RIVERSOURCE SERIES TRUST (Form: 485BPOS, Received: 03/04/2011 17:34:52)

Pre-Effective Amendment No.

Post-Effective Amendment

(File No. 333-131683)

Summary of the Fund

INVESTMENT OBJECTIVE

Columbia Government Money Market Fund (the Fund) seeks to preserve capital and to maximize liquidity and current income.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)

Class R,

Class A

Class B

Class C

Maximum sales charge (load) imposed on purchases (as a percentage of offering price)

None

Maximum deferred sales charge (load) imposed on redemptions (as a percentage of offering price at the time of purchase, or current net asset value, whichever is less)

None

Annual Fund Operating Expenses ^(a) (expenses that you pay each year as a percentage of the value of your investment)


	Class A			Class B			Class C			Class R			Class R5
Management fees		0.33%			0.33%			0.33%			0.33%			0.33%
Distribution and/or service (12b-1) fees		0.25%			1.00%			1.00%			0.50%			0.00%
Other expenses		0.39%			0.39%			0.39%			0.39%			0.32%
Total annual fund operating expenses		0.97%			1.72%			1.72%			1.22%			0.65%
Less: Fee waiver/expense reimbursement ^(b)		(0.31%	)		(0.41%	)		(0.41%	)		(0.41%	)		(0.13%	)
Total annual fund operating expenses after fee waiver/expense reimbursement ^(b)		0.66%			1.31%			1.31%			0.81%			0.52%


^(a)		The expense ratios have been adjusted to reflect current fees.


^(b)		The investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until Feb. 29, 2012, unless sooner terminated at the sole discretion of the Fund’s Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any) will not exceed 0.66% for Class A, 1.31% for Class B, 1.31% for Class C, 0.81% for Class R and 0.52% for Class R5.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS 3p

Example

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem your shares at the end of those periods (unless otherwise noted). The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example includes contractual commitments to waive fees and reimburse expenses expiring as indicated in the preceding table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


	1 year		3 years		5 years		10 years

Class A (whether or not shares are redeemed)	$	67	$	278	$	507	$	1,166
Class B (if shares are redeemed)	$	633	$	802	$	1,096	$	1,801
Class B (if shares are not redeemed)	$	133	$	502	$	896	$	1,801
Class C (if shares are redeemed)	$	233	$	502	$	896	$	2,001
Class C (if shares are not redeemed)	$	133	$	502	$	896	$	2,001
Class R (whether or not shares are redeemed)	$	83	$	347	$	632	$	1,446
Class R5 (whether or not shares are redeemed)	$	53	$	195	$	350	$	802

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

The Fund will normally invest at least 80% of its net assets (including the amount of any borrowings for investment purposes) in high-quality, short-term money market securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities. The Fund may also invest in repurchase agreements. The Fund will provide shareholders with at least 60 days’ written notice of any change in the 80% policy.

The Fund will only purchase U.S. government securities, or securities rated in one of the two highest rating categories assigned to short-term debt securities by at least two nationally recognized statistical rating organizations (such as Moody’s Investors Service (Moody’s) or Standard & Poor’s Ratings Services (S&P)), or if not so rated, determined to be of comparable quality.

Currently, the Fund invests only in U.S. government securities and in securities that are rated in the top category by Moody’s and S&P. However, the Fund is permitted to invest up to 3% of its assets in securities rated in the second rating category by two rating organizations.

PRINCIPAL RISKS OF INVESTING IN THE FUND

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Principal risks associated with an investment in the Fund include:

4p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

Credit Risk. Credit risk is the risk that fixed-income securities in the Fund’s portfolio will decline in price or fail to pay interest or repay principal when due because the issuer of the security or the counterparty to a contract will default or otherwise become unable or unwilling to honor its financial obligations. Unrated securities held by the Fund present increased credit risk.

Interest Rate Risk. A rise in the overall level of interest rates may result in the decline in the prices of fixed income securities held by the Fund. Falling interest rates may result in a decline in the Fund’s income and yield. The Fund’s yield will vary and there is no guarantee of positive net yield.

Repurchase Agreements. Repurchase agreements in which the Fund may invest could involve certain risks in the event of default by the seller, including possible delays and expenses in liquidating the securities underlying the agreement, decline in the value of the underlying securities and loss of interest.

PAST PERFORMANCE

The following bar chart and table provide some illustration of the risks of investing in the Fund by showing the variability of Fund performance during the periods shown. How the Fund has performed in the past does not indicate how the Fund will perform in the future. Updated performance information, including current 7-day yield, can be obtained by calling toll-free 800.345.6611 or visiting columbiamanagement.com.

CLASS A ANNUAL TOTAL RETURNS

20% 15% 10% 5% 0% -5% -10% -15% -20% +3.21% +0.74% +0.19% +0.43% +2.20% +3.95% +4.09% +1.12% +0.03% +0.01% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

During the periods shown:


•	Highest return for a calendar quarter was +1.24% (quarter ended March 31, 2001).


•	Lowest return for a calendar quarter was +0.001% (quarters ended June 30, 2009; Sept. 30, 2009; March 31, 2010; June 30, 2010; and Sept. 30, 2010).

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS 5p

Average Annual Total Returns (after applicable sales charge)

Class R

Class R5

Since

inception

(for periods ended Dec. 31, 2010)

1 year

5 years

10 years

(4/30/03)

(11/30/01)

Columbia Government Money Market Fund:

Class A

+0.01%

+1.82%

+1.58%

N/A

Class B

–4.99%

+0.85%

+0.97%

N/A

Class C

–0.99%

+1.23%

+0.96%

N/A

Class R

+0.01%

+1.68%

N/A

+1.38%

N/A

Class R5

+0.01%

+1.99%

N/A

+1.60%

Fund performance information prior to March 7, 2011 represents that of the Fund as a series of Columbia Government Money Market Fund, Inc., a Maryland corporation. The Fund was reorganized into a series of Columbia Funds Series Trust II, a Massachusetts business trust, on that date.

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC

BUYING AND SELLING SHARES


			Individual
	Nonqualified accounts		retirement
Minimum Initial Investment	(all classes except R)		accounts		Class R
For investors other than systematic investment plans	$	2,000	$	1,000		None
Systematic investment plans	$	2,000	$	1,000		None


			Individual
	Nonqualified accounts		retirement
Additional Investments	(all classes except R)		accounts		Class R
For investors other than systematic investment plans	$	100	$	100		None
Systematic investment plans	$	100	$	50		None

Exchanging or Selling Shares

Your shares are redeemable — they may be sold back to the Fund. If you maintain your account with a financial intermediary, you must contact that financial intermediary to exchange or sell shares of the Fund.

If your account was established directly with the Fund, you may request an exchange or sale of shares through one of the following methods:

By mail: Mail your exchange or sale request to:


	Regular Mail: Columbia Management Investment Services Corp., P.O. Box 8081, Boston, MA 02266-8081

Express Mail: Columbia Management Investment Services Corp.,
30 Dan Road, Canton, MA 02021-2809

6p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS

More Information about the Fund

INVESTMENT OBJECTIVE

Columbia Government Money Market Fund (the Fund) seeks to preserve capital and to maximize liquidity and current income. Because any investment involves risk, there is no assurance this objective can be achieved. Only shareholders can change the Fund’s objective.

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

The Fund will invest only in U.S. dollar-denominated securities having a remaining maturity of 13 months (397 days) or less and will maintain a U.S. dollar-weighted average portfolio maturity of 60 days or less and a U.S. dollar weighted average life of 120 days or less.

In seeking to maintain a constant net asset value of $1.00, the Fund will limit its investments to securities that, in accordance with guidelines approved by the Fund’s Board of Trustees (the Board), present minimal credit risk. Accordingly, the Fund will only purchase U.S. government securities, or securities rated in one of the two highest rating categories assigned to short-term debt securities by at least two nationally recognized statistical rating organizations (such as Moody’s Investors Service (Moody’s) or Standard & Poor’s Ratings Services (S&P)), or if not so rated, determined to be of comparable quality.

Determination of quality is made at the time of investment, in accordance with procedures approved by the Fund’s Board. The investment manager (Columbia Management Investment Advisers, LLC) continuously monitors the quality of the Fund’s investments. If the quality of an investment declines, the Fund may, in certain limited circumstances, continue to hold it.

8p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS

In pursuit of the Fund’s objective, the investment manager chooses investments by:


•	Considering opportunities and risks given current interest rates and anticipated interest rates.

•	Purchasing securities based on the timing of cash flows in and out of the Fund.

In evaluating whether to sell a security, the investment manager considers, among other factors, whether:


•	The issuer’s credit rating has declined or the investment manager expects a decline (the Fund, in certain cases, may continue to own securities that are down-graded until the investment manager believes it is advantageous to sell).

•	Political, economic, or other events could affect the issuer’s performance.

•	The investment manager identifies a more attractive opportunity.

•	The issuer or the security continues to meet the other standards described above.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Active Management Risk. The Fund is actively managed and its performance therefore will reflect in part the ability of the portfolio managers to select securities and to make investment decisions that are suited to achieving the Fund’s investment objective. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

Credit Risk. Credit risk is the risk that the issuer of a fixed-income security or the counterparty to a contract may or will default or otherwise become unable or unwilling to honor a financial obligation, such as making payments. If the Fund purchases unrated securities, or if the rating of a security is reduced after purchase, the Fund will depend on analysis of credit risk more heavily than usual.

Interest Rate Risk. A rise in the overall level of interest rates may result in the decline in the prices of fixed income securities held by the Fund. The Fund’s yield will vary; it is not fixed for a specific period like the yield on a bank certificate of deposit. Falling interest rates may result in a decline in the Fund’s income and yield (since the Fund must then invest in lower-yielding fixed income securities). Under certain circumstances, the yield decline could cause the Fund’s net yield to be negative (such as when Fund expenses exceed income levels).

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS 9p

MORE ABOUT ANNUAL FUND OPERATING EXPENSES

The following information is presented in addition to, and should be read in conjunction with, “Fees and Expenses of the Fund” that appears in the Summary of the Fund.

In light of current market conditions and in an order to avoid a negative yield on the Fund, Columbia Management Investment Distributors, Inc., the Funds’ distributor (the distributor), has voluntarily agreed, to waive the 12b-1 fees it receives from Class A, Class C and Class R shares of the Fund. Compensation paid to broker-dealers and other financial intermediaries will be suspended to the extent of the distributor’s waiver of the 12b-1 fees on these specific share classes of the Fund. This voluntary waiver may be revised or terminated at any time without notice to shareholders.

In addition to any contractual waiver/reimbursement, from time to time, the investment manager and its affiliates may waive or absorb expenses of the Fund for the purpose of allowing the Fund to avoid a negative net yield or to increase the Fund’s positive net yield. The Fund’s yield would be negative if Fund expenses exceed Fund income. Any such expense limitation is voluntary and may be revised or terminated at any time without notice to shareholders and, accordingly, any positive net yield resulting there from will cease.

10p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS

OTHER INVESTMENT STRATEGIES AND RISKS

Other Investment Strategies. In addition to the principal investment strategies previously described, the Fund may invest in other securities and may use other investment strategies that are not principal investment strategies. For more information on strategies and holdings, and the risks of such strategies, see the Fund’s SAI and its annual and semiannual reports.

Directed Brokerage. The Fund’s Board has adopted a policy prohibiting the investment manager, or any subadviser, from considering sales of shares of the Fund as a factor in the selection of broker-dealers through which to execute securities transactions.

Additional information regarding securities transactions can be found in the SAI.

FUND MANAGEMENT AND COMPENSATION

Investment Manager

Columbia Management Investment Advisers, LLC (the investment manager or Columbia Management), formerly known as RiverSource Investments, LLC, 225 Franklin Street, Boston, MA 02110, is the investment manager to the Columbia, RiverSource, Seligman and Threadneedle funds (the Fund Family) and is a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). In addition to managing investments for the Fund Family, Columbia Management manages investments for itself and its affiliates. For institutional clients, Columbia Management and its affiliates provide investment management and related services, such as separate account asset management, and institutional trust and custody, as well as other investment products. For all of its clients, Columbia Management seeks to allocate investment opportunities in an equitable manner over time. See the SAI for more information.

Columbia Management and its affiliates may have other relationships, including significant financial relationships, with current or potential subadvisers or their affiliates, which may create a conflict of interest. In making recommendations to the Board to appoint or to change a subadviser, or to change the terms of a subadvisory agreement, Columbia Management does not consider any other relationship it or its affiliates may have with a subadviser, and Columbia Management discloses to the Board the nature of any material relationships it has with a subadviser or its affiliates.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS 11p

Financial Highlights

The financial highlights tables are intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single Fund share. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. The total returns in the tables represent the rate that an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions, if any). Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year. The information for the fiscal years ended on or after Dec. 31, 2009 has been derived from the financial statements audited by the Fund’s Independent Registered Public Accounting Firm Ernst & Young LLP, whose report, along with the Fund’s financial statements and financial highlights, is included in the annual report which, if not included with this prospectus, is available upon request. The information for the periods ended on or before Dec. 31, 2008 was audited by a different Independent Registered Public Accounting Firm.


Class A	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.01			.04			.04

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.01	) ^(b)		(.04	)		(.04	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.03%			1.12%			4.09%			3.95%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.80%			1.14%			.91%			.86%			.90%

Net expenses after expense waiver/reimbursement ^(c)		.17%			.25%			.79%			.86%			.90%

Net investment income (loss)		.01%			.03%			1.07%			4.03%			3.86%

Supplemental data
Net assets, end of period (in millions)		$116			$90			$124			$133			$124

See accompanying Notes to Financial Highlights.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS 13p


Class B	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		(.00	) ^(a)		.00	^(a)		.00	^(a)		.03			.03

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.00	) ^(a),(b)		(.03	)		(.03	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.01%			.35%			3.00%			2.85%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		1.54%			1.99%			1.91%			1.86%			1.89%

Net expenses after expense waiver/reimbursement ^(c)		.18%			.29%			1.53%			1.86%			1.89%

Net investment income (loss)		(.00%	) ^(d)		.00%	^(d)		.33%			3.03%			2.86%

Supplemental data
Net assets, end of period (in millions)		$3			$5			$7			$7			$9


Class C	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.00	^(a)		.03			.03

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.00	) ^(a),(b)		(.03	)		(.03	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.01%			.35%			3.00%			2.85%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		1.00%			1.96%			1.91%			1.86%			1.89%

Net expenses after expense waiver/reimbursement ^(c)		.17%			.28%			1.53%			1.86%			1.89%

Net investment income (loss)		.01%			.00%	^(d)		.33%			3.03%			2.86%

Supplemental data
Net assets, end of period (in millions)		$14			$14			$17			$14			$13

See accompanying Notes to Financial Highlights.

14p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS


Class R*	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.01			.04			.04

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.01	) ^(b)		(.04	)		(.04	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.01%			.93%			3.83%			3.69%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.91%			1.32%			1.16%			1.11%			1.15%

Net expenses after expense waiver/reimbursement ^(c)		.18%			.22%			1.01%			1.11%			1.15%

Net investment income (loss)		.00%	^(d)		.00%	^(d)		.84%			3.78%			3.61%

Supplemental data
Net assets, end of period (in millions)		$3			$3			$2			$1			$—


Class R5	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.01			.04			.04

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.01	) ^(b)		(.04	)		(.04	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.03%			1.38%			4.36%			4.23%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.66%			.94%			.63%			.59%			.60%

Net expenses after expense waiver/reimbursement ^(c)		.18%			.36%			.53%			.59%			.60%

Net investment income (loss)		.01%			.06%			1.33%			4.30%			4.16%

Supplemental data
Net assets, end of period (in millions)		$—			$—			$20			$15			$12

Notes to Financial Highlights


*		Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.


^(a)		Rounds to less than $0.01 per share.


^(b)		In addition, the Fund paid a short-term capital gain distribution of $0.000146 on July 25, 2008.


^(c)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses.


^(d)		Rounds to less than 0.01%.

Information prior to March 7, 2011 represents that of the Fund as a series of Columbia Government Money Market Fund, Inc., a Maryland corporation. The Fund was reorganized into a series of Columbia Funds Series Trust II, a Massachusetts business trust, on that date.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 PROSPECTUS 15p

Choosing a Share Class

The Funds

Effective September 7, 2010, the Columbia funds (including the portfolios), Columbia Acorn funds and RiverSource funds (including the Seligman and Threadneedle branded funds) share the same policies and procedures for investor services, as described below. For example, for purposes of calculating the initial sales charge on the purchase of Class A shares of a fund, an investor or selling and/or servicing agent should consider the combined market value of all Columbia, Columbia Acorn, RiverSource, Seligman and Threadneedle funds owned by the investor or his/her “immediate family.” For details on this particular policy, see Reductions/Waivers of Sales Charges — Front-End Sales Charge Reductions .

For purposes of this service section, funds and portfolios bearing the “Columbia” and “Columbia Acorn” brands prior to September 27, 2010 are collectively referred to as the Legacy Columbia funds. For a list of Legacy Columbia funds, see Appendix E to the Fund’s Statement of Additional Information (SAI). The funds that historically bore the RiverSource brand, including those renamed to bear the “Columbia” brand effective September 27, 2010 as well as certain other funds are collectively referred to as the Legacy RiverSource funds. For a list of Legacy RiverSource funds, see Appendix F to the Fund’s SAI. Together the Legacy Columbia funds and the Legacy RiverSource funds are referred to as the Funds.

The Funds’ primary service providers are referred to as follows: Columbia Management or the investment manager refers to Columbia Management Investment Advisers, LLC (formerly RiverSource Investments, LLC), the Transfer Agent refers to Columbia Management Investment Services Corp. (formerly, RiverSource Services Corporation) and the Distributor refers to Columbia Management Investment Distributors, Inc. (formerly RiverSource Fund Distributors, Inc.).

Additional information about the Funds can be obtained at the Funds’ website, columbiamanagement.com, by calling toll-free 800.345.6611, or by writing (regular mail) to The Funds, c/o Columbia Management Investment Services Corp., P.O. Box 8081, Boston, MA 02266-8081 or (express mail) The Funds, c/o Columbia Management Investment Services Corp., 30 Dan Road, Canton, MA 02021-2809.

S.1

Comparison of Share Classes

Share Class Features

Not all Funds offer every class of shares. The Fund offers the class(es) of shares set forth on the cover of this prospectus. The Fund may also offer other classes of shares through a separate prospectus. Each share class has its own investment eligibility criteria, cost structure and other features. You may not be eligible for every share class. If you purchase shares of the Fund through a retirement plan or other product or program sponsored by your selling and/or servicing agent, not all share classes may be made available to you.

The following summarizes the primary features of Class A, Class B, Class C, Class E, Class F, Class I, Class R, Class R3, Class R4, Class R5, Class T, Class W, Class Y and Class Z shares. Although certain share classes may be generally closed to new or existing investors, information relating to these share classes is included in the table below because certain qualifying purchase orders are permitted, as described below. When deciding which class of shares to buy, you should consider, among other things:


•	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.

FUNDamentals ^tm

Selling and/or Servicing Agents

The terms “selling agent” and “servicing agent” refer to the financial intermediary that employs your financial advisor. Selling and/or servicing agents include, for example, brokerage firms, banks, investment advisors, third party administrators and other financial intermediaries.

Each investor’s personal situation is different and you may wish to discuss with your selling and/or servicing agent which share class is best for you. Your authorized selling and/or servicing agent can help you to determine which share class(es) is available to you and to decide which share class best meets your needs.

