RiverSource Balanced Fund

Transcription

1 Semiannual Report RiverSource Balanced Fund Semiannual Report for the Period Ended March 31, 2010 * RiverSource Balanced Fund seeks to provide shareholders with a balance of growth of capital and current income.

2 Letter to Shareholders Dear Fellow Shareholders, On April 30, 2010, Ameriprise Financial, Inc., the parent company of RiverSource Investments, LLC, acquired the long-term asset management business of Columbia Management Group, LLC, bringing together the fund families of Columbia Management and RiverSource Investments. This transaction combines two leading asset management firms and creates one entity that, as of March 31, 2010 data (Source: ICI), is the eighth largest manager of long-term mutual fund assets in the U.S. The investment manager for our funds, RiverSource Investments, LLC, will remain the same, but its name has changed to Columbia Management Investment Advisers, LLC. You will soon begin to see re-branding take effect on communications and statements as the integration of RiverSource and Columbia gets underway. I want you, as a valued shareholder, to know that our goals as Directors of the Fund are to ensure a smooth transition and to provide you and all our fellow shareholders with the highest quality products and services. The Board of your Fund will work closely with Columbia Management in this effort, and we will keep you informed as the integration of these two great firms progresses and key decisions are made. Throughout the transition, we will all seek to build on best practices from both legacy organizations with enhancements to productivity, quality and the delivery of world-class customer experiences. The new President of our funds is J. Kevin Connaughton. Kevin was a managing director and head of mutual funds for Columbia Management, responsible for the day-to-day delivery of mutual fund products and services. We are pleased to have Kevin continue in this role for the new combined organization. THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT

3 The combined organization offers a comprehensive choice of investment products managed by a diverse group of dedicated investment teams. They share a passion for investing and a commitment to delivering a consistent investment experience. Their approach is distinguished by a singular focus on fund shareholders. The Directors of your Fund look forward to working with them as they continue to support your investment needs. Stephen R. Lewis, Jr. Chairman of the Boards Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about the funds, call Read the prospectus carefully before investing. RiverSource», Seligman» and Threadneedle» mutual funds are distributed by Columbia Management Investment Distributors, Inc. (formerly known as RiverSource Fund Distributors, Inc.), member FINRA and managed by Columbia Management Investment Advisers, LLC (formerly known as RiverSource Investments, LLC). Threadneedle mutual funds are subadvised by Threadneedle International Limited, an affiliate of Columbia Management. Seligman is an offering brand of Columbia Management Columbia Management Investment Advisers, LLC. All rights reserved. For more information about any of the Funds, go online to riversource.com (for RiverSource and Threadneedle funds) or seligman.com (for Seligman funds); or call Customer Service Representatives are available to answer your questions Monday through Friday from 7 a.m. to 6 p.m. Central time. THIS PAGE IS NOT PART OF THE SEMIANNUAL REPORT

4 Table of Contents Your Fund at a Glance Fund Expenses Example....9 Portfolio of Investments Statement of Assets and Liabilities Statement of Operations Statements of Changes in Net Assets...38 Financial Highlights Notes to Financial Statements Proxy Voting RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

5 Your Fund at a Glance (Unaudited) FUND SUMMARY H RiverSource Balanced Fund (the Fund) Class A shares gained 8.43% (excluding sales charge) for the six months ended March 31, H The Fund underperformed the Russell 1000» Value Index (Russell Index), which increased 11.28% during the same period. H The Fund outperformed the Barclays Capital U.S. Aggregate Bond Index (Barclays Index), which gained 1.99% during the same period. H The Fund also outperformed its Blended Index, comprised 60% of the Russell Index and 40% of the Barclays Index, which rose 7.61% during the same time frame. H The Fund outperformed its peer group, the Lipper Balanced Funds Index, which advanced 7.63%. ANNUALIZED TOTAL RETURNS (for period ended March 31, 2010) 6 months* 1 year 3 years 5 years 10 years RiverSource Balanced Fund Class A (excluding sales charge) +8.43% % -2.68% +2.17% -0.54% Russell 1000 Value Index (1) (unmanaged) % % -7.33% +1.05% +3.10% Barclays Capital U.S. Aggregate Bond Index (2) (unmanaged) +1.99% +7.69% +6.14% +5.44% +6.29% Blended Index (3) (unmanaged) +7.61% % -1.61% +3.16% +4.70% Lipper Balanced Funds Index (4) +7.63% % -0.27% +3.68% +2.88% * Not annualized. The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting riversource.com/funds or calling RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 3

6 Your Fund at a Glance (continued) The 5.75% sales charge applicable to Class A shares of the Fund is not reflected in the table above. If reflected, returns would be lower than those shown. The performance of other classes may vary from that shown because of differences in fees and expenses. The Fund s returns reflect the effect of fee waivers/ expense reimbursements, if any. Without such waivers/reimbursements, the Fund s returns would be lower. See the Average Annual Total Returns table for performance of other share classes of the Fund. The indices do not reflect the effects of sales charges, expenses (excluding Lipper) and taxes. It is not possible to invest directly in an index. (1) The Russell 1000 Value Index, an unmanaged index, measures the performance of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. The index reflects reinvestment of all distributions and changes in market prices. (2) The Barclays Capital U.S. Aggregate Bond Index, an unmanaged index, is made up of a representative list of government, corporate, asset-backed and mortgage-backed securities. The index is frequently used as a general measure of bond market performance. The index reflects reinvestment of all distributions and changes in market prices. (3) The Blended Index consists of 60% Russell 1000 Value Index and 40% Barclays Capital U.S. Aggregate Bond Index. (4) The Lipper Balanced Funds Index includes the 30 largest balanced 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. 4 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

