C
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES (a)
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 5.85 $ 4.85 $ 4.38 $ 3.75 $ 4.52
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.02) (.02) (.03) (.04)
Net gains (losses) (both realized
and unrealized) 1.18 1.03 .49 .66 (.73)
- -------------------------------------------------------------------------------------
Total from investment operations 1.17 1.01 .47 .63 (.77)
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from and in excess of
net investment income -- (.01) -- -- --
- -------------------------------------------------------------------------------------
Net asset value, end of period $ 7.02 $ 5.85 $ 4.85 $ 4.38 $ 3.75
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 6 $ 2 $ 1 $ 1 $ 1
- -------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 2.27% 2.33% 2.19% 2.29% 2.19%
- -------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.50%) (.53%) (.69%) (.52%) (.78%)
- -------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 112% 93% 104% 132% 123%
- -------------------------------------------------------------------------------------
Total return(c) 20.03% 20.89% 10.73% 16.80% (17.04%)
- -------------------------------------------------------------------------------------
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
</Table>
36 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
CLASS Y*
<Table>
<Caption>
PER SHARE INCOME AND CAPITAL CHANGES (a)
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
Net asset value, beginning of period $ 6.29 $ 5.20 $ 4.65 $ 3.94 $ 4.70
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .02 .04 .01 .02 .01
Net gains (losses) (both realized
and unrealized) 1.31 1.09 .54 .69 (.77)
- -------------------------------------------------------------------------------------
Total from investment operations 1.33 1.13 .55 .71 (.76)
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from and in excess of
net investment income (.02) (.04) -- -- --
- -------------------------------------------------------------------------------------
Net asset value, end of period $ 7.60 $ 6.29 $ 5.20 $ 4.65 $ 3.94
- -------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 9 $ 6 $ 4 $ 5 $ 8
- -------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 1.32% 1.38% 1.23% 1.30% 1.21%
- -------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets .44% .49% .25% .43% .18%
- -------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 112% 93% 104% 132% 123%
- -------------------------------------------------------------------------------------
Total return(c) 21.26% 21.90% 11.88% 18.02% (16.17%)
- -------------------------------------------------------------------------------------
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest
cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
</Table>
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 37
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
RIVERSOURCE GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments in securities, of RiverSource Global
Equity Fund (a series of RiverSource Global Series, Inc.) as of October 31,
2006, the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year
period ended October 31, 2006, and the financial highlights for each of the
years in the five-year period ended October 31, 2006. These financial
statements and the financial highlights are the responsibility of fund
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of October 31, 2006,
by correspondence with the custodian and brokers or by other appropriate
auditing procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Global Equity Fund as of October 31, 2006, and the results of its
operations, changes in its net assets and the financial highlights for each of
the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2006
38 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
FEDERAL INCOME TAX INFORMATION
(UNAUDITED)
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its
fiscal year. The dividends listed below are reported to you on Form 1099-DIV,
Dividends and Distributions. Shareholders should consult a tax advisor on how
to report distributions for state and local tax purposes.
FISCAL YEAR ENDED OCT. 31, 2006
<Table>
CLASS A
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 99.99%
PAYABLE DATE PER SHARE
Dec. 21, 2005 $0.01682
CLASS C
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 99.99%
PAYABLE DATE PER SHARE
Dec. 21, 2005 $0.00182
CLASS Y
INCOME DISTRIBUTIONS -- TAXABLE AS DIVIDEND INCOME:
Qualified Dividend Income for individuals 100%
Dividends Received Deduction for corporations 99.99%
PAYABLE DATE PER SHARE
Dec. 21, 2005 $0.02405
</Table>
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 39
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund 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 Oct. 31, 2006.
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.
40 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2006 OCT. 31, 2006 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $1,000 $1,013.50 $ 7.59 1.48%
Hypothetical
(5% return before expenses) $1,000 $1,017.94 $ 7.61 1.48%
Class B
Actual(b) $1,000 $1,010.00 $11.52 2.25%
Hypothetical
(5% return before expenses) $1,000 $1,014.01 $11.55 2.25%
Class C
Actual(b) $1,000 $1,010.00 $11.47 2.24%
Hypothetical
(5% return before expenses) $1,000 $1,014.06 $11.50 2.24%
Class Y
Actual(b) $1,000 $1,014.60 $ 6.62(c) 1.29%
Hypothetical
(5% return before expenses) $1,000 $1,018.91 $ 6.64(c) 1.29%
(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 186/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2006: +1.35%
for Class A, +1.00% for Class B, +1.00% for Class C and +1.46% for Class
Y.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee
structure under the transfer agent agreement from account-based to
asset-based, and adopting a plan administration services agreement. In
addition, the investment manager and its affiliates have contractually
agreed to waive certain fees and to absorb certain expenses until Oct.
31, 2007, unless sooner terminated at the discretion of the Fund's Board,
such that net expenses, before giving effect to any performance incentive
adjustment, will not exceed 1.27% for Class R4. Any amounts waived will
not be reimbursed by the Fund. These changes are effective Dec. 11, 2006.
If these changes had been in place for the six-month period ended Oct.
31, 2006, the actual and hypothetical expenses paid would have been the
same as those expenses presented in the table above.
</Table>
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 41
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund' s operations. The Board
appoints officers who are responsible for day-to-day business decisions based
on policies set by the Board.
The following is a list of the Fund' s Board members. Each member oversees 100
RiverSource funds. Board members serve until the next regular shareholders'
meeting or until he or she reaches the mandatory retirement age established by
the Board. Under the current Board policy, members may serve until the end of
the meeting following their 75th birthday, or the fifteenth anniversary of the
first Board meeting they attended as members of the Board, whichever occurs
first. This policy does not apply to Ms. Jones who may retire after her 75th
birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member Chief Justice, Minnesota Supreme
901 S. Marquette Ave. since 2006 Court, 1998-2005
Minneapolis, MN 55402
Age 52
Arne H. Carlson Board member and Chair, Board Services Corporation
901 S. Marquette Ave. Chair of the Board (provides administrative services
Minneapolis, MN 55402 since 1999 to boards); former Governor
Age 72 of Minnesota
Patricia M. Flynn Board member Trustee Professor of Economics and
901 S. Marquette Ave. since 2004 Management, Bentley College;
Minneapolis, MN 55402 former Dean, McCallum Graduate
Age 56 School of Business, Bentley College
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 71
Jeffrey Laikind Board member Former Managing Director, American Progressive
901 S. Marquette Ave. since 2005 Shikiar Asset Management Insurance
Minneapolis, MN 55402
Age 71
Stephen R. Lewis, Jr.* Board member President Emeritus and Valmont Industries, Inc.
901 S. Marquette Ave. since 2002 Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 67
* As of Jan. 1, 2007 Stephen Lewis will replace Arne Carlson as Chair of
the Board.
</Table>
42 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Asset Strategic Distribution,
901 S. Marquette Ave. since 2004 Management, Inc. (private real Inc. (transportation,
Minneapolis, MN 55402 estate and asset management distribution and logistics
Age 54 company) consultants)
Vikki L. Pryor Board member President and Chief Executive
901 S. Marquette Ave. since 2006 Officer, SBLI USA Mutual Life
Minneapolis, MN 55402 Insurance Company, Inc. since 1999
Age 53
Alison Taunton-Rigby Board member Chief Executive Officer, RiboNovix, Hybridon, Inc.
901 S. Marquette Ave. since 2002 Inc. since 2003 (biotechnology); (biotechnology);
Minneapolis, MN 55402 former President, Forester Biotech American Healthways,
Age 62 Inc. (health management
programs)
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS*
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------
William F. Truscott Board member President, Ameriprise Certificate
53600 Ameriprise since 2001, Company since 2006; President -
Financial Center Vice President U.S. Asset Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer, Ameriprise
Age 46 Financial, Inc. and President,
Chairman of the Board and Chief
Investment Officer, RiverSource
Investments, LLC since 2005; Senior
Vice President - Chief Investment
Officer, Ameriprise Financial, Inc.
and Chairman of the Board and Chief
Investment Officer, RiverSource
Investments, LLC, 2001-2005
* Interested person by reason of being an officer, director, security
holder and/or employee of RiverSource Investments.
</Table>
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 43
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund' s other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- ----------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Compliance Director and Anti-Money Laundering Officer,
2934 Ameriprise Prevention Officer Ameriprise Financial, Inc. since 2004; Manager
Financial Center since 2004 Anti-Money Laundering, Ameriprise Financial, Inc.,
Minneapolis, MN 55474 2003-2004; Compliance Director and Bank Secrecy Act
Age 42 Officer, American Express Centurion Bank, 2000-2003
Patrick T. Bannigan President Senior Vice President - Asset Management, RiverSource
172 Ameriprise since 2006 Investments, LLC since 2006; Managing Director and
Financial Center Global Head of Product, Morgan Stanley Investment
Minneapolis, MN 55474 Management, 2004-2006; President, Touchstone
Age 41 Investments, 2002-2004; Director of Strategic Planning,
Evergreen Investments, 1995-2002
Jeffrey P. Fox Treasurer Vice President - Investment Accounting, Ameriprise
105 Ameriprise since 2002 Financial, Inc., since 2002; Vice President - Finance,
Financial Center American Express Company, 2000-2002
Minneapolis, MN 55474
Age 51
Amy K. Johnson Vice President Vice President - Asset Management and Trust Company
5228 Ameriprise since 2006 Services, RiverSource Investments, LLC, since 2006;
Financial Center Vice President - Operations and Compliance, RiverSource
Minneapolis, MN 55474 Investments, LLC, 2004-2006; Director of Product
Age 41 Development - Mutual Funds, American Express Financial
Corporation, 2001-2004
Michelle M. Keeley Vice President Executive Vice President - Equity and Fixed Income,
172 Ameriprise since 2004 Ameriprise Financial, Inc. and RiverSource Investments,
Financial Center LLC since 2006; Vice President - Investments,
Minneapolis, MN 55474 Ameriprise Certificate Company since 2003; Senior Vice
Age 42 President - Fixed Income, Ameriprise Financial, Inc.,
2002-2006 and RiverSource Investments, LLC, 2004-2006;
Managing Director, Zurich Global Assets, 2001-2002
Jennifer D. Lammers Chief Compliance U.S. Asset Management Chief Compliance Officer,
172 Ameriprise Officer since 2006 RiverSource Investments, LLC since 2006; Director -
Financial Center Mutual Funds, Voyageur Asset Management, 2003-2006;
Minneapolis, MN 55474 Director of Finance, Voyageur Asset Management,
Age 46 2000-2003
Scott R. Plummer Vice President, Vice President and Chief Counsel - Asset Management,
5228 Ameriprise General Counsel Ameriprise Financial, Inc. since 2005; Vice President,
Financial Center and Secretary General Counsel and Secretary, Ameriprise Certificate
Minneapolis, MN 55474 since 2006 Company since 2005; Vice President - Asset Management
Age 47 Compliance, Ameriprise Financial, Inc., 2004-2005;
Senior Vice President and Chief Compliance Officer,
U.S. Bancorp Asset Management, 2002-2004; Second Vice
President and Assistant General Counsel, Hartford Life,
2001-2002
</Table>
The SAI has additional information about the Fund' s directors and is
available, without charge, upon request by calling RiverSource Funds at (888)
791-3380; contacting your financial institution; or visiting
riversource.com/funds.