S.2


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class A*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	none	none

Class B*	Closed to new investors. ^(h)	up to $49,999	Converts to Class A shares generally eight years after purchase. ⁽ⁱ⁾

Class C*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	up to $999,999; no limit for eligible employee benefit plans. ^(j)	none

Class E	Closed to new investors and new accounts. ^(k)	none	none

Class F	Closed to new investors and new accounts. ^(k)	up to $250,000. ^(l)	Converts to Class E shares eight years after purchase. ⁽ⁱ⁾

Class I*	Available only to the Funds (i.e., Fund-of-Fund investments).	none	none

Class R*	Available only to eligible retirement plans and health savings accounts; no minimum initial investment.	none	none

Class R3*	Effective after the close of business on December 31, 2010, Class R3 shares are 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. ⁽ⁿ⁾	none	none

Class R4*	Effective after the close of business on December 31, 2010, Class R4 shares are 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. ⁽ⁿ⁾	none	none

S.3


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class R5*	Effective after the close of business on December 31, 2010, Class R5 shares are 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, health savings accounts and, if approved by the Distributor, institutional or corporate accounts above a threshold established by the Distributor (currently $1 million per Fund or $10 million in all Funds) and bank trust departments. ⁽ⁿ⁾	none	none

Class T	Available only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy funds into various Columbia funds (formerly named Liberty funds).	none	none

Class W*	Available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs.	none	none

Class Y*	Available to certain categories of investors which are subject to minimum initial investment requirements; currently offered only to former shareholders of the former Columbia Funds Institutional Trust. ^(q)	none	none

Class Z*	Available only to certain eligible investors, which are subject to different minimum initial investment requirements, ranging from $0 to $2,000.	none	none


	Front-End Sales Charges ^(b)	Contingent Deferred Sales Charges (CDSCs) ^(b)


Class A*	5.75% maximum, declining to 0.00% on investments of $1 million or more. None for money market Funds and certain other Funds. ^(f)	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 of purchase. ^(g)

Class B*	none	5.00% maximum, gradually declining to 0.00% after six years. ⁽ⁱ⁾

Class C*	none	1.00% on certain investments redeemed within one year of purchase.

Class E	4.50% maximum, declining to 0.00% on investments of $500,000 or more.	1.00% on certain investments of between $1 million and $5 million redeemed within one year of purchase.

S.4


		Non 12b-1
	Maximum Distribution and Service (12b-1) Fees ^(c)	Service Fees ^(d)


Class R4*	none	0.25% ^(m)

Class R5*	none	none

Class T	none	up to 0.50%. ^(o)

Class W*	0.25% distribution and service fees, with certain exceptions. ^(c)	none

Class Y*	none	none

Class Z*	none	none


*		For money market Funds, new investments must be made in Class A, Class I, Class T, Class W or Class Z shares, subject to eligibility. Class C and Class R shares of the money market Funds 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. The money market Funds offer other classes of shares only to facilitate exchanges with other Funds offering such share classes.
^(a)		See Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders for more details on the eligible investors and minimum initial and subsequent investment and account balance requirements.
^(b)		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 charge policies, see Choosing a Share Class — Reductions/Waivers of Sales Charges .
^(c)		These are the maximum applicable distribution and/or shareholder service fees. Because these fees are paid out of Fund assets on an on-going 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. For Legacy Columbia funds with Class A shares subject to both a distribution and service fee, the aggregate fees are limited to not more than 0.25%. Columbia Money Market Fund (formerly RiverSource Cash Management 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. The Distributor has voluntarily agreed to waive all or a portion of distribution and/or service fees for certain classes of certain Funds. For information on these waivers, see Choosing a Share Class — Distribution and Service Fees . Compensation paid to selling and/or servicing agents may be suspended to the extent of the Distributor’s waiver of the 12b-1 fees on these specific Fund share classes.
^(d)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees and Class T Shares — Shareholder Service Fees .
^(e)		The minimum initial investment requirement is $5,000 for RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund, and $10,000 for Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund and Columbia Absolute Return Currency and Income Fund. For more details on the minimum initial investment requirement applicable to other Funds, see Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders .
^(f)		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, and RiverSource S&P 500 Index Fund.
^(g)		There is no CDSC on Class A shares of the money market Funds or the Funds identified in footnote (f) above. Legacy Columbia fund Class A shareholders and Legacy RiverSource fund shareholders who purchased Class A shares without an initial sales charge because their accounts aggregated between $1 million and $50 million at the time of purchase and who purchased shares on or before September 3, 2010 will incur, for Legacy Columbia fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC and

S.6


		for legacy RiverSource fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within 18 months of purchase and redemptions after one year will not be subject to a CDSC.
^(h)		The Funds no longer accept investments from new or existing investors in Class B shares, except through reinvestment of dividend and/or capital gain distributions by existing Class B shareholders, or a permitted exchange, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class B Shares Closed . Unless contrary instructions are received in advance by the Fund, any purchase orders (except those submitted by a selling and/or servicing agent through the National Securities Clearing Corporation (NSCC) that are initial investments in Class B shares or that are orders for additional Class B shares of the Fund received from existing investors in Class B shares, including orders made through an active systematic investment plan, will automatically be invested in Class A shares of the Fund, without regard to the normal minimum initial investment requirement for Class A shares, but subject to the applicable front-end sales charge. Your selling and/or servicing agent may have different policies, including automatically redirecting the purchase order to a money market fund. See Choosing a Share Class — Class A Shares — Front-end Sales Charge for additional information about Class A shares .
⁽ⁱ⁾		Timing of conversion and CDSC schedule will vary depending on the Fund and the date of your original purchase of Class B shares. For more information on the timing of conversion of Class B shares to Class A shares, see Choosing a Share Class — Class B Shares — Conversion of Class B Shares to Class A Shares . Class B shares of Columbia Short Term Municipal Bond Fund do not convert to Class A shares. For information on the timing of the conversion of Class F shares to Class E shares, see Choosing a Share Class — Class F Shares — Commissions and Conversion to Class E Shares .
^(j)		There is no investment limit on Class C shares purchased by employee benefit plans created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans, that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper.
^(k)		The Funds no longer accept investments from new or existing investors in Class E or Class F shares, except that existing Class E and/or Class F shareholders who opened and funded their account prior to September 22, 2006 may continue to invest in Class E and/or Class F shares, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class E and Class F Shares Closed . Class E and Class F shares are designed for investors who wish to make an irrevocable gift to a child, grandchild or other individual.
^(l)		If you hold Class F shares of the Fund and your account has a value of less than $250,000, you may purchase additional Class F shares of the Fund in amounts that increase your account value up to a maximum of $250,000. The value of your account, for this purpose, includes the value of all Class F shares in eligible accounts held by you and your “immediate family.” For more information about account value aggregation and eligible accounts, see Choosing a Share Class — Reductions/Waivers of Sales Charges . If you have reached the $250,000 limit, any additional amounts you invest in Class F shares of the Fund will be invested in Class E shares of the Fund, without regard to the normal minimum investment amount required for Class E shares. Such investments will, however, be subject to the applicable front-end sales charge.
^(m)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees .
⁽ⁿ⁾		Shareholders who opened and funded a Class R3, Class R4 or Class R5 shares account with a Fund as of the close of business on December 31, 2010 (including accounts once funded that subsequently reached a zero balance) may continue to make additional purchases of the share class, and existing Class R3, Class R4 or Class R5 accounts may continue to allow new investors or participants to be established in their Fund account. For more information on eligible investors in these share classes and the closing of these share classes, see Buying Shares — Eligible Investors — Class R3 Shares, R4 Shares and Class R5 Shares .
^(o)		For more information, see Class T Shares — Shareholder Service Fees .
^(p)		Class T Shareholders who purchased Class T shares without a front-end sales charge because their accounts aggregated between $1 million and $50 million at the time of the purchase and who purchased shares on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC.
^(q)		Class Y shares are available only to the following categories of investors: (i) individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) that invest at least $1 million in Class Y shares of a single Fund and (ii) group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

S.7

Sales Charges and Commissions

Sales charges, commissions and distribution and service fees (discussed in a separate sub-section below) compensate selling and/or servicing agents, and typically your financial advisor, for selling shares to you and for maintaining and servicing the shares held in your account with them. These charges, commissions and fees are intended to provide incentives for selling and/or servicing agents to provide these services.

Depending on which share class you choose, you will pay these charges either at the outset as a front-end sales charge, at the time you sell your shares as a contingent deferred sales charge (CDSC) and/or over time in the form of increased ongoing fees. Whether the ultimate cost is higher for one class over another depends on the amount you invest, how long you hold your shares and whether you are eligible for reduced or waived sales charges. We encourage you to consult with a financial advisor who can help you with your investment decisions.

Class A Shares — Front-End Sales Charge

You’ll pay a front-end sales charge when you buy Class A shares (other than shares of a money market Fund and certain other Funds) unless you qualify for a waiver of the sales charge or you buy the shares through reinvested distributions. See Choosing a Share Class — Reductions/Waivers of Sales Charges for more information.

The Distributor receives the sales charge and re-allows (or pays) a portion of the sales charge to the selling and/or servicing agent through which you purchased the shares. The Distributor retains the balance of the sales charge. The Distributor retains the full sales charge you pay when you purchase shares of the Fund directly from the Fund (not through a selling and/or servicing agent). Sales charges vary depending on the amount of your purchase.

S.8


							Amount
							retained by
					Sales		or paid to
			Sales		charge		selling
			charge		as a		and/or
			as a		% of the		servicing
			% of the		net		agents as a
	Dollar amount of		offering		amount		% of the
Breakpoint Schedule For:	shares bought ^(a)		price ^(b)		invested ^(b)		offering price



Columbia California Intermediate Municipal Bond Fund,	$	0—$99,999		3.25%		3.36%		2.75%

Columbia Connecticut Intermediate Municipal Bond Fund,	$	100,000—$249,999		2.50%		2.56%		2.15%

Columbia Georgia Intermediate Municipal Bond Fund,	$	250,000—$499,999		2.00%		2.04%		1.75%

Columbia Intermediate Bond Fund,	$	500,000—$999,999		1.50%		1.53%		1.25%

Columbia Intermediate Municipal Bond Fund,	$	1,000,000 or more		0.00%		0.00%		0.00%	^(c)(d)

Columbia LifeGoal ^® Income Portfolio,

Columbia Maryland Intermediate Municipal Bond Fund,

Columbia Massachusetts Intermediate Municipal Bond Fund,

Columbia New Jersey Intermediate Municipal Bond Fund,

Columbia New York Intermediate Municipal Bond Fund,

Columbia North Carolina Intermediate Municipal Bond Fund,

Columbia Oregon Intermediate Municipal Bond Fund,

Columbia Rhode Island Intermediate Municipal Bond Fund,

Columbia Short-Intermediate Bond Fund,

Columbia South Carolina Intermediate Municipal Bond Fund,

Columbia Total Return Bond Fund and

Columbia Virginia Intermediate Municipal Bond Fund



Columbia Short-Term Bond Fund and	$	0—$99,999		1.00%		1.01%		0.75%

Columbia Short-Term Municipal Bond Fund	$	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)(d)


*		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund and RiverSource S&P 500 Index Fund. “ Funds-of-Funds (equity) ” includes — Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia Portfolio Builder Aggressive Fund, Columbia Portfolio Builder Moderate Aggressive Fund, Columbia Portfolio Builder Moderate Fund, Columbia Portfolio Builder Total Equity Fund, Columbia Retirement Plus 2010 Fund, Columbia Retirement Plus 2015 Fund, Columbia Retirement Plus 2020 Fund, Columbia Retirement Plus 2025 Fund, Columbia Retirement Plus 2030 Fund, Columbia Retirement Plus 2035 Fund, Columbia Retirement Plus 2040 Fund, Columbia Retirement Plus 2045 Fund. “ Funds-of-Funds (fixed income) ” includes — Columbia Income Builder Fund, Columbia Income Builder Fund II, Columbia Income Builder Fund III, Columbia Portfolio Builder Conservative Fund and Columbia Portfolio Builder Moderate Conservative Fund. Columbia Asset Allocation Fund, Columbia Asset Allocation Fund II, Columbia Balanced Fund and Columbia Liberty 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.

S.11


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources (except for the Funds listed below): 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The Distributor may be reimbursed if a CDSC is deducted when the shares are redeemed. Currently, the Distributor does not make such payments on purchases of the following Funds for purchases with a total market value of $1 million or more: Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia U.S. Treasury Index Fund and RiverSource S&P 500 Index Fund.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Class A Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class A shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase. Shareholders who purchased shares of a Legacy RiverSource fund on or before Sept. 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within 18 months of purchase.

	•	Fund shareholders who purchased shares after September 3, 2010 will incur a CDSC if those shares are redeemed 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.

The CDSC on Class A shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

S.12

FUNDamentals ^tm

Contingent Deferred Sales Charge

A contingent deferred sales charge or CDSC is a sales charge applied at the time you sell your shares, unlike a front-end sales charge that is applied at the time of purchase. A CDSC varies based on the Fund and the length of time that you have held your shares.

For purposes of calculating the CDSC on shares of a Legacy Columbia fund and, shares of a Legacy RiverSource fund, the start of the holding period is the first day of the month in which your purchase was made. When you place an order to sell your shares, the Fund will first redeem any shares that aren’t subject to a CDSC, followed by those you have held the longest. This means that if a CDSC is imposed, you cannot designate the individual shares being redeemed for U.S. federal income tax purposes. You should consult your tax advisor about the tax consequences of investing in the Fund.

Class A Shares — Commissions

The Distributor may pay your selling and/or servicing agent an up-front commission when you buy Class A shares. The Distributor generally funds the commission through the applicable sales charge paid by you. The up-front commission on Class A shares, which varies by Fund, may be up to 5.00% of the offering price for Funds with a maximum front-end sales charge of 5.75%, up to 4.00% of the offering price for Funds with a maximum front-end sales charge of 4.75%, up to 2.75% of the offering price for Funds with a maximum front-end sales charge of 3.25%, up to 2.50% of the offering price for Funds with a maximum front-end sales charge of 3.00%, and up to 0.75% of the offering price for Funds with a maximum front-end sales charge of 1.00%.

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy $1 million or more of Class A shares, according to the following schedule:

Class A Shares — Commission Schedule (Paid by the Distributor to Selling and/or Service Agents)*


	Commission Level
	(as a % of net asset
Purchase Amount	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.
**		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor sales commissions on purchases (that are coded as commission-eligible trades) in amounts of less than $1 million.

S.13

Class B Shares — Sales Charges

The Funds no longer accept investments from new or existing investors in Class B shares, except for certain limited transactions involving existing investors in Class B shares as described in more detail below under Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class B Shares Closed .

You don’t pay a front-end sales charge when you buy Class B shares, but you may pay a CDSC when you sell Class B shares.

Class B Shares — CDSC

The CDSC on Class B shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	generally declines each year until there is no sales charge for redeeming shares.

You’ll pay a CDSC if you sell Class B shares unless you qualify for a waiver of the CDSC or the shares you’re selling were bought through reinvested distributions. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details. Also, you will not pay a CDSC on any amount that represents appreciation in the value of your shares. The CDSC you pay on Class B shares depends on how long you’ve held your shares:

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

				Columbia California Intermediate Municipal Bond Fund,
				Columbia Georgia Intermediate Municipal Bond Fund,
				Columbia Connecticut Intermediate Municipal Bond Fund,
				Columbia Intermediate Bond Fund, Columbia Intermediate
				Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
				Columbia Maryland Intermediate Municipal Bond Fund,
				Columbia Massachusetts Intermediate Municipal Bond
				Fund, Columbia New Jersey Intermediate Municipal Bond Fund,
				Columbia New York Intermediate Municipal Bond Fund,
				Columbia North Carolina Intermediate Municipal Bond Fund,
				Columbia Oregon Intermediate Municipal Bond Fund, Columbia
				Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of				Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those			Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right			Columbia Virginia Intermediate Municipal Bond Fund


One		5.00	%	3.00%
Two		4.00	%	3.00%
Three		3.00	%**	2.00%
Four		3.00	%	1.00%
Five		2.00	%	None
Six		1.00	%	None

S.14

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

		Columbia California Intermediate Municipal Bond Fund,
		Columbia Georgia Intermediate Municipal Bond Fund,
		Columbia Connecticut Intermediate Municipal Bond Fund,
		Columbia Intermediate Bond Fund, Columbia Intermediate
		Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
		Columbia Maryland Intermediate Municipal Bond Fund,
		Columbia Massachusetts Intermediate Municipal Bond
		Fund,Columbia New Jersey Intermediate Municipal Bond Fund,
		Columbia New York Intermediate Municipal Bond Fund,
		Columbia North Carolina Intermediate Municipal Bond Fund,
		Columbia Oregon Intermediate Municipal Bond Fund, Columbia
		Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of		Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those	Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right	Columbia Virginia Intermediate Municipal Bond Fund


Seven	None	None
Eight	None	None
Nine	Conversion to Class A Shares	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.
**		For shares purchased in a Legacy RiverSource fund (other than a Seligman fund) on or prior to June 12, 2009, the CDSC percentage for year three is 4%.

Class B shares of Columbia Short Term Municipal Bond Fund are not subject to a CDSC.

Class B Shares — Commissions

If you are an investor who purchased Class B shares prior to their closing (except for certain limited transactions), although there was no front-end sales charge for Class B shares when you bought Class B shares, the Distributor paid an up-front commission directly to your selling and/or servicing agent when you bought the Class B shares (a portion of this commission may, in turn, have been paid to your financial advisor). This up-front commission, which varies across the Funds, was up to 4.00% of the net asset value per share of Funds with a maximum CDSC of 5.00% and of Class B shares of Columbia Short Term Municipal Bond Fund and up to 2.75% of the net asset value per share of Funds with a maximum CDSC of 3.00%. The Distributor continues to seek to recover this commission through distribution fees it receives under the Fund’s distribution plan and any applicable CDSC paid when you sell your shares. See Choosing a Share Class — Distribution and Service Fees for details.

S.15

Class B Shares — Conversion to Class A Shares

Class B shares purchased in a Legacy Columbia fund at any time, a Legacy RiverSource fund (other than a Seligman fund) at any time, or a Seligman fund on or after June 13, 2009 automatically convert to Class A shares after you’ve owned the shares for eight years, except for Class B shares of Columbia Short Term Municipal Bond Fund, which do not convert to Class A shares. Class B shares originally purchased in a Seligman fund on or prior to June 12, 2009 will convert to Class A shares in the month prior to the ninth year of ownership. The conversion feature allows you to benefit from the lower operating costs of Class A shares, which can help increase your total returns from an investment in the Fund.

Class B shares purchased in a Legacy RiverSource fund (other than a Seligman fund) prior to May 21, 2005 age on a calendar year basis. Class B shares purchased in a Legacy Columbia fund at any time, Seligman fund at any time, or a Legacy RiverSource fund (other than a Seligman fund) on or after May 21, 2005 through Sept. 3, 2010 age on a daily basis. Class B shares purchased in a Legacy RiverSource fund after the close of business on Sept. 3. 2010, on any Legacy Columbia fund and any Seligman fund begin to age as of the first day of the month in which the purchase was made. For example, a purchase made on November 12, 2004 completed its first year on December 31, 2004 under calendar year aging, but completed its first year on November 11, 2005 under daily aging.

The following rules apply to the conversion of Class B shares to Class A shares:


•	Class B shares are converted on or about the 15th day of the month that they become eligible for conversion. For purposes of determining the month when your Class B shares are eligible for conversion, the start of the holding period is the first day of the month in which your purchase was made.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class A shares at the same time.

•	You’ll receive the same dollar value of Class A shares as the Class B shares that were converted. Class B shares that you received from an exchange of Class B shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

Class C Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class C shares, but you may pay a CDSC when you sell Class C shares.

S.16

Class C Shares — CDSC

You’ll pay a CDSC of 1.00% if you redeem Class C shares within one year of buying them unless you qualify for a waiver of the CDSC or the shares you’re selling were bought through reinvested distributions. For details, see Choosing a Share Class — Reductions/Waivers of Sales Charges . The CDSC on Class C shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	is reduced to 0.00% on shares redeemed a year or more after purchase.

Class C Shares — Commissions

Although there is no front-end sales charge when you buy Class C shares, the Distributor pays an up-front commission directly to your selling and/or servicing agent of up to 1.00% of the net asset value per share when you buy Class C shares (a portion of this commission may, in turn, be paid to your financial advisor). The Distributor seeks to recover this commission through distribution fees it receives under the Fund’s distribution and/or service plan and any applicable CDSC applied when you sell your shares. See Choosing a Share Class — Distribution and Service Fees for details.