7 AVERAGE ANNUAL TOTAL RETURNS at March 31, 2010 Without sales charge 6 months* 1 year 3 years 5 years 10 years Since inception** Class A (inception 4/16/40) +8.43% % -2.68% +2.17% -0.54% N/A Class B (inception 3/20/95) +8.07% % -3.39% +1.39% -1.30% N/A Class C (inception 6/26/00) +8.10% % -3.38% +1.40% N/A -0.97% Class R2 (inception 8/3/09) +8.37% N/A N/A N/A N/A %* Class R4 (inception 3/20/95) +8.61% % -2.50% +2.36% -0.37% N/A Class R5 (inception 8/3/09) +8.62% N/A N/A N/A N/A %* With sales charge Class A (inception 4/16/40) +2.19% % -4.59% +0.97% -1.13% N/A Class B (inception 3/20/95) +3.07% % -4.31% +1.01% -1.30% N/A Class C (inception 6/26/00) +7.10% % -3.38% +1.40% N/A -0.97% * Not annualized. ** For classes with less than 10 years performance. Class A share performance reflects the maximum initial sales charge of 5.75%. Class B share performance reflects a contingent deferred sales charge (CDSC) applied as follows: first year 5%; second year 4%; third and fourth years 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 R2, Class R4 and Class R5 shares. Class R2, Class R4 and Class R5 are available to qualifying institutional investors only. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 5

8 Your Fund at a Glance (continued) STYLE MATRIX STYLE EQUITY VALUE BLEND GROWTH DURATION FIXED INCOME SHORT INT. LONG SIZE LARGE MEDIUM SMALL QUALITY HIGH MEDIUM LOW Shading within the style matrix approximates areas in which the Fund is designed to generally invest. The style matrix can be a valuable tool for constructing and monitoring your portfolio. It provides a frame of reference for distinguishing the types of stocks and/or bonds owned by a mutual fund, and may serve as a guideline for helping you build a portfolio. Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. There are risks associated with fixed income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is more pronounced for longer-term securities. 6 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

9 ASSET ALLOCATION & SECTOR BREAKDOWN (1) (at March 31, 2010) Stocks 64.3% Consumer Discretionary 4.8% Consumer Staples 3.9% Energy 11.1% Financials 10.7% Health Care 6.3% Industrials 9.7% Information Technology 9.7% Materials 5.5% Telecommunication Services 2.0% Utilities 0.6% Bonds 33.6% Asset-Backed 3.6% Commercial Mortgage-Backed 3.0% Consumer Discretionary 1.1% Consumer Staples 0.9% Energy 0.8% Financials 1.0% Foreign Government 0.7% Health Care 0.3% Industrials 0.3% Materials 0.5% Residential Mortgage-Backed 9.5% Telecommunication 2.6% U.S. Government Obligations & Agencies 5.1% Utilities 4.2% Senior Loans 0.3% Consumer Discretionary 0.1% Consumer Staples 0.1% Energy % Telecommunication 0.1% Other (2) 1.8% (1) Sectors can be comprised of several industries. Please refer to the section entitled Portfolio of Investments for a complete listing. No single industry exceeds 25% of portfolio assets. Percentages indicated are based upon total investments (excluding Investments of Cash Collateral Received for Securities on Loan). The Fund s composition is subject to change. (2) Cash & Cash Equivalents. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 7

10 Your Fund at a Glance (continued) The sectors identified on the previous page are based on the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor s, a division of The McGraw-Hill Companies, Inc. TOP TEN HOLDINGS (1,2) (at March 31, 2010) Bank of America Corp. 2.8% Hewlett-Packard Co. 2.6% XL Capital Ltd., Class A 1.9% Intel Corp. 1.9% Chevron Corp. 1.9% Lorillard, Inc. 1.8% Transocean Ltd. 1.5% El du Pont de Nemours & Co. 1.4% ConocoPhillips 1.4% Wal-Mart Stores, Inc. 1.3% (1) Percentages indicated are based upon total investments (excluding Investments of Cash Collateral Received for Securities on Loan and Cash & Cash Equivalents). (2) Excludes U.S. Treasury and U.S. Government Agency Holdings. For further detail about these holdings, please refer to the section entitled Portfolio of Investments. Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security. 8 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

11 Fund Expenses Example (Unaudited) As a shareholder of the Fund, you incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments; and (ii) ongoing costs, which may include management fees; distribution and service (12b-1) fees; and other Fund fees and expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. In addition to the ongoing expenses which the Fund bears directly, the Fund s shareholders indirectly bear the ongoing expenses of any funds in which the Fund invests (also referred to as acquired funds ), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds). The Fund s indirect expense from investing in the acquired funds is based on the Fund s pro rata portion of the ongoing expenses charged by acquired funds using the expense ratio of each of the acquired funds as of the acquired fund s most recent shareholder report. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six months ended March 31, 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 BALANCED FUND 2010 SEMIANNUAL REPORT 9

