The table below lists the federal obligations percentages for RiverSource® Funds. Income derived from federal obligations may be exempt from state income or investment taxes, depending on your state of residence. The number provided is a percentage of the “total ordinary dividend” number found on Form 1099-DIV.
This information may be useful when preparing your state income tax return. Different rules apply in different states and only your tax advisor can determine whether this information can benefit you. A few states require a fund to be significantly invested in federal obligations in order for dividend income derived from such obligations to be exempt from state tax. For example, in 2007 the RiverSource Inflation Protected Securities Fund was the only fund in which at least 50% of the value of its total assets at the end of each fiscal quarter consisted of federal obligations. This information may be particularly relevant for residents of California, Connecticut and New York.
| Fund | % Ordinary Income from Federal Obligations |
| Absolute Return Currency and Income Fund | 5.38% |
| Balanced Fund | 14.57% |
| Core Bond Fund | 19.91% |
| Diversified Bond Fund | 20.50% |
| Global Bond Fund | 4.71% |
| Income Builder Basic Income Fund | 12.51% |
| Income Builder Enhanced Income Fund | 2.92% |
| Income Builder Moderate Income Fund | 8.39% |
| Inflation Protected Securities Fund | 100.00% |
| Limited Duration Bond Fund | 18.25% |
| Portfolio Builder Aggressive Fund | 9.27% |
| Portfolio Builder Conservative Fund | 30.18% |
| Portfolio Builder Moderate Aggressive Fund | 17.17% |
| Portfolio Builder Moderate Conservative Fund | 22.90% |
| Portfolio Builder Moderate Fund | 18.18% |
| Portfolio Builder Total Equity Fund | 0.24% |
| Retirement Plus 2010 Fund | 1.63% |
| Retirement Plus 2015 Fund | 1.53% |
| Retirement Plus 2020 Fund | 1.00% |
| Retirement Plus 2025 Fund | 0.62% |
| Retirement Plus 2030 Fund | 0.66% |
| Retirement Plus 2035 Fund | 0.66% |
| Retirement Plus 2040 Fund | 0.69% |
| Retirement Plus 2045 Fund | 0.51% |
| Short Duration U.S. Government Fund | 59.51% |
| Strategic Allocation Fund | 7.18% |
| Strategic Income Allocation Fund | 9.15% |
| U.S. Government Mortgage Fund | 22.79% |
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.
Investing in certain funds involves special risk, such as those related to investments
in foreign securities, small- and mid-capitalization stocks, fixed income securities
(especially high-yield securities), and funds which focus their investments in
a particular sector, such as real estate, technology, and precious metals. See
each fund's prospectus for specific risks associated with the Fund.
An investment in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to maintain the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
"Standard & Poors®", "S&P", "S&P 500®", and "Standard & Poor's 500®" are trademarks of the McGraw-Hill Companies, Inc. These trademarks and service marks have been licensed for use by Ameriprise Financial, Inc. The Funds are not sponsored, endorsed, sold or promoted by Standard & Poor's or any of their subsidiaries or affiliates (the "Licensors") and the Licensors make no representation regarding the advisability of investing in the Funds. The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of common stocks, is frequently used as a measure of market performance. The index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees.