Class E Shares — Front-End Sales Charge

You’ll pay a front-end sales charge when you buy Class E shares unless you qualify for a waiver of the sales charge or you buy the shares through reinvested distributions. See Choosing a Share Class — Reductions/Waivers of Sales Charges for more information.

The front-end sales charge you’ll pay on Class E shares:


•	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.

Class E Shares — Front-End Sales Charge — Breakpoint Schedule


			Sales charge		Amount retained by or
	Sales charge		as a % of the		paid to selling and/or
Dollar amount of	as a % of the		net amount		servicing agents as a %
shares bought ^(a)	offering price ^(b)		invested ^(b)		of the offering price


$0—$49,999		4.50%		4.71%		4.00%
$50,000—$99,999		3.50%		3.63%		3.00%
$100,000—$249,999		2.50%		2.56%		2.00%
$250,000—$499,999		1.25%		1.27%		1.00%
$500,000—$999,999		0.00%		0.00%		0.00%
$1,000,000 or more		0.00%		0.00%		0.00%	^(c)

S.17


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following out of its own resources: 1.00% on purchases up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $5 million and 0.25% on purchases of $5 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.

Class E Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class E shares that you bought without an initial sales charge.


•	If you bought Class E shares without an initial sales charge because your accounts aggregated between $1 million and $5 million at the time of purchase, you will incur a 1.00% CDSC if you redeem those shares within one year of buying them.

•	Subsequent Class E share purchases that bring your aggregate account value to $1 million or more (but less than $5 million) will also be subject to a CDSC if you redeem them within one year of buying them.

The CDSC on Class E shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

For purposes of calculating the CDSC, the start of the holding period is the first day of the month in which the purchase was made. When you place an order to sell your Class E shares, the Fund will first redeem any shares that aren’t subject to a CDSC followed by those you have held the longest. This means that if a CDSC is imposed, you cannot designate the individual shares being redeemed for U.S. federal income tax purposes. You should consult your tax advisor about the tax consequences of your investment in the Funds.

The Distributor may pay your selling and/or servicing agent an up-front commission of up to 4.00% of the offering price per share when you buy Class E shares. The Distributor funds the commission through the applicable sales charge paid by you.

Class E Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy Class E shares, according to the following schedule:

S.18


*		Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages.

Class F Shares — Commissions and Conversion to Class E Shares

Although there is no front-end sales charge when you buy Class F shares, the Distributor pays an up-front commission directly to your selling and/or servicing agent of up to 4.00% of the net asset value per share when you buy Class F shares (a portion of this commission may, in turn, be paid to your financial advisor). The Distributor seeks to recover this commission through distribution fees it receives under the Fund’s distribution plan and any applicable CDSC when you sell your shares. See Choosing a Share Class — Distribution and Service Fees for details.

Class F shares automatically convert to Class E shares after you’ve owned them for eight years. This conversion feature allows you to benefit from the lower operating costs of Class E shares, which can help increase your total returns from an investment in the Fund.

The following rules apply to the conversion of Class F shares to Class E shares:


•	Class F shares are converted on or about the 15th day of the month that they become eligible for conversion.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class E shares at the same time.

•	You’ll receive the same dollar value of Class E shares as the Class F shares that were converted. Class F shares that you received from an exchange of Class F shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

S.20

Class T Shares — Front-End Sales Charge — Breakpoint Schedule


									Amount retained
			Sales charge			Sales charge			by or paid to
			as a %			as a %			selling and/or
			of the			of the			servicing agents
Breakpoint	Dollar amount of		offering			net amount			as a % of the
Schedule For:	shares bought ^(a)		price ^(b)			invested ^(b)			offering price


	$	0—$49,999		5.75	%		6.10	%		5.00	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Equity Funds	$	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)(d)

	$	0—$49,999		4.75	%		4.99	%		4.25	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Fixed-Income Funds	$	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)(d)


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources: 1.00% on purchases of $1 million up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $50 million and 0.25% on purchases of $50 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on purchases up to but not including $3 million (including those in amounts of less than $1 million), up to 0.50% on purchases of $3 million up to but not including $50 million, and up to 0.25% on purchases of $50 million or more.

Class T Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class T shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:

S.22


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase.

	•	Shareholders who purchased shares of a Fund after September 3, 2010 will incur a CDSC if those shares are redeemed 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 of 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.

The CDSC on Class T shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

For purposes of calculating the CDSC, the start of the holding period is the first day of the month in which the purchase was made. When you place an order to sell your Class T shares, the Fund will first redeem any shares that aren’t subject to a CDSC, followed by those you have held the longest. This means that if a CDSC is imposed, you cannot designate the individual shares being redeemed for U.S. federal income tax purposes. You should consult your tax advisor about the tax consequences of your investment in the Funds.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

Class T Shares — Commissions

The Distributor may pay your selling and/or servicing agent an up-front commission when you buy Class T shares (a portion of this commission may, in turn, be paid to your financial advisor). The up-front commission, which varies by Fund, may be up to 5.00% of the offering price for Funds with a maximum front-end sales charge of 5.75% and up to 4.25% of the offering price for Funds with a maximum front-end sales charge of 4.75%.

S.23

Second, by making a statement of intent to purchase additional shares (commonly referred to as a letter of intent (LOI)), you may pay a lower sales charge on all purchases (including existing ROA purchases) of Class A shares, Class E shares or Class T shares made within 13 months of the date of your LOI. Your LOI must state the aggregate amount of purchases you intend to make in that 13-month period, which must be at least $50,000. The required form of LOI may vary by selling and/or servicing agent, so please contact them directly for more information. Five percent of the purchase commitment amount will be placed in escrow. At the end of the 13-month period, the shares will be released from escrow, provided that you have invested the commitment amount. If you do not invest the purchase commitment amount by the end of the 13 months, the remaining amount of the unpaid sales charge will be redeemed from the escrowed shares and the remaining balance released from escrow. To calculate the total value of the purchases you’ve made under an LOI, the Fund will use the historic cost ( i.e. , dollars invested) of the shares held in each eligible account. For purposes of making an LOI to purchase additional shares, you may aggregate your ownership of different classes of shares, except for Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of the Funds, which may not be aggregated.

You must request the reduced sales charge (whether through ROA or an LOI) when you buy shares. If you do not complete and file an LOI, or do not request the reduced sales charge at the time of purchase, you will not be eligible for the reduced sales charge. To obtain a breakpoint discount, you must notify your selling and/or servicing agent in writing at the time you buy your shares of each eligible account maintained by you and members of your immediate family, including accounts maintained through different selling and/or servicing agents. You and your selling and/or servicing agent are responsible for ensuring that you receive discounts for which you are eligible. The Fund is not responsible for a selling and/or servicing agent’s failure to apply the eligible discount to your account. You may be asked by your selling and/or servicing agent for account statements or other records to verify your discount eligibility, including, when applicable, records for accounts opened with a different selling and/or servicing agent and records of accounts established by members of your immediate family.

S.25

FUNDamentals ^tm

Your “Immediate Family” and Account Value Aggregation

For purposes of reaching the Class F shares investment limits described in Choosing a Share Class — Comparison of the Share Classes or obtaining a Class A shares, Class E shares or Class T shares breakpoint discount, the value of your account will be deemed to include the value of all applicable shares in eligible accounts that are held by you and your “immediate family,” which includes your spouse, domestic partner, parent, step-parent, legal guardian, child, step-child, father-in-law and mother-in-law, provided that you and your immediate family members share the same mailing address. Any Fund accounts linked together for account value aggregation purposes as of the close of business on September 3, 2010 will be permitted to remain linked together. Remember that in order to obtain a breakpoint discount, you must notify your selling and/or servicing agent in writing at the time you buy your shares of each eligible account maintained by you and members of your immediate family. Group plan accounts are valued at the plan level.

Eligible Accounts

The following accounts are eligible for account value aggregation as described above:


•	Individual or joint accounts;

•	Roth and traditional Individual Retirement Accounts (IRAs), Simplified Employee Pension accounts (SEPs), Savings Investment Match Plans for Employees of Small Employers accounts (SIMPLEs) and Tax Sheltered Custodial Accounts (TSCAs);

•	Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors (UTMA) accounts for which you, your spouse, or your domestic partner is parent or guardian of the minor child;

•	Revocable trust accounts for which you or an immediate family member, individually, is the beneficial owner/grantor;

•	Accounts held in the name of your, your spouse’s, or your domestic partner’s sole proprietorship or single owner limited liability company or S corporation;

•	Qualified retirement plan assets, provided that you are the sole owner of the business sponsoring the plan, are the sole participant (other than a spouse) in the plan, and have no intention of adding participants to the plan; and

•	Investments in wrap accounts;

provided that each of the accounts identified above is invested in Class A, Class B, Class C, Class E, Class F, Class T, Class W and/or Class Z shares of the Funds.

S.26

The following accounts are not eligible for account value aggregation as described above:


•	Accounts of pension and retirement plans with multiple participants, such as 401(k) plans (which are combined to reduce the sales charge for the entire pension or retirement plan and therefore are not used to reduce the sales charge for your individual accounts);

•	Accounts invested in Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of the Funds;

•	Investments in 529 plans, donor advised funds, variable annuities, variable life insurance products, or managed separate accounts;

•	Charitable and irrevocable trust accounts; and

•	Accounts holding shares of money market Funds that used the Columbia brand before May 1, 2010.

Front-End Sales Charge Waivers

The following categories of investors may buy Class A, Class E and Class T shares of the Funds at net asset value, without payment of any front-end sales charge that would otherwise apply:


•	Current or retired Fund Board members, officers or employees of the Funds or Columbia Management or its affiliates ⁽¹⁾ ;

•	Current or retired Ameriprise Financial Services, Inc. financial advisors and employees of such financial advisors ⁽¹⁾ ;

•	Registered representatives and other employees of affiliated or unaffiliated selling and/or servicing agent having a selling agreement with the Distributor ⁽¹⁾ ;

•	Registered broker/dealer firms that have entered into a dealer agreement with the Distributor may buy Class A shares without paying a front-end sales charge for their investment account only;

•	Portfolio managers employed by subadvisers of the Funds ⁽¹⁾ ;

•	Partners and employees of outside legal counsel to the Funds or the Funds’ directors or trustees who regularly provide advice and services to the Funds, or to their directors or trustees;

•	Direct rollovers from qualified employee benefit plans, provided that the rollover involves a transfer to Class A shares in the same Fund;

•	Purchases made:


	•	With dividend or capital gain distributions from a Fund or from the same class of another Fund;

S.27


	•	Through or under a wrap fee product or other investment product sponsored by a selling and/or servicing agent that charges an account management fee or other managed agency/asset allocation accounts or programs involving fee-based compensation arrangements that have or that clear trades through a selling and/or servicing agent that has a selling agreement with the Distributor;

	•	Through state sponsored college savings plans established under Section 529 of the Internal Revenue Code; or

	•	Through banks, trust companies and thrift institutions, acting as fiduciaries;


•	Separate accounts established and maintained by an insurance company which are exempt from registration under Section 3(c)(11);

•	Purchases made through “employee benefit plans” created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper; and


⁽¹⁾		Including their spouses or domestic partners, children or step-children, parents, step-parents or legal guardians, and their spouse’s or domestic partner’s parents, step-parents, or legal guardians.


•	At the Fund’s discretion, front-end sales charges may be waived for shares issued in plans of reorganization, such as mergers, asset acquisitions and exchange offers, to which the Fund is a party.

Restrictions may apply to certain accounts and certain transactions. The Funds may change or cancel these terms at any time. Any change or cancellation applies only to future purchases. Unless you provide your selling and/or servicing agent with information in writing about all of the factors that may count toward a waiver of the sales charge, there can be no assurance that you will receive all of the waivers for which you may be eligible. You should request that your selling and/or servicing agent provide this information to the Fund when placing your purchase order. Please see the SAI for more information about the sales charge reductions and waivers.

CDSC Waivers

You may be able to avoid an otherwise applicable CDSC when you sell Class A, Class B, Class C, Class E, Class F or Class T shares of the Fund. This could happen because of the way in which you originally invested in the Fund, because of your relationship with the Funds or for other reasons.

CDSC — Waivers of the CDSC for Class A, Class C, Class E, Class F and Class T shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	for which no sales commission or transaction fee was paid to an authorized selling and/or servicing agent at the time of purchase;

•	purchased through reinvestment of dividend and capital gain distributions;

S.28


•	in an account that has been closed because it falls below the minimum account balance;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	that result from returns of excess contributions made to retirement plans or individual retirement accounts, so long as the selling and/or servicing agent returns the applicable portion of any commission paid by the Distributor;

•	of Class A shares of a Fund initially purchased by an employee benefit plan;

•	other than Class A shares, of a Fund initially purchased by an employee benefit plan that are not connected with a plan level termination;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies );

•	at a Fund’s discretion, issued in connection with plans of reorganization, including but not limited to mergers, asset acquisitions and exchange offers, to which the Fund is a party; and

•	by certain other investors as set forth in more detail in the SAI.

CDSC — Waivers of the CDSC for Class B shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies ); and

•	by certain other investors, including certain institutions as set forth in more detail in the SAI.

Restrictions may apply to certain accounts and certain transactions. The Distributor may, in its sole discretion, authorize the waiver of the CDSC for additional classes of investors. The Fund may change or cancel these terms at any time. Any change or cancellation applies only to future purchases.

Please see the SAI for more information about the sales charge reductions and waivers described here.

S.29

Repurchases

Investors can also buy Class A shares without paying a sales charge if the purchase is made from the proceeds of a redemption of any Class A, B, C or T shares of the Fund (other than Columbia Money Market Fund or Columbia Government Money Market Fund) within 90 days, up to the amount of the redemption proceeds. Any CDSC paid upon redemption of your Class A, B, C or T shares of the Fund will not be reimbursed.

To be eligible for these reinstatement privileges, the purchase must be made into an account for the same owner, but does not need to be into the same Fund from which the shares were sold. The Transfer Agent, Distributor or their agents must receive a written reinstatement request from you or your selling and/or servicing agent within 90 days after the shares are redeemed and the purchase of Class A shares through this reinstatement privilege will be made at the NAV of such shares next calculated after the request is received in good order. The repurchased shares will be deemed to have the original purchase date for purposes of applying the CDSC (if any) to subsequent redemptions. Systematic withdrawals and purchases are excluded from this policy.

Distribution and Service Fees

Pursuant to Rule 12b-1 under the 1940 Act, the applicable Board has approved, and the Funds have adopted, distribution and/or shareholder service plans which set the distribution and/or service fees that are periodically deducted from the Fund assets. These fees are calculated daily, may vary by share class and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors. Because the fees are paid out of the Fund’s assets on an ongoing basis, they will increase the cost of your investment over time.

S.30

The table below shows the maximum annual distribution and/or service fees (as an annual % of average daily net assets) and the combined amount of such fees applicable to each share class:


	Distribution	Service	Combined
	Fee	Fee	Total


Class A	up to 0.25%	up to 0.25%	up to 0.35% ^(a)(b)(c)
Class B	0.75%	0.25%	1.00% ^(a)(b)
Class C	0.75% ^(c)	0.25%	1.00% ^(b)(d)
Class E	0.10%	0.25%	0.35%
Class F	0.75%	0.25%	1.00%
Class I	none	none	none
Class R (Legacy Columbia funds)	0.50%	— ^(e)	0.50%
Class R (Legacy RiverSource funds)	up to 0.50%	up to 0.25%	0.50% ^(e)
Class R3	0.25%	0.25% ^(f)	0.50% ^(f)
Class R4	none	0.25% ^(f)	0.25% ^(f)
Class R5	none	none	none
Class T	none	0.50% ^(g)	0.50% ^(g)
Class W	up to 0.25%	up to 0.25%	0.25% ^(c)
Class Y	none	none	none
Class Z	none	none	none


^(a)		As shown in the table below, the maximum distribution and service fees of Class A shares varies among the Funds, as follows:


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Legacy RiverSource funds (other than Columbia Money Market Fund)	Up to 0.25%	Up to 0.25%	0.25%


Columbia Money Market Fund	—	—	0.10%


Columbia Asset Allocation Fund, Columbia Balanced Fund, Columbia Conservative High Yield Fund, Columbia Contrarian Core Fund, Columbia Disciplined Value Fund, Columbia Dividend Income Fund, Columbia Large Cap Growth Fund, Columbia Mid Cap Growth Fund, Columbia Oregon Intermediate Municipal Bond Fund, Columbia Intermediate Bond Fund, Columbia Real Estate Equity Fund, Columbia Small Cap Core Fund, Columbia Small Cap Growth Fund I, Columbia Technology 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.

S.31


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Columbia Blended Equity Fund, Columbia Bond Fund, Columbia California Tax-Exempt Fund, Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Emerging Markets Fund, Columbia Federal Securities Fund, Columbia Greater China Fund, Columbia High Yield Opportunity Fund, Columbia Liberty Fund, Columbia Energy and Natural Resources Fund, Columbia International Bond Fund, Columbia International Growth Fund, Columbia International Stock Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia Mid Cap Core Fund, Columbia Small Cap Value Fund I, Columbia Strategic Investor Fund, Columbia Massachusetts Tax-Exempt Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia New York Tax-Exempt Fund, Columbia Pacific/Asia Fund, Columbia Rhode Island Intermediate Municipal Bond Fund, Columbia Select Large Cap Growth Fund, Columbia Select Opportunities Fund, Columbia Select Small Cap Fund, Columbia Short-Intermediate Bond Fund, Columbia Strategic Income Fund, Columbia U.S. Treasury Index Fund, Columbia Value and Restructuring Fund, Columbia World Equity Fund	—	0.25%	0.25%


Columbia High Yield Municipal Fund, Columbia Intermediate Municipal Bond Fund, Columbia Tax Exempt Fund	—	0.20%	0.20%


Columbia Asset Allocation Fund II, Columbia California Intermediate Municipal Bond Fund, Columbia Convertible Securities Fund, Columbia Georgia Intermediate Municipal Bond Fund, Columbia Global Value Fund, Columbia High Income Fund, Columbia International Value Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico Global Fund, Columbia Maryland Intermediate Municipal Bond Fund, Columbia North Carolina Intermediate Municipal Bond Fund, Columbia Short Term Bond Fund, Columbia Short Term Municipal Bond Fund, Columbia Small Cap Growth Fund II, Columbia South Carolina Intermediate Municipal Bond Fund, Columbia Total Return Bond Fund, Columbia Virginia Intermediate Municipal Bond Fund, Columbia Large Cap Value Fund, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia LifeGoal ^® Income Portfolio, Columbia Marsico 21st Century Fund, Columbia Marsico Growth Fund, Columbia Marsico International Opportunities Fund, Columbia Mid Cap Value Fund, Columbia Multi-Advisor International Equity Fund, Columbia Masters International Equity Portfolio, Columbia Small Cap Value Fund II, Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia Overseas Value Fund	—	—	0.25%; these Funds pay a combined distribution and service fee pursuant to their combined distribution and shareholder servicing plan for Class A shares.