12 Fund Expenses Example (continued) Beginning account value Oct. 1, 2009 Ending account value March 31, 2010 Expenses paid during the period (a) Annualized expense ratio Class A Actual (b) $1,000 $1, $ % Hypothetical (5% return before expenses) $1,000 $1, $ % Class B Actual (b) $1,000 $1, $ % Hypothetical (5% return before expenses) $1,000 $1, $ % Class C Actual (b) $1,000 $1, $ % Hypothetical (5% return before expenses) $1,000 $1, $ % Class R2 Actual (b) $1,000 $1, $ % Hypothetical (5% return before expenses) $1,000 $1, $ % Class R4 Actual (b) $1,000 $1, $ % Hypothetical (5% return before expenses) $1,000 $1, $ % Class R5 Actual (b) $1,000 $1, $ % Hypothetical (5% return before expenses) $1,000 $1, $ % (a) Expenses are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). (b) Based on the actual return for the six months ended March 31, 2010: +8.43% for Class A, +8.07% for Class B, +8.10% for Class C, +8.37% for Class R2, +8.61% for Class R4 and +8.62% for Class R5. 10 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

13 Portfolio of Investments March 31, 2010 (Unaudited) (Percentages represent value of investments compared to net assets) Investments in Securities Common Stocks (66.6%) Issuer Shares Value(a) Aerospace & Defense (1.8%) Honeywell International, Inc. 111,559 $5,050,276 United Technologies Corp. 87,648 6,451,769 Total 11,502,045 Air Freight & Logistics (0.6%) United Parcel Service, Inc., Class B 57,606 3,710,402 Airlines (1.0%) AMR Corp. 94,092(b) 857,178 Continental Airlines, Inc., Class B 65,032(b) 1,428,753 Delta Air Lines, Inc. 136,535(b) 1,992,046 UAL Corp. 63,540(b) 1,242,207 US Airways Group, Inc. 145,726(b,p) 1,071,086 Total 6,591,270 Automobiles (0.1%) Ford Motor Co. 60,014(b) 754,376 Biotechnology (0.6%) Gilead Sciences, Inc. 83,614(b) 3,802,765 Capital Markets (1.9%) Artio Global Investors, Inc. 19, ,287 Morgan Stanley 138,832 4,066,389 The Bank of New York Mellon Corp. 32, ,170 The Goldman Sachs Group, Inc. 38,352 6,544,001 Total 12,077,847 Common Stocks (continued) Issuer Shares Value(a) Chemicals (3.0%) Air Products & Chemicals, Inc. 55,184 $4,080,857 EI du Pont de Nemours & Co. 250,263 9,319,793 Praxair, Inc. 21,997 1,825,751 The Dow Chemical Co. 139,536 4,126,080 Total 19,352,481 Commercial Banks (0.6%) US Bancorp 39,574 1,024,175 Wells Fargo & Co. 92,411 2,875,830 Total 3,900,005 Commercial Services & Supplies (0.4%) Waste Management, Inc. 84,227 2,899,936 Communications Equipment (0.8%) Cisco Systems, Inc. 200,621(b) 5,222,165 Computers & Peripherals (3.5%) Hewlett-Packard Co. 328,372 17,452,972 IBM Corp. 38,884 4,986,873 Total 22,439,845 Diversified Financial Services (4.1%) Bank of America Corp. 1,028,218 18,353,692 JPMorgan Chase & Co. 182,143 8,150,899 Total 26,504,591 Diversified Telecommunication Services (1.8%) AT&T, Inc. 228,596 5,906,920 FairPoint Communications, Inc. 3,230(b) 99 Verizon Communications, Inc. 183,232 5,683,857 Total 11,590,876 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 11

14 Portfolio of Investments (continued) Common Stocks (continued) Issuer Shares Value(a) Issuer Shares Value(a) Electrical Equipment (1.1%) ABB Ltd., ADR 187,869(b,c) $4,103,059 Emerson Electric Co. 54,213 2,729,082 Total 6,832,141 Electronic Equipment, Instruments & Components (0.1%) Tyco Electronics Ltd. 30,045(c) 825,637 Energy Equipment & Services (3.4%) Baker Hughes, Inc. 79,281 3,713,522 Halliburton Co. 135,987 4,097,288 Schlumberger Ltd. 50,607 3,211,520 Transocean Ltd. 112,013(b,c) 9,675,683 Weatherford International Ltd. 85,544(b,c) 1,356,728 Total 22,054,741 Food & Staples Retailing (1.8%) CVS Caremark Corp. 76,020 2,779,291 Wal-Mart Stores, Inc. 158,657 8,821,329 Total 11,600,620 Health Care Equipment & Supplies (1.2%) Covidien PLC 57,187(c) 2,875,362 Medtronic, Inc. 108,314 4,877,380 Total 7,752,742 Health Care Providers & Services (0.3%) WellPoint, Inc. 34,358(b) 2,211,968 Hotels, Restaurants & Leisure (0.7%) Carnival Corp. 118,224 4,596,549 Household Durables (0.4%) KB Home 58, ,369 Pulte Group, Inc. 121,327(b) 1,364,929 Total 2,350,298 Industrial Conglomerates (0.7%) Tyco International Ltd. 110,706(c) 4,234,505 Common Stocks (continued) Insurance (4.3%) ACE Ltd. 111,853(c) $5,849,912 Chubb Corp. 25,950 1,345,508 Everest Re Group Ltd. 65,794(c) 5,324,708 The Travelers Companies, Inc. 53,730 2,898,196 XL Capital Ltd., Class A 664,256(c) 12,554,438 Total 27,972,762 Internet Software & Services ( %) AOL, Inc. 2,544(b) 64,312 IT Services (0.7%) Accenture PLC, Class A 101,580(c) 4,261,281 Life Sciences Tools & Services (0.6%) Thermo Fisher Scientific, Inc. 77,646(b) 3,994,110 Machinery (4.3%) Caterpillar, Inc. 124,978 7,854,868 Deere & Co. 43,547 2,589,305 Eaton Corp. 66,206 5,016,429 Illinois Tool Works, Inc. 157,314 7,450,391 Ingersoll-Rand PLC 62,560(c) 2,181,467 Parker Hannifin Corp. 50,889 3,294,554 Total 28,387,014 Media (0.6%) Comcast Corp., Class A 99,888 1,879,892 Time Warner, Inc. 55,452 1,733,984 Total 3,613,876 Metals & Mining (2.1%) Alcoa, Inc. 167,582 2,386,368 Freeport-McMoRan Copper & Gold, Inc. 43,964 3,672,753 Nucor Corp. 93,647 4,249,700 Rio Tinto PLC, ADR 4,719(c) 1,117,129 Vale SA, ADR 32,263(c) 1,038,546 Xstrata PLC 42,660(b,c) 808,235 Total 13,272,731 See accompanying Notes to Portfolio of Investments. 12 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

