A key component of the long-term strategy of RiverSource Investments is consistent and ongoing analysis of our mutual fund offerings, which helps us deliver innovative product solutions and competitive performance. Our mutual fund mergers were designed to improve and clarify our mutual fund offerings.
When a fund merger is approved by the shareholders of RiverSource® mutual funds, a special distribution is generally paid out to shareholders of the merged funds. The distribution is included in year-end tax statements. In addition, fund mergers will impact the cost basis calculation for non-qualified mutual fund accounts.
In non-qualified accounts, as part of a tax-free merger, the cost basis of each affected shareholder's mutual fund account is carried over from the merged account to the acquiring account as part of the reorganization.
The recalculation was done automatically for shareholders by RiverSource Funds at the time of the merger.
The shareholder keeps track of the cost of each share purchased and uses this information when deciding which shares to sell. While the fund mergers are nontaxable events, shareholders will need to adjust their records to take the basis of their merged fund shares and allocate that basis to the new fund shares received.
For example, if a RiverSource New Dimensions Fund (A-shares) shareholder owned 10 shares with a cost basis of $100, that $100 cost basis would transfer to the 35.691 RiverSource Large Cap Equity Fund shares that the shareholder received in the merger. In this example, the RiverSource New Dimensions Fund cost basis was $10 per share ($100/10 shares), then the RiverSource Large Cap Equity cost basis would be $2.80 per share ($100/35.691 shares). When using the specific identification method, each lot of shares purchased in a separate transaction, including reinvested dividends, requires a separate calculation. To determine the number of shares you received per share owned, see the merger ratio information for RiverSource Funds below.
2008 Merger Ratio Information
2006 Merger Ratio Information
Important: The information provided is a brief and selective summary of some of the tax implications that apply to RiverSource mutual funds. Because tax matters are highly individual and complex, you should consult a qualified tax advisor. RiverSource Investments does not provide tax or legal advice.
Effective March 17, 2008, seven retail funds merged into a corresponding RiverSource mutual fund that had a substantially similar investment objective and principal investment strategy.(In addition, one RiverSource Variable Portfolio fund merged into an existing RiverSource fund effective March 10, 2008.) Please see the table below for fund merger information.
| Merged Fund | Acquiring Fund |
RiverSource Massachusetts Tax-Exempt Fund |
RiverSource Tax-Exempt High Income Fund |
RiverSource Michigan Tax-Exempt Fund |
RiverSource Tax-Exempt High Income Fund |
RiverSource Ohio Tax-Exempt Fund |
RiverSource Tax-Exempt High Income Fund |
RiverSource Core Bond Fund |
RiverSource Diversified Bond Fund |
RiverSource Variable Portfolio Core Bond Fund |
RiverSource Variable Portfolio Diversified Bond Fund |
RiverSource Fundamental Growth Fund |
RiverSource Growth Fund |
RiverSource Value Fund |
RiverSource Diversified Equity Income Fund |
RiverSource International Equity Fund |
RiverSource Disciplined International Equity Fund |
Effective March 10, 2006, seven retail funds merged into a corresponding RiverSource mutual fund that had a substantially similar investment objective and principal investment strategy. Please see the table below for fund merger information.
| Merged Fund | Acquiring Fund |
RiverSource New Dimensions Fund |
RiverSource Large Cap Equity Fund |
RiverSource Stock Fund |
RiverSource Disciplined Equity Fund |
RiverSource Strategy Aggressive Fund |
RiverSource Aggressive Growth Fund |
RiverSource Global Balanced Fund |
RiverSource Balanced Fund |
RiverSource Discovery Fund |
RiverSource Small Cap Equity Fund |
RiverSource Selective Fund |
RiverSource Diversified Bond Fund |
RiverSource Insured Tax-Exempt Fund |
RiverSource Tax-Exempt Bond Fund |
Important: The information provided is a brief and selective summary of some of the tax implications that apply to RiverSource mutual funds. Because tax matters are highly individual and complex, you should consult a qualified tax advisor. RiverSource Investments does not provide tax or legal advice.