Class | Ticker Symbol | |
Class A Shares | CMMAX | |
Class B Shares* | CMMBX | |
Class C Shares | CMMCX | |
Class I Shares | CMMIX | |
Class R Shares | CMMRX | |
Class R5 Shares | CAARX | |
Class W Shares | CMMWX | |
Class Z Shares | CMMZX |
|
3 |
|
3 |
|
3 |
|
4 |
|
5 |
|
9 |
|
10 |
|
10 |
|
11 |
|
11 |
|
12 |
|
12 |
|
12 |
|
13 |
|
18 |
|
22 |
|
24 |
|
25 |
|
26 |
|
26 |
|
26 |
|
31 |
|
38 |
|
40 |
|
43 |
|
44 |
|
44 |
|
45 |
|
49 |
|
51 |
|
56 |
|
57 |
|
60 |
|
60 |
|
61 |
|
64 |
2 | Prospectus 2014 |
Shareholder Fees (fees paid directly from your investment) | ||||
Class A | Class B | Class C | Classes
I, R, R5, W and Z | |
Maximum sales charge (load) imposed on purchases (as a % of offering price) | 5.75% | None | None | None |
Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of the original purchase price or current net asset value) | 1.00% (a) | 5.00% (b) | 1.00% (c) | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||||
Class A | Class B | Class C | Class I | Class R | Class R5 | Class W | Class Z | |
Management fees | 0.92% | 0.92% | 0.92% | 0.92% | 0.92% | 0.92% | 0.92% | 0.92% |
Distribution and/or service (12b-1) fees | 0.25% | 1.00% | 1.00% | 0.00% | 0.50% | 0.00% | 0.25% | 0.00% |
Other expenses(d) | 1.35% | 1.35% | 1.35% | 0.29% | 1.35% | 0.34% | 1.35% | 1.35% |
Total annual Fund operating expenses | 2.52% | 3.27% | 3.27% | 1.21% | 2.77% | 1.26% | 2.52% | 2.27% |
Less: Fee waivers and/or expense reimbursements(e) | (0.84%) | (0.84%) | (0.84%) | 0.00% | (0.84%) | 0.00% | (0.84%) | (0.84%) |
Total annual Fund operating expenses after fee waivers and/or expense reimbursements | 1.68% | 2.43% | 2.43% | 1.21% | 1.93% | 1.26% | 1.68% | 1.43% |
(a) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months of purchase, as follows: 1.00% if redeemed within 12 months of purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
(b) | This charge decreases over time. |
(c) | This charge applies to redemptions within one year of purchase, with certain limited exceptions. |
(d) | Other expenses for Class A, Class B, Class C, Class R, Class R5, Class W and Class Z shares have been restated to reflect current fees paid by the Fund. |
(e) | Columbia Management Investment Advisers, LLC and certain of its affiliates have contractually agreed to waive fees and/or to reimburse expenses (excluding transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and extraordinary expenses) until September 30, 2015, unless sooner terminated at the sole discretion of the Fund’s Board of Trustees. Under this agreement, the Fund’s net operating expenses, subject to applicable exclusions, will not exceed the annual rates of 1.68% for Class A, 2.43% for Class B, 2.43% for Class C, 1.23% for Class I, 1.93% for Class R, 1.28% for Class R5, 1.68% for Class W and 1.43% for Class Z. |
Prospectus 2014 | 3 |
■ | you invest $10,000 in the applicable class of Fund shares for the periods indicated, |
■ | your investment has a 5% return each year, and |
■ | the Fund’s total annual operating expenses remain the same as shown in the Annual Fund Operating Expenses table above. |
1 year | 3 years | 5 years | 10 years | |
Class A (whether or not shares are redeemed) | $736 | $1,239 | $1,767 | $3,207 |
Class B (assuming redemption of all shares at the end of the period) | $746 | $1,229 | $1,835 | $3,338 |
Class B (assuming no redemption of shares) | $246 | $ 929 | $1,635 | $3,338 |
Class C (assuming redemption of all shares at the end of the period) | $346 | $ 929 | $1,635 | $3,510 |
Class C (assuming no redemption of shares) | $246 | $ 929 | $1,635 | $3,510 |
Class I (whether or not shares are redeemed) | $123 | $ 384 | $ 665 | $1,466 |
Class R (whether or not shares are redeemed) | $196 | $ 780 | $1,390 | $3,038 |
Class R5 (whether or not shares are redeemed) | $128 | $ 400 | $ 692 | $1,523 |
Class W (whether or not shares are redeemed) | $171 | $ 705 | $1,265 | $2,793 |
Class Z (whether or not shares are redeemed) | $146 | $ 629 | $1,139 | $2,540 |
4 | Prospectus 2014 |
Prospectus 2014 | 5 |
6 | Prospectus 2014 |
Prospectus 2014 | 7 |
8 | Prospectus 2014 |
Year by Year Total Return (%) as of December 31 Each Year* |
Best and Worst Quarterly Returns During the Period Shown in the Bar Chart | ||
|
Best | 3rd Quarter 2012 | 2.56% |
Worst | 2nd Quarter 2013 | -2.88% |
* | Year to Date return as of June 30, 2014: 2.34% |
Prospectus 2014 | 9 |
Share
Class Inception Date |
1 Year | Life of Fund | |
Class A | 04/07/2011 | ||
returns before taxes | -8.45% | -0.93% | |
returns after taxes on distributions | -9.61% | -1.64% | |
returns after taxes on distributions and sale of Fund shares | -4.78% | -0.99% | |
Class B returns before taxes | 04/07/2011 | -8.21% | -0.60% |
Class C returns before taxes | 04/07/2011 | -4.46% | 0.48% |
Class I returns before taxes | 04/07/2011 | -2.40% | 1.65% |
Class R returns before taxes | 04/07/2011 | -2.99% | 0.99% |
Class R5 returns before taxes | 11/08/2012 | -2.44% | 1.45% |
Class W returns before taxes | 04/07/2011 | -2.74% | 1.22% |
Class Z returns before taxes | 04/07/2011 | -2.57% | 1.48% |
Citigroup 3-Month U.S. Treasury Bill Index (reflects no deductions for fees, expenses or taxes) | 0.05% | 0.06% | |
1 Month USD LIBOR | 0.19% | 0.22% |
Portfolio Manager | Title | Role with Fund | Managed Fund Since | |||
Henry Stipp, PhD | Portfolio Manager | Co-manager | 2013 | |||
Jim Carlen, CFA | Portfolio Manager | Co-manager | 2012 |
Online | Regular Mail | Express Mail | By Telephone | |||
columbiamanagement.com | Columbia
Funds, c/o Columbia Management Investment Services Corp. P.O. Box 8081 Boston, MA 02266-8081 |
Columbia
Funds, c/o Columbia Management Investment Services Corp. 30 Dan Road, Suite 8081 Canton, MA 02021-2809 |
800.422.3737 |
10 | Prospectus 2014 |
Class | Category of eligible account | For
accounts other than systematic investment plan accounts |
For
systematic investment plan accounts |
Classes A, B* & C | All accounts other than IRAs | $10,000 | $10,000 |
IRAs | $10,000 | $10,000 | |
Classes I & R | All eligible accounts | None | N/A |
Class R5 | Combined underlying accounts of eligible registered investment advisers | $100,000 | N/A |
Omnibus retirement plans | None | N/A | |
Class W | All eligible accounts | $500 | N/A |
Class Z | All eligible accounts | $0, $1,000 or $2,000 depending upon the category of eligible investor |
$10,000 |
* | Class B shares are generally closed to new and existing shareholders. |
Prospectus 2014 | 11 |
12 | Prospectus 2014 |
Prospectus 2014 | 13 |
14 | Prospectus 2014 |
Prospectus 2014 | 15 |
16 | Prospectus 2014 |
Prospectus 2014 | 17 |
18 | Prospectus 2014 |
Prospectus 2014 | 19 |
20 | Prospectus 2014 |
Prospectus 2014 | 21 |
Columbia Absolute Return Emerging Markets Macro Fund | |
Class A | 1.68% |
Class B | 2.43% |
Class C | 2.43% |
Class I | 1.23% |
Class R | 1.93% |
Class R5 | 1.28% |
Class W | 1.68% |
Class Z | 1.43% |
22 | Prospectus 2014 |
Portfolio Manager | Title | Role with Fund | Managed Fund Since | |||
Henry Stipp, PhD | Portfolio Manager | Co-manager | 2013 | |||
Jim Carlen, CFA | Portfolio Manager | Co-manager | 2012 |
Prospectus 2014 | 23 |
■ | compensation and other benefits received by the Investment Manager and other Ameriprise Financial affiliates related to the management/administration of a Columbia Fund and the sale of its shares; |
■ | the allocation of, and competition for, investment opportunities among the Fund, other funds and accounts advised/managed by the Investment Manager and other Ameriprise Financial affiliates, or Ameriprise Financial itself and its affiliates; |
■ | separate and potentially divergent management of a Columbia Fund and other funds and accounts advised/managed by the Investment Manager and other Ameriprise Financial affiliates; |
■ | regulatory and other investment restrictions on investment activities of the Investment Manager and other Ameriprise Financial affiliates and accounts advised/managed by them; |
■ | insurance and other relationships of Ameriprise Financial affiliates with companies and other entities in which a Columbia Fund invests; and |
■ | regulatory and other restrictions relating to the sharing of information between Ameriprise Financial and its affiliates, including the Investment Manager, and a Columbia Fund. |
24 | Prospectus 2014 |
Prospectus 2014 | 25 |
* | The website references in this prospectus are inactive links and information contained in or otherwise accessible through the referenced websites does not form a part of this prospectus. |
■ | The amount you plan to invest. |
■ | How long you intend to remain invested in the Fund. |
■ | The expenses for each share class. |
■ | Whether you may be eligible for a reduction or waiver of sales charges when you buy or sell shares. |
26 | Prospectus 2014 |
Share Class | Eligible Investors(a); Minimum Initial Investments(b); Investment Limits; and Conversion Features |
Front-End Sales Charges(c) |
Contingent Deferred Sales Charges (CDSCs)(c) |
Maximum Distribution and/or Service Fees(d) |
Class A | Eligibility: Available to