15 Common Stocks (continued) Issuer Shares Value(a) Issuer Shares Value(a) Multiline Retail (1.5%) Kohl s Corp. 35,406(b) $1,939,541 Macy s, Inc. 150,883 3,284,723 Target Corp. 83,732 4,404,303 Total 9,628,567 Multi-Utilities (0.7%) Dominion Resources, Inc. 104,039 4,277,043 Oil, Gas & Consumable Fuels (8.0%) Anadarko Petroleum Corp. 86,290 6,284,501 Apache Corp. 40,390 4,099,585 BP PLC, ADR 138,631(c) 7,911,671 Chevron Corp. 163,012 12,361,201 ConocoPhillips 179,053 9,162,142 Devon Energy Corp. 36,639 2,360,651 EnCana Corp. 32,113(c) 996,466 Exxon Mobil Corp. 97,518 6,531,756 Petroleo Brasileiro SA, ADR 19,974(c) 888,643 Spectra Energy Corp. 2,082 46,907 Ultra Petroleum Corp. 27,071(b) 1,262,321 Valero Energy Corp. 19, ,076 Total 52,290,920 Paper & Forest Products (0.6%) Weyerhaeuser Co. 91,216 4,129,348 Pharmaceuticals (3.8%) Abbott Laboratories 51,626 2,719,658 Bristol-Myers Squibb Co. 252,576 6,743,779 Merck & Co., Inc. 228,903 8,549,527 Pfizer, Inc. 370,705 6,357,591 Total 24,370,555 Real Estate Investment Trusts (REITs) (0.1%) Pebblebrook Hotel Trust 41,047(b) 863,218 Road & Rail (0.2%) CSX Corp. 20,431 1,039,938 Common Stocks (continued) Semiconductors & Semiconductor Equipment (2.5%) Intel Corp. 562,529 $12,521,895 Microchip Technology, Inc. 33, ,025 Taiwan Semiconductor Manufacturing Co., Ltd., ADR 113,335(c) 1,188,884 Xilinx, Inc. 61,794 1,575,747 Total 16,221,551 Software (2.4%) Microsoft Corp. 190,257 5,568,822 Oracle Corp. 259,680 6,671,180 Symantec Corp. 198,274(b) 3,354,796 Total 15,594,798 Specialty Retail (1.7%) Best Buy Co., Inc. 111,608 4,747,805 Home Depot, Inc. 121,986 3,946,247 Staples, Inc. 100,711 2,355,630 Total 11,049,682 Tobacco (2.3%) Lorillard, Inc. 157,743 11,868,583 Philip Morris International, Inc. 56,517 2,947,927 Total 14,816,510 Wireless Telecommunication Services (0.3%) Sprint Nextel Corp. 463,961(b) 1,763,052 Total Common Stocks (Cost: $333,331,054) $430,419,073 Other ( %) Issuer Shares Value(a) Hotels, Restaurants & Leisure Krispy Kreme Doughnuts, Inc. Warrants 683(b) $75 Total Other (Cost: $ ) $75 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 13

16 Portfolio of Investments (continued) Bonds (34.8%) Issuer Coupon rate Principal amount Value(a) Foreign Agencies (0.1%)(c) Pemex Project Funding Master Trust % $140,000 $144, , ,963 Petroleos de Venezuela , ,160 Total 582,203 Sovereign (0.4%)(c) Republic of Argentina , , ,000(r) 26,925 Republic of Colombia , ,000 Republic of El Salvador ,000(d) 71,570 Republic of Indonesia ,000(d) 90, ,000(d) 124,500 Republic of Philippines , ,499 Republic of Turkey , , , , , ,019 Republic of Uruguay , ,250 Republic of Venezuela ,000 62,350 Republic of Venezuela ,000 75,690 Republica Orient Uruguay ,000 91,733 Russian Federation ,860(d) 237,254 Total 2,416,213 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Treasury (0.3%)(c) Govt of Indonesia (Indonesian Rupiah) % 1,848,000,000 $215,464 Mexican Fixed Rate Bonds (Mexican Peso) ,670,000 1,239,984 Nota do Tesouro Nacional (Brazilian Real) Series F , ,248 Total 2,005,696 U.S. Government Obligations & Agencies (5.2%) Federal Farm Credit Bank $205, ,023 Federal Home Loan Banks ,000 61, , , , , ,000,000 2,001, , ,012 Federal Home Loan Mtge Corp , , , , ,340,000 3,363,056 Federal Natl Mtge Assn ,000 90, ,000 35, ,870,000 2,872, , , ,000 77,512 U.S. Treasury ,070,000 2,069, , , , , , , , , ,225,000 1,316, ,000,000 3,972, ,716,000 3,705, ,310,000 1,267, , , ,255,000 3,199, ,000 83,998 See accompanying Notes to Portfolio of Investments. 14 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

