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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-22031
RIVERSOURCE LASALLE INTERNATIONAL REAL ESTATE FUND, INC.
 
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
 
(Address of principal executive offices)                     (Zip code)
Scott R. Plummer – 5228 Ameriprise Financial Center, Minneapolis, MN 55474
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 671-1947
Date of fiscal year end: 12/31
Date of reporting period: 3/31
 
 

 

 

Portfolio of Investments
RiverSource LaSalle International Real Estate Fund
March 31, 2010 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
Common Stocks (98.9%)(c)
                 
Issuer   Shares     Value(a)  
Australia (20.3%)
                
CFS Retail Property Trust
     793,889     $ 1,365,738  
Dexus Property Group
     4,694,424       3,488,779  
Mirvac Group
     2,049,153       2,773,145  
Stockland
     492,614       1,803,374  
Westfield Group
     740,861       8,197,666  
 
              
Total
             17,628,702  
 
              
 
                
Belgium (0.1%)
                
Cofinimmo
     767       108,105  
 
                
Bermuda (3.1%)
                
Hongkong Land Holdings Ltd.
     533,128  (d)     2,702,958  
 
                
Canada (3.9%)
                
Canadian Real Estate Investment Trust
     68,700       1,870,561  
First Capital Realty, Inc.
     34,000       741,940  
RioCan Real Estate Investment Trust
     41,600       757,034  
 
              
Total
             3,369,535  
 
              
 
                
Finland (0.7%)
                
Citycon OYJ
     35,752       142,456  
Sponda OYJ
     118,212  (d)     493,377  
 
              
Total
             635,833  
 
              
 
                
France (9.2%)
                
Mercialys SA
     19,563       702,871  
Unibail-Rodamco SE
     36,023       7,298,439  
 
              
Total
             8,001,310  
 
              
 
                
Germany (0.8%)
                
Deutsche Euroshop AG
     22,131       726,832  
 
                
Hong Kong (4.9%)
                
Great Eagle Holdings Ltd.
     290,798       816,501  
Hysan Development Co., Ltd.
     370,368       1,070,924  
The Link REIT
     961,015       2,369,087  
 
              
Total
             4,256,512  
 
              
 
                
Japan (10.1%)
                
Frontier Real Estate Investment Corp.
     85       660,141  
Japan Logistics Fund, Inc.
     45       360,558  
Japan Real Estate Investment Corp.
     245       2,088,843  
Japan Retail Fund Investment Corp.
     405       476,573  
Mitsui Fudosan Co., Ltd.
     75,000       1,273,267  

 

 

                 
Issuer   Shares     Value(a)  
Nippon Building Fund, Inc.
     314       2,704,001  
NTT Urban Development Corp.
     1,420       1,200,043  
 
              
Total
             8,763,426  
 
              
 
                
Netherlands (7.5%)
                
Corio NV
     51,986       3,471,200  
Eurocommercial Properties NV
     22,600       908,143  
VastNed Retail NV
     8,784       586,702  
Wereldhave NV
     15,836       1,517,812  
 
              
Total
             6,483,857  
 
              
 
                
Singapore (3.3%)
                
Ascendas Real Estate Investment Trust
     1,137,823       1,562,005  
CapitaLand Ltd.
     470,000       1,334,120  
 
              
Total
             2,896,125  
 
              
 
                
Sweden (3.0%)
                
Castellum AB
     95,011  (d)     957,613  
Hufvudstaden AB, Series A
     129,826  (d)     1,110,662  
Wihlborgs Fastigheter AB
     25,200  (e)     532,419  
 
              
Total
             2,600,694  
 
              
 
                
Switzerland (1.4%)
                
PSP Swiss Property AG
     19,486  (b)     1,251,378  
 
                
United Kingdom (12.8%)
                
Atrium European Real Estate Ltd.
     191,156       1,223,841  
Big Yellow Group PLC
     124,216  (b)     640,892  
British Land Co., PLC
     320,942       2,343,097  
Development Securities PLC
     43,093       178,524  
Great Portland Estates PLC
     220,490       1,051,962  
Hammerson PLC
     300,925       1,796,474  
Helical Bar PLC
     37,276       191,138  
Land Securities Group PLC
     171,416       1,763,638  
Metric Property Investments PLC
     106,350  (b)     165,421  
Minerva PLC
     4,283  (b)     6,191  
Segro PLC
     159,264       772,419  
Shaftesbury PLC
     174,029       1,015,686  
 
              
Total
             11,149,283  
 
              
 
                
United States (17.8%)
                
Acadia Realty Trust
     44,171       788,894  
AMB Property Corp.
     23,299       634,665  
AvalonBay Communities, Inc.
     14,770       1,275,390  
BioMed Realty Trust, Inc.
     68,679       1,135,951  
Camden Property Trust
     9,233       384,370  
EastGroup Properties, Inc.
     15,416       581,800  
Essex Property Trust, Inc.
     12,037       1,082,728  
Extra Space Storage, Inc.
     36,299       460,271  
Federal Realty Investment Trust
     17,633       1,283,859  
Host Hotels & Resorts, Inc.
     38,349       561,813  
Kilroy Realty Corp.
     40,109       1,236,962  
Public Storage
     8,489       780,903  
Senior Housing Properties Trust
     50,202       1,111,974  

 

 