the general public for investment Minimum Initial Investment: $2,000 for most investors Investment Limit and Conversion Features: None |
5.75% maximum, declining to 0.00% on investments of $1
million or more None for Columbia Money Market Fund and certain other Funds(e) |
CDSC on certain investments of between $1 million and $50 million redeemed within 18 months of purchase charged as follows: • 1.00% CDSC if redeemed within 12 months of purchase and • 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase(e) | Distribution and Service Fees: up to 0.25% |
Class B | Eligibility: Closed to
new investors(f) Investment Limit: Up to $49,999 Conversion Features: Converts to Class A shares generally eight years after purchase(g) |
None | 5.00% maximum, gradually declining to 0.00% after six years(g) | Distribution Fee:
0.75% Service Fee: 0.25% |
Class C | Eligibility: Available to
the general public for investment Minimum Initial Investment: $2,000 for most investors Investment Limit: Up to $999,999; none for omnibus retirement plans Conversion Features: None |
None | 1.00% on certain investments redeemed within one year of purchase | Distribution Fee:
0.75% Service Fee: 0.25% |
Class I | Eligibility: Available
only to other Funds (i.e., fund-of-fund investments) Minimum Initial Investment, Investment Limit and Conversion Features: None |
None | None | None |
Prospectus 2014 | 27 |
Share Class | Eligible Investors(a); Minimum Initial Investments(b); Investment Limits; and Conversion Features |
Front-End Sales Charges(c) |
Contingent Deferred Sales Charges (CDSCs)(c) |
Maximum Distribution and/or Service Fees(d) |
Class K | Eligibility: Closed to
new investors; available only to qualified employee benefit plans, trust
companies or similar institutions, 501(c)(3) charitable organizations,
non-qualified deferred compensation plans whose participants are included
in a qualified employee benefit plan described above, 529 plans, and
health savings accounts(f) Minimum Initial Investment, Investment Limit and Conversion Features: None |
None | None | Plan Administration Services Fee: 0.25% |
Class R | Eligibility: Available
only to eligible retirement plans, health savings accounts and, in the
sole discretion of the Distributor, other types of retirement accounts
held through platforms maintained by selling agents approved by the
Distributor Minimum Initial Investment, Investment Limit and Conversion Features: None |
None | None | Series of CFST & CFST I: distribution fee of 0.50% Series of CFST II: distribution and service fee of 0.50%, of which the service fee may be up to 0.25% |
Class R4 | Eligibility: Available
only to (i) omnibus retirement plans, (ii) trust companies or similar
institutions, (iii) broker-dealers, banks, trust companies and similar
institutions that clear Fund share transactions for their client or
customer investment advisory or similar accounts through designated
selling agents and their mutual fund trading platforms that have been
granted specific written authorization from the Transfer Agent with
respect to Class R4 eligibility apart from selling, servicing or similar
agreements, (iv) 501(c)(3) charitable organizations, (v) 529 plans and
(vi) health savings accounts Minimum Initial Investment, Investment Limit and Conversion Features: None |
None | None | None |
28 | Prospectus 2014 |
Share Class | Eligible Investors(a); Minimum Initial Investments(b); Investment Limits; and Conversion Features |
Front-End Sales Charges(c) |
Contingent Deferred Sales Charges (CDSCs)(c) |
Maximum Distribution and/or Service Fees(d) |
Class R5 | Eligibility: Available
only to (i) certain registered investment advisers that clear Fund share
transactions for their client or customer accounts through designated
selling agents and their mutual fund trading platforms that have been
granted specific written authorization from the Transfer Agent with
respect to Class R5 eligibility apart from selling, servicing or similar
agreements and (ii) omnibus retirement plans(f) Minimum Initial Investment: None for omnibus retirement plans; $100,000 for combined underlying accounts of eligible registered investment advisers Investment Limit and Conversion Features: None |
None | None | None |
Class T | Eligibility: Generally
closed to new investors(f) Minimum Initial Investment, Investment Limit and Conversion Features: None |
5.75% maximum, declining to 0.00% on investments of $1 million or more | CDSC on certain investments of between $1 million and $50 million redeemed within 18 months of purchase, charged as follows: • 1.00% CDSC if redeemed within 12 months of purchase and • 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase | Service Fee: up to 0.50% |
Class W | Eligibility: Available
only to investors purchasing through certain authorized investment
programs managed by investment professionals, including discretionary
managed account programs Minimum Initial Investment: $500 Investment Limit and Conversion Features: None |
None | None | Distribution and Service Fees: 0.25% |
Class Y | Eligibility: Available
only to retirement plans that
maintain plan-level or omnibus
accounts with the Fund(f) Minimum Initial Investment: None Investment Limit and Conversion Features: None |
None | None | None |
Prospectus 2014 | 29 |
Share Class | Eligible Investors(a); Minimum Initial Investments(b); Investment Limits; and Conversion Features |
Front-End Sales Charges(c) |
Contingent Deferred Sales Charges (CDSCs)(c) |
Maximum Distribution and/or Service Fees(d) |
Class Z | Eligibility: Available
only to certain eligible investors, which are subject to different minimum
investment requirements, ranging from $0 to $2,000; effective March 29,
2013, closed to (i) accounts of selling agents that clear Fund share
transactions for their client or customer accounts through designated
selling agents and their mutual fund trading platforms that have been
given specific written notice from the Transfer Agent of the termination
of their eligibility for new purchases of Class Z shares and (ii) omnibus
retirement plans, subject to certain exceptions(f) Minimum Initial Investment: See Eligibility above Investment Limit and Conversion Features: None |
None | None | None |
(a) | For Columbia Money Market Fund, new investments must be made in Class A, Class I, Class W or Class Z shares, subject to eligibility. Class C and Class R shares of Columbia Money Market Fund are available as a new investment only to investors in the Distributor's proprietary 401(k) products, provided that such investor is eligible to invest in the class and transact directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper. Columbia Money Market Fund offers other classes of shares only to facilitate exchanges with other Funds offering such share classes. |
(b) | The minimum initial investment requirement is $5,000 for Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund, and $10,000 for Columbia Absolute Return Currency and Income Fund and Columbia Absolute Return Emerging Markets Macro Fund. See Buying, Selling and Exchanging Shares — Buying Shares for more details on the eligible investors and minimum initial investment requirements. Certain share classes are subject to minimum account balance requirements, as described in Buying, Selling and Exchanging Shares — Transaction Rules and Policies. |
(c) | Actual front-end sales charges and CDSCs vary among the Funds. For more information on applicable sales charges, see Choosing a Share Class — Sales Charges and Commissions and for information about certain exceptions to these sales charges, see Choosing a Share Class — Reductions/Waivers of Sales Charges. |
(d) | These are the maximum applicable distribution and/or service fees. Fee rates and fee components (i.e., the portion of a combined fee that is a distribution or service fee) may vary among Funds. Because these fees are paid out of Fund assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of distribution and/or shareholder service fees. Although Class A shares of certain series of CFST I are subject to a combined distribution and service fee of up to 0.35%, these Funds currently limit the combined fee to 0.25%. Columbia Money Market Fund pays a distribution and service fee of up to 0.10% on Class A shares, up to 0.75% distribution fee and up to 0.10% service fee on Class B shares, up to 0.75% distribution fee on Class C shares, and 0.10% distribution and service fees on Class W shares. Columbia High Yield Municipal Fund, Columbia AMT-Free Intermediate Muni Bond Fund and Columbia Tax-Exempt Fund pay a service fee of up to 0.20% on Class A, Class B and Class C shares. Columbia AMT-Free Intermediate Muni Bond Fund pays a distribution fee of up to 0.65% on Class B and Class C shares. For more information on distribution and service fees, see Choosing a Share Class — Distribution and Service Fees. |
(e) | The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Money Market Fund, Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund and Columbia Small Cap Index Fund. Columbia U.S. Treasury Index Fund is not subject to a CDSC. |