44 RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of
Additional Information (SAI). You may obtain a copy of the SAI without charge
by calling RiverSource Funds at (888) 791-3380; contacting your financial
institution; visiting riversource.com/funds; or searching the website of the
Securities and Exchange Commission (SEC) at http://www.sec.gov. Information
regarding how the Fund voted proxies relating to portfolio securities during
the 12-month period ended June 30, 2006 is available without charge by
visiting riversource.com/funds; or searching the website of the SEC at
www.sec.gov.
RIVERSOURCE GLOBAL EQUITY FUND -- 2006 ANNUAL REPORT 45
RIVERSOURCE(SM) GLOBAL EQUITY FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
riversource.com/funds
RIVERSOURCE [LOGO](SM)
INVESTMENTS
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource(SM) mutual funds are distributed by RiverSource Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and managed by
RiverSource Investments, LLC. These companies are part of Ameriprise
Financial, Inc.
S-6334 AC (12/06)
<Page>
ANNUAL REPORT
[RIVERSOURCE(SM) INVESTMENTS LOGO]
RIVERSOURCE(SM)
GLOBAL TECHNOLOGY FUND
ANNUAL REPORT FOR THE PERIOD ENDED OCT. 31, 2006
- - RIVERSOURCE GLOBAL TECHNOLOGY FUND SEEKS TO PROVIDE SHAREHOLDERS WITH
LONG-TERM CAPITAL GROWTH.
TABLE OF CONTENTS
<Table>
Fund Snapshot 3
Performance Summary 5
Questions & Answers
with Portfolio Management 7
The Fund's Long-term Performance 12
Investments in Securities 14
Financial Statements 16
Notes to Financial Statements 19
Report of Independent Registered
Public Accounting Firm 35
Fund Expenses Example 36
Board Members and Officers 38
Proxy Voting 41
</Table>
[DALBAR RATED FOR COMMUNICATION 2006 LOGO]
The RiverSource mutual fund shareholder reports have been awarded the
Communications Seal from Dalbar Inc., an independent financial services research
firm. The Seal recognizes communications demonstrating a level of excellence in
the industry.
2 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
FUND SNAPSHOT AT OCT. 31, 2006
FUND OVERVIEW
RiverSource Global Technology Fund invests in companies in the information
technology industry. The Fund focuses on five core technology areas: software,
hardware, semiconductors, networking and computer services. The portfolio
management team selects small-, mid- and large companies with fast grow rates,
but also reasonable valuations. While the Fund invests in technology companies
throughout the world, it invests primarily in U.S. companies.
[PIE CHART]
SECTOR BREAKDOWN*
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Information Technology 79.8%
Telecommunication Services 8.8%
Cash & Cash Equivalents(2) 6.3%
Consumer Discretionary 2.9%
Industrials 1.1%
Financials 0.9%
Other(1) 0.2%
</Table>
* Sectors can be comprised of several industries. Please refer to the section
entitled "Investments in Securities" for a complete listing.
(1) Includes Materials 0.2%.
(2) Of the 6.3%, 1.9% is due to security lending activity and 4.4% is the
Fund's cash equivalent position.
TOP TEN HOLDINGS
PERCENTAGE OF PORTFOLIO ASSETS
<Table>
Cisco Systems 4.4%
Microsoft 3.5%
Citrix Systems 3.1%
Hewlett-Packard 3.0%
Sprint Nextel 2.9%
NVIDIA 2.8%
Samsung Electronics 2.7%
Broadcom Cl A 2.6%
Freescale Semiconductor Cl A 2.5%
Business Objects ADR 2.5%
</Table>
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
The Global Industry Classification Standard (GICS) was developed by and is the
exclusive property of Morgan Stanley Capital International Inc. and Standard &
Poor's, a division of The McGraw-Hill Companies, Inc.
Fund holdings are as of the date given, are subject to change at any time, and
are not recommendations to buy or sell any security.
International investing involves increased risk and volatility due to potential
political and economic instability, currency fluctuations, and differences in
financial reporting and accounting standards and oversight. Risks are
particularly significant in emerging markets.
The RiverSource Global Technology Fund is a narrowly-focused sector fund and it
may exhibit higher volatility than funds with broader investment objectives. See
the fund's prospectus for specific risks associated with the Fund.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 3
<Page>
FUND SNAPSHOT AT OCT. 31, 2006
[CHART]
STYLE MATRIX
STYLE
VALUE BLEND GROWTH
X LARGE
X MEDIUM SIZE
X SMALL
Shading within the style matrix indicates areas in which the Fund generally
invests.
The style matrix can be a valuable tool for constructing and monitoring your
portfolio. It provides a frame of reference for distinguishing the types of
stocks or bonds owned by a mutual fund, and serves as a guideline for helping
you build a portfolio.
Investment products, including shares of mutual funds, are not federally or
FDIC-insured, are not deposits or obligations of, or guaranteed by any financial
institution, and involve investment risks including possible loss of principal
and fluctuation in value.
PORTFOLIO MANAGER
<Table>
YEARS IN INDUSTRY
Nina Hughes 8
</Table>
FUND FACTS
<Table>
TICKER SYMBOL INCEPTION DATE
Class A AXIAX 11/13/96
Class B INVBX 11/13/96
Class C AXICX 6/26/00
Class I -- 7/15/04
Class Y -- 11/13/96
Total net assets $169.4 million
Number of holdings 68
</Table>
4 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
PERFORMANCE SUMMARY
[CHART]
PERFORMANCE COMPARISON
FOR THE YEAR ENDED OCT. 31, 2006
<Table>
RiverSource Global Technology Fund
Class A (excluding sales charge) +21.61%
Goldman Sachs Technology Index(R)
(GSTI(R)) Composite Index (unmanaged) +10.83%
Lipper Science and Technology Funds Index +9.43%
</Table>
(see "The Fund's Long-term Performance" for Index descriptions)
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF YOUR
INVESTMENT WILL FLUCTUATE SO THAT YOUR SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE INFORMATION SHOWN. YOU MAY OBTAIN PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END BY CONTACTING YOUR FINANCIAL INSTITUTION OR
VISITING riversource.com/funds.
The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart. If reflected, returns would be lower than those shown. The
performance of other classes may vary from that shown because of differences in
expenses.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
It is not possible to invest directly in an index.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 5
<Page>
PERFORMANCE SUMMARY
AVERAGE ANNUAL TOTAL RETURNS
AT OCT. 31, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION
WITHOUT SALES CHARGE
Class A (INCEPTION 11/13/96) +21.61% +12.05% +8.63% +5.64%
Class B (INCEPTION 11/13/96) +20.12% +10.96% +7.73% +4.80%
Class C (INCEPTION 6/26/00) +20.69% +11.13% +7.84% -12.91%
Class I (INCEPTION 7/15/04) +22.39% N/A N/A +17.46%
Class Y (INCEPTION 11/13/96) +21.50% +12.21% +8.72% +5.68%
WITH SALES CHARGE
Class A (INCEPTION 11/13/96) +14.64% +9.86% +7.34% +5.01%
Class B (INCEPTION 11/13/96) +15.12% +9.86% +7.44% +4.80%
Class C (INCEPTION 6/26/00) +19.69% +11.13% +7.84% -12.91%
</Table>
AT SEPT. 30, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS 10 YEARS
WITHOUT SALES CHARGE
INCEPTION
Class A (INCEPTION 11/13/96) +14.29% +14.39% +10.16% +5.24%
Class B (INCEPTION 11/13/96) +13.56% +13.35% +9.28% +4.43%
Class C (INCEPTION 6/26/00) +13.56% +13.35% +9.28% -13.68%
Class I (INCEPTION 7/15/04) +15.12% N/A N/A +15.99%
Class Y (INCEPTION 11/13/96) +14.71% +14.72% +10.35% +5.33%
WITH SALES CHARGE
Class A (INCEPTION 11/13/96) +7.71% +12.14% +8.87% +4.61%
Class B (INCEPTION 11/13/96) +8.56% +12.31% +8.99% +4.43%
Class C (INCEPTION 6/26/00) +12.56% +13.35% +9.28% -13.68%
</Table>
CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM SALES CHARGE OF 5.75%. CLASS B
SHARE PERFORMANCE REFLECTS A CONTINGENT DEFERRED SALES CHARGE (CDSC) APPLIED AS
FOLLOWS: FIRST YEAR 5%; SECOND AND THIRD YEARS 4%; FOURTH YEAR 3%; FIFTH YEAR
2%; SIXTH YEAR 1%; NO SALES CHARGE THEREAFTER. CLASS C SHARES MAY BE SUBJECT TO
A 1% CDSC IF SHARES ARE SOLD WITHIN ONE YEAR AFTER PURCHASE. SALES CHARGES DO
NOT APPLY TO CLASS I AND CLASS Y SHARES. THESE SHARE CLASSES ARE AVAILABLE TO
INSTITUTIONAL INVESTORS ONLY.