17 Bonds (continued) Issuer Coupon rate Principal amount Value(a) U.S. Government Obligations & Agencies (cont.) % $2,104,000 $1,989, ,340,000 1,320,738 U.S. Treasury STRIPS ,690, ,540 U.S. Treasury Inflation-Indexed Bond ,077,956(t) 1,126, ,156(t) 459, ,346(t) 506,739 Total 33,953,155 Asset-Backed (3.8%) Access Group Series Cl A ,010(i) 566,759 American Express Credit Account Master Trust Series Cl A ,000(i) 323,519 American Express Credit Account Master Trust Series Cl A ,000(i) 299,143 AmeriCredit Automobile Receivables Trust Series 2007-CM Cl A3B (NPFGC) ,319(e,i) 175,006 AmeriCredit Automobile Receivables Trust Series 2007-DF Cl A3A (AGM) ,245(e) 174,187 AmeriCredit Automobile Receivables Trust Series Cl A , ,339 Avis Budget Rental Car Funding AESOP LLC Series A Cl A ,000(d) 249,975 Bank of America Credit Card Trust Series 2008-A1 Cl A ,000(i) 575,954 Bank of America Credit Card Trust Series 2008-A5 Cl A ,000(i) 454,322 BMW Vehicle Lease Trust Series Cl A , ,163 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Asset-Backed (cont.) Capital Auto Receivables Asset Trust Series 2007-SN2 Cl A % $283,989(d,i) $284,464 Carmax Auto Owner Trust Series Cl A , ,749 Caterpillar Financial Asset Trust Series 2008-A Cl A ,901 63,157 Centex Home Equity Series 2002-D Cl M ,348(i) 28,738 Chrysler Financial Lease Trust Series 2010-A Cl A ,700,000(d) 2,698,864 Chrysler Financial Lease Trust Series 2010-A Cl C ,000(d) 849,502 CIT Equipment Collateral Series 2009-VT1 Cl A ,197(d) 764,225 Citibank Credit Card Issuance Trust Series 2008-C6 Cl C , ,912 CitiFinancial Auto Issuance Trust Series Cl A ,100,000(d) 2,102,165 Countrywide Asset-Backed Ctfs Series Cl 1A1M ,435(i) 109,757 CPS Auto Trust Series 2007-A Cl A3 (NPFGC) ,538(d,e) 32,583 Crown Castle Towers LLC Sr Secured ,000(d) 647,924 DT Auto Owner Trust Series Cl A ,329(d) 950,135 Dunkin Securitization Series Cl A2 (AMBAC) ,350,000(d,e) 1,310,594 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 15

18 Portfolio of Investments (continued) Bonds (continued) Issuer Coupon rate Principal amount Value(a) Asset-Backed (cont.) Equifirst Mtge Loan Trust Series Cl IF % $144,892 $132,748 Ford Credit Floorplan Master Owner Trust Series Cl A ,000(d,i) 353,503 GTP Towers Issuer LLC ,000(d) 200,547 Hertz Vehicle Financing LLC Series A Cl A4 (NPFGC) ,000(d,e,i) 895,549 Hertz Vehicle Financing LLC Series A Cl A5 (AMBAC) ,000(d,e,i) 447,774 Hertz Vehicle Financing LLC Series A Cl A6 (AMBAC) ,470,000(d,e) 1,492,672 Hertz Vehicle Financing LLC Series A Cl A ,000(d) 566,379 Hertz Vehicle Financing LLC Series A Cl A ,000(d) 514,981 Irwin Home Equity Series 2005-A Cl A ,114(i) 48,077 Merrill Lynch First Franklin Mtge Loan Trust Series Cl A2A ,836(i) 331,553 Morgan Stanley Resecuritization Trust Series 2010-F Cl A ,000(d,i) 443,250 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series Cl AIO ,350,000(g) 87,750 Natl Collegiate Student Loan Trust Collateralized Mtge Obligation Interest Only Series Cl AIO ,900,000(g) 209,674 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Asset-Backed (cont.) Renaissance Home Equity Loan Trust Series Cl A % $306,204 $288,680 Renaissance Home Equity Loan Trust Series Cl M ,000(o) 8,030 Renaissance Home Equity Loan Trust Series Cl M ,000(o) 3,893 Renaissance Home Equity Loan Trust Series Cl M ,000(o) 3,778 Santander Drive Auto Receivables Trust Series Cl A4 (FGIC) ,886(e,i) 382,437 Sierra Receivables Funding Series A Cl A ,000(d) 175,000 Target Credit Card Master Trust Series Cl A ,100,000(i) 3,076,832 Volkswagen Auto Lease Trust Series 2009-A Cl A , ,122 Total 24,340,365 Commercial Mortgage-Backed (3.1%)(f) Banc of America Commercial Mtge Series Cl A , ,704 Banc of America Commercial Mtge Series Cl A , ,750 Banc of America Commercial Mtge Series Cl A , ,478 Banc of America Large Loan Series 2001-FMA Cl C ,000(d) 152,787 Bear Stearns Commercial Mtge Securities Series 2007-PW18 Cl A , ,956 See accompanying Notes to Portfolio of Investments. 16 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