(f) | These share classes are closed to new accounts, or closed to previously eligible investors, subject to certain conditions, as summarized below and described in more detail under Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors: |
30 | Prospectus 2014 |
(g) | Timing of conversion and CDSC schedules will vary depending on the Fund and the date of your original purchase of Class B shares. For more information on the conversion of Class B shares to Class A shares, see Choosing a Share Class — Sales Charges and Commissions. Class B shares of Columbia Short Term Municipal Bond Fund do not charge a CDSC and do not convert to Class A shares. |
Prospectus 2014 | 31 |
■ | The net asset value (or NAV) per share is the price of a share calculated by the Fund every business day. |
■ | The offering price per share is the NAV per share plus any front-end sales charge that applies. |
■ | depends on the amount you're investing (generally, the larger the investment, the smaller the percentage sales charge), and |
■ | is based on the total amount of your purchase and the value of your account (and any other accounts eligible for aggregation of which you or your selling agent notifies the Fund). |
Class A Shares — Front-End Sales Charge — Breakpoint Schedule* | ||||
Breakpoint Schedule For: | Dollar
amount of shares bought(a) |
Sales
charge as a % of the offering price(b) |
Sales
charge as a % of the net amount invested(b) |
Amount
retained by or paid to selling agents as a % of the offering price |
Equity Funds, Columbia Absolute Return Emerging Markets Macro Fund, Columbia Absolute Return Enhanced Multi-Strategy Fund, Columbia Adaptive Risk Allocation Fund, Columbia Commodity Strategy Fund and Funds-of-Funds (equity)* |
$ 0–$49,999 | 5.75% | 6.10% | 5.00% |
$ 50,000–$99,999 | 4.50% | 4.71% | 3.75% | |
$100,000–$249,999 | 3.50% | 3.63% | 3.00% | |
$250,000–$499,999 | 2.50% | 2.56% | 2.15% | |
$500,000–$999,999 | 2.00% | 2.04% | 1.75% | |
$ 1,000,000 or more | 0.00% | 0.00% | 0.00% (c) | |
Fixed Income Funds (except those listed below)
and Funds-of-Funds (fixed income)* |
$ 0-$49,999 | 4.75% | 4.99% | 4.00% |
$ 50,000–$99,999 | 4.25% | 4.44% | 3.50% | |
$100,000–$249,999 | 3.50% | 3.63% | 3.00% | |
$250,000–$499,999 | 2.50% | 2.56% | 2.15% | |
$500,000–$999,999 | 2.00% | 2.04% | 1.75% | |
$ 1,000,000 or more | 0.00% | 0.00% | 0.00% (c) | |
Columbia Intermediate Bond Fund, Columbia AMT-Free Intermediate Muni Bond Fund and each of the AMT-Free State-Specific Intermediate Muni Bond Funds |
$ 0-$99,999 | 3.25% | 3.36% | 2.75% |
$100,000–$249,999 | 2.50% | 2.56% | 2.15% | |
$250,000–$499,999 | 2.00% | 2.04% | 1.75% | |
$500,000–$999,999 | 1.50% | 1.53% | 1.25% | |
$ 1,000,000 or more | 0.00% | 0.00% | 0.00% (c) | |
32 | Prospectus 2014 |
Class A Shares — Front-End Sales Charge — Breakpoint Schedule* | ||||
Breakpoint Schedule For: | Dollar
amount of shares bought(a) |
Sales
charge as a % of the offering price(b) |
Sales
charge as a % of the net amount invested(b) |
Amount
retained by or paid to selling agents as a % of the offering price |
Columbia Absolute Return Currency and Income Fund, Columbia Absolute Return Multi-Strategy Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund and Columbia Limited Duration Credit Fund |
$ 0-$99,999 | 3.00% | 3.09% | 2.50% |
$100,000–$249,999 | 2.50% | 2.56% | 2.15% | |
$250,000–$499,999 | 2.00% | 2.04% | 1.75% | |
$500,000–$999,999 | 1.50% | 1.52% | 1.25% | |
$ 1,000,000 or more | 0.00% | 0.00% | 0.00% (c) | |
Columbia Short Term Bond Fund and Columbia Short Term Municipal Bond Fund |
$ 0-$99,999 | 1.00% | 1.01% | 0.75% |
$100,000–$249,999 | 0.75% | 0.76% | 0.50% | |
$250,000–$999,999 | 0.50% | 0.50% | 0.40% | |
$ 1,000,000 or more | 0.00% | 0.00% | 0.00% (c) | |
* | The following Funds are not subject to a front-end sales charge on Class A shares: Columbia Money Market Fund, Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund and Columbia Small Cap Index Fund. The following Funds are not subject to a CDSC on Class A shares: Columbia Money Market Fund, Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund and Columbia U.S. Treasury Index Fund. "Funds-of-Funds (equity)" includes Columbia Capital Allocation Aggressive Portfolio, Columbia Capital Allocation Moderate Aggressive Portfolio, Columbia Capital Allocation Moderate Conservative Portfolio, Columbia Capital Allocation Moderate Portfolio and Columbia LifeGoal® Growth Portfolio. "Funds-of-Funds (fixed income)" includes Columbia Capital Allocation Conservative Portfolio and Columbia Income Builder Fund. Columbia Balanced Fund and Columbia Global Opportunities Fund are treated as equity Funds for purposes of the table. |
(a) | Purchase amounts and account values may be aggregated among all eligible Fund accounts for the purposes of this table. See Choosing a Share Class — Reductions/Waivers of Sales Charges for a discussion of account value aggregation. |
(b) | Because the offering price is calculated to two decimal places, the dollar amount of the sales charge as a percentage of the offering price and your net amount invested for any particular purchase of Fund shares may be higher or lower depending on whether downward or upward rounding was required during the calculation process. Purchase price includes the sales charge. |
(c) | For information regarding cumulative commissions paid to your selling agent when you buy $1 million or more of Class A shares of a Fund, see Class A Shares — Commissions below. |
■ | If you purchased Class A shares without an initial sales charge because your accounts aggregated between $1 million and $50 million at the time of purchase, you will incur a CDSC if you redeem those shares within 18 months of purchase, which is charged as follows: 1.00% CDSC if shares are redeemed within 12 months of purchase; and 0.50% CDSC if shares are redeemed more than 12, but less than 18, months after purchase. |
■ | Subsequent Class A share purchases that bring your aggregate account value to $1 million or more (but less than $50 million) will also be subject to a CDSC if you redeem them within the time periods noted above. |
Prospectus 2014 | 33 |
Class A Shares — Commission Schedule (Paid by the Distributor to Selling Agents)* | |
Purchase Amount | Commission
Level (as a % of net asset value per share) |
$1 million – $2,999,999 | 1.00% |
$3 million – $49,999,999 | 0.50% |
$50 million or more | 0.25% |
* | Not applicable to Funds that do not assess a front-end sales charge. In addition, the Distributor does not make such payments on purchases of $1 million or more of Columbia U.S. Treasury Index Fund. |
34 | Prospectus 2014 |
Class B Shares — CDSC Schedule for the Funds (except those listed below) | |
Number
of Years Class B Shares Held |
Applicable
CDSC* |
One | 5.00% |
Two | 4.00% |
Three | 3.00% |
Four | 3.00% |
Five | 2.00% |
Six | 1.00% |
Seven | None |
Eight | None |
Nine | Conversion to Class A Shares |
* | Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages. |
Class B Shares — CDSC Schedule for Columbia Intermediate Bond Fund, Columbia AMT-Free Intermediate Muni Bond Fund, Columbia Short Term Bond Fund and the AMT-Free State-specific Intermediate Muni Bond Funds | |
Number
of Years Class B Shares Held |
Applicable
CDSC* |
One | 3.00% |
Two | 3.00% |
Three | 2.00% |
Four | 1.00% |
Five | None |
Six | None |
Seven | None |
Eight | None |
Nine | Conversion to Class A Shares |
* | Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages. |
Prospectus 2014 | 35 |
Class R Shares — Commission Schedule (Paid by the Distributor to Selling Agents) | |
Purchase
Amount |
Commission
Level (as a % of net asset value per share) |
$0 – $49,999,999 | 0.50% |
$50 million or more | 0.25% |
■ | depends on the amount you're investing (generally, the larger the investment, the smaller the percentage sales charge), and |
■ | is based on the total amount of your purchase and the value of your account (and any other accounts eligible for aggregation of which you or your selling agent notifies the Fund). |
36 | Prospectus 2014 |
Class T Shares — Front-End Sales Charge — Breakpoint Schedule | ||||
Breakpoint Schedule For: | Dollar
amount of shares bought(a) |
Sales
charge as a % of the offering price(b) |
Sales
charge as a % of the net amount invested(b) |
Amount
retained by or paid to selling agents as a % of the offering price |
Equity Funds | $ 0–$49,999 | 5.75% | 6.10% | 5.00% |
$ 50,000–$99,999 | 4.50% | 4.71% | 3.75% | |
$100,000–$249,999 | 3.50% | 3.63% | 2.75% | |
$250,000–$499,999 | 2.50% | 2.56% | 2.00% | |
$500,000–$999,999 | 2.00% | 2.04% | 1.75% | |
$ 1,000,000 or more | 0.00% | 0.00% | 0.00% (c) | |
Fixed Income Funds | $ 0–$49,999 | 4.75% | 4.99% | 4.25% |
$ 50,000–$99,999 | 4.50% | 4.71% | 3.75% | |
$100,000–$249,999 | 3.50% | 3.63% | 2.75% | |
$250,000–$499,999 | 2.50% | 2.56% | 2.00% | |
$500,000–$999,999 | 2.00% | 2.04% | 1.75% | |
$ 1,000,000 or more | 0.00% | 0.00% | 0.00% (c) | |
(a) | Purchase amounts and account values are aggregated among all eligible Fund accounts for the purposes of this table. |