^(b)		The service fees for Class A shares, Class B shares and Class C shares of certain Funds depend on when the shares were purchased, as described below. Service Fee for Class A shares and Class B shares of Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-

S.32


		Exempt Fund and Columbia New York Tax-Exempt Fund — The annual service fee may equal up to 0.10% on net assets attributable to shares of these Funds issued prior to December 1, 1994 and 0.25% on net assets attributable to Fund shares issued thereafter. This arrangement results in a rate of service fee for Fund shares that is a blend between the 0.10% and 0.25% rates. For the fiscal year ended October 31, 2009, the blended service fee was 0.24% of the Fund’s average net assets for each of these Funds, other than Columbia Massachusetts Tax-Exempt Fund, which had a blended service fee of 0.23%. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Liberty Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to April 1, 1989 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended September 30, 2009, the blended service fee was 0.24% of the Fund’s average daily net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Strategic Income Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to January 1, 1993 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all Fund shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended May 31, 2010, the blended service fee was 0.25% of the Fund’s average net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia High Yield Municipal Fund, Columbia Intermediate Municipal 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 shares and Class C shares for Columbia Intermediate Municipal Bond Fund — The annual distribution fee shall be 0.65% of the average daily net assets of the Fund’s Class B shares 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 pay distribution fees of up to 0.75% and service fees of up to 0.10%, for a combined total of 0.85%.
^(c)		Fee amounts noted apply to all Funds other than Columbia Money Market Fund (formerly RiverSource Cash Management 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 voluntarily agreed, effective April 15, 2010, to waive the 12b-1 fees it receives from Class A, Class C, Class R (formerly Class R2) and Class W shares of Columbia Money Market Fund and from Class A, Class C and Class R (formerly Class R2) shares of Columbia Government Money Market Fund. Compensation paid to broker-dealers and other financial intermediaries 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 a portion of the distribution fee for Class C shares of the following Funds so that the combined distribution and service fee (or the distribution fee for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund) does not exceed the specified percentage annually: 0.40% for Columbia Intermediate Municipal Bond Fund; 0.45% for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund; 0.56% for Columbia Short Term Bond Fund; 0.65% for Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Rhode Island Intermediate Municipal Bond Fund; 0.80% for Columbia High Yield Municipal Fund and Columbia Tax-Exempt Fund; 0.85% for Columbia Conservative High Yield Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Federal Securities Fund, Columbia High Yield Opportunity Fund, Columbia Intermediate Bond Fund, Columbia Strategic Income Fund and Columbia U.S. Treasury Index Fund. These arrangements may be modified or terminated by the Distributor at any time.
^(e)		Class R shares of Legacy Columbia funds pay a distribution fee pursuant to a distribution (Rule 12b-1) plan for Class R shares. The Legacy Columbia funds do not have a shareholder service plan for Class R shares. The Legacy RiverSource funds 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 Legacy RiverSource fund Class R shares, 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.
^(f)		The shareholder service fees for Class R3 and Class R4 shares are not paid pursuant to a 12b-1 plan. Under a plan administration services agreement, the Funds’ Class R3 and Class R4 shares pay for plan administration services, including services such as implementation and conversion services, account set-up

S.33


		and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and health savings accounts.
^(g)		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 (including Columbia Asset Allocation Fund) and 0.40% for fixed income Funds. The Funds currently limit such fees to a maximum of 0.30% for equity Funds and 0.15% for fixed-income Funds other than Columbia Rhode Island Intermediate Municipal Bond Fund, for which the limit currently is 0.00%. See Class T Shareholder Service Fees below for more information.

The distribution and/or shareholder service fees for Class A, Class B, Class C, Class E, Class F, Class R and Class W shares, as applicable, are subject to the requirements of Rule 12b-1 under the 1940 Act, and are used by the Distributor to make payments, or to reimburse the Distributor for certain expenses it incurs, in connection with distributing the Fund’s shares and directly or indirectly providing services to Fund shareholders. These payments or expenses include providing distribution and/or shareholder service fees to selling and/or servicing agents that sell shares of the Fund or provide services to Fund shareholders. The Distributor may retain these fees otherwise payable to selling and/or servicing agents if the amounts due are below an amount determined by the Distributor in its discretion.

For Legacy RiverSource fund Class A, Class B and Class W shares, the Distributor begins to pay these fees immediately after purchase. For Legacy RiverSource fund Class C shares, the Distributor pays these fees in advance for the first 12 months. Selling and/or servicing agents also receive distribution fees up to 0.75% of the average daily net assets of Legacy RiverSource fund Class C shares sold and held through them, which the Distributor begins to pay 12 months after purchase. For Legacy RiverSource fund Class B shares, and, for the first 12 months following the sale of Legacy RiverSource fund Class C shares, the Distributor retains the distribution fee of up to 0.75% in order to finance the payment of sales commissions to selling and/or servicing agents, and to pay for other distribution related expenses. Selling and/or servicing agents may compensate their financial advisors with the shareholder service and distribution fees paid to them by the Distributor.

S.34

For Legacy Columbia fund Class E, Class R shares and, with the exception noted in the next sentence, Class A shares, the Distributor begins to pay these fees immediately after purchase. For Legacy Columbia fund Class B, Class F, Class A (if purchased as part of a purchase of shares of $1 million or more) and, with the exception noted in the next sentence, Class C shares, the Distributor begins to pay these fees 12 months after purchase (for Columbia fund Class B and Class F shares, and, for the first 12 months following the sale of Columbia Class C shares, the Distributor retains the distribution fee of up to 0.75% in order to finance the payment of sales commissions to selling and/or servicing agents, and to pay for other distribution related expenses). For Legacy Columbia fund Class C shares, selling and/or servicing agents may opt to decline payment of sales commission and, instead, may receive these fees immediately after purchase. Selling and/or servicing agents may compensate their financial advisors with the shareholder service and distribution fees paid to them by the Distributor.

If you maintain shares of the Fund directly with the Fund, without working directly with a financial advisor or selling and/or servicing agent, distribution and service fees may be retained by the Distributor as payment or reimbursement for incurring certain distribution and shareholder service related expenses.

Over time, these distribution and/or shareholder service fees will reduce the return on your investment and may cost you more than paying other types of sales charges. The Fund will pay these fees to the Distributor and/or to eligible selling and/or servicing agents for as long as the distribution and/or shareholder servicing plans continue in effect. The Fund may reduce or discontinue payments at any time. Your selling and/or servicing agent may also charge you other additional fees for providing services to your account, which may be different from those described here.

S.35

Class T Shareholder Service Fees

The Funds that offer Class T shares have adopted a shareholder services plan that permits them to pay for certain services provided to Class T shareholders by their selling and/or servicing agents. Equity Funds (including Columbia Asset Allocation Fund) may pay shareholder servicing fees up to an aggregate annual rate of 0.50% of the Fund’s average daily net assets attributable to Class T shares (comprised of up to 0.25% for shareholder liaison services and up to 0.25% for administrative support services). Fixed income Funds may pay shareholder service fees up to an aggregate annual rate of 0.40% of the Fund’s average daily net assets attributable to Class T shares (comprised of an annual rate of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently limited to an aggregate annual rate of not more than 0.30% for equity Funds and not more than 0.15% for fixed income Funds, other than Columbia Rhode Island Intermediate Municipal Bond Fund, for which the limit currently is 0.00%. With respect to those Funds that declare dividends on a daily basis, the shareholder servicing fee shall be waived by the selling and/or servicing agents to the extent necessary to prevent net investment income from falling below 0.00% on a daily basis.

Class R3 and Class R4 Shares Plan Administration Fee

Class R3 and Class R4 shares pay an annual plan administration services fee for the provision of various administrative, recordkeeping, communication and educational services. The fee for Class R3 and Class R4 shares is equal on an annual basis to 0.25% of average daily net assets attributable to the class.

Selling and/or Servicing Agent Compensation

The Distributor and the investment manager make payments, from their own resources, to selling and/or servicing agents, including other Ameriprise Financial affiliates, for marketing/sales support services relating to the Funds. Such payments are generally based upon one or more of the following factors: average net assets of the Funds sold by the Distributor attributable to that intermediary, gross sales of the Funds distributed by the Distributor attributable to that intermediary, reimbursement of ticket charges (fees that a selling and/or servicing agent charges its representatives for effecting transactions in Fund shares) or a negotiated lump sum payment. While the financial arrangements may vary for each intermediary, the support payments to any one intermediary are generally between 0.05% and 0.50% on an annual basis for payments based on average net assets of the Fund attributable to the intermediary, and between 0.05% and 0.25% on an annual basis for firms receiving a payment based on gross sales of the Funds attributable to the intermediary.

S.36

The Distributor and the investment manager may make payments in larger amounts or on a basis other than those described above when dealing with certain selling and/or servicing agents, including certain affiliates of Bank of America Corporation (Bank of America). Such increased payments may enable such selling and/or servicing agents to offset credits that they may provide to customers.

The Distributor, the Transfer Agent and the investment manager may also make payments to financial intermediaries, including other Ameriprise Financial affiliates, that provide shareholder services to retirement plans and other investment programs to compensate those selling and/or servicing agents for services they provide to such programs, including, but not limited to, sub-accounting, sub-transfer agency, similar shareholder or participant recordkeeping, shareholder or participant reporting, or shareholder or participant transaction processing.

These payments for shareholder servicing support vary by selling and/or servicing agent but generally are not expected, with certain limited exceptions, to exceed 0.40% of the average aggregate value of the Fund’s shares in any intermediary’s program on an annual basis for those classes of shares that pay a service fee pursuant to a plan under Rule 12b-1 under the 1940 Act, and 0.45% of the average aggregate value of the Fund’s shares in any intermediary’s program on an annual basis for those classes of shares that do not pay a service fee pursuant to a plan under Rule 12b-1 under the 1940 Act.

For all classes other than Class Y shares, the Funds may reimburse the Transfer Agent for amounts paid to selling and/or servicing agents that maintain assets in omnibus accounts, subject to an annual cap that varies among Funds. Generally, the annual cap for each Fund (other than the Columbia Acorn funds) is 0.20% of the average aggregate value of the Fund’s shares maintained in each such account for selling and/or servicing agents that seek payment by the Transfer Agent based on a percentage of net assets. Please see the SAI for additional information. The annual cap for Columbia Acorn funds is 0.05% of the average aggregate value of the Fund’s shares maintained in such accounts. The amounts in excess of that reimbursed by the Fund are borne by the Distributor or the investment manager. The Distributor and the investment manager may make other payments or allow promotional incentives to broker/dealers to the extent permitted by SEC and Financial Industry Regulatory Authority (FINRA) rules and by other applicable laws and regulations.

S.37

Amounts paid by the Distributor and the investment manager and their affiliates are paid out of the Distributor’s and the investment manager’s own resources and do not increase the amount paid by you or the Fund. You can find further details in the SAI about the payments made by the Distributor and the investment manager and their affiliates, as well as a list of the selling and/or servicing agents, including Ameriprise Financial affiliates, to which the Distributor and the investment manager have agreed to make marketing support payments. Your selling and/or servicing agent may charge you fees and commissions in addition to those described in the prospectus. You should consult with your selling and/or servicing agent and review carefully any disclosure your selling and/or servicing agent provides regarding its services and compensation. Depending on the financial arrangement in place at any particular time, a selling and/or servicing agent and its financial advisors may have a financial incentive for recommending the Fund or a particular share class over others.

Buying, Selling and Exchanging Shares

Share Price Determination

The price you pay or receive when you buy, sell or exchange shares is the Fund’s next determined net asset value (or NAV) per share for a given share class. The Fund calculates the net asset value per share for each class of the Fund at the end of each business day.

FUNDamentals ^tm

NAV Calculation

Each of the Fund’s share classes calculates its NAV per share as follows:


		(Value of assets of the share class)
NAV	=	− (Liabilities of the share class)

		Number of outstanding shares of the class

FUNDamentals ^tm

Business Days

A business day is any day that the New York Stock Exchange (NYSE) is open. A business day ends at the close of regular trading on the NYSE, usually at 4:00 p.m. Eastern time. If the NYSE closes early, the business day ends as of the time the NYSE closes. On holidays and other days when the NYSE is closed, the Fund’s net asset value is not calculated and the Fund does not accept buy or sell orders. However, the value of the Fund’s assets may still change on days that the NYSE is closed, including to the extent that the Fund holds foreign securities that trade on days that foreign securities markets are open.

S.38

The value of the Fund’s shares is based on the total market value of all of the securities and other assets that it holds as of a specified time. The prices reported on stock exchanges and other securities markets around the world are usually used to value securities in the Fund. The Fund uses the amortized cost method, which approximates market value, to value short-term investments maturing in 60 days or less. For a Fund organized as a fund-of-funds, the assets will consist primarily of shares of the underlying funds, which are valued at their NAVs.

If a market price isn’t readily available, the Fund will determine the price of the security held by the Fund based on the investment manager’s determination of the security’s fair value. A market price is considered not readily available if, among other circumstances, the most recent reported price is deemed unreliable. In addition, the Fund may use fair valuation to price securities that trade on a foreign exchange when a significant event has occurred after the foreign exchange closes but before the time at which the Fund’s share price is calculated. Foreign exchanges typically close before the time at which Fund share prices are calculated, and may be closed altogether on some days when the Fund is open. Such significant events affecting a foreign security may include, but are not limited to: (1) those impacting a single issuer; (2) governmental action that affects securities in one sector or country; (3) natural disasters or armed conflicts affecting a country or region; or (4) significant domestic or foreign market fluctuations. The Fund uses various criteria, including an evaluation of U.S. market moves after the close of foreign markets, in determining whether a security’s market price is readily available and, if not, the fair value of the security.

Fair valuation may have the effect of reducing stale pricing arbitrage opportunities presented by the pricing of Fund shares. However, when the Fund uses fair valuation to price securities, it may value those securities higher or lower than another fund would have priced the security. Also, the use of fair valuation may cause the Fund’s performance to diverge to a greater degree from the performance of various benchmarks used to compare the Fund’s performance because benchmarks generally do not use fair valuation techniques. Because of the judgment involved in fair valuation decisions, there can be no assurance that the value ascribed to a particular security is accurate. The Fund has retained one or more independent fair valuation pricing services to assist in the fair valuation process for foreign securities. International markets are sometimes open on days when U.S. markets are closed, which means that the value of foreign securities owned by the Fund could change on days when Fund shares cannot be bought or sold.

For money market Funds, the Fund’s investments are valued at amortized cost, which approximates market value.

S.39

Transaction Rules and Policies

Remember that sales charges may apply to your transactions. You should also ask your selling and/or servicing agent about its rules, fees and policies for buying, selling and exchanging shares, which may be different from those described here, and about its related programs or services.

Also remember that the Fund may refuse any order to buy or exchange shares. If this happens, the Fund will return any money it received, but no interest will be paid on that money.

Order Processing

Orders to buy, sell or exchange Fund shares are processed on business days. Depending upon the class of shares, orders can be delivered by mail, by telephone or online. Orders received in “good form” by the Transfer Agent or your selling and/or servicing agent before the end of a business day are priced at the Fund’s net asset value per share on that day. Orders received after the end of a business day will receive the next business day’s net asset value per share. The market value of the Fund’s investments may change between the time you submit your order and the time the Fund next calculates its net asset value per share. The business day that applies to your order is also called the trade date.

“Good Form”

An order is in “good form” if the Transfer Agent or your selling and/or servicing agent has all of the information and documentation it deems necessary to effect your order. For example, when you sell shares by letter of instruction, “good form” means that your letter has (i) complete instructions and the signatures of all account owners, (ii) a Medallion Signature Guarantee (as described below) for amounts greater than $100,000 and (iii) any other required documents completed and attached. For the documents required for sales by corporations, agents, fiduciaries, surviving joint owners and other legal entities, call 800.345.6611.

Medallion Signature Guarantees

A Medallion Signature Guarantee helps assure that a signature is genuine and not a forgery. The selling and/or servicing agent providing the Medallion Signature Guarantee is financially liable for the transaction if the signature is a forgery.

Qualified customers can obtain a Medallion Signature Guarantee from any financial institution — including commercial banks, credit unions and broker/dealers — that participates in one of the three Medallion Signature Guarantee programs recognized by the Securities and Exchange Commission. These Medallion Signature Guarantee programs are the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP) and the New York Stock Exchange Medallion Signature Program (MSP). Please note that a guarantee from a notary public is not acceptable.

S.40

A Medallion Signature Guarantee is required if:


•	The amount is greater than $100,000.

•	You want your check made payable to someone other than the registered account owner(s).

•	Your address of record has changed within the last 30 days.

•	You want the check mailed to an address other than the address of record.

•	You want the proceeds sent to a bank account not on file.

•	You are the beneficiary of the account and the account owner is deceased (additional documents may be required).

Written Transactions

Once you have an account, you can communicate written buy, sell and exchange orders to the Transfer Agent at The Funds, c/o Columbia Management Investment Services Corp at the following address (regular mail) P.O. Box 8081, Boston, MA 02266-8081 and (express mail) 30 Dan Road, Canton, MA 02021-2809. When a written order to buy, sell or exchange shares is sent to the Transfer Agent, the share price used to fill the order is the next price calculated by the Fund after the Transfer Agent receives the order at its transaction processing center in Canton, Massachusetts, not the P.O. Box provided for regular mail delivery.

Telephone Transactions

For Class A, Class B, Class C, Class R, Class T, Class Y and Class Z shareholders, once you have an account, you may place orders to buy, sell or exchange shares by telephone. To place orders by telephone, call 800.422.3737. Have your account number and social security number (SSN) or taxpayer identification number (TIN) available when calling.

You can sell up to and including an aggregate of $100,000 of shares via the telephone per day, per Fund, if you qualify for telephone orders. Wire redemptions requested via the telephone are subject to a maximum of $3 million of shares per day, per Fund. You can buy up to and including $100,000 of shares per day, per Fund through your bank account as an Automated Clearing House (ACH) transaction via the telephone if you qualify for telephone orders.

S.41

Telephone orders may not be as secure as written orders. The Funds will take reasonable steps to confirm that telephone instructions are genuine. For example, we require proof of your identification before we will act on instructions received by telephone and may record telephone conversations. However, the Fund and its agents will not be responsible for any losses, costs or expenses resulting from an unauthorized telephone instruction when reasonable steps have been taken to confirm that telephone instructions are genuine. Telephone orders may be difficult to complete during periods of significant economic or market change or business interruption.

Online Transactions

Once Class A, Class B, Class C, Class R, Class T, Class Y and Class Z shareholders have an account, they may contact the Transfer Agent at 800.345.6611 for more information on account trading restrictions and the special sign-up procedures required for online transactions. The Transfer Agent has procedures in place to authenticate electronic orders you deliver through the internet. You will be required to accept the terms of an online agreement and to establish and utilize a password in order to access online account services.

You can sell up to and including an aggregate of $100,000 of shares per day, per Fund account through the internet if you qualify for internet orders.

Customer Identification Program

U.S. Federal law requires the Fund to obtain and record specific personal information to verify your identity when you open an account. This information may include your name, address, date of birth (for individuals) and taxpayer or other government issued identification (e.g., SSN or TIN). If you fail to provide the requested information, the Fund may need to delay the date of your purchase or may be unable to open your account, which may result in a return of your investment monies. In addition, if the Fund is unable to verify your identity after your account is open, the Fund reserves the right to close your account or take other steps as deemed reasonable. The Fund will not be liable for any loss resulting from any purchase delay, application rejection or account closure due to a failure to provide proper identifying information.

S.42

Small Account Policy — Class A, B, C, T and Z Share Accounts Below $250

The Funds generally will automatically sell your shares if the value of your Fund account (treating each account of the Fund you own separately from any other account of the Fund you may own) falls below $250. If your shares are sold, the Transfer Agent will remit the sale proceeds to you. Any otherwise applicable CDSC will not be imposed on such an automatic sale of your shares. The Transfer Agent will send you written notification in advance of any automatic sale, which will provide details on how you may avoid such an automatic sale. Generally, you may avoid such an automatic sale by raising your account balance, consolidating your accounts through an exchange of shares of another Fund in which you hold shares, or setting up a Systematic Investment Plan. For more information, contact the Transfer Agent or your selling and/or servicing agent. The Transfer Agent’s contact information (toll-free number and mailing address) as well as the Funds’ website address can be found at the beginning of the section Choosing a Share Class .

The Fund may also sell your Fund shares if your selling and/or servicing agent tells us to sell your shares pursuant to arrangements made with you, and under certain other circumstances allowed under the 1940 Act.

Small Account Policy — Class A, B, C, T and Z Share Accounts Minimum Balance Fee

If the value of your Fund account (treating each account of the Fund you own separately from any other account of the Fund you may own) falls below the minimum initial investment requirement applicable to you for any reason, including as a result of market decline, your account generally will be subject to a $20 annual fee. This fee will be assessed through the automatic sale of Fund shares in your account. Any otherwise applicable CDSC will not be imposed on such an automatic sale of your shares. The Transfer Agent will reduce the expenses paid by the Fund by any amounts it collects from the assessment of this fee. For Funds that do not have transfer agency expenses against which to offset the amount collected through assessment of this fee, the fee will be paid directly to the Fund. The Transfer Agent will send you written notification in advance of assessing any fee, which will provide details on how you can avoid the imposition of such fee. Generally, you may avoid the imposition of such fee by raising your Fund account balance, consolidating your Fund accounts through an exchange of shares of another Fund in which you hold shares, or setting up a Systematic Investment Plan. For more information, contact the Transfer Agent or your selling and/or servicing agent. The Transfer Agent’s contact information (toll-free number and mailing address) as well as the Funds’ website address can be found at the beginning of the section Choosing a Share Class .

