RiverSource Money Market Funds Accepted by the U.S. Treasury's
Temporary Guarantee Program
On September 29, 2008 the U.S. Treasury Department established a Temporary Guarantee Program for Money Market Funds. Under this program, the U.S. Treasury will guarantee to investors that they will receive $1.00 for each money market fund share held as of close of business on September 19, 2008, subject to certain limitations and conditions¹. Both taxable and non-taxable funds that had a $1.00 net asset value (NAV) as of September 19, 2008 are eligible for this program. To participate in the program, eligible funds must pay a fee and provide detailed information regarding the way the fund is invested and administered.
On October 23, 2008, the RiverSource® Cash Management Fund, RiverSource® VP Cash Management Fund and RiverSource® Tax-Exempt Money Market Fund were accepted to participate in the program.
The Guarantee Program covers the shares of any shareholder of record as of the close of business on September 19, 2008. Subsequent investments in funds are not covered. For example: a shareholder with $10,000 in a covered fund on Sept. 19, who invested another $5,000 on Sept. 20 would have coverage for the $10,000 portion, but not for the additional $5,000 investment. Similarly, new money that entered the account in the form of dividends or other earnings after Sept. 19 end-of-day would not be covered by this program.
If the number of shares an investor holds fluctuates over the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less.
The Guarantee Program runs for an initial three month period through December 18, 2008, after which the Secretary of the Treasury will review the program and the costs to provide the coverage. The Secretary has the option to extend the program up to the close of business on September 18, 2009. In order to maintain coverage, each fund must renew its participation in the program after each extension. If the Secretary chooses not to extend the program at the end of the initial three month period, the program will end.
For answers to frequently asked questions and example scenarios of coverage, go to the U. S. Treasury Temporary Guarantee Program press release.
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Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA and SIPC.
If you own shares in a money market mutual fund that is covered by the Temporary Treasury Guarantee Program for Money Market Funds, you could lose the benefit of the guarantee if you close or transfer your account to another firm. If you have questions about a potential loss of coverage under the Guarantee Program, you should contact the firm before closing or transferring an account.
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.
You 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 (888) 791-3380. Read the prospectus carefully before investing.
An investment in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although such Funds seek to maintain the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.
Income from tax-exempt funds may be subject to state and local
taxes. Federal income tax rules will apply to any capital gains
distribution.
RiverSource® mutual funds are distributed
by RiverSource Distributors, Inc., Member FINRA, and managed by
RiverSource Investments, LLC. These companies are part of Ameriprise
Financial, Inc.
Not all products and all share classes are available at all firms offering RiverSource funds.
¹ The program covers shareholders of participating money market funds for amounts they held in such funds as of the close of business on September 19, 2008. Under the terms of the program, the guarantee is called upon with respect to a fund if the fund's board of directors makes a determination to liquidate that fund. For shares covered by the guarantee, any difference between the amount a shareholder received in connection with the liquidation and $1.00 per share will be covered or paid by the U.S. Treasury, subject to the overall amount available to all funds participating in the program.