                 
Issuer   Shares     Value(a)  
Simon Property Group, Inc.
     15,869       1,331,408  
SL Green Realty Corp.
     22,322       1,278,381  
Taubman Centers, Inc.
     19,162       764,947  
Ventas, Inc.
     17,026       808,394  
 
              
Total
             15,502,710  
 
              
 
                
Total Common Stocks
(Cost: $86,878,088)
           $ 86,077,260  
 
                
Closed-End Funds (0.2%)(c)
                
                 
Issuer   Shares     Value(a)  
Luxembourg
                
ProLogis European Properties
     21,316  (b)   $ 150,090  
 
              
Total Closed-End Funds
(Cost: $120,527)
           $ 150,090  
 
              
 
                
Money Market Fund (0.2%)
                
                 
    Shares     Value(a)  
RiverSource Short-Term Cash Fund, 0.18%
     184,636  (f)   $ 184,636  
 
              
Total Money Market Fund
(Cost: $184,636)
           $ 184,636  
 
              
 
                
Investments of Cash Collateral Received for Securities on Loan (4.1%)
                
                 
    Shares     Value(a)  
Cash Collateral Reinvestment Fund
                
JPMorgan Prime Money Market Fund
     3,567,232     $ 3,567,232  
 
              
Total Investments of Cash Collateral Received for Securities on Loan
(Cost: $3,567,232)
           $ 3,567,232  
 
              
Total Investments in Securities
(Cost: $90,750,483)(g)
           $ 89,979,218  
 
              
Summary of Investments in Securities by Industry
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of net assets at March 31, 2010:
                 
    Percentage of net    
Industry   assets   Value(a)
Real Estate Investment Trusts (REITs)(1)
       80.6 % $  70,123,076
Real Estate Management & Development
       18.5     16,104,274
Other(2)
       4.3     3,751,868
 
            
 
Total
           $  89,979,218
 
            
 
(1)   Includes U.S. REITs, as well as entities similar to REITs formed under the laws of non-U.S. countries.
 
(2)   Cash & Cash Equivalents.
The industries identified above 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.
Notes to Portfolio of Investments
(a)   Securities are valued by using policies described in Note 2 to the financial statements in the most recent Annual Report dated Dec. 31, 2009.
 
(b)   Non-income producing.
 
(c)   Foreign security values are stated in U.S. dollars.
 
(d)   At March 31, 2010, security was partially or fully on loan.
 
(e)   Identifies issues considered to be illiquid as to their marketability. The aggregate value of such securities at March 31, 2010 was $532,419, representing 0.61% of net assets. Information concerning such security holdings at March 31, 2010 is as follows:

 

 

                 
Security   Acquisition
dates		   Cost
 
Wihlborgs Fastigheter AB
   01-07-10 thru 02-05-10   $ 494,933  
 
(f)   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. The rate shown is the seven-day current annualized yield at March 31, 2010.
 
(g)   At March 31, 2010, the cost of securities for federal income tax purposes was approximately $90,750,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
         
Unrealized appreciation
   $ 4,446,000  
Unrealized depreciation
     (5,217,000 )
 
Net unrealized depreciation
   $ (771,000 )
 
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
  •   Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
 
  •   Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
 
  •   Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected in Level 2 despite the availability of closing prices, because the Fund evaluates and determines whether those closing prices reflect fair value at the close of the New York Stock Exchange (NYSE) or require adjustment, as described in Note 2 to the financial statements — Valuation of securities in the most recent Annual Report dated Dec. 31, 2009.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in a valuation model may include, but are not limited to, financial statement analysis, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of March 31, 2010:
                                 
    Fair value at March 31, 2010
    Level 1   Level 2        
    quoted prices   other   Level 3    
    in active   significant   significant    
    markets for   observable   unobservable    
Description   identical assets   inputs   inputs   Total
 
Equity Securities
                                
Common Stocks (a)
   $ 86,077,260     $ —     $ —     $ 86,077,260  
 
Total Equity Securities
     86,077,260       —       —       86,077,260  
 
 
                                
Other
                                
Closed-End Funds
     150,090       —       —       150,090  
Affiliated Money Market Fund (b)
     184,636       —       —       184,636  
Investments of Cash Collateral Received for Securities on Loan (c)
     3,567,232       —       —       3,567,232  
 
Total Other
     3,901,958       —       —       3,901,958  
 
 
                                
Total
   $ 89,979,218     $ —     $ —     $ 89,979,218  
 
(a)   Industry classifications are identified in the Portfolio of Investments.
 
(b)   Money market fund that is a sweep investment for cash balances in the Fund at March 31, 2010.
 
(c)   Asset categories for Investments of Cash Collateral are identified in the Portfolio of Investments.

 

 

Item 2. Control 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 report, 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 control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
Separate certification for the Registrant’s principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

 

 

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 LaSalle International Real Estate Fund, Inc.
         
By
  /s/ J. Kevin Connaughton    
 
 
 
J. Kevin Connaughton 		   
 
  President and Principal Executive Officer    
 
        
Date
  May 26, 2010    
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/ J. Kevin Connaughton    
 
 
 
J. Kevin Connaughton 		   
 
  President and Principal Executive Officer    
 
        
Date
  May 26, 2010    
 
        
By
  /s/ Jeffrey P. Fox    
 
 
 
Jeffrey P. Fox 		   
 
  Treasurer and Principal Financial Officer    
 
        
Date
  May 26, 2010