6 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS WITH PORTFOLIO MANAGEMENT
BELOW, PORTFOLIO MANAGER NINA HUGHES DISCUSSES THE FUND'S RESULTS AND
POSITIONING FOR THE FISCAL YEAR ENDED OCT. 31, 2006.
Q: How did RiverSource Global Technology Fund perform for the year ended Oct.
31, 2006?
A: RiverSource Global Technology Fund's Class A shares advanced 21.61%
(excluding sales charge) for the 12 months ended Oct. 31, 2006, outpacing
its benchmark, the unmanaged Goldman Sachs Technology Index(R) (GSTI(R))
Composite Index, which rose 10.83%. The Fund also outperformed its peer
group, represented by the Lipper Science and Technology Funds Index, which
rose 9.43% over the same period.
Q: What factors most significantly affected performance during the fiscal
year?
A: The technology sector advanced strongly during the period, but generally
underperformed broader equity markets. Technology stocks performed well
early in the fiscal year amid a favorable holiday season and increased
technology spending. However, seasonal factors and inventory build-ups
caused some ups and downs for the sector in 2006. We capitalized on
opportunities created by the shifting technology environment and the Fund
significantly outperformed the GSTI(R) Composite Index and its peers.
Our philosophy of buying stocks that have a compelling risk/reward profile
and our independent research enabled us to effectively position the Fund in
anticipation of positive and negative developments from individual
companies. Results from the Fund's semi-conductor holdings and selected
communications equipment positions were particularly favorable. Stock
selection in the software area was also strong as we took advantage of
merger and acquisition activity and benefited from the positive trend
toward increased corporate spending.
WE CAPITALIZED ON OPPORTUNITIES CREATED BY THE SHIFTING TECHNOLOGY
ENVIRONMENT AND THE FUND SIGNIFICANTLY OUTPERFORMED THE GSTI(R) COMPOSITE
INDEX AND ITS PEERS.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 7
<Page>
QUESTIONS & ANSWERS
Compared to the GSTI(R) Composite Index, the Fund's results were hampered
by a less aggressive stance in the computer hardware area. Our outlook for
the hardware segment was not particularly pessimistic, but we thought other
areas of the technology sector offered better prospects for price
appreciation.
Individual contributors to the Fund's results included semi-conductor
companies Broadcom and Freescale Semiconductor and communications equipment
company Cisco Systems. Broadcom was attractive to us because the firm
produces semiconductor chips for key market segments such as Voice Over
Internet Protocols, broadband, wireless handheld devices and 3G
(third-generation) cell phones. When we bought Broadcom, its risk/reward
profile appeared very compelling. We closely monitored the stock and, based
on our own research, were able to buy and sell it at opportune times. For
example, when we saw that Broadcom was building up inventory, a potential
negative indicator for future earnings, we sold the stock before the
company announced it would have to correct its inventory. We were then able
to repurchase the stock after management reduced its earnings guidance and
reset investor expectations. We remain optimistic about Broadcom's longer
term potential, but we may continue to move in and out of the stock as
warranted.
Cisco Systems, the Fund's largest position at fiscal year-end, added to the
Fund's return, but did not contribute to the outperformance of the GSTI(R)
Composite Index because the Fund's position was smaller than that of the
index. Cisco represents a large percentage of the index and we do not think
such a sizable weighting is suitable from a risk management standpoint. We
consider Cisco's growth prospects very attractive for a large-cap company.
From our perspective, Cisco enhanced its situation during the recent
downturn, making strategic acquisitions and eliminating business segments
that weren't working. We now think Cisco Systems is well-positioned for the
next phase of growth as corporate technology spending increases.
8 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
QUESTIONS & ANSWERS
Freescale Semiconductor was spun-off from Motorola in 1995. The stock was
undervalued because investors did not like the fact that much of its
revenue came from its former parent company. Our own research showed the
company had a well-diversified business covering multiple segments of the
semi-conductor market, including components for the automotive industry,
and was gaining market share. In short, we thought their business model was
sound. When Freescale was taken private through a leveraged buy-out, the
Fund was well-rewarded.
Our outlook for Microsoft had been unfavorable for some time, but during
this period we saw some promising dynamics, so we established a Microsoft
position. We thought the stock was likely to benefit from anticipation
surrounding the new VISTA operating system, good positioning in the
electronic games console market and management's aggressive share buyback
program. The stock did perform well; however, the Fund's position in
Microsoft was smaller than that of the GSTI(R) Composite Index, which
detracted from performance. Similar to Cisco Systems, Microsoft represents
a substantial percentage of the index and we do not consider such a large
position prudent.
SanDisk, a company that provides memory for cell phones, flash drives and
storage devices, detracted from the Fund's performance. We bought the stock
when its price was depressed due to slower storage and personal computer
markets as well as price declines in consumer products. The stock rebounded
when pricing power improved and SanDisk announced its acquisition of
competitor msystems. Upon completion of that acquisition, SanDisk should be
well-positioned in the cellular phone market. We thought the stock could
continue to perform well given trends such as improved consumer spending.
SanDisk reported quarterly earnings that beat analyst expectations, but the
stock suffered from management's forecast of continued price declines for
its flash memory. We reduced the Fund's holdings of SanDisk because we are
concerned about overcapacity and ongoing pricing pressures, but selling the
stock sooner would have been advantageous.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 9
<Page>
Lucent Technologies was another detractor during the period. We thought the
large-cap communications equipment company would benefit from synergies
related to its merger with Alcatel. However, the companies had a number of
issues to work through and the synergies have yet to be fully realized.
Though we still believe the merger can cut expenses and improve profit
margins, we reduced the Fund's holdings of Lucent. We think there are small
and mid-cap telecommunications equipment companies that could perform
better over the next year.
Q: What changes did you make to the Fund and how is it currently positioned?
A: We decreased the Fund's weighting in service companies, a position which is
now significantly smaller than that of the GSTI(R) Composite Index. We made
no changes to the hardware weighting, which remains smaller than that of
the GSTI(R) Composite Index.
During the fiscal year, we increased exposure to both internet-related
stocks and communications equipment companies. We made no changes to the
software weighting, which remains relatively large. We also maintained a
large weighting in semi-conductors.
In keeping with our emphasis on proprietary fundamental research, we
employed a tactical approach to stock selection, moving in and out of
individual positions based on the findings of our research. This strategy,
which was instrumental in the Fund's strong results, led to an annual
portfolio turnover rate of 196%.
10 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
Q: How do you intend to manage the Fund in the coming months?
A: Our outlook for the technology sector remains favorable. We think both
business and consumer spending should be healthy and we are beginning to
see some factors that should drive earnings growth in the sector. For
example, we are optimistic about communications equipment companies because
infrastructure must be built to support remote access for businesses,
wireless video and Voice Over Internet Protocols.
We believe the technology segment has just begun to benefit from increased
spending. We anticipate several more years of a steady growth cycle;
however, there could be starts and stops in that cycle, such as we have
seen this past year. Therefore, we believe effective stock selection will
be essential in achieving outperformance. As our research uncovers
opportunities or problems such as high inventories or pricing pressures, we
would expect to tactically reposition the Fund, seeking to benefit from the
performance of individual technology companies.
WE BELIEVE THE TECHNOLOGY SEGMENT HAS JUST BEGUN TO BENEFIT FROM INCREASED
SPENDING.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 11
<Page>
THE FUND'S LONG-TERM PERFORMANCE
The chart on the facing page illustrates the total value of an assumed $10,000
investment in RiverSource Global Technology Fund Class A shares (from 12/1/96 to
10/31/06)* as compared to the performance of two widely cited performance
indices, the Goldman Sachs Technology Index(R) (GSTI(R)) Composite Index and the
Lipper Science and Technology Funds Index. In comparing the Fund's Class A
shares to these indices, you should take into account the fact that the Fund's
performance reflects the maximum sales charge of 5.75%, while such charges are
not reflected in the performance of the indices. Returns for the Fund include
the reinvestment of any distribution paid during each period.
THE PERFORMANCE INFORMATION SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A
GUARANTEE OF FUTURE RESULTS. THE TABLE BELOW AND THE CHART ON THE FACING PAGE DO
NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. 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 www.riversource.com/funds.
ALSO SEE "PAST PERFORMANCE" IN THE FUND'S CURRENT PROSPECTUS.
* Fund data is from Nov. 13, 1996. GSTI Composite Index and Lipper peer group
data is from Dec. 1, 1996.
COMPARATIVE RESULTS
RESULTS AT OCT. 31, 2006
<Table>
<Caption>
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION(3)
RIVERSOURCE GLOBAL TECHNOLOGY FUND
(INCLUDES SALES CHARGE)
Class A Cumulative value of $10,000 $ 11,464 $ 13,259 $ 14,250 $ 16,285
Average annual total return +14.64% +9.86% +7.34% +5.01%
GOLDMAN SACHS TECHNOLOGY INDEX(R) (GSTI(R)) COMPOSITE INDEX(1)
Cumulative value of $10,000 $ 11,083 $ 11,500 $ 11,763 $ 17,357
Average annual total return +10.83% +4.77% +3.30% +5.71%
LIPPER SCIENCE AND TECHNOLOGY FUNDS INDEX(2)
Cumulative value of $10,000 $ 10,943 $ 11,570 $ 11,581 $ 15,263
Average annual total return +9.43% +4.98% +2.98% +4.36%
</Table>
RESULTS FOR OTHER SHARE CLASSES CAN BE FOUND ON PAGE 6.