S.43

Each Fund reserves the right to change its minimum investment requirements. The Funds also reserve the right to lower the account size trigger point for the minimum balance fee in any year or for any class of shares when we believe it is appropriate to do so in light of declines in the market value of Fund shares, sales loads applicable to a particular class of shares, or for other reasons.

Exceptions to the Small Account Policy (Accounts Below $250 and Minimum Balance Fee)

The automatic sale of Fund shares of accounts under $250 and the annual minimum balance fee described above do not apply to shareholders of Class E, Class F, Class R, Class R3, Class R4, Class R5, Class Y or Class W shares; shareholders holding their shares through broker/dealer networked accounts; wrap fee and omnibus accounts; accounts with active Systematic Investment Plans; certain qualified retirement plans; and health savings accounts. The automatic sale of Fund shares of accounts under $250 does not apply to individual retirement plans.

Small Account Policy — Broker/Dealer and Wrap Fee Accounts

The Funds may automatically redeem at any time broker/dealer networked accounts and wrap fee accounts that have account balances of $20 or less or have less than one share.

Cash Flows

The timing and magnitude of cash inflows from investors buying Fund shares could prevent the Fund from always being fully invested. Conversely, the timing and magnitude of cash outflows to investors redeeming Fund shares could require large ready reserves of uninvested cash to meet shareholder redemptions. Either situation could adversely impact the Fund’s performance.

Information Sharing Agreements

As required by Rule 22c-2 under the 1940 Act, the Funds or certain of their service providers will enter into information sharing agreements with selling and/or servicing agents, including participating life insurance companies and financial intermediaries that sponsor or offer retirement plans through which shares of the Funds are made available for purchase. Pursuant to Rule 22c-2, selling and/or servicing agents are required, upon request, to: (i) provide shareholder account and transaction information and (ii) execute instructions from the Fund to restrict or prohibit further purchases of Fund shares by shareholders who have been identified by the Fund as having engaged in transactions that violate the Fund’s excessive trading policies and procedures. See Buying, Selling and Exchanging Shares — Excessive Trading Practices for more information.

S.44

Excessive Trading Practices Policy of Non-Money Market Funds

Right to Reject or Restrict Share Transaction Orders — The Fund is intended for investors with long-term investment purposes and is not intended as a vehicle for frequent trading activity (market timing) that is excessive. Investors should transact in Fund shares primarily for investment purposes. The Board has adopted excessive trading policies and procedures that are designed to deter excessive trading by investors (the Excessive Trading Policies and Procedures). The Fund discourages and does not accommodate excessive trading.

The Fund reserves the right to reject, without any prior notice, any buy or exchange order for any reason, and will not be liable for any loss resulting from rejected orders. For example, the Fund may in its discretion restrict or reject a buy or exchange order even if the transaction is not subject to the specific exchange limitation described below if the Fund or its agents determine that accepting the order could interfere with efficient management of the Fund’s portfolio or is otherwise contrary to the Fund’s best interests. The Excessive Trading Policies and Procedures apply equally to buy or exchange transactions communicated directly to the Transfer Agent and to those received by selling and/or servicing agents.

Specific Buying and Exchanging Limitations — If a Fund detects that an investor has made two “material round trips” in any 28-day period, it will generally reject the investor’s future buy orders, including exchange buy orders, involving any Fund.

For these purposes, a “round trip” is a purchase or exchange into the Fund followed by a sale or exchange out of the Fund, or a sale or exchange out of the Fund followed by a purchase or exchange into the Fund. A “material” round trip is one that is deemed by the Fund to be material in terms of its amount or its potential detrimental impact on the Fund. Independent of this limit, the Fund may, in its discretion, reject future buy orders by any person, group or account that appears to have engaged in any type of excessive trading activity.

S.45

These limits generally do not apply to automated transactions or transactions by registered investment companies that invest in the Fund using a “fund-of-funds” structure. These limits do not apply to payroll deduction contributions by retirement plan participants, transactions initiated by a retirement plan sponsor or certain other retirement plan transactions consisting of rollover transactions, loan repayments and disbursements, and required minimum distribution redemptions. They may be modified or rescinded for accounts held by certain retirement plans to conform to plan limits, for considerations relating to the Employee Retirement Income Security Act of 1974 or regulations of the Department of Labor, and for certain asset allocation or wrap programs. Accounts known to be under common ownership or control generally will be counted together, but accounts maintained or managed by a common intermediary generally will not be considered to be under common ownership or control. The Fund retains the right to modify these restrictions at any time without prior notice to shareholders.

Limitations on the Ability to Detect and Prevent Excessive Trading Practices — The Fund takes various steps designed to detect and prevent excessive trading, including daily review of available shareholder transaction information. However, the Fund receives buy, sell and exchange orders through selling and/or servicing agents, and cannot always know of or reasonably detect excessive trading that may be facilitated by selling and/or servicing agents or by the use of the omnibus account arrangements they offer. Omnibus account arrangements are common forms of holding shares of mutual funds, particularly among certain selling and/or servicing agents such as broker/dealers, retirement plans and variable insurance products. These arrangements often permit selling and/or servicing agents to aggregate their clients’ transactions and accounts, and in these circumstances, the identity of the shareholders is often not known to the Fund.

Some selling and/or servicing agents apply their own restrictions or policies to underlying investor accounts, which may be more or less restrictive than those described here. This may impact the Fund’s ability to curtail excessive trading, even where it is identified. For these and other reasons, it is possible that excessive trading may occur despite the Fund’s efforts to detect and prevent it.

Although these restrictions and policies involve judgments that are inherently subjective and may involve some selectivity in their application, the Fund seeks to act in a manner that it believes is consistent with the best interests of shareholders in making any such judgments.

Risks of Excessive Trading — Excessive trading creates certain risks to the Fund’s long-term shareholders and may create the following adverse effects:


•	negative impact on the Fund’s performance;

•	potential dilution of the value of the Fund’s shares;

S.46


•	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.

To the extent that the Fund invests significantly in foreign securities traded on markets that close before the Fund’s valuation time, it may be particularly susceptible to dilution as a result of excessive trading. Because events may occur after the close of foreign markets and before the Fund’s valuation time that influence the value of foreign securities, investors may seek to trade Fund shares in an effort to benefit from their understanding of the value of foreign securities as of the Fund’s valuation time. This is often referred to as price arbitrage. The Fund has adopted procedures designed to adjust closing market prices of foreign securities under certain circumstances to reflect what the Fund believes to be the fair value of those securities as of its valuation time. To the extent the adjustments don’t work fully, investors engaging in price arbitrage may cause dilution in the value of the Fund’s shares held by other shareholders.

Similarly, to the extent that the Fund invests significantly in thinly traded high-yield bonds (junk bonds) or equity securities of small-capitalization companies, because these securities are often traded infrequently, investors may seek to trade their shares in an effort to benefit from their understanding of the value of these securities. This is also a type of price arbitrage. Any such frequent trading strategies may interfere with efficient management of the Fund’s portfolio to a greater degree than would be the case for mutual funds that invest in highly liquid securities, in part because the Fund may have difficulty selling those portfolio securities at advantageous times or prices to satisfy large and/or frequent sell orders. Any successful price arbitrage may also cause dilution in the value of Fund shares held by other shareholders.

S.47

Excessive Trading Practices Policy of Money Market Funds

The money market Funds are designed to offer investors a liquid cash option that they may buy and sell as often as they wish. Accordingly, the Board has not adopted policies and procedures designed to discourage excessive or short-term trading of money market Fund shares. However, since frequent purchases and sales of money market Fund shares could in certain instances harm shareholders in various ways, including reducing the returns to long-term shareholders by increasing costs (such as spreads paid to dealers who trade money market instruments with the money market Funds) and disrupting portfolio management strategies, each of the money market Funds reserves the right, but has no obligation, to reject any purchase or exchange transaction at any time. Except as expressly described in this prospectus (such as minimum purchase amounts), the money market Funds have no limits on buy or exchange transactions. In addition, each of the money market Funds reserve the right to impose or modify restrictions on purchases, exchanges or trading of the Fund shares at any time.

Opening an Account and Placing Orders

We encourage you to consult with a financial advisor who can help you with your investment decisions and who can help you open an account. Once you have an account, you can buy, sell and exchange shares by contacting your financial advisor who will send your order to the Transfer Agent or your selling and/or servicing agent. As described in Buying, Selling and Exchanging Shares — Transaction Rules and Policies, once you have an account you can also communicate your orders directly to the Transfer Agent by mail, by telephone or online.

The Funds are available directly and through broker-dealers, banks and other selling and/or servicing agents or institutions, and through certain qualified and non-qualified plans, wrap fee products or other investment products sponsored by selling and/or servicing agents.

Not all selling and/or servicing agents offer the Funds and certain selling and/or servicing agents that offer the Funds may not offer all Funds on all investment platforms. Please consult with your financial advisor to determine the availability of the Funds. If you set up an account at a selling and/or servicing agent that does not have, and is unable to obtain, a selling agreement with the Distributor, you will not be able to transfer Fund holdings to that account. In that event, you must either maintain your Fund holdings with your current selling and/or servicing agent, find another selling and/or servicing agent with a selling agreement, or sell your Fund shares, paying any applicable CDSC. Please be aware that transactions in taxable accounts are taxable events and may result in income tax liability.

S.48

Selling and/or servicing agents that offer the Funds may charge you additional fees for the services they provide and they may have different policies not described in this prospectus. Some policy differences may include different minimum investment amounts, exchange privileges, Fund choices and cutoff times for investments. Additionally, recordkeeping, transaction processing and payments of distributions relating to your account may be performed by the selling and/or servicing agents through which your shares of the Fund are held. Since the Fund (and its service providers) may not have a record of your account transactions, you should always contact the financial advisor employed by the selling and/or servicing agent through which you purchased or at which you maintain your shares of the Fund to make changes to your account or to give instructions concerning your account, or to obtain information about your account. The Fund and its service providers, including the Distributor and the Transfer Agent, are not responsible for the failure of one of these financial intermediaries and/or its selling and/or servicing agents to carry out its obligations to its customers.

As stated above, you may establish and maintain your account with a selling and/or servicing agent authorized by the Distributor to sell fund shares or directly with the Fund. The Fund may engage selling and/or servicing agents to receive purchase orders and exchange (and sale) orders on its behalf. Accounts established directly with the Fund will be serviced by the Transfer Agent. The Funds, the Transfer Agent and the Distributor do not provide investment advice. The Funds encourage you to consult with a financial advisor who can help you with your investment decisions and who can help you open an account.

Accounts established directly with the Fund

You or the financial advisor through which you buy shares may establish an account with the Fund. To do so, complete a Fund account application with your financial advisor or investment professional, and mail the account application to the address below. Account applications may be obtained at columbiamanagement.com or may be requested by calling 800.345.6611. Make your check payable to the Fund. You will be assessed a $15 fee for any checks rejected by your financial institution due to insufficient funds or other reasons. The Funds do not accept cash, credit card convenience checks, money orders, traveler’s checks, starter checks, third or fourth party checks, or other cash equivalents.

S.49

Mail your check and completed application to The Funds, c/o Columbia Management Investment Services Corp. (regular mail) P.O. Box 8081, Boston, MA 02266-8081 or (express mail) 30 Dan Road, Canton, MA 02021-2809. You may also use these addresses to request an exchange or redemption of Fund shares. When a written order to buy, sell or exchange shares is sent to the Transfer Agent, the share price used to fill the order is the next price calculated by the Fund after the Transfer Agent receives the order at its transaction processing center in Canton, Massachusetts, not the P.O. Box provided for regular mail delivery.

You will be sent a statement confirming your purchase and any subsequent transactions in your account. You will also be sent quarterly and annual statements detailing your transactions in the Fund and the other Funds you own under the same account number. Duplicate quarterly account statements for the current year and duplicate annual statements for the most recent prior calendar year will be sent to you free of charge. Copies of year-end statements for prior years are available for a fee. Please contact the Transfer Agent for more information.

Buying Shares

Eligible Investors

Class A and Class C Shares

Class A and Class C shares are available to the general public for investment. Once you have opened an account, you can buy Class A and Class C shares in a lump sum, through our Systematic Investment Plan, by dividend diversification, by wire or by electronic funds transfer. For money market Funds, new investments must be made in Class A, Class I (available as a new investment only to the Funds (i.e., Fund-of-Fund investment)), Class T, Class W or Class Z shares of the Fund, subject to eligibility. Class C and Class R of the money market Funds 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 transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper. The money market Funds offer other classes of shares only to facilitate exchanges with other Funds offering these classes of shares.

Class B Shares Closed

S.50

Additional Class B shares will be issued only to existing investors in Class B shares and only through the following two types of transactions (Qualifying Transactions):


•	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.

Any initial purchase orders for the Fund’s Class B shares will be rejected (other than through a Qualifying Transaction that is an exchange transaction).

Unless contrary instructions are received in advance by the Fund, any purchase orders (except those submitted by a selling and/or servicing agent through the National Securities Clearing Corporation (NSCC) as described in more detail below) that are initial investments in Class B shares or that are orders for additional Class B shares of the Fund received from existing investors in Class B shares, including orders made through an active systematic investment plan, will automatically be invested in Class A shares of the Fund, without regard to the normal minimum initial investment requirement for Class A shares, but subject to the front-end sales charge that generally applies to Class A shares. For additional information about Class A shares, see Choosing a Share Class — Class A Shares — Front-end Sales Charges . Your selling and/or servicing agent may have different policies not described here, including a policy to reject purchase orders for a Fund’s Class B shares or to automatically invest the purchase amount in a money market fund. Please consult your selling and/or servicing agent to understand their policy.

Additional purchase orders for a Fund’s Class B shares by an existing Class B shareholder, submitted by such shareholder’s selling and/or servicing agent through the NSCC, will be rejected due to operational limitations of the NSCC. Investors should consult their selling and/or servicing agent if they wish to invest in the Fund by purchasing a share class of the Fund other than Class B shares.

Dividend and/or capital gain distributions from Class B shares of a Fund will not be automatically invested in Class B shares of another Fund. Unless contrary instructions are received in advance of the date of declaration, such dividend and/or capital gain distributions from Class B shares of a Fund will be reinvested in Class B shares of the same Fund that is making the distribution.

S.51

Class E and Class F Shares Closed

Class E and Class F shares are closed to new investors and new accounts. Shareholders who opened and funded an account with the Fund as of September 22, 2006 (including accounts once funded that subsequently reached a zero balance) (i) may continue to make additional purchases of Class E and Class F shares and (ii) will continue to have their dividend and capital gains distributions reinvested. These share classes are designed for investors who wish to make an irrevocable gift to a child, grandchild or other individual. Shares are held in an irrevocable trust until a specified date, at which time they pass to a beneficiary.

Class I Shares

Class I shares are currently only available to the Funds (i.e., Fund of Fund investments). Class I shares may be purchased, sold or exchanged only through the Distributor or an authorized selling and/or servicing agent. The Distributor, in its sole discretion, may accept investments in Class I shares from other institutional investors.

Class R Shares

Class R shares can only be bought through eligible health savings accounts sponsored by third party platforms, including those sponsored by Ameriprise Financial affiliates, and the following eligible retirement plans: 401(k) plans; 457 plans; employer-sponsored 403(b) plans; profit sharing and money purchase pension plans; defined benefit plans; and non-qualified deferred compensation plans. Class R shares are not available for investment through retail nonretirement accounts, traditional and Roth IRAs, Coverdell Education Savings Accounts, SEPs, SAR-SEPs, Simple IRAs, individual 403(b) plans or 529 tuition programs. Contact the Transfer Agent or your retirement plan or health savings account administrator for more information about investing in Class R shares. The Distributor, in its sole discretion, may accept investments in Class R shares from other institutional investors.

Class R3, Class R4 and Class R5 Shares

Class R3, Class R4 and Class R5 shares are closed to new investors and new accounts effective as of the close of business on December 31, 2010, subject to certain limited exceptions described below.

S.52

Shareholders who opened and funded a Class R3, Class R4 or Class R5 account with the Fund as of the close of business on December 31, 2010 (including accounts once funded that subsequently reached a zero balance) may continue to make additional purchases of these share classes. Plans may continue to make additional purchases of Fund shares and add new participants, and new plans sponsored by the same or an affiliated sponsor may invest in the Fund (and add new participants) if an initial plan so sponsored invested in the Fund as of December 31, 2010 (or has approved the Fund as an investment option as of December 31, 2010 and funds its initial account with the Fund prior to March 31, 2011) and holds Fund shares at the plan level.

In the event that an order to purchase Class R3, Class R4 or Class R5 shares is received by the Fund or the Transfer Agent after the close of business on December 31, 2010 (other than as described above) from a new investor or a new account that is not eligible to purchase shares, that order will be refused by the Fund and the Transfer Agent and any money that the Fund or the Transfer Agent received with the order will be returned to the investor or the selling and/or servicing agent, as appropriate, without interest.

Class R3, Class R4 and Class R5 shares are designed for qualified employee benefit plans, trust companies or similar institutions, charitable organizations that meet the definition in Section 501(c)(3) of the Internal Revenue Code, non-qualified deferred compensation plans whose participants are included in a qualified employee benefit plan described above, state sponsored college savings plans established under Section 529 of the Internal Revenue Code, and health savings accounts created pursuant to public law 108-173. Additionally, if approved by the Distributor, Class R5 shares are available to institutional or corporate accounts above a threshold established by the Distributor (currently $1 million per Fund or $10 million in all Funds) and bank trust departments. Class R3, Class R4 and R5 shares may be purchased, sold or exchanged only through the Distributor or an authorized selling and/or servicing agent. Class R3, Class R4 shares and Class R5 shares of the Fund may be exchanged for Class R3 shares, Class R4 shares and Class R5 shares, respectively, of another Fund.

Class T Shares Closed

Class T shares are available for purchase only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy funds into various Columbia funds (formerly named Liberty funds).

S.53

Class W Shares

Class W shares are available to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs. Class W shares may be purchased, sold or exchanged only through the Distributor or an authorized selling and/or servicing agent. Shares originally purchased in a discretionary managed account may continue to be held in Class W outside of a discretionary managed account, but no additional Class W purchases may be made and no exchanges to Class W shares of another Fund may be made outside of a discretionary managed account. The Distributor, in its sole discretion, may accept investments in Class W shares from other institutional investors.

Class Y Shares

Class Y shares are available only to the following categories of eligible investors:


•	Individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) who invest at least $1 million in Class Y shares of a single Fund; and

•	Group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

Currently, Class Y shares are offered only to certain former shareholders of the series of the former Columbia Funds Institutional Trust and to institutional and high net worth individuals and clients invested in certain pooled investment vehicles and separate accounts managed by the investment manager.

Class Z Shares

Class Z shares are available only to the categories of eligible investors described below under “Minimum Investment and Account Balance — Class Z Shares Minimum Investments”

In addition, for Class I, Class R, Class W, Class Y and Class Z shares, the Distributor, in its sole discretion, may accept investments from other institutional investors not listed above.

S.54

Minimum Initial Investments, Additional Investments and Account Balances

The table below shows the Fund’s minimum initial investment, additional investment and minimum account balance requirements, which may vary by Fund, class and type of account.

Minimum Investment and Account Balance


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance


For all Funds and classes except those listed below (non-qualified accounts)	$2,000 ^(a)	$100	$250 ^(d)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$1,000	$100	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(b)	$100	$250


Class Z	variable ^(a)(c)	$100	$250 ^(d)


^(a)		If your Class A, B, C, T or 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 systematic investment plan. If you do not do so, it 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 requirement.
^(b)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(c)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.
^(d)		If the value of your account falls below $250, your Fund account is subject to automatic redemption of Fund shares. For details, see Small Account Policy above.