19 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Commercial Mortgage-Backed (cont.) CDC Commercial Mtge Trust Series 2002-FX1 Cl A % $1,427,100 $1,481,077 Citigroup Commercial Mtge Trust Series 2006-C5 Cl A , ,561 Citigroup/Deutsche Bank Commercial Mtge Trust Series 2005-CD1 Cl ASB , ,529 Commercial Mtge Pass-Through Ctfs Series 2006-CN2A Cl BFL ,000(d,i) 259,840 Commercial Mtge Pass-Through Ctfs Series 2007-C9 Cl A , ,883 Credit Suisse First Boston Mtge Securities Series 2004-C1 Cl A , ,843 Credit Suisse First Boston Mtge Securities Series 2004-C2 Cl A ,299 90,925 Federal Home Loan Mtge Corp Structured Pass-Through Ctfs Series K-006 Cl B ,000(d,j) 175,281 GE Capital Commercial Mtge Series Cl A , ,370 General Electric Capital Assurance Series Cl A ,381(d) 683,230 General Electric Capital Assurance Series Cl A ,000(d) 263,740 Greenwich Capital Commercial Funding Series 2003-C1 Cl A , ,029 Greenwich Capital Commercial Funding Series 2004-GG1 Cl A , ,214 Greenwich Capital Commercial Funding Series 2007-GG9 Cl A ,550,000 1,507,373 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Commercial Mortgage-Backed (cont.) GS Mtge Securities II Series 2004-GG2 Cl A % $214,910 $217,407 GS Mtge Securities II Series 2007-EOP Cl J ,000(d,i) 783,630 GS Mtge Securities II Series 2007-GG10 Cl A , ,110 GS Mtge Securities II Series 2007-GG10 Cl F ,000 69,988 JPMorgan Chase Commercial Mtge Securities Series 2003-LN1 Cl A , ,380 JPMorgan Chase Commercial Mtge Securities Series 2003-ML1A Cl A , ,967 JPMorgan Chase Commercial Mtge Securities Series 2004-CBX Cl A , ,238 JPMorgan Chase Commercial Mtge Securities Series 2004-LN2 Cl A , ,394 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP2 Cl A , ,641 JPMorgan Chase Commercial Mtge Securities Series 2005-LDP5 Cl A , ,191 JPMorgan Chase Commercial Mtge Securities Series 2006-LDP6 Cl ASB , ,357 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl A , ,424 JPMorgan Chase Commercial Mtge Securities Series 2007-CB20 Cl E ,000(d) 103,764 JPMorgan Chase Commercial Mtge Securities Series 2009-IWST Cl A ,731(d) 276,193 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 17

20 Portfolio of Investments (continued) Bonds (continued) Issuer Coupon rate Principal amount Value(a) Commercial Mortgage-Backed (cont.) LB-UBS Commercial Mtge Trust Series 2004-C2 Cl A % $650,000 $638,422 LB-UBS Commercial Mtge Trust Series 2005-C5 Cl AAB , ,523 LB-UBS Commercial Mtge Trust Series 2006-C4 Cl AAB , ,829 LB-UBS Commercial Mtge Trust Series 2007-C6 Cl A , ,287 LB-UBS Commercial Mtge Trust Series 2007-C7 Cl A , ,319 Merrill Lynch Mtge Trust Series 2008-C1 Cl A , ,209 Morgan Stanley Capital I Series 2004-HQ4 Cl A ,075,000 1,069,918 Morgan Stanley Capital I Series 2006-T23 Cl AAB , ,300 Wachovia Bank Commercial Mtge Trust Series 2005-C20 Cl A , ,894 Wachovia Bank Commercial Mtge Trust Series 2006-C24 Cl APB , ,072 Wachovia Bank Commercial Mtge Trust Series 2006-C27 Cl APB , ,265 Total 20,279,292 Residential Mortgage-Backed (9.7%)(f,l) Bear Stearns Adjustable Rate Mtge Trust Collateralized Mtge Obligation Series Cl A ,000(d,i) 750,794 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Residential Mortgage-Backed (cont.) Bear Stearns Alt-A Trust Collateralized Mtge Obligation Series Cl 2A2B % $36,614(i) $15,764 ChaseFlex Trust Collateralized Mtge Obligation Series Cl 2A ,018, ,283 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Interest Only Series CB Cl A ,529(g) 60,160 Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series T1 Cl A , ,673 Countrywide Home Loans Collateralized Mtge Obligation Series 2005-R2 Cl 2A ,081(d) 587,722 Federal Home Loan Mtge Corp ,000(j) 207, ,300,000(j) 1,342, ,000,000(j) 1,072,656 Federal Home Loan Mtge Corp #1G ,354(i) 108,324 Federal Home Loan Mtge Corp #1Q ,236(i) 120,589 Federal Home Loan Mtge Corp #A , ,283 Federal Home Loan Mtge Corp #A , ,888 Federal Home Loan Mtge Corp #C , ,860 Federal Home Loan Mtge Corp #C , ,913 Federal Home Loan Mtge Corp #C , ,008 Federal Home Loan Mtge Corp #E , ,694 Federal Home Loan Mtge Corp #E , ,237 See accompanying Notes to Portfolio of Investments. 18 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