(b) | Because the offering price is calculated to two decimal places, the dollar amount of the sales charge as a percentage of the offering price and your net amount invested for any particular purchase of Fund shares may be higher or lower depending on whether downward or upward rounding was required during the calculation process. |
(c) | For more information regarding cumulative commissions paid to your selling agent when you buy $1 million or more of Class T shares, see Class T Shares — Commissions below. |
■ | If you purchased Class T shares without a front-end sales charge because your accounts aggregated between $1 million and $50 million at the time of purchase, you will incur a CDSC if you redeem those shares within 18 months of purchase, which is charged as follows: 1.00% CDSC if shares are redeemed within 12 months of purchase, and 0.50% CDSC if shares are redeemed more than 12, but less than 18, months after purchase. |
■ | Subsequent Class T share purchases that bring your aggregate account value to $1 million or more (but less than $50 million) will also be subject to a CDSC if you redeem them within the time periods noted above. |
Class T Shares — Commission Schedule (Paid by the Distributor to Selling Agents) | |
Purchase
Amount |
Commission
Level (as a % of net asset value per share) |
$1 million – $2,999,999 | 1.00% |
Prospectus 2014 | 37 |
Class T Shares — Commission Schedule (Paid by the Distributor to Selling Agents) | |
Purchase
Amount |
Commission
Level (as a % of net asset value per share) |
$3 million – $49,999,999 | 0.50% |
$50 million or more | 0.25% |
38 | Prospectus 2014 |
Prospectus 2014 | 39 |
Distribution
Fee |
Service
Fee |
Combined
Total | |
Class A | up to 0.25% | up to 0.25% | up to 0.35%(a)(b)(c) |
Class B | 0.75% (d) | 0.25% | 1.00% (b) |
Class C | 0.75% (c)(e) | 0.25% | 1.00% (b) |
Class I | None | None | None |
Class K | None | 0.25% (f) | 0.25% (f) |
Class R (series of CFST and CFST I) | 0.50% | — (g) | 0.50% |
Class R (series of CFST II) | up to 0.50%(c) | up to 0.25% | 0.50% (g) |
Class R4 | None | None | None |
Class R5 | None | None | None |
Class T | None | 0.50% (h) | 0.50% (h) |
Class W | up to 0.25% | up to 0.25% | 0.25% (c) |
Class Y | None | None | None |
Class Z | None | None | None |
40 | Prospectus 2014 |
(a) | The maximum distribution and service fees of Class A shares varies among the Funds, as shown in the table below: |
Funds | Maximum
Class A Distribution Fee |
Maximum
Class A Service Fee |
Maximum
Class A Combined Total |
Series of CFST | — | — | 0.25%; these Funds pay a combined distribution and service fee |
Series of CFST II (other than Columbia Money Market Fund) |
up to 0.25% | up to 0.25% | 0.25% |
Columbia Money Market Fund | — | — | 0.10% |
Columbia Balanced Fund, Columbia Contrarian Core Fund, Columbia Dividend Income Fund, Columbia Intermediate Bond Fund, Columbia Large Cap Growth Fund, Columbia Mid Cap Growth Fund, Columbia AMT-Free Oregon Intermediate Muni Bond Fund, Columbia Real Estate Equity Fund, Columbia Small Cap Core Fund, Columbia Small Cap Growth Fund I, Columbia Global Technology Growth Fund | up to 0.10% | up to 0.25% | up to 0.35%; these Funds may pay distribution and service fees up to a maximum of 0.35% of their average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for shareholder liaison services) but currently limit such fees to an aggregate fee of not more than 0.25% for Class A shares |
Columbia Adaptive Risk Allocation Fund, Columbia Bond Fund, Columbia California Tax-Exempt Fund, Columbia AMT-Free Connecticut Intermediate Muni Bond Fund, Columbia Corporate Income Fund, Columbia Diversified Real Return Fund, Columbia Emerging Markets Fund, Columbia Global Dividend Opportunity Fund, Columbia Global Energy and Natural Resources Fund, Columbia Greater China Fund, Columbia International Bond Fund, Columbia AMT-Free Massachusetts Intermediate Muni Bond Fund, Columbia AMT-Free New York Intermediate Muni Bond Fund, Columbia New York Tax-Exempt Fund, Columbia Small Cap Value Fund I, Columbia Pacific/Asia Fund, Columbia Select Large Cap Growth Fund, Columbia Strategic Income Fund, Columbia U.S. Treasury Index Fund, Columbia Value and Restructuring Fund | — | 0.25% | 0.25% |
Columbia High Yield Municipal Fund, Columbia AMT-Free Intermediate Muni Bond Fund, Columbia Tax Exempt Fund | — | 0.20% | 0.20% |
(b) | The service fees for Class A, Class B and Class C shares of certain Funds vary. Service Fee for Class A, Class B and Class C shares of Columbia High Yield Municipal Fund, Columbia AMT-Free Intermediate Muni Bond Fund and Columbia Tax-Exempt Fund — The annual service fee may equal up to 0.20% of the average daily net asset value of all shares of such Fund class. Distribution Fee for Class B and Class C shares for Columbia AMT-Free Intermediate Muni Bond Fund — The annual distribution fee shall be 0.65% of the average daily net assets of the Fund's Class B and Class C shares. Fee amounts noted apply to Class B shares of the Funds other than Class B shares of Columbia Money Market Fund, which pays distribution fees of up to 0.75% and service fees of up to 0.10% for a combined total of 0.85%. The Distributor has currently agreed not to be reimbursed by the Fund for 0.10% of the 0.85% fee for Class B shares of Columbia Money Market Fund. The Distributor has voluntarily agreed to waive the service fee for Class A, Class B and Class C shares of Columbia U.S. Treasury Index Fund so that the service fee does not exceed 0.15% annually. This arrangement may be modified or terminated by the Distributor at any time. |
(c) | Fee amounts noted apply to all Funds other than Columbia Money Market Fund, which, for each of Class A and Class W shares, pays distribution and service fees of 0.10%, and for Class C shares pays distribution fees of 0.75%. The Distributor has currently agreed not to be reimbursed by the Fund for 0.25% of the 0.50% fee for Class R shares of Columbia Money Market Fund. The Distributor has voluntarily agreed to waive the 12b-1 fees it receives from Class A, Class C, Class R and Class W shares of Columbia Money Market Fund. This arrangement may be modified or terminated by the Distributor at any time. Compensation paid to broker-dealers and other selling agents may be suspended to the extent of the Distributor's waiver of the 12b-1 fees on these specific share classes of these Funds. |
(d) | The Distributor has voluntarily agreed to waive the distribution fee it receives from Class B shares of Columbia Seligman Communications and Information Fund and Columbia Global Infrastructure Fund and a portion of the distribution fee for Class B shares of Columbia Short Term Bond Fund so that the distribution fee does not exceed 0.30% annually. These arrangements may be modified or terminated by the Distributor at any time. |
(e) | The Distributor has voluntarily agreed to waive a portion of the distribution fee for Class C shares of the following Funds so that the distribution fee does not exceed the specified percentage annually: 0.40% for Columbia AMT-Free Oregon Intermediate Muni Bond Fund; 0.45% for Columbia California Tax-Exempt Fund, Columbia AMT-Free Connecticut Intermediate Muni Bond Fund, Columbia AMT-Free Massachusetts Intermediate Muni Bond Fund, Columbia AMT-Free New York Intermediate Muni Bond Fund, Columbia New York Tax-Exempt Fund and Columbia |
Prospectus 2014 | 41 |
Tax-Exempt Fund; 0.60% for Columbia Corporate Income Fund, Columbia Intermediate Bond Fund and Columbia Short Term Bond Fund; 0.65% for Columbia High Yield Municipal Fund; and 0.70% for Columbia U.S. Treasury Index Fund. These arrangements may be modified or terminated by the Distributor at any time. |
(f) | The shareholder service fees for Class K shares are not paid pursuant to a 12b-1 plan. Under a plan administration services agreement, the Funds' Class K shares pay for plan administration services. See Class K Plan Administration Services Fee below for more information. |
(g) | Class R shares of series of CFST and CFST I pay a distribution fee pursuant to a distribution (Rule 12b-1) plan for Class R shares. The Funds do not have a shareholder service plan for Class R shares. Series of CFST II have a distribution and shareholder service plan for Class R shares, which, prior to the close of business on September 3, 2010, were known as Class R2 shares. For Class R shares of series of CFST II, the maximum fee under the plan reimbursed for distribution expenses is equal on an annual basis to 0.50% of the average daily net assets of the Fund attributable to Class R shares. Of that amount, up to 0.25% may be reimbursed for shareholder service expenses. |
(h) | The shareholder servicing fees for Class T shares are up to 0.50% of average daily net assets attributable to Class T shares for equity Funds and 0.40% for fixed income Funds. In general, the Funds currently limit such fees to a maximum of 0.30% for equity Funds and 0.15% for fixed-income Funds. See Class T Shareholder Service Fees below for more information. |