12 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
[CHART]
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN
RIVERSOURCE GLOBAL TECHNOLOGY FUND
<Table>
<Caption>
RiverSource Global Technology Goldman Sachs Lipper Science and Technology
Fund Class A (includes sales charge) Technology Index(1) Funds Index(2)
12/1/1996 $9,425 $10,000 $10,000
10/1997 $9,932 $12,358 $11,218
10/1998 $10,198 $15,565 $12,057
10/1999 $21,245 $27,861 $23,440
10/2000 $35,390 $33,687 $31,637
10/2001 $10,766 $14,752 $13,177
10/2002 $6,931 $10,092 $8,829
10/2003 $11,574 $15,091 $13,191
10/2004 $12,315 $14,747 $12,784
10/2005 $13,391 $15,661 $13,948
10/2006 $16,285 $17,357 $15,263
</Table>
(1) The Goldman Sachs Technology Index (GSTI(R)) Composite Index, an unmanaged
index published by Goldman Sachs, is a market capitalization-weighted index
of over 200 stocks designed to measure the performance of companies in the
technology sector. The index reflects reinvestment of all distributions and
changes in market prices, but excludes brokerage commissions or other fees.
(2) The Lipper Science and Technology Funds Index includes the 30 largest
science and technology funds tracked by Lipper Inc. The index's returns
include net reinvested dividends. The Fund's performance is currently
measured against this index for purposes of determining the performance
incentive adjustment. See "Fund Management and Compensation" for more
information.
(3) Fund data is from Nov. 13, 1996. GSTI Composite Index and Lipper peer group
data is from Dec. 1, 1996.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 13
<Page>
INVESTMENTS IN SECURITIES
OCT. 31, 2006
(PERCENTAGES REPRESENT VALUE OF INVESTMENTS COMPARED TO NET ASSETS)
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (99.3%)
COMMUNICATIONS EQUIPMENT (10.6%)
3Com 248,949(b) $ 1,209,892
Acme Packet 139,118(b) 2,392,830
Cisco Systems 325,672(b) 7,858,465
Corning 92,878(b) 1,897,498
Finisar 411,839(b) 1,433,200
Juniper Networks 75,515(b) 1,300,368
Sonus Networks 362,896(b) 1,897,946
-------------
Total 17,990,199
- ----------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (9.6%)
Apple Computer 46,223(b) 3,747,761
Hewlett-Packard 137,807 5,338,643
QLogic 42,100(b) 866,418
Rackable Systems 50,125(b) 1,554,376
SanDisk 47,458(b) 2,282,730
Seagate Technology 112,631(c) 2,543,208
-------------
Total 16,333,136
- ----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (0.9%)
Compass Diversified Trust 90,300 1,528,779
- ----------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.1%)
Cogent Communications Group 177,650(b) 2,515,525
Global Crossing 59,709(b),(c),(d) 1,467,647
Qwest Communications Intl 151,315(b) 1,305,848
-------------
Total 5,289,020
- ----------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT (1.2%)
Energy Conversion Devices 53,596(b) 1,971,797
- ----------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL (0.3%)
Gmarket ADR 33,840(b),(c),(d) 561,744
- ----------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES (6.7%)
Baidu.com ADR 13,788(b),(c) 1,203,417
DivX 67,046(b),(d) 1,531,331
eBay 83,060(b) 2,668,718
Google Cl A 7,816(b) 3,723,463
Yahoo! 83,726(b) 2,205,343
-------------
Total 11,332,272
- ----------------------------------------------------------------------------------------
IT SERVICES (2.6%)
Ness Technologies 227,825(b),(c) 3,367,254
Satyam Computer Services ADR 49,458(c) 1,093,516
-------------
Total 4,460,770
- ----------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDIA (2.8%)
NTL 157,080 $ 4,245,872
WorldSpace Cl A 130,705(b),(d) 439,169
-------------
Total 4,685,041
- ----------------------------------------------------------------------------------------
METALS & MINING (0.2%)
Thorium Power 1,275,800(b) 382,740
- ----------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (28.2%)
Advanced Micro Devices 105,660(b) 2,247,388
ARM Holdings 905,546(c) 2,033,931
Broadcom Cl A 156,986(b) 4,751,966
Cypress Semiconductor 104,231(b) 1,750,038
Freescale Semiconductor Cl A 116,049(b) 4,568,849
Infineon Technologies 68,340(b),(c) 832,167
Infineon Technologies ADR 316,046(b),(c) 3,843,119
Intel 194,405 4,148,603
Linear Technology 80,652 2,509,890
LSI Logic 248,115(b) 2,493,556
Maxim Integrated Products 80,410 2,413,104
NVIDIA 142,809(b) 4,979,750
PMC-Sierra 392,193(b) 2,600,240
Rambus 71,128(b) 1,177,880
Samsung Electronics 7,360(c) 4,774,857
Silicon Laboratories 38,618(b) 1,260,105
Volterra Semiconductor 76,977(b),(d) 1,328,623
-------------
Total 47,714,066
- ----------------------------------------------------------------------------------------
SOFTWARE (26.8%)
Adobe Systems 105,650(b) 4,041,113
BEA Systems 92,362(b) 1,502,730
Business Objects ADR 120,761(b),(c) 4,472,987
Citrix Systems 189,533(b) 5,596,909
Cognos 45,500(b),(c) 1,659,840
CommVault Systems 51,280(b) 916,374
McAfee 98,612(b) 2,852,845
Mercury Interactive 40,128(b) 2,084,248
Microsoft 219,363 6,297,912
Nuance Communications 129,382(b) 1,493,068
Open Solutions 40,548(b) 1,515,279
OPNET Technologies 100,000(b) 1,462,000
Parametric Technology 79,815(b) 1,559,585
Quest Software 114,181(b) 1,681,886
Symantec 114,554(b) 2,272,751
</Table>
See accompanying notes to investments in securities.
14 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
ISSUER SHARES VALUE(a)
COMMON STOCKS (CONTINUED)
SOFTWARE (CONT.)
THQ 59,715(b) $ 1,795,630
TIBCO Software 453,188(b) 4,191,989
-------------
Total 45,397,146
- ----------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (6.2%)
ALLTEL 73,502 3,918,392
Sprint Nextel 281,439 5,260,095
Vodafone Group 520,432(c) 1,340,178
-------------
Total 10,518,665
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $149,318,085) $ 168,165,37
- ----------------------------------------------------------------------------------------
OTHER (0.1%)
UIBSOFT Entertainment Warrants 5,712(b),(c),(f) $ 96,239
- ----------------------------------------------------------------------------------------
TOTAL OTHER
(Cost: $19,674) $ 96,239
- ----------------------------------------------------------------------------------------
<Caption>
SHARES VALUE(a)
MONEY MARKET FUND (6.7%)(e)
RiverSource Short-Term Cash Fund 11,269,929(g) $ 11,269,929
- ----------------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(Cost: $11,269,929) $ 11,269,929
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(Cost: $160,607,688)(h) $ 179,531,543
========================================================================================
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2006, the
value of foreign securities represented 17.3% of net assets.
(d) At Oct. 31, 2006, security was partially or fully on loan. See Note 5 to
the financial statements.
(e) Cash collateral received from security lending activity is invested in an
affiliated money market fund and represents 2.0% of net assets. See Note 5
to the financial statements. 4.7% of net assets is the Fund's cash
equivalent position.
(f) Identifies issues considered to be illiquid as to their marketability (see
Note 1 to the financial statements). These securities may be valued at fair
value according to methods selected in good faith by the Fund's Board of
Directors. Information concerning such security holdings at Oct. 31, 2006,
is as follows:
<Table>
<Caption>
SECURITY ACQUISITION DATES COST
---------------------------------------------------------------------
UBISOFT Entertainment Warrants 12-02-03 $ 19,674
</Table>
(g) Affiliated Money Market Fund -- See Note 6 to the financial statements.
(h) At Oct. 31, 2006, the cost of securities for federal income tax purposes
was $162,200,073 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation $ 21,942,105
Unrealized depreciation (4,610,635)
----------------------------------------------------
Net unrealized appreciation $ 17,331,470
----------------------------------------------------
</Table>
THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS) WAS DEVELOPED BY AND IS THE
EXCLUSIVE PROPERTY OF MORGAN STANLEY CAPITAL INTERNATIONAL INC. AND STANDARD &
POOR'S, A DIVISION OF THE MCGRAW-HILL COMPANIES, INC.