S.55

Systematic Investment Plan

The Systematic Investment Plan allows you to make regular purchases via automatic transfers from your bank account to the Fund on a monthly, quarterly or semi-annual basis. Contact the Transfer Agent or your financial advisor to set up the plan. The table below shows the minimum initial investments, minimum additional investments and minimum account balance for investment through a Systematic Investment Plan:

Minimum Investment and Account Balance — Systematic Investment Plans


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance*


For all Funds and classes except those listed below (non-qualified accounts)	$100 ^*(a)	$100	none ^*(b)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$100 ^*(b)	$50	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(c)	$100	none


Class Z	variable ^(d)	$100	none


*		If your Fund account balance is below the minimum initial investment requirement described in this table, you must make investments at least monthly.
^(a)		money market Funds — $2,000.
^(b)		money market Funds — $1,000.
^(c)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(d)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.

Class Z Shares Minimum Investments

There is no minimum initial investment in Class Z shares for the following categories of eligible investors:

•

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 (formerly named Liberty 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.

S.56


•	Any health savings account sponsored by a third party platform and any omnibus group retirement plan for which a selling and/or servicing 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 investor participating in a wrap program sponsored by a selling and/or servicing 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.

The minimum initial investment in Class Z shares for the following eligible investors is $1,000:


•	Any individual retirement plan (assuming the eligibility criteria below are met) or group retirement plan that is not held in an omnibus manner for which a selling and/or servicing 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through an individual retirement account.

The minimum initial investment in Class Z shares for the following categories of eligible investors is $2,000:


•	Any investor buying shares through a Columbia Management state tuition plan organized under Section 529 of the Internal Revenue Code.

•	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 Legacy Columbia fund distributed by the Distributor.

•	Any trustee or director (or family member of a trustee or director) of a fund distributed by the Distributor.

S.57


•	Any investor participating in an account offered by a selling and/or servicing 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 selling and/or servicing agent 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through a non-retirement account.

•	Certain other investors as set forth in more detail in the SAI.

The minimum initial investment requirements may be waived for accounts that are managed by an investment professional, for accounts held in approved discretionary or non-discretionary wrap programs, for accounts that are a part of an employer-sponsored retirement plan, or for other account types if approved by the Distributor.

The Fund reserves the right to modify its minimum investment and related requirements at any time, with or without prior notice. If your account is closed then re-opened with a systematic investment plan, your account must meet the then-current applicable minimum initial investment and minimum additional investment.

Dividend Diversification

Generally, you may automatically invest distributions made by another Fund into the same class of shares (and in some cases certain other classes of shares) of the Fund at no additional sales charge. A sales charge may apply when you invest distributions made with respect to shares that were not subject to a sales charge at the time of your initial purchase. Call the Funds at 800.345.6611 for details. See Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class B Shares Closed for restrictions applicable to Class B shares.

S.58

Wire Purchases

You may buy Class A, Class C, Class E, Class F, Class T, Class Y and Class Z shares of the Fund by wiring money from your bank account to your Fund account by calling the Transfer Agent at 800.345.6611.

Electronic Funds Transfer

You may buy Class A, Class C, Class E, Class F, Class T, Class Y and Class Z shares of the Fund by electronically transferring money from your bank account to your Fund account by calling the Transfer Agent at 800.422.3737. An electronic funds transfer may take up to three business days to settle and be considered in “good form.” You must set up this feature by contacting the Transfer Agent prior to your request to obtain any necessary forms. The minimum investment amount for additional purchases via electronic funds transfer is $100.

Important: Payments sent by electronic fund transfers, a bank authorization, or check that are not guaranteed may take up to 10 or more days to clear. If you request a redemption before the purchase funds clear, this may cause your redemption request to fail to process if the requested amount includes unguaranteed funds. If you purchased your shares by check or from your bank account as an Automated Clearing House (ACH) transaction, the Fund holds the redemption proceeds when you sell those shares for a period of time after the trade date of the purchase.

Other Purchase Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing 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, Class E 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 F, Class I, Class R, Class R3, 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 Fund reserves the right to cancel your order if it 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 and/or servicing agents are responsible for sending your buy orders to the Transfer Agent and ensuring that we receive your money on time.

•	Shares bought are recorded on the books of the Fund. The Fund doesn’t issue certificates.

S.59

Selling Shares

When you sell your shares, the Fund is effectively buying them back from you. This is called a redemption. You may sell your shares at any time. The payment will be sent within seven days after your request is received in good order. When you sell shares, the amount you receive may be more or less than the amount you invested. Your sale price will be the next NAV calculated after your request is received in good order, minus any applicable CDSC.

Remember that Class R, R3, R4 and R5 shares are sold through your eligible retirement plan or health savings account. For detailed rules regarding the sale of these classes of shares, contact the Transfer Agent, your retirement plan or health savings account administrator.

Wire Redemptions

You may request that your Class A, Class B, Class C, Class I, Class T, Class W, Class Y and Class Z share sale proceeds be wired to your bank account by calling the Transfer Agent at 800.422.3737. You must set up this feature prior to your request. The Transfer Agent charges a fee for shares sold by Fedwire. The Transfer Agent may waive the fee for certain accounts. The receiving bank may charge an additional fee. The minimum amount that can be redeemed by wire is $500.

Electronic Funds Transfer

You may sell Class A, Class B, Class C, Class T, Class Y and Class Z shares of the Fund and request that the proceeds be electronically transferred to your bank account by calling the Transfer Agent at 800.422.3737. It may take up to three business days for the sale proceeds to be received by your bank. You must set up this feature by contacting the Transfer Agent prior to your request to obtain any necessary forms.

Systematic Withdrawal Plan

The Systematic Withdrawal Plan lets you withdraw funds from your Class A, Class B, Class C, Class I, Class T, Class W, Class Y and/or Class Z shares account any day of the month on a monthly, quarterly or semi-annual basis. Contact the Transfer Agent or your financial advisor to set up the plan. To set up the plan, your account balance must meet the Fund Class’ minimum initial investment amount. All dividend and capital gain distributions must be reinvested to set up the plan. A Systematic Withdrawal Plan cannot be set up on an account that already has a Systematic Investment Plan established. If you set up the plan after you’ve opened your account, we may require your signature to be Medallion Signature Guaranteed.

S.60

You can choose to receive your withdrawals via check or direct deposit into your bank account. Otherwise, the Fund will deduct any applicable CDSC from the withdrawals before sending the balance to you. You can cancel the plan by giving the Fund 30 days notice in writing or by calling the Transfer Agent at 800.422.3737. It’s important to remember that if you withdraw more than your investment in the Fund is earning, you’ll eventually use up your original investment.

Check Redemption Service

Class A shares of the money market Funds offer check writing privileges. If you have $2,000 in a money market Fund, you may request checks which may be drawn against your account. The amount of any check drawn against your money market Fund must be at least $100. You can elect this service on your initial application or thereafter. Call 800.345.6611 for the appropriate forms to establish this service. If you own Class A shares that were originally in another Fund at NAV because of the size of the purchase, and then exchanged into a money market Fund, check redemptions may be subject to a CDSC. A $15 charge will be assessed for any stop payment order requested by you or any overdraft in connection with checks written against your money market Fund account.

In-Kind Distributions

The Fund reserves the right to honor sell orders with in-kind distributions of portfolio securities instead of cash. In the event the Fund makes such an in-kind distribution, you may incur the brokerage and transaction costs associated with converting the portfolio securities you receive into cash. Also, the portfolio securities you receive may increase or decrease in value before you convert them into cash.

Other Redemption Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing agent receives your sell order in “good form,” your shares will be sold at the next calculated net asset value 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 directly through the Funds, we will normally send the sale proceeds by mail or electronically transfer them to your bank account within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

•	If you sell your shares through a selling and/or servicing agent, the Funds will normally send the sale proceeds by Fedwire within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

S.61


•	If you paid for your shares by check or from your bank account as an Automated Clearing House (ACH) transaction, the Funds will hold the sale 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 during emergency circumstances as determined by the SEC.

•	Other restrictions may apply to retirement accounts. For information about these restrictions, contact your retirement plan administrator.

•	Also keep in mind the Funds’ Small Account Policy, which is described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies .

•	For Class E shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class E shares held by the trust, the shares automatically will convert to Class A shares of the Fund and be registered in the beneficiary’s name. For Class F shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class F shares held by the trust, the shares automatically will convert to Class B shares of the Fund and be registered in the beneficiary’s name. After such conversion, the beneficiary’s shares no longer will convert to Class E shares, but will convert to Class A shares in accordance with the applicable conversion schedule for Class B shares. Automatic conversion of Class B shares to Class A shares occurs eight years after purchase for these shares. For purposes of calculating the conversion period, the beneficiary ownership period for the Class B shares will begin at the time the Class F shares were purchased.

•	For Class E and Class F shareholders, if the beneficiary under a Columbia Advantage Plan trust exercises his or her withdrawal rights, the financial advisor may be required to refund to the Distributor any sales charge or initial commission previously retained or paid on the withdrawn Class E and/or Class F shares or amount redeemed.

S.62

Exchanging Shares

You can generally sell shares of a Fund to buy shares of another Fund, in what is called an exchange. You should read the prospectus of, and make sure you understand the investment objective, principal investment strategies, risks, fees and expenses of, the Fund into which you are exchanging. You may be subject to a sales charge if you exchange from a money market Fund or any other Fund that does not charge a front-end sales charge into a non-money market Fund. If you hold your Fund shares through certain selling and/or servicing agents, including Ameriprise Financial Services, Inc., you may have limited exchangeability among the Funds. Please contact your financial advisor for more information.

Systematic Exchanges

You may buy Class A, Class C, Class T, Class W, Class Y and/or Class Z shares of a Fund by exchanging each month from another Fund for shares of the same class of the Fund at no additional cost, subject to the following exchange amount minimums: $50 each month for individual retirement accounts (i.e. tax qualified accounts); and $100 each month for non-retirement accounts. Contact the Transfer Agent or your selling and/or servicing agent to set up the plan. If you set up your plan to exchange more than $100,000 each month, you must obtain a Medallion Signature Guarantee.

Exchanges will continue as long as your balance is sufficient to complete the systematic monthly transfers, subject to the Funds’ Small Account Policy described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies . You may terminate the program or change the amount you would like to exchange (subject to the $50 and $100 minimum requirements noted immediately above) by calling the Funds at 800.345.6611. 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.

The rules described below for making exchanges apply to systematic exchanges.

Other Exchange Rules You Should Know


•	Exchanges are made at net asset value 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.

S.63


•	You can generally make exchanges between like share classes of any Fund. Some exceptions apply.

•	If you exchange shares from Class A shares of a 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 a 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 a 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. If your initial investment was in a 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, Class E and Class F shares of the Funds.

•	If your initial investment was in Class A shares of a non-money market Fund and you exchange shares into a 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.

•	Class T shares may be exchanged for Class T or Class A shares. Class T shares exchanged into Class A shares cannot be exchanged back into Class T shares.

•	Class Z shares of a Fund may be exchanged for Class A or Class Z shares of another 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 and/or servicing 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.

S.64

•

Shares of Class W originally purchased, but no longer held in a discretionary managed account, may not be exchanged for Class W shares of another Fund. You may continue to hold these shares in the original Fund. 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.

You may exchange or sell shares by having your selling and/or servicing agent process your transaction. If you maintain your account directly with your selling and/or servicing agent, you must contact that agent to exchange or sell shares of the Fund. If your account was established directly with the Fund, there are a variety of methods you may use to exchange or sell shares of the Fund.

Same-Fund Exchange Privilege for Class Z Shares

Certain shareholders invested in a class of shares other than Class Z may become eligible to invest in Class Z shares. Upon a determination of such eligibility, any such shareholders will be eligible to exchange their shares for Class Z shares of the same Fund, if offered. No sales charges or other charges will apply to any such exchange, except that when Class B shares are exchanged for Class Z shares, any CDSC charges 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. Investors should contact their selling and/or servicing agents to learn more about the details of the Class Z shares exchange privilege.

Ways to Request a Sale or Exchange of Shares

Account established with your selling and/or servicing agent

You can exchange or sell Fund shares by having your financial advisor or selling and/or servicing agent process your transaction. They may have different policies not described in this prospectus, including different transaction limits, exchange policies and sale procedures.

Mail your sale or exchange request to The Funds, c/o Columbia Management Investment Services Corp. (regular mail) P.O. Box 8081, Boston, MA 02266-8081 or (express mail) 30 Dan Road, Canton, MA 02021-2809.

Include in your letter: your name; the name of the Fund(s); your account number; the class of shares to be exchanged or sold; your social security number (SSN) or taxpayer identification number (TIN); the dollar amount or number of shares you want to exchange or sell; specific instructions regarding delivery or exchange destination; signature(s) of registered account owner(s); and any special documents the Transfer Agent may require in order to process your order.

S.65

When a written order to buy, sell or exchange shares is sent to the Transfer Agent, the share price used to fill the order is the next price calculated by the Fund after the Transfer Agent receives the order at its transaction processing center in Canton, Massachusetts, not the P.O. Box provided for regular mail delivery.

Corporate, trust or partnership accounts may need to send additional documents. Payment will be mailed to the address of record and made payable to the names listed on the account, unless your request specifies differently and is signed by all owners.

Distributions and Taxes

Distributions to Shareholders

A mutual fund can make money two ways:


•	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 unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than it originally paid. Capital gains are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term gains) or more than one year (long-term gains).

FUNDamentals ^TM

Distributions

Mutual funds make payments of fund earnings to shareholders, distributing them among all shareholders of the fund. As a shareholder, you are entitled to your portion of a fund’s distributed income, including capital gains.

Reinvesting your distributions buys you more shares of a fund — which lets you take advantage of the potential for compound growth. Putting the money you earn back into your investment means it, in turn, may earn even more money. Over time, the power of compounding has the potential to significantly increase the value of your investment. There is no assurance, however, that you’ll earn more money if you reinvest your distributions rather than receive them in cash.

The Fund intends to pay out, in the form of distributions to shareholders, a sufficient amount of its income and gains so that the Fund will qualify for treatment as a regulated investment company and generally will not have to pay any federal excise tax. The Fund generally intends to distribute any net realized capital gain (whether long-term or short-term gain) at least once a year.

S.66

Different share classes of the Fund usually pay different net investment income distribution amounts, because each class has different expenses. Each time a distribution is made, the net asset value per share of the share class is reduced by the amount of the distribution.

The Fund generally pays cash distributions within five business days after the distribution was declared (or, if the Fund declares distributions daily, within five business days after the end of the month in which the distribution was declared). If you sell all of your shares after the record date, but before the payment date, for a distribution, you’ll normally receive that distribution in cash within five business days after the sale was made.

The Fund will automatically reinvest distributions in additional shares of the same share class of the Fund unless you inform us you want to receive your distributions in cash (the selling and/or servicing agent through which you purchased shares may have different policies). You can do this by contacting the Funds at the addresses and telephone numbers listed at the beginning of the section entitled Choosing a Share Class . No sales charges apply to the purchase or sale of such shares.

For accounts held directly with the Fund, distributions of $10 or less will automatically be reinvested in additional Fund shares only. If you elect to receive distributions by check and the check is returned as undeliverable, all subsequent distributions will be reinvested in additional shares of the Fund.

Unless you are a tax-exempt investor or holding Fund shares through a tax-advantaged account (such as a 401(k) plan or IRA), you should consider avoiding buying Fund shares shortly before the Fund makes a distribution (other than distributions of net investment income that are declared daily) of net investment income or net realized capital gain, because doing so can cost you money in taxes to the extent the distribution consists of taxable income or gains. This is because you will, in effect, receive part of your purchase price back in the distribution. This is known as “buying a dividend.” To avoid “buying a dividend,” before you invest, check the Fund’s distribution schedule, which is available at the Funds’ website and/or by calling the Funds’ telephone number listed at the beginning of the section entitled Choosing a Share Class .

If you buy shares of the Fund when it holds securities with unrealized capital gain, you may, in effect, receive part of your purchase price back if and when the Fund sells those securities and distributes any net realized gain. Any such distribution is generally subject to tax. The Fund may have, or may build up over time, high levels of unrealized capital gain. If you buy shares of the Fund when it has capital loss carryforwards, the Fund may have the ability to offset capital gains realized by the Fund that otherwise would have been distributed to shareholders with such carryforwards, although capital loss carryforwards generally expire after eight taxable years and may be subject to substantial limitations.

S.67

Taxes and Your Investment

The Fund will send you a statement each year showing how much you’ve received in distributions in the prior year and the distributions’ character for U.S. federal income tax purposes. In addition, you should be aware of the following considerations applicable to all Funds (unless otherwise noted):


•	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. In addition, 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 shares of the Fund.

•	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.

•	For taxable years beginning on or before December 31, 2012, 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 lower net long-term capital gain rates. It is currently unclear whether Congress will extend this provision to taxable years beginning after December 31, 2012. 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 derived from qualified dividend income.

•	For taxable years beginning on or before December 31, 2012, the maximum individual U.S. federal income tax rate on net long-term capital gain (and thus qualified dividend income) has been temporarily reduced to 15%. It is currently unclear whether Congress will extend this rate reduction to taxable years beginning after December 31, 2012.

S.68


•	Certain derivative instruments when held in a Fund’s portfolio subject the Fund to special tax rules, the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, convert capital gains into ordinary income and convert short-term capital losses into long-term capital losses. 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.

•	Certain Funds may purchase or sell (write) options, as described further in the SAI. In general, option premiums which may be received by the Fund are not immediately included in the income of the Fund. Instead, such premiums are taken into account when the option contract expires, the option is exercised by the holder, or the Fund transfers or otherwise terminates the option. If an option written by a Fund is exercised and such Fund sells or delivers the underlying security, the Fund generally will recognize capital gain or loss equal to (a) the sum of the exercise price and the option premium received by the Fund minus (b) the Fund’s basis in the security. Such gain or loss generally will be short-term or long-term depending upon the holding period of the underlying security. Gain or loss with respect to any termination of a Fund’s obligation under an option other than through the exercise of the option and the related sale or delivery of the underlying security generally will be short-term gain or loss. Thus, for example, if an option written by a Fund expires unexercised, such Fund generally will recognize short-term gain equal to the premium received.

•	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 income your share of the foreign taxes paid by the Fund. You may be able to either deduct this amount from your income or claim it as a foreign tax credit. There is no assurance that the Fund will make a special election for a taxable year, even if it is eligible to do so.

S.69


•	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 generally will be exempt from such taxes, but may be subject to other taxes, including income taxes of other states, and federal and state alternative minimum tax. 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. Distributions of 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 or disallowed.

•	The Fund is required by federal law to withhold tax on any taxable and possibly 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 taxpayer identification number (TIN) or haven’t certified to the Fund that withholding doesn’t apply; the Internal Revenue Service (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.

S.70


	FUNDamentals ^TM

Taxes

The information provided above is only a summary of how U.S. federal income taxes may affect your investment in the Fund. It is not intended as a substitute for careful tax planning. Your investment in the Fund may have other tax implications. It does not apply to certain types of investors who may be subject to special rules, including foreign or tax-exempt investors or those holding Fund shares through a tax-advantaged account, such as a 401(k) plan or IRA. You should consult with your own tax advisor about the particular tax consequences to you of an investment in the Fund, including the effect of any foreign, state and local taxes, and the effect of possible changes in applicable tax laws.

Additional Services and Compensation

In addition to acting as the Fund’s investment manager, Columbia Management Investment Advisers, LLC (Columbia Management) and its affiliates also receive compensation for providing other services to the Funds.

Administration Services. Columbia Management, 225 Franklin Street, Boston, MA 02110, provides or compensates others to provide administrative services to the Funds. These services include administrative, accounting, treasury, and other services. Fees paid by the Funds for these services are included under “Other expenses” in the expense table of the Fund.