42 | Prospectus 2014 |
Prospectus 2014 | 43 |
44 | Prospectus 2014 |
Prospectus 2014 | 45 |
Minimum Account Balance | |
Minimum
Account Balance | |
For all Funds, classes and account types except those listed below | $250 (None for accounts with Systematic Investment Plans) |
Individual Retirement Accounts for all Funds and classes except those listed below | None |
Columbia Absolute Return Currency and Income Fund
and Columbia Absolute Return Emerging Markets Macro Fund |
$5,000 |
Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund | $2,500 |
Class I, Class K, Class R, Class R4, Class R5, Class W and Class Y | None |
46 | Prospectus 2014 |
Prospectus 2014 | 47 |
■ | negative impact on the Fund's performance; |
■ | potential dilution of the value of the Fund's shares; |
■ | interference with the efficient management of the Fund's portfolio, such as the need to maintain undesirably large cash positions, the need to use its line of credit or the need to buy or sell securities it otherwise would not have bought or sold; |
■ | losses on the sale of investments resulting from the need to sell securities at less favorable prices; |
■ | increased taxable gains to the Fund's remaining shareholders resulting from the need to sell securities to meet sell orders; and |
■ | increased brokerage and administrative costs. |
48 | Prospectus 2014 |
Prospectus 2014 | 49 |
50 | Prospectus 2014 |
■ | Dividend and/or capital gain distributions may continue to be reinvested in Class B shares of a Fund. |
■ | Shareholders invested in Class B shares of a Fund may exchange those shares for Class B shares of other Funds offering such shares. Certain exceptions apply, including that not all Funds may permit exchanges. |
Prospectus 2014 | 51 |
52 | Prospectus 2014 |
Prospectus 2014 | 53 |
Minimum Initial Investments | ||
Minimum
Initial Investment(a) |
Minimum
Initial Investment for Accounts with Systematic Investment Plans | |
For all Funds, classes and account types except those listed below | $2,000 | $100 (b) |
Individual Retirement Accounts for all Funds and classes except those listed below | $1,000 | $100 (c) |
Columbia Absolute Return Currency and Income Fund and Columbia Absolute Return Emerging Markets Macro Fund | $10,000 | $10,000 |
Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund | $5,000 | $5,000 |
Class I, Class K, Class R, Class R4 and Class Y | None | N/A |
Class R5 | variable (d) | N/A |
Class W | $500 | N/A |
Class Z | variable (e) | $100 |
(a) | If your Class A, Class B, Class C, Class T or Class Z shares account balance falls below the minimum initial investment amount for any reason, including a market decline, you may be asked to increase it to the minimum initial investment amount or establish a monthly Systematic Investment Plan. If you do not do so, your account will be subject to a $20 annual low balance fee and/or shares may be automatically redeemed and the proceeds mailed to you if the account falls below the minimum account balance. See Buying, Selling and Exchanging Shares — Transaction Rules and Policies above. |
(b) | Columbia Money Market Fund — $2,000 |
(c) | Columbia Money Market Fund — $1,000 |
(d) | There is no minimum initial investment in Class R5 shares for omnibus retirement plans. A minimum initial investment of $100,000 applies to aggregate purchases of Class R5 shares of a Fund for combined underlying accounts of any registered investment adviser that clears Fund share transactions for their client or customer accounts through designated selling agents and their mutual fund trading platforms that have been granted specific written authorization from the Transfer Agent with respect to Class R5 eligibility apart from selling, servicing or similar agreements. |
(e) | The minimum initial investment amount for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. See — Class Z Shares Minimum Initial Investments below. The minimum initial investment amount for systematic investment plan accounts is the same as the amount set forth in the first two rows of the table, as applicable. |
■ | Any person investing all or part of the proceeds of a distribution, rollover or transfer of assets into a Columbia Management Individual Retirement Account, from any deferred compensation plan which was a shareholder of any of the Funds of Columbia Acorn Trust on September 29, 2000, in which the investor was a participant and through which the investor invested in one or more of the Funds of Columbia Acorn Trust immediately prior to the distribution, transfer or rollover. |
■ | Any health savings account sponsored by a third party platform. |
54 | Prospectus 2014 |
■ | Any investor participating in a wrap program sponsored by a selling agent or other entity that is paid an asset-based fee by the investor and that is not compensated by the Fund for those services, other than payments for shareholder servicing or sub-accounting performed in place of the Transfer Agent. |
■ | Any individual retirement plan for which a selling agent or other entity provides services and is not compensated by the Fund for those services, other than in the form of payments for shareholder servicing or sub-accounting performed in place of the Transfer Agent. |
■ | Any employee of Columbia Management Investment Advisers, LLC, the Distributor or the Transfer Agent and immediate family members of any of the foregoing who share the same address and any persons employed as of April 30, 2010 by Columbia Management Advisors, LLC, Columbia Management Distributors, Inc., or Columbia Management Services, Inc., the adviser, distributor and transfer agent of series of CFST and CFST I prior to May 1, 2010 (the Previous Service Providers) and immediate family members of any of the foregoing who share the same address are eligible to make new and subsequent purchases in Class Z shares through an individual retirement account. If you maintain your account with a selling agent, you must contact that selling agent each time you seek to purchase shares to notify them that you qualify for Class Z shares. |
■ | Any shareholder (as well as any family member of a shareholder or person listed on an account registration for any account of the shareholder) of another fund distributed by the Distributor (i) who holds Class Z shares; (ii) who held Primary A shares prior to the share class redesignation of Primary A shares as Class Z shares that occurred on August 22, 2005; (iii) who holds Class A shares that were obtained by an exchange of Class Z shares; or (iv) who bought shares of certain mutual funds that were not subject to sales charges and that merged with a series of CFST or CFST I distributed by the Distributor. |
■ | Any investor participating in an account offered by a selling agent or other entity that provides services to such an account, is paid an asset-based fee by the investor and is not compensated by the Fund for those services, other than payments for shareholder servicing or sub-accounting performed in place of the Transfer Agent (each investor buying shares through a financial intermediary must independently satisfy the minimum investment requirement noted above). |
■ | Any institutional investor who is a corporation, partnership, trust, foundation, endowment, institution, government entity, or similar organization, which meets the respective qualifications for an accredited investor, as defined under the Securities Act of 1933. |
■ | Certain financial institutions and intermediaries, such as insurance companies, trust companies, banks, endowments, investment companies or foundations, buying shares for their own account, including Ameriprise Financial and its affiliates and/or subsidiaries. |
■ | Any employee of Columbia Management Investment Advisers, LLC, the Distributor or the Transfer Agent and immediate family members of any of the foregoing who share the same address and any persons employed as of April 30, 2010 by the Previous Service Providers and any of their immediate family members who share the same address are eligible to make new and subsequent purchases in Class Z shares through a non-retirement account. If you maintain your account with a selling agent, you must contact that selling agent each time you seek to purchase shares to notify them that you qualify for Class Z shares. |
■ | Certain other investors as set forth in more detail in the SAI. |
Prospectus 2014 | 55 |
■ | Once the Transfer Agent or your selling agent receives your buy order in “good form,” your purchase will be made at the next calculated public offering price per share, which is the net asset value per share plus any sales charge that applies. |
■ | You generally buy Class A and Class T shares at the public offering price per share because purchases of these share classes are generally subject to a front-end sales charge. |
■ | You buy Class B, Class C, Class I, Class K, Class R, Class R4, Class R5, Class W, Class Y and Class Z shares at net asset value per share because no front-end sales charge applies to purchases of these share classes. |