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS
(i) The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (Commission) for the first and third
quarters of each fiscal year on Form N-Q;
(ii) The Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov;
(iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC (information on the operations of the
Public Reference Room may be obtained by calling 1-800-SEC-0330); and
(iv) The Fund's complete schedule of portfolio holdings, as disclosed in its
annual and semiannual shareholder reports and in its filings on Form N-Q,
can be found at riversource.com/funds.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 15
<Page>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCT. 31, 2006
<Table>
ASSETS
Investments in securities, at value (Note 1)
Unaffiliated issuers* (identified cost $149,337,759) $ 168,261,614
Affiliated money market fund (identified cost $11,269,929) (Note 6) 11,269,929
- ------------------------------------------------------------------------------------------------------
Total investments in securities (identified cost $160,607,688) 179,531,543
Cash in bank on demand deposit 3,966
Foreign currency holdings (identified cost $2,908) (Note 1) 2,793
Capital shares receivable 63,881
Dividends and accrued interest receivable 9,564
Receivable for investment securities sold 2,093,973
- ------------------------------------------------------------------------------------------------------
Total assets 181,705,720
- ------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investment securities purchased 8,780,729
Payable upon return of securities loaned (Note 5) 3,410,000
Accrued investment management services fee 3,337
Accrued distribution fee 2,098
Accrued service fee 1
Accrued transfer agency fee 274
Accrued administrative services fee 278
Other accrued expenses 91,029
- ------------------------------------------------------------------------------------------------------
Total liabilities 12,287,746
- ------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 169,417,974
======================================================================================================
REPRESENTED BY
Capital stock -- $.01 par value (Note 1) $ 730,764
Additional paid-in capital 514,304,729
Accumulated net realized gain (loss) (Note 8) (364,541,264)
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 18,923,745
- ------------------------------------------------------------------------------------------------------
Total -- representing net assets applicable to outstanding capital stock $ 169,417,974
======================================================================================================
Net assets applicable to outstanding shares: Class A $ 122,944,396
Class B $ 42,498,835
Class C $ 3,415,678
Class I $ 14,460
Class Y $ 544,605
Net asset value per share of outstanding capital stock: Class A shares 50,874,610 $ 2.42
Class B shares 20,342,056 $ 2.09
Class C shares 1,630,088 $ 2.10
Class I shares 5,882 $ 2.46
Class Y shares 223,793 $ 2.43
- ------------------------------------------------------------------------------------------------------
* Including securities on loan, at value (Note 5) $ 3,116,740
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
16 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
STATEMENT OF OPERATIONS
<Table>
<Caption>
PERIOD FROM PERIOD FROM TOTAL
NOV. 1, 2005 TO DEC. 6, 2005 TO NOV. 1, 2005 TO
DEC. 5, 2005 (NOTE 1) OCT. 31, 2006 OCT. 31, 2006
INVESTMENT INCOME
Income:
Dividends $ 66,956 $ 1,041,450 $ 1,108,406
Interest 16,446 121,736 138,182
Income distributions from affiliated
money market fund (Note 6) -- 50,236 50,236
Fee income from securities lending (Note 5) 5,773 45,485 51,258
Less foreign taxes withheld -- (22,173) (22,173)
- -----------------------------------------------------------------------------------------------------------------------
Total income 89,175 1,236,734 1,325,909
- -----------------------------------------------------------------------------------------------------------------------
Expenses (Note 2):
Investment management services fee 124,267 1,203,616 1,327,883
Distribution fee
Class A 29,535 270,495 300,030
Class B 45,867 404,070 449,937
Class C 3,150 29,131 32,281
Transfer agency fee 69,777 591,657 661,434
Incremental transfer agency fee
Class A 4,862 42,068 46,930
Class B 3,314 27,566 30,880
Class C 181 1,578 1,759
Service fee -- Class Y 33 382 415
Administrative services fees and expenses 9,951 91,246 101,197
Compensation of board members 681 8,825 9,506
Custodian fees 2,735 44,033 46,768
Printing and postage 6,992 95,104 102,096
Registration fees 2,508 49,371 51,879
Audit fees 3,865 26,135 30,000
Other 2,476 24,205 26,681
- -----------------------------------------------------------------------------------------------------------------------
Total expenses 310,194 2,909,482 3,219,676
Earnings and bank fee credits on cash balances (Note 2) (1,260) (15,731) (16,991)
- -----------------------------------------------------------------------------------------------------------------------
Total net expenses 308,934 2,893,751 3,202,685
- -----------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net (219,759) (1,657,017) (1,876,776)
- -----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) -- NET
Net realized gain (loss) on:
Security transactions (Note 3) 238,101 24,218,931 24,457,032
Foreign currency transactions (23) 69,845 69,822
Payment from affiliate (Note 2) -- 5,082 5,082
- -----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 238,078 24,293,858 24,531,936
Net change in unrealized appreciation (depreciation)
on investments and on translation of assets and
liabilities in foreign currencies 12,162,324 (2,880,074) 9,282,250
- -----------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments and foreign currencies 12,400,402 21,413,784 33,814,186
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ 12,180,643 $ 19,756,767 $ 31,937,410
=======================================================================================================================
</Table>
See accompanying notes to financial statements.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 17
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
OPERATIONS
Investment income (loss) -- net $ (1,876,776) $ (2,220,414)
Net realized gain (loss) on investments 24,531,936 22,846,390
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 9,282,250 (4,848,983)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 31,937,410 15,776,993
- -------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 4)
Proceeds from sales
Class A shares (Note 2) 16,756,579 14,032,284
Class B shares 3,746,698 4,198,752
Class C shares 483,485 365,934
Class Y shares 179,064 144,798
Payments for redemptions
Class A shares (36,795,583) (51,747,616)
Class B shares (Note 2) (15,568,576) (21,314,709)
Class C shares (Note 2) (854,294) (1,409,826)
Class Y shares (43,302) (256,391)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share transactions (32,095,929) (55,986,774)
- -------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (158,519) (40,209,781)
Net assets at beginning of year 169,576,493 209,786,274
- -------------------------------------------------------------------------------------------------------
Net assets at end of year $ 169,417,974 $ 169,576,493
=======================================================================================================
</Table>
See accompanying notes to financial statements.
18 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of RiverSource Global Series, Inc. (formerly AXP Global
Series, Inc. ) and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. RiverSource
Global Series, Inc. has 10 billion authorized shares of capital stock that can
be allocated among the separate series as designated by the Board. The Fund
invests primarily in equity securities of companies in the information
technology industry throughout the world.
The Fund offers Class A, Class B, Class C, Class I and Class Y shares.
- - Class A shares are sold with a front-end sales charge.
- - Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth year of
ownership.
- - Class C shares may be subject to a CDSC.
- - Class I and Class Y shares have no sales charge and are offered only to
qualifying institutional investors.
In September 2006, the Board approved renaming Class Y as Class R4, terminating
the shareholder servicing agreement, revising the fee structure under the
transfer agent agreement from account-based to asset-based, and adopting a plan
administration services agreement. These changes are effective Dec. 11, 2006.
At Oct. 31, 2006, Ameriprise Financial, Inc. (Ameriprise Financial) owned 100%
of Class I shares, which represents 0.01% of the Fund's net assets.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee, transfer agency fees and service fee (class specific
expenses) 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.
Prior to Dec. 6, 2005, the Fund invested all of its assets in the World
Technologies Portfolio (the Portfolio). The Fund recorded its daily share of the
Portfolio's income, expenses and realized and unrealized gains and losses.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 19
<Page>
Effective at the close of business on Dec. 5, 2005, the Portfolio was liquidated
and the Fund exchanged its interest in the Portfolio for its proportionate share
(99.98%) of the Portfolio's assets and liabilities. Within the statement of
operations for the period from Nov. 1, 2005 to Dec. 5, 2005, income and expense
amounts include allocations from the Portfolio in the following amounts:
<Table>
Dividends $ 66,956
Interest Income $ 16,446
Fee income from securities lending $ 5,773
Investment management services fee $ 124,267
Custodian fees $ 2,664
Audit fees $ 3,721
Other $ 1,136
Earnings and bank fee credits on cash balances $ 250
</Table>
All realized and unrealized gains (losses) presented for the period from Nov. 1,
2005 to Dec. 5, 2005 were as a result of allocations from the Portfolio.
The Fund's significant accounting policies are summarized below:
USE OF ESTIMATES
Preparing financial statements that conform to U.S. generally accepted
accounting principles requires management to make estimates (e.g., on assets,
liabilities and contingent assets and liabilities) that could differ from actual
results.
VALUATION OF SECURITIES
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Foreign securities are valued based on quotations from the principal market in
which such securities are normally traded. Pursuant to procedures adopted by the
Board of Directors of the funds, Ameriprise Financial utilizes Fair Value
Pricing (FVP). FVP determinations are made in good faith in accordance with
these procedures. If a development or event is so significant that there is a
reasonably high degree of certainty that the effect of the development or event
has actually caused the closing price to no longer reflect the actual value, the
closing prices, as determined at the close of the applicable foreign market, may
be adjusted to reflect the fair value of the affected foreign securities as of
the close of the New York Stock Exchange. Significant events include material
movements in the U.S. securities markets prior to the opening of foreign markets
on the following trading day. FVP results in an estimated price that reasonably
reflects the current market conditions in order to value the portfolio holdings
such that shareholder transactions receive a fair net asset value. Short-term
securities maturing in more
20 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
than 60 days from the valuation date are valued at the market price or
approximate market value based on current interest rates; those maturing in 60
days or less are valued at amortized cost.
ILLIQUID SECURITIES
At Oct. 31, 2006, 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 Oct. 31, 2006 was
$96,239 representing 0.06% of net assets. These securities are valued at fair
value according to methods selected in good faith by the Board. According to
board guidelines, certain unregistered securities are determined to be liquid
and are not included within the 10% limitation specified above. Assets are
liquid if they can be sold or disposed of in the ordinary course of business
within seven days at approximately the value at which the asset is valued by the
Fund.
OPTION TRANSACTIONS
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the fund may buy and write options traded on any
U.S. or foreign exchange or in the over-the-counter market where completing the
obligations depends upon the credit standing of the other party. The Fund also
may buy and sell put and call options and write covered call options on
portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Fund gives up the opportunity for profit if
the market price of the security increases. The risk in writing a put option is
that the Fund may incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the additional
risk of being unable to enter into a closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 21
<Page>
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
FOREIGN CURRENCY TRANSLATIONS AND FOREIGN CURRENCY CONTRACTS
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes. At Oct. 31, 2006, foreign currency holdings were entirely
comprised of Taiwan dollars.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, certain of the Fund's contracts with its
service providers contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown since the amount of any future
claims that may be made against the Fund cannot be determined and the Fund has
no historical basis for predicting the likelihood of any such claims.
FEDERAL TAXES
The Fund's policy is to comply with Subchapter M of the Internal Revenue Code
that applies to regulated investment companies and to distribute substantially
all of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
22 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, undistributed net investment income has been increased by
$1,876,776 and accumulated net realized loss has been increased by $75,314
resulting in a net reclassification adjustment to decrease paid-in capital by
$1,801,462.
The tax character of distributions paid for the years indicated is as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006 2005
- --------------------------------------------------------
CLASS A
Distributions paid from:
Ordinary income $ -- $ --
Long-term capital gain -- --
CLASS B
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS C
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS I
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
CLASS Y
Distributions paid from:
Ordinary income -- --
Long-term capital gain -- --
</Table>
At Oct. 31, 2006, the components of distributable earnings on a tax basis are as
follows:
<Table>
Undistributed ordinary income $ --
Accumulated long-term gain (loss) $ (362,948,879)
Unrealized appreciation (depreciation) $ 17,331,360
</Table>
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 23
<Page>
RECENT ACCOUNTING PRONOUNCEMENTS
On Sept. 20, 2006, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 157 "Fair Value Measurements"
("SFAS 157"). SFAS 157 establishes an authoritative definition of fair value,
sets out a framework for measuring fair value, and requires additional
disclosures about fair-value measurements. The application of SFAS 157 is
required for fiscal years beginning after Nov. 15, 2007 and interim periods
within those fiscal years. The impact of SFAS 157 on the Fund's financial
statements is being evaluated.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." FIN 48
clarifies the accounting for uncertainty in income taxes recognized in
accordance with FASB Statement 109, "Accounting for Income Taxes." FIN 48
prescribes a two-step process to recognize and measure a tax position taken or
expected to be taken in a tax return. The first step is to determine whether a
tax position has met the more-likely-than-not recognition threshold and the
second step is to measure a tax position that meets the threshold to determine
the amount of benefit to recognize. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after Dec. 15, 2006. Tax positions of the Fund are being evaluated to
determine the impact, if any to the Fund. The adoption of FIN 48 is not
anticipated to have a material impact on the Fund.