Distribution and Shareholder Services. Columbia Management Investment Distributors, Inc. (formerly RiverSource Fund Distributors, Inc.), 225 Franklin Street, Boston, MA 02110, provides underwriting and distribution services to the Funds.

Transfer Agency Services. Columbia Management Investment Services Corp. (formerly RiverSource Service Corporation), 225 Franklin Street, Boston, MA 02110, provides or compensates others to provide transfer agency services to the Funds. The Funds pay the Transfer Agent a fee that may vary by class, as set forth in the SAI, and reimburses the transfer agent for its out-of-pocket expenses incurred while providing these transfer agency services to the Funds. Fees paid by a Fund for these services are included under “Other expenses” in the expense table of the Fund.” The Transfer Agent pays a portion of these fees to selling and servicing agents that provide sub-recordkeeping and other services to Fund shareholders. The SAI provides additional information about the services provided and the fee schedules for the Transfer Agent agreements.

Additional Management Information

Affiliated Products. Columbia Management serves as investment manager to the Funds, including those that are structured to provide asset-allocation services to shareholders of those Funds (funds of funds) by investing in shares of other

S.71

Funds (collectively referred to as underlying funds) and to discretionary managed accounts (collectively referred to as affiliated products) that invest exclusively in underlying funds. These affiliated products, individually or collectively, may own a significant percentage of the outstanding shares of the underlying funds, and Columbia Management seeks to balance potential conflicts between the affiliated products and the underlying funds in which they invest. The affiliated products’ investment in the underlying funds may also have the effect of creating economies of scale (including lower expense ratios) because the affiliated products may own substantial portions of the shares of underlying funds and, comparatively, a redemption of underlying fund shares by one or more affiliated products could cause the expense ratio of an underlying fund to increase as its fixed costs would be spread over a smaller asset base. Because of these large positions of the affiliated products, the underlying funds may experience relatively large purchases or redemptions. Although Columbia Management may seek to minimize the impact of these transactions, for example, by structuring them over a reasonable period of time or through other measures, underlying funds may experience increased expenses as they buy and sell securities to manage these transactions. When Columbia Management structures transactions over a reasonable period of time in order to manage the potential impact of the buy and sell decisions for the affiliated products, these affiliated products, including funds of funds, may pay more or less for shares of the underlying funds than if the transactions were executed in one transaction. In addition, substantial redemptions by the affiliated products within a short period of time could require the underlying fund to liquidate positions more rapidly than would otherwise be desirable, which may have the effect of reducing or eliminating potential gain or causing the underlying fund to realize a loss. Substantial redemptions may also adversely affect the ability of the investment manager to implement the underlying fund’s investment strategy. Columbia Management also has an economic conflict of interest in determining the allocation of the affiliated products’ assets among the underlying funds as it earns different fees from the underlying funds. Columbia Management monitors expense levels of the Funds and is committed to offering funds that are competitively priced. Columbia Management reports to the Board of each fund of funds on the steps it has taken to manage any potential conflicts. See the SAI for information on the percent of the Fund owned by affiliated products.

S.72

Cash Reserves. A Fund may invest its daily cash balance in a money market fund selected by Columbia Management, including but not limited to Columbia Short-Term Cash Fund (Short-Term Cash Fund), a money market Fund established for the exclusive use of the Funds and other institutional clients of Columbia Management. While Short-Term Cash Fund does not pay an advisory fee to Columbia Management, it does incur other expenses. A Fund will invest in Short-Term Cash Fund or any other money market fund selected by Columbia Management only to the extent it is consistent with the Fund’s investment objectives and policies. Short-Term Cash Fund is not insured or guaranteed by the FDIC or any other government agency.

Fund Holdings Disclosure. The Board has adopted policies and procedures that govern the timing and circumstances of disclosure to shareholders and third parties of information regarding the securities owned by a Fund. A description of these policies and procedures is included in the SAI.

Legal Proceedings. Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the fund. Information regarding certain pending and settled legal proceedings may be found in the fund’s shareholder reports and in the SAI. Additionally, Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.

The website references in this prospectus are intended to be inactive textual references and information contained in or otherwise accessible through the referenced websites does not form a part of this prospectus.

S.73

Summary of the Fund

INVESTMENT OBJECTIVE

Columbia Government Money Market Fund (the Fund) seeks to preserve capital and to maximize liquidity and current income.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class Z shares of the Fund.

Shareholder Fees (fees paid directly from your investment)


	Class Z

Maximum sales charge (load) imposed on purchases (as a percentage of offering price)		None
Maximum deferred sales charge (load) imposed on redemptions (as a percentage of offering price at the time of purchase, or current net asset value, whichever is less)		None

Annual Fund Operating Expenses ^(a) (expenses that you pay each year as a percentage of the value of your investment)


	Class Z

Management fees		0.33%
Distribution and/or service (12b-1) fees		0.00%
Other expenses		0.39%
Total annual fund operating expenses		0.72%
Less: Fee waiver/expense reimbursement ^(b)		(0.16%	)
Total annual fund operating expenses after fee waiver/expense reimbursement ^(b)		0.56%


^(a)		The expense ratios have been adjusted to reflect current fees.


^(b)		The investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until Feb. 29, 2012, unless sooner terminated at the sole discretion of the Fund’s Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any), will not exceed 0.56% for Class Z.

Example

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example includes contractual commitments to waive fees and reimburse expenses expiring as indicated in the preceding table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


	1 year		3 years		5 years		10 years

Class Z	$	57	$	214	$	386	$	883

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS 3p

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

PRINCIPAL RISKS OF INVESTING IN THE FUND

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

4p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS

Average Annual Total Returns

(for periods ended Dec. 31, 2010)

1 year

5 years

10 years

Columbia Government Money Market Fund:

Class A*

+0.01%

+1.82%

+1.58%

The returns shown are for Class A. Class Z shares would have substantially similar annual returns as Class A shares because the classes of shares invest in the same portfolio of securities and would differ only to the extent that the classes do not have the same expenses. Class A share returns have not been adjusted to reflect differences in class-related expenses. If differences in class-related expenses were reflected (i.e., if expenses of Class Z shares were reflected in the Class A share returns), the returns shown for Class A shares for all periods would be higher.

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC

BUYING AND SELLING SHARES


	Class Z
Minimum initial investment		Variable*
Additional investments		$100

* The minimum initial investment amount for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor.

Exchanging or Selling Shares

If your account was established directly with the Fund, you may request an exchange or sale of shares through one of the following methods:

By mail: Mail your exchange or sale request to:


	Regular Mail: Columbia Management Investment Services Corp., P.O. Box 8081, Boston, MA 02266-8081

	Express Mail: Columbia Management Investment Services Corp., 30 Dan Road, Canton, MA 02021-2809

By telephone or wire transfer: Call 800.345.6611. A service fee may be charged against your account for each wire sent.

TAX INFORMATION

The Fund intends to make distributions that may be taxed as ordinary income or capital gains.

6p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS

More Information about the Fund

INVESTMENT OBJECTIVE

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

In pursuit of the Fund’s objective, the investment manager chooses investments by:


•	Considering opportunities and risks given current interest rates and anticipated interest rates.

•	Purchasing securities based on the timing of cash flows in and out of the Fund.

8p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS

In evaluating whether to sell a security, the investment manager considers, among other factors, whether:


•	The issuer’s credit rating has declined or the investment manager expects a decline (the Fund, in certain cases, may continue to own securities that are down-graded until the investment manager believes it is advantageous to sell).

•	Political, economic, or other events could affect the issuer’s performance.

•	The investment manager identifies a more attractive opportunity.

•	The issuer or the security continues to meet the other standards described above.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Credit Risk. Credit risk is the risk that the issuer of a fixed-income security, or the counterparty to a contract may or will default or otherwise become unable or unwilling to honor a financial obligation, such as making payments. If the Fund purchases unrated securities, or if the rating of a security is reduced after purchase, the Fund will depend on analysis of credit risk more heavily than usual.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS 9p

MORE ABOUT ANNUAL FUND OPERATING EXPENSES

The following information is presented in addition to, and should be read in conjunction with, “Fees and Expenses of the Fund” that appears in the Summary of the Fund.

OTHER INVESTMENT STRATEGIES AND RISKS

Additional information regarding securities transactions can be found in the SAI.

10p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS

FUND MANAGEMENT AND COMPENSATION

Investment Manager

The Fund pays Columbia Management a fee for managing its assets. Under the Investment Management Services Agreement (Agreement), the fee for the most recent fiscal year was 0.33% of the Fund’s average daily net assets. Under the Agreement, the Fund also pays taxes, brokerage commissions, and nonadvisory expenses. A discussion regarding the basis for the Board approving the Agreement is available in the Fund’s annual shareholder report for the year ended Dec. 31, 2010.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS 11p

Financial Highlights

The financial highlights table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single Fund share. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions). Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year. The information has been derived from the financial statements audited by the Fund’s Independent Registered Public Accounting Firm Ernst & Young LLP, whose report, along with the Fund’s financial statements and financial highlights, is included in the annual report which, if not included with this prospectus, is available upon request.


	Year ended
Class Z	Dec. 31,
Per share data	2010 ^(a)
Net asset value, beginning of period		$1.00

Income from investment operations:
Net investment income (loss)		.00	^(b)

Less distributions:
Dividends from net investment income		(.00	) ^(b)

Net asset value, end of period		$1.00

Total return		.00%	^(c)

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.93%	^(d)

Net expenses after expense waiver/reimbursement ^(e)		.18%	^(d)

Net investment income (loss)		.01%	^(d)

Supplemental data
Net assets, end of period (in millions)		$1

Notes to Financial Highlights


^(a)		For the period from Sept. 27, 2010 (when shares became available) to Dec. 31, 2010.


^(b)		Rounds to less than $0.01 per share.


^(c)		Rounds to less than 0.01%.


^(d)		Annualized.


^(e)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses.

12p COLUMBIA GOVERNMENT MONEY MARKET FUND — 2011 CLASS Z PROSPECTUS

Choosing a Share Class

The Funds

S.1

Comparison of Share Classes

Share Class Features


•	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.

FUNDamentals ^tm

Selling and/or Servicing Agents

S.2


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class A*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	none	none

Class B*	Closed to new investors. ^(h)	up to $49,999	Converts to Class A shares generally eight years after purchase. ⁽ⁱ⁾

Class C*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	up to $999,999; no limit for eligible employee benefit plans. ^(j)	none

Class E	Closed to new investors and new accounts. ^(k)	none	none

Class F	Closed to new investors and new accounts. ^(k)	up to $250,000. ^(l)	Converts to Class E shares eight years after purchase. ⁽ⁱ⁾

Class I*	Available only to the Funds (i.e., Fund-of-Fund investments).	none	none

Class R*	Available only to eligible retirement plans and health savings accounts; no minimum initial investment.	none	none

Class R3*	Effective after the close of business on December 31, 2010, Class R3 shares are 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. ⁽ⁿ⁾	none	none

Class R4*	Effective after the close of business on December 31, 2010, Class R4 shares are 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. ⁽ⁿ⁾	none	none

S.3


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class R5*	Effective after the close of business on December 31, 2010, Class R5 shares are 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, health savings accounts and, if approved by the Distributor, institutional or corporate accounts above a threshold established by the Distributor (currently $1 million per Fund or $10 million in all Funds) and bank trust departments. ⁽ⁿ⁾	none	none

Class T	Available only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy funds into various Columbia funds (formerly named Liberty funds).	none	none

Class W*	Available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs.	none	none

Class Y*	Available to certain categories of investors which are subject to minimum initial investment requirements; currently offered only to former shareholders of the former Columbia Funds Institutional Trust. ^(q)	none	none

Class Z*	Available only to certain eligible investors, which are subject to different minimum initial investment requirements, ranging from $0 to $2,000.	none	none


	Front-End Sales Charges ^(b)	Contingent Deferred Sales Charges (CDSCs) ^(b)


Class A*	5.75% maximum, declining to 0.00% on investments of $1 million or more. None for money market Funds and certain other Funds. ^(f)	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 of purchase. ^(g)

Class B*	none	5.00% maximum, gradually declining to 0.00% after six years. ⁽ⁱ⁾

Class C*	none	1.00% on certain investments redeemed within one year of purchase.

Class E	4.50% maximum, declining to 0.00% on investments of $500,000 or more.	1.00% on certain investments of between $1 million and $5 million redeemed within one year of purchase.

S.4


		Non 12b-1
	Maximum Distribution and Service (12b-1) Fees ^(c)	Service Fees ^(d)


Class R4*	none	0.25% ^(m)

Class R5*	none	none

Class T	none	up to 0.50%. ^(o)

Class W*	0.25% distribution and service fees, with certain exceptions. ^(c)	none

Class Y*	none	none

Class Z*	none	none


*		For money market Funds, new investments must be made in Class A, Class I, Class T, Class W or Class Z shares, subject to eligibility. Class C and Class R shares of the money market Funds 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. The money market Funds offer other classes of shares only to facilitate exchanges with other Funds offering such share classes.
^(a)		See Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders for more details on the eligible investors and minimum initial and subsequent investment and account balance requirements.
^(b)		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 charge policies, see Choosing a Share Class — Reductions/Waivers of Sales Charges .
^(c)		These are the maximum applicable distribution and/or shareholder service fees. Because these fees are paid out of Fund assets on an on-going 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. For Legacy Columbia funds with Class A shares subject to both a distribution and service fee, the aggregate fees are limited to not more than 0.25%. Columbia Money Market Fund (formerly RiverSource Cash Management 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. The Distributor has voluntarily agreed to waive all or a portion of distribution and/or service fees for certain classes of certain Funds. For information on these waivers, see Choosing a Share Class — Distribution and Service Fees . Compensation paid to selling and/or servicing agents may be suspended to the extent of the Distributor’s waiver of the 12b-1 fees on these specific Fund share classes.
^(d)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees and Class T Shares — Shareholder Service Fees .
^(e)		The minimum initial investment requirement is $5,000 for RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund, and $10,000 for Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund and Columbia Absolute Return Currency and Income Fund. For more details on the minimum initial investment requirement applicable to other Funds, see Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders .
^(f)		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, and RiverSource S&P 500 Index Fund.
^(g)		There is no CDSC on Class A shares of the money market Funds or the Funds identified in footnote (f) above. Legacy Columbia fund Class A shareholders and Legacy RiverSource fund shareholders who purchased Class A shares without an initial sales charge because their accounts aggregated between $1 million and $50 million at the time of purchase and who purchased shares on or before September 3, 2010 will incur, for Legacy Columbia fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC and for legacy RiverSource fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within 18 months of purchase and redemptions after one year will not be subject to a CDSC.

S.6


^(h)		The Funds no longer accept investments from new or existing investors in Class B shares, except through reinvestment of dividend and/or capital gain distributions by existing Class B shareholders, or a permitted exchange, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class B Shares Closed . Unless contrary instructions are received in advance by the Fund, any purchase orders (except those submitted by a selling and/or servicing agent through the National Securities Clearing Corporation (NSCC) that are initial investments in Class B shares or that are orders for additional Class B shares of the Fund received from existing investors in Class B shares, including orders made through an active systematic investment plan, will automatically be invested in Class A shares of the Fund, without regard to the normal minimum initial investment requirement for Class A shares, but subject to the applicable front-end sales charge. Your selling and/or servicing agent may have different policies, including automatically redirecting the purchase order to a money market fund. See Choosing a Share Class — Class A Shares — Front-end Sales Charge for additional information about Class A shares .
⁽ⁱ⁾		Timing of conversion and CDSC schedule will vary depending on the Fund and the date of your original purchase of Class B shares. For more information on the timing of conversion of Class B shares to Class A shares, see Choosing a Share Class — Class B Shares — Conversion of Class B Shares to Class A Shares . Class B shares of Columbia Short Term Municipal Bond Fund do not convert to Class A shares. For information on the timing of the conversion of Class F shares to Class E shares, see Choosing a Share Class — Class F Shares — Commissions and Conversion to Class E Shares .
^(j)		There is no investment limit on Class C shares purchased by employee benefit plans created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans, that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper.
^(k)		The Funds no longer accept investments from new or existing investors in Class E or Class F shares, except that existing Class E and/or Class F shareholders who opened and funded their account prior to September 22, 2006 may continue to invest in Class E and/or Class F shares, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class E and Class F Shares Closed . Class E and Class F shares are designed for investors who wish to make an irrevocable gift to a child, grandchild or other individual.
^(l)		If you hold Class F shares of the Fund and your account has a value of less than $250,000, you may purchase additional Class F shares of the Fund in amounts that increase your account value up to a maximum of $250,000. The value of your account, for this purpose, includes the value of all Class F shares in eligible accounts held by you and your “immediate family.” For more information about account value aggregation and eligible accounts, see Choosing a Share Class — Reductions/Waivers of Sales Charges . If you have reached the $250,000 limit, any additional amounts you invest in Class F shares of the Fund will be invested in Class E shares of the Fund, without regard to the normal minimum investment amount required for Class E shares. Such investments will, however, be subject to the applicable front-end sales charge.
^(m)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees .
⁽ⁿ⁾		Shareholders who opened and funded a Class R3, Class R4 or Class R5 shares account with a Fund as of the close of business on December 31, 2010 (including accounts once funded that subsequently reached a zero balance) may continue to make additional purchases of the share class, and existing Class R3, Class R4 or Class R5 accounts may continue to allow new investors or participants to be established in their Fund account. For more information on eligible investors in these share classes and the closing of these share classes, see Buying Shares — Eligible Investors — Class R3 Shares, R4 Shares and Class R5 Shares .
^(o)		For more information, see Class T Shares — Shareholder Service Fees .
^(p)		Class T Shareholders who purchased Class T shares without a front-end sales charge because their accounts aggregated between $1 million and $50 million at the time of the purchase and who purchased shares on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC.
^(q)		Class Y shares are available only to the following categories of investors: (i) individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) that invest at least $1 million in Class Y shares of a single Fund and (ii) group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

S.7

Sales Charges and Commissions

Class A Shares — Front-End Sales Charge

S.8


							Amount
							retained by
					Sales		or paid to
			Sales		charge		selling
			charge		as a		and/or
			as a		% of the		servicing
			% of the		net		agents as a
	Dollar amount of		offering		amount		% of the
Breakpoint Schedule For:	shares bought ^(a)		price ^(b)		invested ^(b)		offering price



Columbia California Intermediate Municipal Bond Fund,	$	0—$99,999		3.25%		3.36%		2.75%

Columbia Connecticut Intermediate Municipal Bond Fund,	$	100,000—$249,999		2.50%		2.56%		2.15%

Columbia Georgia Intermediate Municipal Bond Fund,	$	250,000—$499,999		2.00%		2.04%		1.75%

Columbia Intermediate Bond Fund,	$	500,000—$999,999		1.50%		1.53%		1.25%

Columbia Intermediate Municipal Bond Fund,	$	1,000,000 or more		0.00%		0.00%		0.00%	^(c)(d)

Columbia LifeGoal ^® Income Portfolio,

Columbia Maryland Intermediate Municipal Bond Fund,

Columbia Massachusetts Intermediate Municipal Bond Fund,

Columbia New Jersey Intermediate Municipal Bond Fund,

Columbia New York Intermediate Municipal Bond Fund,

Columbia North Carolina Intermediate Municipal Bond Fund,

Columbia Oregon Intermediate Municipal Bond Fund,

Columbia Rhode Island Intermediate Municipal Bond Fund,

Columbia Short-Intermediate Bond Fund,

Columbia South Carolina Intermediate Municipal Bond Fund,

Columbia Total Return Bond Fund and

Columbia Virginia Intermediate Municipal Bond Fund



Columbia Short-Term Bond Fund and	$	0—$99,999		1.00%		1.01%		0.75%

Columbia Short-Term Municipal Bond Fund	$	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)(d)


*		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund and RiverSource S&P 500 Index Fund. “ Funds-of-Funds (equity) ” includes — Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia Portfolio Builder Aggressive Fund, Columbia Portfolio Builder Moderate Aggressive Fund, Columbia Portfolio Builder Moderate Fund, Columbia Portfolio Builder Total Equity Fund, Columbia Retirement Plus 2010 Fund, Columbia Retirement Plus 2015 Fund, Columbia Retirement Plus 2020 Fund, Columbia Retirement Plus 2025 Fund, Columbia Retirement Plus 2030 Fund, Columbia Retirement Plus 2035 Fund, Columbia Retirement Plus 2040 Fund, Columbia Retirement Plus 2045 Fund. “ Funds-of-Funds (fixed income) ” includes — Columbia Income Builder Fund, Columbia Income Builder Fund II, Columbia Income Builder Fund III, Columbia Portfolio Builder Conservative Fund and Columbia Portfolio Builder Moderate Conservative Fund. Columbia Asset Allocation Fund, Columbia Asset Allocation Fund II, Columbia Balanced Fund and Columbia Liberty 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.