■ | The Distributor and the Transfer Agent reserve the right to cancel your order if the Fund doesn't receive payment within three business days of receiving your buy order. The Fund will return any payment received for orders that have been cancelled, but no interest will be paid on that money. |
■ | Selling agents are responsible for sending your buy orders to the Transfer Agent and ensuring that we receive your money on time. |
■ | Shares purchased are recorded on the books of the Fund. The Fund doesn't issue certificates. |
56 | Prospectus 2014 |
■ | Once the Transfer Agent or your selling agent receives your redemption order in “good form,” your shares will be sold at the next calculated NAV per share. Any applicable CDSC will be deducted from the amount you're selling and the balance will be remitted to you. |
■ | If you sell your shares that are held directly with the Funds (through the Transfer Agent), we will normally send the redemption proceeds by mail or electronically transfer them to your bank account within three business days after the Transfer Agent or your selling agent receives your order in “good form.” |
■ | If you sell your shares through a selling agent, the Funds will normally send the redemption proceeds by Fedwire within three business days after the Transfer Agent or your selling agent receives your order in “good form.” |
■ | If you paid for your shares by check or from your bank account as an ACH transaction, the Funds will hold the redemption proceeds when you sell those shares for a period of time after the trade date of the purchase. |
■ | No interest will be paid on uncashed redemption checks. |
■ | The Funds can delay payment of the redemption proceeds for up to seven days and may suspend redemptions and/or further postpone payment of redemption proceeds when the NYSE is closed or trading thereon is restricted or during emergency or other circumstances, including as determined by the SEC. |
■ | Other restrictions may apply to retirement accounts. For information about these restrictions, contact your retirement plan administrator. |
■ | The Fund reserves the right to redeem your shares if your account falls below the Fund's minimum initial investment requirement. |
■ | Also keep in mind the Funds' Small Account Policy, which is described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies. |
Prospectus 2014 | 57 |
■ | Exchanges are made at the NAV next calculated after your exchange order is received in “good form.” |
■ | Once the Fund receives your exchange request, you cannot cancel it after the market closes. |
■ | The rules for buying shares of a Fund generally apply to exchanges into that Fund, including, if your exchange creates a new Fund account, it must satisfy the minimum investment amount, unless a waiver applies. |
■ | Shares of the purchased Fund may not be used on the same day for another exchange or sale. |
■ | If you exchange shares from Class A shares of Columbia Money Market Fund to a non-money market Fund, any further exchanges must be between shares of the same class. For example, if you exchange from Class A shares of Columbia Money Market Fund into Class C shares of a non-money market Fund, you may not exchange from Class C shares of that non-money market Fund back to Class A shares of Columbia Money Market Fund. |
■ | A sales charge may apply when you exchange shares of a Fund that were not assessed a sales charge at the time of your initial purchase. For example, if your initial investment was in Columbia Money Market Fund and you exchange into a non-money market Fund, your transaction is subject to a front-end sales charge if you exchange into Class A shares and to a CDSC if you exchange into Class C shares of the Funds. |
■ | If your initial investment was in Class A shares of a non-money market Fund and you exchange shares into Columbia Money Market Fund, you may exchange that amount to another Fund, including dividends earned on that amount, without paying a sales charge. |
■ | If your shares are subject to a CDSC, you will not be charged a CDSC upon the exchange of those shares. Any CDSC will be deducted when you sell the shares you received from the exchange. The CDSC imposed at that time will be based on the period that begins when you bought shares of the original Fund and ends when you sell the shares of the Fund you received from the exchange. The applicable CDSC will be the CDSC of the original Fund. |
■ | You may make exchanges only into a Fund that is legally offered and sold in your state of residence. Contact the Transfer Agent or your selling agent for more information. |
■ | You generally may make an exchange only into a Fund that is accepting investments. |
■ | The Fund may change or cancel your right to make an exchange by giving the amount of notice required by regulatory authorities (generally 60 days for a material change or cancellation). |
■ | Unless your account is part of a tax-advantaged arrangement, an exchange for shares of another Fund is a taxable event, and you may recognize a gain or loss for tax purposes. |
■ | Changing your investment to a different Fund will be treated as a sale and purchase, and you will be subject to applicable taxes on the sale and sales charges on the purchase of the new Fund. |
■ | Class Z shares of a Fund may be exchanged for Class A or Class Z shares of another Fund. In certain circumstances, the front-end sales charge applicable to Class A shares may be waived on exchanges of Class Z shares for Class A shares. See Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Z Shares for details. |
■ | You may generally exchange Class T shares of a Fund for Class A shares of another Fund if the other Fund does not offer Class T shares. Class T shares exchanged into Class A shares cannot be exchanged back into Class T shares. |
■ | Class W shares originally purchased, but no longer held, in a discretionary managed account, may not be exchanged for Class W shares of another Fund. |
■ | Former CFIT Shareholders may not exchange Class Y shares of a Fund into Class Y shares of another Fund. |
58 | Prospectus 2014 |
■ | No sales charges or other charges will apply to any such exchange, except that when Class B shares are exchanged, any CDSC applicable to Class B shares will be applied. |
■ | Ordinarily, shareholders will not recognize a gain or loss for U.S. federal income tax purposes upon such an exchange. You should consult your tax advisor about your particular exchanges. |
Prospectus 2014 | 59 |
■ | It can earn income on its investments. Examples of fund income are interest paid on money market instruments and bonds, and dividends paid on common stocks. |
■ | A mutual fund can also have capital gains if the value of its investments increases. While a fund continues to hold an investment, any gain is generally unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than its adjusted cost basis, and will generally realize a capital loss if it sells that investment for a lower price than its adjusted cost basis. Capital gains and losses are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term) or more than one year (long-term). |
Declaration and Distribution Schedule | |
Declarations | Annually |
Distributions | Annually |
60 | Prospectus 2014 |
■ | The Fund intends to qualify each year as a regulated investment company. A regulated investment company generally is not subject to tax at the fund level on income and gains from investments that are distributed to shareholders. However, the Fund's failure to qualify as a regulated investment company would result in Fund level taxation, and consequently, a reduction in income available for distribution to you and in the net asset value of your shares. Even if a fund qualifies as a regulated investment company, the Fund may be subject to federal excise tax on certain undistributed income or gains. For tax-exempt Funds: If a tax-exempt Fund were to fail to qualify as a regulated investment company, any dividends of net tax-exempt income would no longer be exempt from U.S. federal income tax and, instead, in general, would be taxable to you as ordinary income. |
■ | Distributions generally are taxable to you when paid, whether they are paid in cash or automatically reinvested in additional Fund shares. Dividends paid in January are deemed paid on December 31 of the prior year if the dividend was declared and payable to shareholders of record in October, November, or December of such prior year. In certain circumstances a Fund may retain its net capital gain and deem such gains to have been distributed to shareholders. In such case, the Fund will be required to pay a fund-level tax on any such retained net capital gain, and shareholders will be required to include in income their share of such retained capital gain and will be entitled to credit their share of tax paid by the Fund against their federal income tax liabilities. |