21 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Residential Mortgage-Backed (cont.) Federal Home Loan Mtge Corp #E % $363,366 $386,257 Federal Home Loan Mtge Corp #E , ,386 Federal Home Loan Mtge Corp #G , ,515 Federal Home Loan Mtge Corp #G , ,960 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Interest Only Series 2817 Cl SA ,660(g) 33,946 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 1614 Cl MZ Trust Series Z ,220(h) 62,171 Federal Home Loan Mtge Corp Collateralized Mtge Obligation Series 2576 Cl KJ , ,117 Federal Natl Mtge Assn ,000(j) 622, ,170,000(j) 3,343, ,000,000(j) 1,024, ,000(j) 922, ,000,000(j) 1,031, ,325,000(j) 4,593, ,500,000(j) 7,876, ,855,000(j,n) 8,380, ,000(j) 162,094 Federal Natl Mtge Assn # , ,248 Federal Natl Mtge Assn # , ,175 Federal Natl Mtge Assn # , ,701 Federal Natl Mtge Assn # , ,901 Federal Natl Mtge Assn # , ,793 Federal Natl Mtge Assn # , ,350 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Residential Mortgage-Backed (cont.) Federal Natl Mtge Assn # % $121,448 $134,684 Federal Natl Mtge Assn # ,180(v) 848,764 Federal Natl Mtge Assn # , ,657 Federal Natl Mtge Assn # , ,923 Federal Natl Mtge Assn # ,739(v) 633,830 Federal Natl Mtge Assn # , ,708 Federal Natl Mtge Assn # ,515(v) 102,764 Federal Natl Mtge Assn # ,255,693 1,361,018 Federal Natl Mtge Assn # , ,993 Federal Natl Mtge Assn # , ,292 Federal Natl Mtge Assn # , ,775 Federal Natl Mtge Assn # , ,377 Federal Natl Mtge Assn # ,086,732 1,155,167 Federal Natl Mtge Assn # , ,626 Federal Natl Mtge Assn # , ,083 Federal Natl Mtge Assn # , ,774 Federal Natl Mtge Assn # , ,475 Federal Natl Mtge Assn # , ,880 Federal Natl Mtge Assn # , ,249 Federal Natl Mtge Assn # ,662(i) 244,358 Federal Natl Mtge Assn # ,279,256 1,332,848 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 19

22 Portfolio of Investments (continued) Bonds (continued) Issuer Coupon rate Principal amount Value(a) Residential Mortgage-Backed (cont.) Federal Natl Mtge Assn # % $536,030 $588,887 Federal Natl Mtge Assn # ,636(i) 132,135 Federal Natl Mtge Assn # ,552(i) 213,772 Federal Natl Mtge Assn #AC ,750,608 1,808,191 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series Cl IP ,316,079(g) 239,791 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series Cl IM ,121(g) 41,676 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series Cl GI ,490(g) 16,861 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 379 Cl ,086(g) 86,439 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 396 Cl ,699(g,j) 227,441 Federal Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series 400 Cl ,364(g) 199,426 GMAC Mtge Corp Loan Trust Collateralized Mtge Obligation Series 2005-J1 Cl A ,118,158 1,118,158 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Residential Mortgage-Backed (cont.) Govt Natl Mtge Assn # % $710,275 $757,306 Govt Natl Mtge Assn # , ,876 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series Cl IC ,678(g) 52,371 Govt Natl Mtge Assn Collateralized Mtge Obligation Interest Only Series Cl CI ,775(g) 378 IndyMac Index Mtge Loan Trust Collateralized Mtge Obligation Interest Only Series 2005-AR8 Cl AX ,256,310(g,s) Indymac Index Mtge Loan Trust Collateralized Mtge Obligation Series 2006-AR3 Cl 2A1B ,805(i) 94,366 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series Cl 2A , ,172 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series Cl 8A ,161,234 1,103,845 MASTR Alternative Loan Trust Collateralized Mtge Obligation Series Cl 7A , ,723 Wells Fargo Mtge Backed Securities Trust Collateralized Mtge Obligation Series 2004-K Cl 2A ,211(i) 104,643 Total 63,358,652 See accompanying Notes to Portfolio of Investments. 20 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

23 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Aerospace & Defense (0.1%) L-3 Communications % $130,000 $131,950 L-3 Communications Series B , ,670 TransDigm ,000(d) 86,700 Total 440,320 Automotive (0.3%) Ford Motor Cv ,180,000 1,775,368 Lear ,000 90, ,000 49,674 Oshkosh ,000(d) 63, ,000(d) 45,760 Total 2,025,030 Banking (0.8%) Bank of America , ,574 Citigroup , ,078 Citigroup ,000 1,011,571 Export-Import Bank of Korea ,000(c) 122,754 Goldman Sachs Group ,000 1,099,876 JPMorgan Chase & Co ,115,000 1,226,636 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Banking (cont.) Morgan Stanley % $360,000 $383, , ,203 Total 4,975,660 Brokerage ( %) Lehman Brothers Holdings ,000(b,o) 191,363 Chemicals (0.3%) Airgas ,000(d) 209,000 Ashland ,000(d) 84,000 Chemtura ,000(b,o) 202,100 Dow Chemical , ,623 INVISTA ,000(d) 99,225 LBI Escrow Sr Secured ,000(d,j) 103,500 Nalco Sr Nts ,000(d) 245,920 Nova Chemicals ,000(c,d) 54,458 Total 1,820,826 Consumer Products ( %) Jarden , ,175 Visant Holding Sr Disc Nts , ,750 Total 238,925 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 21

24 Portfolio of Investments (continued) Bonds (continued) Issuer Coupon rate Principal amount Value(a) Electric (3.1%) Arizona Public Service % $15,000 $15, , ,173 CenterPoint Energy Houston Electric LLC Series U , ,844 Cleveland Electric Illuminating 1st Mtge ,515,000 1,881,439 CMS Energy , ,300 Consumers Energy 1st Mtge ,000 26, , ,834 Detroit Edison Sr Secured , ,003 Dominion Resources Series A , ,735 Dominion Resources Series F ,160,000 1,226,516 DTE Energy ,000 1,029,569 Duke Energy , ,276 Edison Mission Energy , ,125 Exelon ,160,000 1,168,677 Florida Power 1st Mtge ,000 43, , , , ,364 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Electric (cont.) KCP&L Greater Missouri Operations % $125,000 $145,476 Majapahit Holding ,000(c,d) 109,625 Metropolitan Edison , ,310 Midwest Generation LLC Pass-Through Ctfs Series B , ,254 Nevada Power , ,927 Nevada Power Series L , ,794 Nevada Power Series O , ,010 NiSource Finance ,075,000 1,171, , , ,080,000 1,085, , ,619 NRG Energy , ,138 Ohio Edison , ,939 Ohio Power Series K , ,460 Oncor Electric Delivery LLC Sr Secured , ,171 Pacific Gas & Electric , ,186 PacifiCorp 1st Mtge , ,467 See accompanying Notes to Portfolio of Investments. 22 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