DIVIDENDS TO SHAREHOLDERS
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
OTHER
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain foreign securities. Interest
income, including amortization of premium, market discount and original issue
discount using the effective interest method, is accrued daily.
24 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
2. EXPENSES AND SALES CHARGES
Under an Investment Management Services Agreement, RiverSource Investments, LLC
(the Investment Manager) determines which securities will be purchased, held or
sold. The management fee is a percentage of the Fund's average daily net assets
that declines from 0.72% to 0.595% annually as the Fund's assets increase. Prior
to Dec. 6, 2005, World Trust, on behalf of the Portfolio, had an Investment
Management Services Agreement with Ameriprise Financial. The management fee was
assessed at the Portfolio level. The fee may be adjusted upward or downward by a
performance incentive adjustment based on a comparison of the performance of
Class A shares of the Fund to the Lipper Science and Technology Funds Index. In
certain circumstances, the Board may approve a change in the index. The maximum
adjustment is 0.12% per year. If the performance difference is less than 0.50%,
the adjustment will be zero. For the period from Nov. 1, 2005 to Dec. 5, 2005,
the adjustment increased the fee by $3,580 and for the period from Dec. 6, 2005
to Oct. 31, 2006, the adjustment increased the fee by $109,841.
Under an Administrative Services Agreement, the Fund pays Ameriprise Financial a
fee for administration and accounting services at a percentage of the Fund's
average daily net assets that declines from 0.06% to 0.03% annually as the
Fund's assets increase.
Other expenses include, among other things, certain expenses of the Fund or the
Board (including its independent members) equal to $5,601 that are paid by the
Fund through Board Services Corporation, an entity that provides services to the
Board and the Fund pursuant to a separate agreement. These expenses include:
Fund boardroom expense, Board Services Corporation office expense, Board
Services Corporation employee compensation, including employee health and
retirement benefits, Board Services Corporation audit and legal fees, Fund legal
fees, certain taxes, filing fees and certain other expenses.
Compensation of board members includes compensation as well as retirement
benefits. Certain other aspects of the Board Chair's compensation, including
health benefits and payment of certain other expenses, are included under other
expenses.
Under a Deferred Compensation Plan (the Plan), non-interested board members may
defer receipt of their compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the Fund or other
RiverSource funds. The Fund's liability for these amounts is adjusted for market
value changes and remains in the Fund until distributed in accordance with the
Plan.
Under a separate Transfer Agency Agreement, RiverSource Service Corporation (the
Transfer Agent) maintains shareholder accounts and records. The Fund pays the
Transfer Agent an annual fee per shareholder account for this service as
follows:
- - Class A $19.50
- - Class B $20.50
- - Class C $20.00
- - Class Y $17.50
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 25
<Page>
The incremental transfer agency fee is the amount charged to the specific
classes for the additional expense above the fee for Class Y.
Class I pays a transfer agency fee at an annual rate per shareholder account of
$1. This amount is included in the transfer agency fee on the statement of
operations.
The Transfer Agent charges an annual closed account fee of $5 per inactive
account, charged on a pro rata basis for 12 months from the date the account
becomes inactive. These fees are included in the transfer agency fees on the
statement of operations.
The Fund has agreements with Ameriprise Financial Services, Inc. (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 up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B and Class C shares.
Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for
service provided to shareholders by the Distributor and other servicing agents
with respect to those shares. The fee is calculated at a rate of 0.10% of the
Fund's average daily net assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$180,985 for Class A, $60,519 for Class B and $673 for Class C for the year
ended Oct. 31, 2006.
Effective Dec. 11, 2006, with the renaming of Class Y as Class R4, the
Investment Manager and its affiliates have agreed to waive certain fees and
expenses until Oct. 31, 2007, unless sooner terminated at the discretion of the
Board, such that, net expenses, before giving effect to any performance
incentive adjustment, will not exceed 1.41% for Class R4.
During the period from Nov. 1, 2005 to Dec. 5, 2005, the Fund's custodian and
transfer agency fees were reduced by $1,260 as a result of earnings and bank fee
credits from overnight cash balances. During the period from Dec. 6, 2005 to
Oct. 31, 2006, the Fund's custodian and transfer agency fees were reduced by
$15,731 as a result of earnings and bank fee credits from overnight cash
balances. The Fund also pays custodian fees to Ameriprise Trust Company, an
affiliate of Ameriprise Financial.
In addition, the Fund received a one time payment of $5,082 by Ameriprise
Financial for additional earnings from overnight cash balances determined to be
owed for prior years. This amount was insignificant to the Fund's net assets
value and total return.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $14,561,320 and $17,626,393, respectively, for the
period from Nov. 1, 2005 to Dec. 5, 2005 and $309,915,089 and $340,173,661,
respectively, for the period from Dec. 6, 2005 to Oct. 31, 2006. Realized gains
and losses are determined on an identified cost basis.
26 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the years indicated are as follows:
<Table>
<Caption>
YEAR ENDED OCT. 31, 2006
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ---------------------------------------------------------------------------------------------------------------
Sold 7,679,804 1,956,234 247,215 -- 80,137
Issued for reinvested distributions -- -- -- -- --
Redeemed (16,832,375) (8,357,096) (446,399) -- (19,274)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) (9,152,571) (6,400,862) (199,184) -- 60,863
- ---------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
YEAR ENDED OCT. 31, 2005
CLASS A CLASS B CLASS C CLASS I CLASS Y
- ---------------------------------------------------------------------------------------------------------------
Sold 7,304,774 2,511,332 218,828 -- 76,170
Issued for reinvested distributions -- -- -- -- --
Redeemed (27,230,471) (12,759,119) (847,115) -- (138,673)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) (19,925,697) (10,247,787) (628,287) -- (62,503)
- ---------------------------------------------------------------------------------------------------------------
</Table>
5. LENDING OF PORTFOLIO SECURITIES
At Oct. 31, 2006, securities valued at $3,116,740 were on loan to brokers. For
collateral, the Fund received $3,410,000 in cash. Cash collateral received is
invested in an affiliated money market fund and short-term securities, which are
included in the "Investments in securities." Income from securities lending
amounted to $51,258 for the year ended Oct. 31, 2006. The risks to the Fund of
securities lending are that the borrower may not provide additional collateral
when required or return the securities when due.
6. AFFILIATED MONEY MARKET FUND
The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund,
a money market fund established for the exclusive use of the RiverSource funds
and other institutional clients of RiverSource Investments.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 27
<Page>
7. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
JPMorgan Chase Bank, N.A. (JPMCB), whereby the Fund may borrow for the temporary
funding of shareholder redemptions or for other temporary or emergency purposes.
The agreement went into effect Sept. 19, 2006. The Fund must maintain asset
coverage for borrowings of at least 300%. The agreement, which enables the Fund
to participate with other RiverSource funds, permits borrowings up to $500
million, collectively. Interest is charged to each Fund based on its borrowings
at a rate equal to either the higher of the Federal Funds Effective Rate plus
0.40% or the JPMCB Prime Commercial Lending Rate. Borrowings are payable within
60 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.06%
per annum. Prior to this agreement, the Fund paid a commitment fee equal to its
pro rata share of the amount of the credit facility at a rate of 0.07% per
annum. The Fund had no borrowings outstanding during the year ended Oct. 31,
2006.
8. CAPITAL LOSS CARRY-OVER
For federal income tax purposes the Fund had a capital loss carry-over of
$362,948,879 at Oct. 31, 2006, that if not offset by capital gains will expire
as follows:
<Table>
<Caption>
2009 2010
$ 281,649,652 $ 81,299,227
</Table>
It is unlikely the Board will authorize a distribution of any net realized
capital gains until the available capital loss carry-over has been offset or
expires.
9. INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS
In December 2005, without admitting or denying the allegations, American Express
Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc.
(Ameriprise Financial)), the parent company of RiverSource Investments, LLC
(RiverSource Investments), entered into settlement agreements with the
Securities and Exchange Commission (SEC) and Minnesota Department of Commerce
(MDOC) related to market timing activities. In connection with these matters,
the SEC and MDOC issued orders (the Orders) alleging that AEFC violated certain
provisions of the federal and Minnesota securities laws by failing to adequately
disclose market timing activities by allowing certain identified market timers
to continue to market time contrary to disclosures in mutual fund and variable
annuity product prospectuses. The Orders also alleged that AEFC failed to
implement procedures to detect and prevent market timing in 401(k) plans for
employees of AEFC and related companies and failed to adequately disclose that
there were no such procedures. Pursuant to the MDOC Order, the MDOC also alleged
that AEFC allowed inappropriate market timing to occur by failing to have
written policies and procedures and failing to properly supervise its employees.
28 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
As a result of the Orders, AEFC was censured and ordered to cease and desist
from committing or causing any violations of certain provisions of the
Investment Advisers Act of 1940, the Investment Company Act of 1940, and various
Minnesota laws. Pursuant to the terms of the Orders, AEFC agreed to pay
disgorgement of $10 million and civil money penalties of $7 million. AEFC also
agreed to make presentations at least annually to its board of directors and the
relevant mutual funds' board that include an overview of policies and procedures
to prevent market timing, material changes to these policies and procedures and
whether disclosures related to market timing are consistent with the SEC order
and federal securities laws. AEFC also agreed to retain an independent
distribution consultant to assist in developing a plan for distribution of all
disgorgement and civil penalties ordered by the SEC in accordance with various
undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. In
addition, AEFC agreed to complete and submit to the MDOC a compliance review of
its procedures regarding market timing within one year of the MDOC Order,
including a summary of actions taken to ensure compliance with applicable laws
and regulations and certification by a senior officer regarding compliance and
supervisory procedures.