■ | Distributions of the Fund's ordinary income and net short-term capital gain, if any, generally are taxable to you as ordinary income. Distributions of the Fund's net long-term capital gain, if any, generally are taxable to you as long-term capital gain. Whether capital gains are long-term or short-term is determined by how long the Fund has owned the investments that generated them, rather than how long you have owned your shares. For taxable fixed income Funds: The Fund expects that distributions will consist primarily of ordinary income. |
■ | From time to time, a distribution from the Fund could constitute a return of capital, which is not taxable to you so long as the amount of the distribution does not exceed your tax basis in your Fund shares. A return of capital reduces your tax basis in your Fund shares, with any amounts exceeding such basis generally taxable as capital gain. |
■ | If you are an individual and you meet certain holding period and other requirements for your Fund shares, a portion of your distributions may be treated as “qualified dividend income” taxable at the lower net long-term capital gain rates instead of the higher ordinary income rates. Qualified dividend income is income attributable to the Fund's dividends received from certain U.S. and foreign corporations, as long as the Fund meets certain holding period and other requirements for the stock producing such dividends. For taxable fixed income and tax-exempt Funds: The Fund does not expect a significant portion of Fund distributions to be qualified dividend income. |
■ | Certain high-income individuals (as well as estates and trusts) are subject to a 3.8% tax on net investment income. For individuals, the 3.8% tax applies to the lesser of (1) the amount (if any) by which the taxpayer's modified adjusted gross income exceeds certain threshold amounts or (2) the taxpayer's “net investment income.” Net investment income generally includes for this purpose dividends, including any capital gain dividends, paid by the Fund, and net gains recognized on the sale, redemption or exchange of shares of the Fund. For tax-exempt Funds: Exempt interest dividends are not included in net investment income for this purpose, and are therefore not subject to the tax on net investment income. |
■ | Certain derivative instruments when held in a Fund's portfolio subject the Fund to special tax rules, the effect of which may be to, among other things, accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, or convert capital gains into ordinary income, short-term capital losses into long-term capital losses or long-term capital gains into short-term capital gains. These rules could therefore affect the amount, timing and/or character of distributions to shareholders. For tax-exempt Funds: Derivative instruments held by a Fund may also generate taxable income to the Fund. |
Prospectus 2014 | 61 |
■ | Certain Funds may purchase or write options, as described further in the SAI. Generally, a Fund realizes a capital gain or loss on an option when the option expires, or when it is exercised, sold or otherwise terminated. However, if an option is a “section 1256 contract,” which includes most traded options on a broad-based index, and the Fund holds such option at the end of its taxable year, the Fund is deemed to sell such option at fair market value at such time and recognize any gain or loss thereon, which is generally deemed to be 60% long-term and 40% short-term gain or loss, as described further in the SAI. |
■ | If at the end of the taxable year more than 50% of the value of the Fund's assets consists of securities of foreign corporations, and the Fund makes a special election, you will generally be required to include in your income for U.S. federal income tax purposes your share of the qualifying foreign income taxes paid by the Fund in respect of its foreign portfolio securities. You may be able to claim a foreign tax credit or deduction in respect of this amount, subject to certain limitations. There is no assurance that the Fund will make this election for a taxable year, even if it is eligible to do so. |
■ | For tax-exempt Funds: The Fund expects that distributions will consist primarily of exempt interest dividends. Distributions of the Fund's net interest income from tax-exempt securities generally are not subject to U.S. federal income tax, but may be subject to state and local income and other taxes, as well as federal and state alternative minimum tax. Similarly, distributions of interest income that is exempt from state and local income taxes of a particular state may be subject to other taxes, including income taxes of other states, and federal and state alternative minimum tax. Certain income generated by tax-exempt securities, including capital gains on sales and market discount, is taxable. The Fund may invest a portion of its assets in securities that generate income that is not exempt from federal or state income tax. Distributions by the Fund of this income generally are taxable to you as ordinary income or long-term capital gain. Distributions of capital gains realized by the Fund, including those generated from the sale or exchange of tax-exempt securities, generally also are taxable to you. Distributions of the Fund's net short-term capital gain, if any, generally are taxable to you as ordinary income. |
■ | For a Fund organized as a fund-of-funds: Because most of the Fund's investments are shares of underlying Funds, the tax treatment of the Fund's gains, losses, and distributions may differ from the tax treatment that would apply if either the Fund invested directly in the types of securities held by the underlying Funds or the Fund shareholders invested directly in the underlying Funds. As a result, you may receive taxable distributions earlier and recognize higher amounts of capital gain or ordinary income than you otherwise would. |
■ | A sale, redemption or exchange of Fund shares is a taxable event. This includes redemptions where you are paid in securities. Your sales, redemptions and exchanges of Fund shares (including those paid in securities) usually will result in a taxable capital gain or loss to you, equal to the difference between the amount you receive for your shares (or are deemed to have received in the case of exchanges) and the amount you paid (or are deemed to have paid in the case of exchanges) for them. Any such capital gain or loss generally will be long-term capital gain or loss if you have held your Fund shares for more than one year at the time of sale or exchange. In certain circumstances, capital losses may be converted from short-term to long-term; in other circumstances, capital losses may be disallowed under the “wash sale” rules. |
■ | The Fund generally is required to report to shareholders and the Internal Revenue Service (the IRS) upon the sale, exchange or redemption of Fund shares cost basis information with respect to those shares. The Fund uses average cost basis as its default method of calculating cost basis. Please see columbiamanagement.com or contact the Fund at 800.345.6611 for more information regarding average cost basis reporting, other available cost basis methods and how to select or change a particular method or to choose specific shares to sell, redeem or exchange. If you hold Fund shares through a selling agent, you should contact your selling agent to learn about its cost basis reporting default method and the reporting elections available to your account. |
■ | The Fund is required by federal law to withhold tax on any taxable or tax-exempt distributions and redemption proceeds paid to you (including amounts paid to you in securities and amounts deemed to be paid to you upon an exchange of shares) if: you haven't provided a correct TIN or haven't certified to the Fund that withholding doesn't apply; the IRS has notified us that the TIN listed on your account is incorrect according to its records; or the IRS informs the Fund that you are otherwise subject to backup withholding. |
62 | Prospectus 2014 |
Prospectus 2014 | 63 |
Year ended May 31, | ||||
Class A | 2014 | 2013 | 2012 | 2011 (a) |
Per share data | ||||
Net asset value, beginning of period | $10.33 | $9.99 | $10.01 | $10.00 |
Income from investment operations: | ||||
Net investment income (loss) | 0.05 | 0.04 | 0.12 | (0.00) (b) |
Net realized and unrealized gain (loss) | (0.03) | 0.38 | (0.01) | 0.01 |
Total from investment operations | 0.02 | 0.42 | 0.11 | 0.01 |
Less distributions to shareholders: | ||||
Net investment income | (0.29) | (0.08) | (0.13) | — |
Total distributions to shareholders | (0.29) | (0.08) | (0.13) | — |
Net asset value, end of period | $10.06 | $10.33 | $9.99 | $10.01 |
Total return | 0.30% | 4.19% | 1.09% | 0.10% |
Ratios to average net assets(c) | ||||
Total gross expenses | 2.59% | 2.46% | 1.79% | 7.31% (d) |
Total net expenses(e) | 1.51% | 1.48% | 1.48% | 1.45% (d) |
Net investment income (loss) | 0.47% | 0.43% | 1.16% | (0.24%) (d) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $296 | $457 | $238 | $3 |
Portfolio turnover | 15% | 1% | 285% | 5% |
(a) | For the period from April 7, 2011 (commencement of operations) to May 31, 2011. |