25 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Electric (cont.) PPL Electric Utilities 1st Mtge % $585,000 $677,864 Progress Energy , , , ,967 Sierra Pacific Power Series M ,555,000 1,690,389 Tampa Electric , ,652 Toledo Edison 1st Mtge , ,845 Toledo Edison Sr Secured , ,606 TransAlta Sr Nts ,000(c) 163,125 TransAlta ,000(c) 386,726 Total 19,697,724 Entertainment ( %) Regal Cinemas ,000 78,938 Speedway Motorsports , ,250 Total 270,188 Food and Beverage (0.9%) Anheuser-Busch InBev Worldwide ,000(d) 395, ,000(d) 526,616 Bacardi Sr Nts ,000(c,d) 108,620 ConAgra Foods ,000 49,431 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Food and Beverage (cont.) Del Monte % $155,000(d) $162,556 Kraft Foods , , ,385,000 1,515, , ,920 Molson Coors Capital Finance ,000(c) 617,070 SABMiller ,380,000(c,d) 1,507, ,000(c,d) 310,553 Total 5,743,403 Gaming (0.1%) Boyd Gaming Sr Sub Nts ,000 78,490 MGM MIRAGE Sr Secured ,000(d) 134,700 MGM MIRAGE ,000(d) 193,000 Total 406,190 Gas Pipelines (1.3%) CenterPoint Energy Resources , ,369 CenterPoint Energy Resources Series B , ,320 Colorado Interstate Gas ,607,000 2,910,705 El Paso , ,425 Northwest Pipeline , , , ,994 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 23

26 Portfolio of Investments (continued) Bonds (continued) Issuer Coupon rate Principal amount Value(a) Gas Pipelines (cont.) Southern Natural Gas % $1,085,000(d) $1,130,102 Southern Star Central Sr Nts , ,363 Transcontinental Gas Pipe Line LLC , ,856 Transcontinental Gas Pipe Line LLC Series B , ,065 Total 8,225,513 Health Care (0.3%) Cardinal Health , ,158 DaVita , ,562 HCA Sr Secured ,000(d) 174, ,000(d) 314,650 HCA Sr Secured Pay-in-kind ,000(q) 96,413 Omnicare , ,300 Select Medical , ,433 Total 2,115,916 Home Construction ( %) K Hovnanian Enterprises Sr Secured , ,600 Independent Energy (0.6%) Anadarko Petroleum , ,889 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Independent Energy (cont.) Chesapeake Energy % $45,000 $44, , ,000 Denbury Resources , , , ,500 EnCana ,335,000(c) 1,432,407 Forest Oil , ,175 Nexen ,000(c) 246,966 Petrohawk Energy ,000 93,819 Quicksilver Resources , ,220 Range Resources , , , ,288 SandRidge Energy ,000(d) 66,500 Woodside Finance ,000(c,d) 526,336 Total 4,050,863 Integrated Energy (0.1%) Petro-Canada ,000(c) 67,054 Suncor Energy ,000(c) 150,848 TNK-BP Finance ,000(c,d) 109,750 Total 327,652 Media Cable (0.5%) Cablevision Systems Sr Nts ,000(d) 190,350 See accompanying Notes to Portfolio of Investments. 24 RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT

27 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Media Cable (cont.) Charter Communications Operating LLC/Capital Secured % $510,000(d) $541,875 Comcast , , , , , ,136 CSC Holdings LLC ,000(d) 101, ,000 36,750 DISH DBS ,000 75, , , , ,800 TCM Sub LLC ,000(d) 733,923 Total 2,985,061 Media Non Cable (0.6%) Lamar Media ,000 80, ,000 81,938 News America , ,409 Nielsen Finance LLC ,000 99,513 Rainbow Natl Services LLC ,000(d) 81,300 Reed Elsevier Capital , ,000 RR Donnelley & Sons , , ,805,000 1,811,985 Thomson Reuters ,000(c) 501,016 Total 4,007,513 Bonds (continued) Issuer Coupon rate Principal amount Value(a) Metals ( %) Arch Western Finance LLC % $85,000 $85,319 United States Steel Sr Nts ,000 71,640 Total 156,959 Non Captive Diversified (0.3%) CIT Group Sr Secured , ,650 General Electric Capital , , , ,276 Total 1,718,346 Oil Field Services (0.1%) Expro Finance Luxembourg Sr Secured ,000(c,d) 456,472 Gaz Capital for Gazprom ,000(c,d) 205,500 Total 661,972 Packaging (0.1%) Ball ,000 30, ,000 97,970 Crown Americas LLC/Capital , ,400 Greif ,000 81,200 Owens-Brockway Glass Container , ,250 Reynolds Group Issuer LLC Sr Secured ,000(d) 112,543 Total 697,113 See accompanying Notes to Portfolio of Investments. RIVERSOURCE BALANCED FUND 2010 SEMIANNUAL REPORT 25