Ameriprise Financial and its affiliates have cooperated with the SEC and the
MDOC in these legal proceedings, and have made regular reports to the
RiverSource Funds' Boards of Directors/Trustees.
Ameriprise Financial and certain of its affiliates have historically been
involved in a number of legal, arbitration and regulatory proceedings, including
routine litigation, class actions, and governmental actions, concerning matters
arising in connection with the conduct of their business activities. Ameriprise
Financial believes that the Funds are not currently the subject of, and that
neither Ameriprise Financial nor any of its affiliates are the subject of, any
pending legal, arbitration or regulatory proceedings that are likely to have a
material adverse effect on the Funds or the ability of Ameriprise Financial or
its affiliates to perform under their contracts with the Funds. Ameriprise
Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the
Securities and Exchange Commission on legal and regulatory matters that relate
to Ameriprise Financial and its affiliates. Copies of these filings may be
obtained by accessing the SEC website at www.sec.gov.
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.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 29
<Page>
10. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
CLASS A
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 1.99 $ 1.83 $ 1.72 $ 1.03 $ 1.60
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.02) (.03) (.02) (.03)
Net gains (losses) (both realized
and unrealized) .45 .18 .14 .71 (.54)
- -------------------------------------------------------------------------------------------------
Total from investment operations .43 .16 .11 .69 (.57)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 2.42 $ 1.99 $ 1.83 $ 1.72 $ 1.03
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 123 $ 120 $ 146 $ 145 $ 81
- -------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 1.69% 1.75% 1.74% 1.94% 1.91%
- -------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.89%) (.92%) (1.48%) (1.47%) (1.65%)
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 196% 115% 349% 546% 391%
- -------------------------------------------------------------------------------------------------
Total return(c) 21.61% 8.74% 6.40% 66.99% (35.62%)
- -------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
30 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
CLASS B
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 1.74 $ 1.60 $ 1.53 $ .92 $ 1.44
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.03) (.03) (.04) (.03) (.04)
Net gains (losses) (both realized
and unrealized) .38 .17 .11 .64 (.48)
- -------------------------------------------------------------------------------------------------
Total from investment operations .35 .14 .07 .61 (.52)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 2.09 $ 1.74 $ 1.60 $ 1.53 $ .92
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 42 $ 46 $ 59 $ 64 $ 38
- -------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 2.47% 2.53% 2.52% 2.75% 2.71%
- -------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (1.66%) (1.71%) (2.26%) (2.27%) (2.45%)
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 196% 115% 349% 546% 391%
- -------------------------------------------------------------------------------------------------
Total return(c) 20.12% 8.75% 4.58% 66.30% (36.11%)
- -------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 31
<Page>
CLASS C
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 1.74 $ 1.61 $ 1.53 $ .92 $ 1.44
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.03) (.03) (.04) (.03) (.04)
Net gains (losses) (both realized
and unrealized) .39 .16 .12 .64 (.48)
- -------------------------------------------------------------------------------------------------
Total from investment operations .36 .13 .08 .61 (.52)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 2.10 $ 1.74 $ 1.61 $ 1.53 $ .92
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 3 $ 3 $ 4 $ 4 $ 2
- -------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 2.45% 2.52% 2.49% 2.72% 2.69%
- -------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (1.66%) (1.69%) (2.23%) (2.26%) (2.39%)
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 196% 115% 349% 546% 391%
- -------------------------------------------------------------------------------------------------
Total return(c) 20.69% 8.07% 5.23% 66.30% (36.11%)
- -------------------------------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
32 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
CLASS I
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004(b)
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 2.01 $ 1.83 $ 1.70
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) (.01) (.02)
Net gains (losses) (both realized
and unrealized) .46 .19 .15
- -------------------------------------------------------------------------
Total from investment operations .45 .18 .13
- -------------------------------------------------------------------------
Net asset value, end of period $ 2.46 $ 2.01 $ 1.83
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ -- $ -- $ --
- -------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(c) 1.01% 1.04% 1.03%(d)
- -------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.22%) (.21%) (.73%)(d)
- -------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 196% 115% 349%
- -------------------------------------------------------------------------
Total return(e) 22.39% 9.84% 7.65%(f)
- -------------------------------------------------------------------------
</Table>
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Inception date is July 15, 2004.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(d) Adjusted to an annual basis.
(e) Total return does not reflect payment of a sales charge.
(f) Not annualized.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 33
<Page>
CLASS Y*
<Table>
<Caption>
FISCAL PERIOD ENDED OCT. 31, 2006 2005 2004 2003 2002
PER SHARE INCOME AND CAPITAL CHANGES(a)
Net asset value, beginning of period $ 2.00 $ 1.83 $ 1.72 $ 1.03 $ 1.60
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.02) (.02) (.02) (.02) (.03)
Net gains (losses) (both realized
and unrealized) .45 .19 .13 .71 (.54)
- -------------------------------------------------------------------------------------------------
Total from investment operations .43 .17 .11 .69 (.57)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 2.43 $ 2.00 $ 1.83 $ 1.72 $ 1.03
- -------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 1 $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------------
Ratio of expenses to average
daily net assets(b) 1.47% 1.54% 1.55% 1.69% 1.72%
- -------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average daily net assets (.68%) (.73%) (1.28%) (1.25%) (1.61%)
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate
(excluding short-term securities) 196% 115% 349% 546% 391%
- -------------------------------------------------------------------------------------------------
Total return(c) 21.50% 9.29% 6.40% 66.99% (35.63%)
- -------------------------------------------------------------------------------------------------
</Table>
* Effective Dec. 11, 2006, Class Y was renamed Class R4.
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Expense ratio is based on total expenses of the Fund before reduction of
earnings and bank fee credits on cash balances.
(c) Total return does not reflect payment of a sales charge.
34 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD AND SHAREHOLDERS
RIVERSOURCE GLOBAL SERIES, INC.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of RiverSource Global Technology Fund
(a series of RiverSource Global Series, Inc.) as of October 31, 2006, the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period ended October
31, 2006, and the financial highlights for each of the years in the five-year
period ended October 31, 2006. These financial statements and the financial
highlights are the responsibility of fund management. Our responsibility is to
express an opinion on these financial statements and the financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2006, by correspondence with the custodian
and brokers or by other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
RiverSource Global Technology Fund as of October 31, 2006, and the results of
its operations, changes in its net assets and the financial highlights for each
of the periods stated in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
December 20, 2006
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 35
<Page>
FUND EXPENSES EXAMPLE
(UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments; and (2) ongoing
costs, including management fees; distribution and service (12b-1) fees; and
other Fund 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 Oct. 31, 2006.
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.
36 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ANNUALIZED
MAY 1, 2006 OCT. 31, 2006 THE PERIOD(a) EXPENSE RATIO
Class A
Actual(b) $ 1,000 $ 1,038.60 $ 9.04 1.74%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,016.61 $ 8.94 1.74%
Class B
Actual(b) $ 1,000 $ 1,034.70 $ 13.01 2.51%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,012.69 $ 12.87 2.51%
Class C
Actual(b) $ 1,000 $ 1,034.50 $ 12.96 2.50%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,012.74 $ 12.82 2.50%
Class I
Actual(b) $ 1,000 $ 1,042.40 $ 5.46 1.05%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,020.13 $ 5.40 1.05%
Class Y
Actual(b) $ 1,000 $ 1,038.50 $ 7.89(c) 1.52%
Hypothetical
(5% return before expenses) $ 1,000 $ 1,017.73 $ 7.81(c) 1.52%
</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 186/365 (to reflect the one-half year period).
(b) Based on the actual return for the six months ended Oct. 31, 2006: +3.86%
for Class A, +3.47% for Class B, +3.45% for Class C, +4.24% for Class I and
+3.85% for Class Y.
(c) In September 2006, the Board approved renaming Class Y as Class R4,
terminating the shareholder servicing agreement, revising the fee structure
under the transfer agent agreement from account-based to asset-based, and
adopting a plan administration services agreement. In addition, the
investment manager and its affiliates have contractually agreed to waive
certain fees and to absorb certain expenses until Oct. 31, 2007, unless
sooner terminated at the discretion of the Fund's Board such that net
expenses, before giving effect to any performance incentive adjustment, will
not exceed 1.41% for Class R4. Any amounts waived will not be reimbursed by
the Fund. These changes are effective Dec. 11, 2006. If these changes had
been in place for the six-month period ended Oct. 31, 2006, the actual
expenses paid for Class Y would have been $7.06 and the hypothetical
expenses paid for Class Y would have been $6.99.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 37
<Page>
BOARD MEMBERS AND OFFICERS
Shareholders elect a Board that oversees the Fund's operations. The Board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the Board.
The following is a list of the Fund' s Board members. Each member oversees 100
RiverSource funds. Board members serve until the next regular shareholders'
meeting or until he or she reaches the mandatory retirement age established by
the Board. Under the current Board policy, members may serve until the end of
the meeting following their 75th birthday, or the fifteenth anniversary of the
first Board meeting they attended as members of the Board, whichever occurs
first. This policy does not apply to Ms. Jones who may retire after her 75th
birthday.
INDEPENDENT BOARD MEMBERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
Kathleen Blatz Board member Chief Justice, Minnesota Supreme
901 S. Marquette Ave. since 2006 Court, 1998-2005
Minneapolis, MN 55402
Age 52
Arne H. Carlson Board member and Chair, Board Services Corporation
901 S. Marquette Ave. Chair of the Board (provides administrative services
Minneapolis, MN 55402 since 1999 to boards); former Governor
Age 72 of Minnesota
Patricia M. Flynn Board member Trustee Professor of Economics and
901 S. Marquette Ave. since 2004 Management, Bentley College;
Minneapolis, MN 55402 former Dean, McCallum Graduate
Age 56 School of Business, Bentley College
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 71
Jeffrey Laikind Board member Former Managing Director, American Progressive
901 S. Marquette Ave. since 2005 Shikiar Asset Management Insurance
Minneapolis, MN 55402
Age 71
Stephen R. Lewis, Jr.* Board member President Emeritus and Valmont Industries,Inc.