(b) | Rounds to zero. |
(c) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(d) | Annualized. |
(e) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
64 | Prospectus 2014 |
Year ended May 31, | ||||
Class B | 2014 | 2013 | 2012 | 2011 (a) |
Per share data | ||||
Net asset value, beginning of period | $10.30 | $9.96 | $10.00 | $10.00 |
Income from investment operations: | ||||
Net investment income (loss) | (0.02) | (0.03) | 0.08 | (0.01) |
Net realized and unrealized gain (loss) | (0.02) | 0.37 | (0.05) | 0.01 |
Total from investment operations | (0.04) | 0.34 | 0.03 | — |
Less distributions to shareholders: | ||||
Net investment income | (0.22) | — | (0.07) | — |
Total distributions to shareholders | (0.22) | — | (0.07) | — |
Net asset value, end of period | $10.04 | $10.30 | $9.96 | $10.00 |
Total return | (0.38%) | 3.41% | 0.26% | 0.00% |
Ratios to average net assets(b) | ||||
Total gross expenses | 3.37% | 3.19% | 2.95% | 8.00% (c) |
Total net expenses(d) | 2.27% | 2.23% | 2.23% | 2.21% (c) |
Net investment income (loss) | (0.24%) | (0.25%) | 0.76% | (0.93%) (c) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $10 | $3 | $2 | $2 |
Portfolio turnover | 15% | 1% | 285% | 5% |
(a) | For the period from April 7, 2011 (commencement of operations) to May 31, 2011. |
(b) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(c) | Annualized. |
(d) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
Prospectus 2014 | 65 |
Year ended May 31, | ||||
Class C | 2014 | 2013 | 2012 | 2011 (a) |
Per share data | ||||
Net asset value, beginning of period | $10.23 | $9.96 | $10.00 | $10.00 |
Income from investment operations: | ||||
Net investment income (loss) | (0.03) | (0.04) | 0.08 | (0.01) |
Net realized and unrealized gain (loss) | (0.02) | 0.38 | (0.05) | 0.01 |
Total from investment operations | (0.05) | 0.34 | 0.03 | — |
Less distributions to shareholders: | ||||
Net investment income | (0.22) | (0.07) | (0.07) | — |
Total distributions to shareholders | (0.22) | (0.07) | (0.07) | — |
Net asset value, end of period | $9.96 | $10.23 | $9.96 | $10.00 |
Total return | (0.49%) | 3.40% | 0.26% | 0.00% |
Ratios to average net assets(b) | ||||
Total gross expenses | 3.30% | 3.21% | 2.95% | 8.00% (c) |
Total net expenses(d) | 2.26% | 2.23% | 2.23% | 2.21% (c) |
Net investment income (loss) | (0.29%) | (0.34%) | 0.76% | (0.93%) (c) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $10 | $26 | $2 | $2 |
Portfolio turnover | 15% | 1% | 285% | 5% |
(a) | For the period from April 7, 2011 (commencement of operations) to May 31, 2011. |
(b) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(c) | Annualized. |
(d) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
66 | Prospectus 2014 |
Year ended May 31, | ||||
Class I | 2014 | 2013 | 2012 | 2011 (a) |
Per share data | ||||
Net asset value, beginning of period | $10.38 | $10.01 | $10.01 | $10.00 |
Income from investment operations: | ||||
Net investment income | 0.09 | 0.09 | 0.15 | 0.00 (b) |
Net realized and unrealized gain (loss) | (0.02) | 0.39 | (0.01) | 0.01 |
Total from investment operations | 0.07 | 0.48 | 0.14 | 0.01 |
Less distributions to shareholders: | ||||
Net investment income | (0.34) | (0.11) | (0.14) | — |
Total distributions to shareholders | (0.34) | (0.11) | (0.14) | — |
Net asset value, end of period | $10.11 | $10.38 | $10.01 | $10.01 |
Total return | 0.75% | 4.74% | 1.40% | 0.10% |
Ratios to average net assets(c) | ||||
Total gross expenses | 1.28% | 1.21% | 1.10% | 6.95% (d) |
Total net expenses(e) | 1.06% | 1.05% | 1.10% | 1.16% (d) |
Net investment income | 0.92% | 0.88% | 1.51% | 0.11% (d) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $74,971 | $75,567 | $73,788 | $15,003 |
Portfolio turnover | 15% | 1% | 285% | 5% |
(a) | For the period from April 7, 2011 (commencement of operations) to May 31, 2011. |
(b) | Rounds to zero. |
(c) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(d) | Annualized. |
(e) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
Prospectus 2014 | 67 |
Year ended May 31, | ||||
Class R | 2014 | 2013 | 2012 | 2011 (a) |
Per share data | ||||
Net asset value, beginning of period | $10.33 | $9.98 | $10.00 | $10.00 |
Income from investment operations: | ||||
Net investment income (loss) | 0.03 | 0.02 | 0.13 | (0.01) |
Net realized and unrealized gain (loss) | (0.02) | 0.37 | (0.05) | 0.01 |
Total from investment operations | 0.01 | 0.39 | 0.08 | — |
Less distributions to shareholders: | ||||
Net investment income | (0.27) | (0.04) | (0.10) | — |
Total distributions to shareholders | (0.27) | (0.04) | (0.10) | — |
Net asset value, end of period | $10.07 | $10.33 | $9.98 | $10.00 |
Total return | 0.13% | 3.93% | 0.81% | 0.00% |
Ratios to average net assets(b) | ||||
Total gross expenses | 2.87% | 2.68% | 2.64% | 7.54% (c) |
Total net expenses(d) | 1.77% | 1.73% | 1.73% | 1.73% (c) |
Net investment income (loss) | 0.26% | 0.24% | 1.26% | (0.46%) (c) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $10 | $3 | $2 | $3 |
Portfolio turnover | 15% | 1% | 285% | 5% |
(a) | For the period from April 7, 2011 (commencement of operations) to May 31, 2011. |
(b) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(c) | Annualized. |
(d) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
68 | Prospectus 2014 |
Year ended May 31, | ||
Class R5 | 2014 | 2013 (a) |
Per share data | ||
Net asset value, beginning of period | $10.37 | $10.47 |
Income from investment operations: | ||
Net investment income | 0.08 | 0.05 |
Net realized and unrealized gain (loss) | (0.01) | (0.05) (b) |
Total from investment operations | 0.07 | 0.00 (c) |
Less distributions to shareholders: | ||
Net investment income | (0.34) | (0.10) |
Total distributions to shareholders | (0.34) | (0.10) |
Net asset value, end of period | $10.10 | $10.37 |
Total return | 0.71% | 0.04% |
Ratios to average net assets(d) | ||
Total gross expenses | 1.32% | 1.28% (e) |
Total net expenses(f) | 1.12% | 1.08% (e) |
Net investment income | 0.83% | 0.79% (e) |
Supplemental data | ||
Net assets, end of period (in thousands) | $10 | $2 |
Portfolio turnover | 15% | 1% |
(a) | For the period from November 8, 2012 (commencement of operations) to May 31, 2013. |
(b) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio. |
(c) | Rounds to zero. |
(d) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(e) | Annualized. |
(f) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
Prospectus 2014 | 69 |
Year ended May 31, | ||||
Class W | 2014 | 2013 | 2012 | 2011 (a) |
Per share data | ||||
Net asset value, beginning of period | $10.34 | $9.97 | $10.01 | $10.00 |
Income from investment operations: | ||||
Net investment income (loss) | 0.05 | 0.05 | 0.12 | (0.00) (b) |
Net realized and unrealized gain (loss) | (0.03) | 0.38 | (0.03) | 0.01 |
Total from investment operations | 0.02 | 0.43 | 0.09 | 0.01 |
Less distributions to shareholders: | ||||
Net investment income | (0.29) | (0.06) | (0.13) | — |
Total distributions to shareholders | (0.29) | (0.06) | (0.13) | — |
Net asset value, end of period | $10.07 | $10.34 | $9.97 | $10.01 |
Total return | 0.29% | 4.31% | 0.92% | 0.10% |
Ratios to average net assets(c) | ||||
Total gross expenses | 2.58% | 2.45% | 1.88% | 7.27% (d) |
Total net expenses(e) | 1.51% | 1.48% | 1.48% | 1.48% (d) |
Net investment income (loss) | 0.47% | 0.45% | 1.18% | (0.20%) (d) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $26,972 | $37,999 | $31,699 | $3 |
Portfolio turnover | 15% | 1% | 285% | 5% |
(a) | For the period from April 7, 2011 (commencement of operations) to May 31, 2011. |
(b) | Rounds to zero. |
(c) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(d) | Annualized. |
(e) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
70 | Prospectus 2014 |
Year ended May 31, | ||||
Class Z | 2014 | 2013 | 2012 | 2011 (a) |
Per share data | ||||
Net asset value, beginning of period | $10.45 | $10.00 | $10.01 | $10.00 |
Income from investment operations: | ||||
Net investment income (loss) | 0.07 | 0.09 | 0.17 | (0.01) |
Net realized and unrealized gain (loss) | (0.02) | 0.36 | (0.04) | 0.02 |
Total from investment operations | 0.05 | 0.45 | 0.13 | 0.01 |
Less distributions to shareholders: | ||||
Net investment income | (0.32) | — | (0.14) | — |
Total distributions to shareholders | (0.32) | — | (0.14) | — |
Net asset value, end of period | $10.18 | $10.45 | $10.00 | $10.01 |
Total return | 0.55% | 4.50% | 1.27% | 0.10% |
Ratios to average net assets(b) | ||||
Total gross expenses | 2.34% | 2.18% | 1.75% | 12.46% (c) |
Total net expenses(d) | 1.27% | 1.23% | 1.23% | 1.21% (c) |
Net investment income (loss) | 0.72% | 0.82% | 1.71% | (0.40%) (c) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $69 | $9 | $44 | $17,532 |
Portfolio turnover | 15% | 1% | 285% | 5% |
(a) | For the period from April 7, 2011 (commencement of operations) to May 31, 2011. |
(b) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios. |
(c) | Annualized. |
(d) | Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
Prospectus 2014 | 71 |