901 S. Marquette Ave. since 2002 Professor of Economics, (manufactures irrigation
Minneapolis, MN 55402 Carleton College systems)
Age 67
</Table>
* As of Jan. 1, 2007 Stephen Lewis will replace Arne Carlson as Chair of the
Board.
38 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
INDEPENDENT BOARD MEMBERS (CONTINUED)
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
Catherine James Paglia Board member Director, Enterprise Asset Strategic Distribution,
901 S. Marquette Ave. since 2004 Management, Inc.(private real Inc. (transportation,
Minneapolis, MN 55402 estate and asset management distribution and logistics
Age 54 company) consultants)
Vikki L. Pryor Board member President and Chief Executive
901 S. Marquette Ave. since 2006 Officer, SBLI USA Mutual Life
Minneapolis, MN 55402 Insurance Company, Inc. since 1999
Age 53
Alison Taunton-Rigby Board member Chief Executive Officer,RiboNovix, Hybridon,Inc.
901 S. Marquette Ave. since 2002 Inc.since 2003 (biotechnology); (biotechnology);
Minneapolis, MN 55402 former President, Forester Biotech American Healthways,
Age 62 Inc. (health management
programs)
</Table>
BOARD MEMBER AFFILIATED WITH RIVERSOURCE INVESTMENTS*
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION OTHER
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
William F. Truscott Board member President,Ameriprise Certificate
53600 Ameriprise since 2001, Company since 2006; President -
Financial Center Vice President U.S. Asset Management and Chief
Minneapolis, MN 55474 since 2002 Investment Officer, Ameriprise
Age 46 Financial, Inc. and President,
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC since
2005; Senior Vice
President - Chief
Investment
Officer, Ameriprise
Financial, Inc. and
Chairman of the Board
and Chief Investment
Officer, RiverSource
Investments, LLC, 2001-2005
</Table>
* Interested person by reason of being an officer, director, security holder
and/or employee of RiverSource Investments.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 39
<Page>
The Board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the
Fund' s other officers are:
FUND OFFICERS
<Table>
<Caption>
NAME, POSITION HELD
ADDRESS, WITH FUND AND PRINCIPAL OCCUPATION
AGE LENGTH OF SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------------------
Neysa M. Alecu Money Laundering Compliance Director and Anti-Money Laundering Officer,
2934 Ameriprise Prevention Officer Ameriprise Financial,Inc.since 2004; Manager Anti-Money
Financial Center since 2004 Laundering,Ameriprise Financial, Inc., 2003-2004; Compliance
Minneapolis, MN 55474 Director and Bank Secrecy Act Officer,American Express
Age 42 Centurion Bank, 2000-2003
Patrick T. Bannigan President Senior Vice President - Asset Management,RiverSource
172 Ameriprise since 2006 Investments, LLC since 2006; Managing Director and Global
Financial Center Head of Product, Morgan Stanley Investment Management,
Minneapolis, MN 55474 2004-2006; President, Touchstone Investments, 2002-2004;
Age 41 Director of Strategic Planning, Evergreen Investments, 1995-2002
Jeffrey P. Fox Treasurer Vice President - Investment Accounting, Ameriprise Financial,
105 Ameriprise since 2002 Inc., since 2002; Vice President - Finance, American Express
Financial Center Company,2000-2002
Minneapolis, MN 55474
Age 51
Amy K. Johnson Vice President Vice President - Asset Management and Trust Company Services,
5228 Ameriprise since 2006 RiverSource Investments, LLC, since 2006; Vice President -
Financial Center Operations and Compliance, RiverSource Investments,LLC,
Minneapolis, MN 55474 2004-2006; Director of Product Development - Mutual Funds,
Age 41 American Express Financial Corporation, 2001-2004
Michelle M. Keeley Vice President Executive Vice President - Equity and Fixed Income,
172 Ameriprise since 2004 Ameriprise Financial,Inc. and RiverSource Investments, LLC since
Financial Center 2006; Vice President - Investments,Ameriprise Certificate
Minneapolis, MN 55474 Company since 2003; Senior Vice President - Fixed Income,
Age 42 Ameriprise Financial, Inc., 2002-2006 and RiverSource
Investments, LLC,2004-2006; Managing Director, Zurich Global
Assets, 2001-2002
Jennifer D. Lammers Chief Compliance U.S. Asset Management Chief Compliance Officer,RiverSource
172 Ameriprise Officer since 2006 Investments,LLC since 2006; Director - Mutual Funds,
Financial Center Voyageur Asset Management, 2003-2006; Director of Finance,
Minneapolis, MN 55474 Voyageur Asset Management, 2000-2003
Age 46
Scott R. Plummer Vice President, Vice President and Chief Counsel - Asset Management,
5228 Ameriprise General Counsel Ameriprise Financial,Inc. since 2005; Vice President,
Financial Center and Secretary General Counsel and Secretary,Ameriprise Certificate Company
Minneapolis, MN 55474 since 2006 since 2005; Vice President - Asset Management Compliance,
Age 47 Ameriprise Financial,Inc., 2004-2005; Senior Vice President and
Chief Compliance Officer, U.S. Bancorp Asset Management,
2002-2004; Second Vice President and Assistant General
Counsel, Hartford Life,2001-2002
</Table>
The SAI has additional information about the Fund' s directors and is
available, without charge, upon request by calling RiverSource Funds at (888)
791-3380; contacting your financial institution; or visiting
riversource.com/funds.
40 RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT
<Page>
PROXY VOTING
The policy of the Board is to vote all proxies of the companies in which the
Fund holds investments. The procedures are stated in the Statement of Additional
Information (SAI). You may obtain a copy of the SAI without charge by calling
RiverSource Funds at (888) 791-3380; contacting your financial institution;
visiting riversource.com/funds; or searching the website of the Securities and
Exchange Commission (SEC) at http://www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities during the 12-month period
ended June 30, 2006 is available without charge by visiting
riversource.com/funds; or searching the website of the SEC at www.sec.gov.
RIVERSOURCE GLOBAL TECHNOLOGY FUND - 2006 ANNUAL REPORT 41
RIVERSOURCE(SM) GLOBAL TECHNOLOGY FUND
734 Ameriprise Financial Center
Minneapolis, MN 55474
riversource.com/funds
[RIVERSOURCE (SM) INVESTMENTS LOGO]
This report must be accompanied or preceded by the Fund's current prospectus.
RiverSource(SM) mutual funds are distributed by RiverSource Distributors, Inc.
and Ameriprise Financial Services, Inc., Members NASD, and managed by
RiverSource Investments, LLC. These companies are part of Ameriprise Financial,
Inc.
S-6395 L (12/06)
Item 2. (a) The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer and principal financial
officer. A copy of the code of ethics is filed as an exhibit to this
form N-CSR.
(b) During the period covered by this report, there were not any
amendments to the provisions of the code of ethics adopted in 2(a)
above.
(c) During the period covered by this report, there were not any
implicit or explicit waivers to the provisions of the code of ethics
adopted in 2(a).
Item 3. The Registrant's board of directors has determined that independent
directors Jeffrey Laikind and Anne P. Jones, each qualify as audit
committee financial experts.
Item 4. Principal Accountant Fees and Services
Fund - Related Fees*
(a) Audit Fees. The fees paid for the years ended Oct. 31, to KPMG LLP
for professional services rendered for the audits of the annual
financial statements for RiverSource Global Series, Inc. were as
follows:
2006 - $162,800; 2005 - $55,550
(b) Audit - Related Fees. The fees paid for the years ended Oct. 31, to
KPMG LLP for additional professional services rendered in connection
with the registrant's security count pursuant to Rule 17f-2 and a
2003 private equity security review for RiverSource Global Series,
Inc. were as follows:
2006 - $502; 2005 - $400
(c) Tax Fees. The fees paid for the years ended Oct. 31, to KPMG LLP for
tax compliance related services for RiverSource Global Series, Inc.
were as follows:
2006 - $47,491; 2005 - $15,118
(d) All Other Fees. The fees paid for the years ended Oct. 31, to KPMG
LLP for additional professional services rendered for RiverSource
Global Series, Inc. were as follows:
2006 - $1,230; 2005 - $1,190
(e) (1) Audit Committee Pre-Approval Policy. Pursuant to Sarbanes-Oxley
pre-approval requirements, all services to be performed by KPMG LLP
for the registrant and to the registrant's investment adviser and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
must be pre-approved by the audit committee.
(e) (2) 100% of the services performed for items (b) through (d) above
during 2006 and 2005 were pre-approved by the audit committee.
(f) Not applicable.
(g) Non-Audit Fees. The fees paid for the years ended Oct. 31, by the
registrant for non-audit services to KPMG LLP were as follows:
2006 - $101,121; 2005 - $103,308
The fees paid for the years ended Oct. 31, to KPMG LLP by the
registrant's investment adviser, and any entity controlling,
controlled by, or under common control with the adviser that provides
ongoing services to the registrant were as follows:
2006 - $52,400; 2005 - $87,000
(h) 100% of the services performed for item (g) above during 2006 and
2005 were pre-approved by the audit committee.
*2005 represents bills paid 11/1/04 - 10/31/05
2006 represents bills paid 11/1/05 - 10/31/06
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) Code of ethics as applies to the Registrant's principal
executive officer and principal financial officer, as required to be
disclosed under Item 2 of Form N-CSR, is attached as Ex. 99.CODE ETH.
(a)(2) Separate certification for the Registrant's principal
executive officer and principal financial officer, as required by
Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under
the Investment Company Act of 1940, are attached as EX.99.CERT.
(a)(3) Not applicable.
(b) A certification by the Registrant's principal executive officer
and principal financial officer, pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment
Company Act of 1940, is attached as EX.99.906 CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the Registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) RiverSource Global Series, Inc.
By /s/ Patrick T. Bannigan
-----------------------
Patrick T. Bannigan
President and Principal Executive Officer
Date January 3, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By /s/ Patrick T. Bannigan
-----------------------
Patrick T. Bannigan
President and Principal Executive Officer
Date January 3, 2007
By /s/ Jeffrey P. Fox
-----------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date January 3, 2007