S.11


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources (except for the Funds listed below): 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The Distributor may be reimbursed if a CDSC is deducted when the shares are redeemed. Currently, the Distributor does not make such payments on purchases of the following Funds for purchases with a total market value of $1 million or more: Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia U.S. Treasury Index Fund and RiverSource S&P 500 Index Fund.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Class A Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class A shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase. Shareholders who purchased shares of a Legacy RiverSource fund on or before Sept. 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within 18 months of purchase.

	•	Fund shareholders who purchased shares after September 3, 2010 will incur a CDSC if those shares are redeemed 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.

The CDSC on Class A shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

S.12

FUNDamentals ^tm

Contingent Deferred Sales Charge

Class A Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy $1 million or more of Class A shares, according to the following schedule:

Class A Shares — Commission Schedule (Paid by the Distributor to Selling and/or Service Agents)*


	Commission Level
	(as a % of net asset
Purchase Amount	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.
**		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor sales commissions on purchases (that are coded as commission-eligible trades) in amounts of less than $1 million.

S.13

Class B Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class B shares, but you may pay a CDSC when you sell Class B shares.

Class B Shares — CDSC

The CDSC on Class B shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	generally declines each year until there is no sales charge for redeeming shares.

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

				Columbia California Intermediate Municipal Bond Fund,
				Columbia Georgia Intermediate Municipal Bond Fund,
				Columbia Connecticut Intermediate Municipal Bond Fund,
				Columbia Intermediate Bond Fund, Columbia Intermediate
				Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
				Columbia Maryland Intermediate Municipal Bond Fund,
				Columbia Massachusetts Intermediate Municipal Bond
				Fund, Columbia New Jersey Intermediate Municipal Bond Fund,
				Columbia New York Intermediate Municipal Bond Fund,
				Columbia North Carolina Intermediate Municipal Bond Fund,
				Columbia Oregon Intermediate Municipal Bond Fund, Columbia
				Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of				Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those			Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right			Columbia Virginia Intermediate Municipal Bond Fund


One		5.00	%	3.00%
Two		4.00	%	3.00%
Three		3.00	%**	2.00%
Four		3.00	%	1.00%
Five		2.00	%	None
Six		1.00	%	None

S.14

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

		Columbia California Intermediate Municipal Bond Fund,
		Columbia Georgia Intermediate Municipal Bond Fund,
		Columbia Connecticut Intermediate Municipal Bond Fund,
		Columbia Intermediate Bond Fund, Columbia Intermediate
		Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
		Columbia Maryland Intermediate Municipal Bond Fund,
		Columbia Massachusetts Intermediate Municipal Bond
		Fund,Columbia New Jersey Intermediate Municipal Bond Fund,
		Columbia New York Intermediate Municipal Bond Fund,
		Columbia North Carolina Intermediate Municipal Bond Fund,
		Columbia Oregon Intermediate Municipal Bond Fund, Columbia
		Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of		Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those	Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right	Columbia Virginia Intermediate Municipal Bond Fund


Seven	None	None
Eight	None	None
Nine	Conversion to Class A Shares	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.
**		For shares purchased in a Legacy RiverSource fund (other than a Seligman fund) on or prior to June 12, 2009, the CDSC percentage for year three is 4%.

Class B shares of Columbia Short Term Municipal Bond Fund are not subject to a CDSC.

Class B Shares — Commissions

S.15

Class B Shares — Conversion to Class A Shares

The following rules apply to the conversion of Class B shares to Class A shares:


•	Class B shares are converted on or about the 15th day of the month that they become eligible for conversion. For purposes of determining the month when your Class B shares are eligible for conversion, the start of the holding period is the first day of the month in which your purchase was made.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class A shares at the same time.

•	You’ll receive the same dollar value of Class A shares as the Class B shares that were converted. Class B shares that you received from an exchange of Class B shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

Class C Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class C shares, but you may pay a CDSC when you sell Class C shares.

S.16

Class C Shares — CDSC


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	is reduced to 0.00% on shares redeemed a year or more after purchase.

Class C Shares — Commissions

Class E Shares — Front-End Sales Charge

The front-end sales charge you’ll pay on Class E shares:


•	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.

Class E Shares — Front-End Sales Charge — Breakpoint Schedule


			Sales charge		Amount retained by or
	Sales charge		as a % of the		paid to selling and/or
Dollar amount of	as a % of the		net amount		servicing agents as a %
shares bought ^(a)	offering price ^(b)		invested ^(b)		of the offering price


$0—$49,999		4.50%		4.71%		4.00%
$50,000—$99,999		3.50%		3.63%		3.00%
$100,000—$249,999		2.50%		2.56%		2.00%
$250,000—$499,999		1.25%		1.27%		1.00%
$500,000—$999,999		0.00%		0.00%		0.00%
$1,000,000 or more		0.00%		0.00%		0.00%	^(c)

S.17


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following out of its own resources: 1.00% on purchases up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $5 million and 0.25% on purchases of $5 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.

Class E Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class E shares that you bought without an initial sales charge.


•	If you bought Class E shares without an initial sales charge because your accounts aggregated between $1 million and $5 million at the time of purchase, you will incur a 1.00% CDSC if you redeem those shares within one year of buying them.

•	Subsequent Class E share purchases that bring your aggregate account value to $1 million or more (but less than $5 million) will also be subject to a CDSC if you redeem them within one year of buying them.

The CDSC on Class E shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

Class E Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy Class E shares, according to the following schedule:

S.18


*		Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages.

Class F Shares — Commissions and Conversion to Class E Shares

The following rules apply to the conversion of Class F shares to Class E shares:


•	Class F shares are converted on or about the 15th day of the month that they become eligible for conversion.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class E shares at the same time.

•	You’ll receive the same dollar value of Class E shares as the Class F shares that were converted. Class F shares that you received from an exchange of Class F shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

S.20

Class T Shares — Front-End Sales Charge — Breakpoint Schedule


									Amount retained
			Sales charge			Sales charge			by or paid to
			as a %			as a %			selling and/or
			of the			of the			servicing agents
Breakpoint	Dollar amount of		offering			net amount			as a % of the
Schedule For:	shares bought ^(a)		price ^(b)			invested ^(b)			offering price


	$	0—$49,999		5.75	%		6.10	%		5.00	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Equity Funds	$	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)(d)

	$	0—$49,999		4.75	%		4.99	%		4.25	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Fixed-Income Funds	$	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)(d)


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources: 1.00% on purchases of $1 million up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $50 million and 0.25% on purchases of $50 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on purchases up to but not including $3 million (including those in amounts of less than $1 million), up to 0.50% on purchases of $3 million up to but not including $50 million, and up to 0.25% on purchases of $50 million or more.

Class T Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class T shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:

S.22


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase.

	•	Shareholders who purchased shares of a Fund after September 3, 2010 will incur a CDSC if those shares are redeemed 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 of 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.

The CDSC on Class T shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

Class T Shares — Commissions

S.23

S.25

FUNDamentals ^tm

Your “Immediate Family” and Account Value Aggregation

Eligible Accounts

The following accounts are eligible for account value aggregation as described above:


•	Individual or joint accounts;

•	Roth and traditional Individual Retirement Accounts (IRAs), Simplified Employee Pension accounts (SEPs), Savings Investment Match Plans for Employees of Small Employers accounts (SIMPLEs) and Tax Sheltered Custodial Accounts (TSCAs);

•	Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors (UTMA) accounts for which you, your spouse, or your domestic partner is parent or guardian of the minor child;

•	Revocable trust accounts for which you or an immediate family member, individually, is the beneficial owner/grantor;

•	Accounts held in the name of your, your spouse’s, or your domestic partner’s sole proprietorship or single owner limited liability company or S corporation;

•	Qualified retirement plan assets, provided that you are the sole owner of the business sponsoring the plan, are the sole participant (other than a spouse) in the plan, and have no intention of adding participants to the plan; and

•	Investments in wrap accounts;

provided that each of the accounts identified above is invested in Class A, Class B, Class C, Class E, Class F, Class T, Class W and/or Class Z shares of the Funds.

S.26

The following accounts are not eligible for account value aggregation as described above:


•	Accounts of pension and retirement plans with multiple participants, such as 401(k) plans (which are combined to reduce the sales charge for the entire pension or retirement plan and therefore are not used to reduce the sales charge for your individual accounts);

•	Accounts invested in Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of the Funds;

•	Investments in 529 plans, donor advised funds, variable annuities, variable life insurance products, or managed separate accounts;

•	Charitable and irrevocable trust accounts; and

•	Accounts holding shares of money market Funds that used the Columbia brand before May 1, 2010.

Front-End Sales Charge Waivers

The following categories of investors may buy Class A, Class E and Class T shares of the Funds at net asset value, without payment of any front-end sales charge that would otherwise apply:


•	Current or retired Fund Board members, officers or employees of the Funds or Columbia Management or its affiliates ⁽¹⁾ ;

•	Current or retired Ameriprise Financial Services, Inc. financial advisors and employees of such financial advisors ⁽¹⁾ ;

•	Registered representatives and other employees of affiliated or unaffiliated selling and/or servicing agent having a selling agreement with the Distributor ⁽¹⁾ ;

•	Registered broker/dealer firms that have entered into a dealer agreement with the Distributor may buy Class A shares without paying a front-end sales charge for their investment account only;

•	Portfolio managers employed by subadvisers of the Funds ⁽¹⁾ ;

•	Partners and employees of outside legal counsel to the Funds or the Funds’ directors or trustees who regularly provide advice and services to the Funds, or to their directors or trustees;

•	Direct rollovers from qualified employee benefit plans, provided that the rollover involves a transfer to Class A shares in the same Fund;

•	Purchases made:


	•	With dividend or capital gain distributions from a Fund or from the same class of another Fund;

S.27


	•	Through or under a wrap fee product or other investment product sponsored by a selling and/or servicing agent that charges an account management fee or other managed agency/asset allocation accounts or programs involving fee-based compensation arrangements that have or that clear trades through a selling and/or servicing agent that has a selling agreement with the Distributor;

	•	Through state sponsored college savings plans established under Section 529 of the Internal Revenue Code; or

	•	Through banks, trust companies and thrift institutions, acting as fiduciaries;


•	Separate accounts established and maintained by an insurance company which are exempt from registration under Section 3(c)(11);

•	Purchases made through “employee benefit plans” created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper; and


⁽¹⁾		Including their spouses or domestic partners, children or step-children, parents, step-parents or legal guardians, and their spouse’s or domestic partner’s parents, step-parents, or legal guardians.


•	At the Fund’s discretion, front-end sales charges may be waived for shares issued in plans of reorganization, such as mergers, asset acquisitions and exchange offers, to which the Fund is a party.

CDSC Waivers

CDSC — Waivers of the CDSC for Class A, Class C, Class E, Class F and Class T shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	for which no sales commission or transaction fee was paid to an authorized selling and/or servicing agent at the time of purchase;

•	purchased through reinvestment of dividend and capital gain distributions;

S.28


•	in an account that has been closed because it falls below the minimum account balance;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	that result from returns of excess contributions made to retirement plans or individual retirement accounts, so long as the selling and/or servicing agent returns the applicable portion of any commission paid by the Distributor;

•	of Class A shares of a Fund initially purchased by an employee benefit plan;

•	other than Class A shares, of a Fund initially purchased by an employee benefit plan that are not connected with a plan level termination;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies );

•	at a Fund’s discretion, issued in connection with plans of reorganization, including but not limited to mergers, asset acquisitions and exchange offers, to which the Fund is a party; and

•	by certain other investors as set forth in more detail in the SAI.

CDSC — Waivers of the CDSC for Class B shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies ); and

•	by certain other investors, including certain institutions as set forth in more detail in the SAI.

Please see the SAI for more information about the sales charge reductions and waivers described here.

S.29

Repurchases

Distribution and Service Fees

S.30

The table below shows the maximum annual distribution and/or service fees (as an annual % of average daily net assets) and the combined amount of such fees applicable to each share class:


	Distribution	Service	Combined
	Fee	Fee	Total


Class A	up to 0.25%	up to 0.25%	up to 0.35% ^(a)(b)(c)
Class B	0.75%	0.25%	1.00% ^(a)(b)
Class C	0.75% ^(c)	0.25%	1.00% ^(b)(d)
Class E	0.10%	0.25%	0.35%
Class F	0.75%	0.25%	1.00%
Class I	none	none	none
Class R (Legacy Columbia funds)	0.50%	— ^(e)	0.50%
Class R (Legacy RiverSource funds)	up to 0.50%	up to 0.25%	0.50% ^(e)
Class R3	0.25%	0.25% ^(f)	0.50% ^(f)
Class R4	none	0.25% ^(f)	0.25% ^(f)
Class R5	none	none	none
Class T	none	0.50% ^(g)	0.50% ^(g)
Class W	up to 0.25%	up to 0.25%	0.25% ^(c)
Class Y	none	none	none
Class Z	none	none	none


^(a)		As shown in the table below, the maximum distribution and service fees of Class A shares varies among the Funds, as follows:


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Legacy RiverSource funds (other than Columbia Money Market Fund)	Up to 0.25%	Up to 0.25%	0.25%


Columbia Money Market Fund	—	—	0.10%


Columbia Asset Allocation Fund, Columbia Balanced Fund, Columbia Conservative High Yield Fund, Columbia Contrarian Core Fund, Columbia Disciplined Value Fund, Columbia Dividend Income Fund, Columbia Large Cap Growth Fund, Columbia Mid Cap Growth Fund, Columbia Oregon Intermediate Municipal Bond Fund, Columbia Intermediate Bond Fund, Columbia Real Estate Equity Fund, Columbia Small Cap Core Fund, Columbia Small Cap Growth Fund I, Columbia Technology 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.

S.31


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Columbia Blended Equity Fund, Columbia Bond Fund, Columbia California Tax-Exempt Fund, Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Emerging Markets Fund, Columbia Federal Securities Fund, Columbia Greater China Fund, Columbia High Yield Opportunity Fund, Columbia Liberty Fund, Columbia Energy and Natural Resources Fund, Columbia International Bond Fund, Columbia International Growth Fund, Columbia International Stock Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia Mid Cap Core Fund, Columbia Small Cap Value Fund I, Columbia Strategic Investor Fund, Columbia Massachusetts Tax-Exempt Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia New York Tax-Exempt Fund, Columbia Pacific/Asia Fund, Columbia Rhode Island Intermediate Municipal Bond Fund, Columbia Select Large Cap Growth Fund, Columbia Select Opportunities Fund, Columbia Select Small Cap Fund, Columbia Short-Intermediate Bond Fund, Columbia Strategic Income Fund, Columbia U.S. Treasury Index Fund, Columbia Value and Restructuring Fund, Columbia World Equity Fund	—	0.25%	0.25%


Columbia High Yield Municipal Fund, Columbia Intermediate Municipal Bond Fund, Columbia Tax Exempt Fund	—	0.20%	0.20%


Columbia Asset Allocation Fund II, Columbia California Intermediate Municipal Bond Fund, Columbia Convertible Securities Fund, Columbia Georgia Intermediate Municipal Bond Fund, Columbia Global Value Fund, Columbia High Income Fund, Columbia International Value Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico Global Fund, Columbia Maryland Intermediate Municipal Bond Fund, Columbia North Carolina Intermediate Municipal Bond Fund, Columbia Short Term Bond Fund, Columbia Short Term Municipal Bond Fund, Columbia Small Cap Growth Fund II, Columbia South Carolina Intermediate Municipal Bond Fund, Columbia Total Return Bond Fund, Columbia Virginia Intermediate Municipal Bond Fund, Columbia Large Cap Value Fund, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia LifeGoal ^® Income Portfolio, Columbia Marsico 21st Century Fund, Columbia Marsico Growth Fund, Columbia Marsico International Opportunities Fund, Columbia Mid Cap Value Fund, Columbia Multi-Advisor International Equity Fund, Columbia Masters International Equity Portfolio, Columbia Small Cap Value Fund II, Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia Overseas Value Fund	—	—	0.25%; these Funds pay a combined distribution and service fee pursuant to their combined distribution and shareholder servicing plan for Class A shares.


^(b)		The service fees for Class A shares, Class B shares and Class C shares of certain Funds depend on when the shares were purchased, as described below. Service Fee for Class A shares and Class B shares of Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-

S.32


		Exempt Fund and Columbia New York Tax-Exempt Fund — The annual service fee may equal up to 0.10% on net assets attributable to shares of these Funds issued prior to December 1, 1994 and 0.25% on net assets attributable to Fund shares issued thereafter. This arrangement results in a rate of service fee for Fund shares that is a blend between the 0.10% and 0.25% rates. For the fiscal year ended October 31, 2009, the blended service fee was 0.24% of the Fund’s average net assets for each of these Funds, other than Columbia Massachusetts Tax-Exempt Fund, which had a blended service fee of 0.23%. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Liberty Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to April 1, 1989 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended September 30, 2009, the blended service fee was 0.24% of the Fund’s average daily net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Strategic Income Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to January 1, 1993 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all Fund shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended May 31, 2010, the blended service fee was 0.25% of the Fund’s average net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia High Yield Municipal Fund, Columbia Intermediate Municipal 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 shares and Class C shares for Columbia Intermediate Municipal Bond Fund — The annual distribution fee shall be 0.65% of the average daily net assets of the Fund’s Class B shares 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 pay distribution fees of up to 0.75% and service fees of up to 0.10%, for a combined total of 0.85%.
^(c)		Fee amounts noted apply to all Funds other than Columbia Money Market Fund (formerly RiverSource Cash Management 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 voluntarily agreed, effective April 15, 2010, to waive the 12b-1 fees it receives from Class A, Class C, Class R (formerly Class R2) and Class W shares of Columbia Money Market Fund and from Class A, Class C and Class R (formerly Class R2) shares of Columbia Government Money Market Fund. Compensation paid to broker-dealers and other financial intermediaries 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 a portion of the distribution fee for Class C shares of the following Funds so that the combined distribution and service fee (or the distribution fee for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund) does not exceed the specified percentage annually: 0.40% for Columbia Intermediate Municipal Bond Fund; 0.45% for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund; 0.56% for Columbia Short Term Bond Fund; 0.65% for Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Rhode Island Intermediate Municipal Bond Fund; 0.80% for Columbia High Yield Municipal Fund and Columbia Tax-Exempt Fund; 0.85% for Columbia Conservative High Yield Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Federal Securities Fund, Columbia High Yield Opportunity Fund, Columbia Intermediate Bond Fund, Columbia Strategic Income Fund and Columbia U.S. Treasury Index Fund. These arrangements may be modified or terminated by the Distributor at any time.
^(e)		Class R shares of Legacy Columbia funds pay a distribution fee pursuant to a distribution (Rule 12b-1) plan for Class R shares. The Legacy Columbia funds do not have a shareholder service plan for Class R shares. The Legacy RiverSource funds 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 Legacy RiverSource fund Class R shares, 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.
^(f)		The shareholder service fees for Class R3 and Class R4 shares are not paid pursuant to a 12b-1 plan. Under a plan administration services agreement, the Funds’ Class R3 and Class R4 shares pay for plan administration services, including services such as implementation and conversion services, account set-up

S.33


		and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and health savings accounts.
^(g)		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 (including Columbia Asset Allocation Fund) and 0.40% for fixed income Funds. The Funds currently limit such fees to a maximum of 0.30% for equity Funds and 0.15% for fixed-income Funds other than Columbia Rhode Island Intermediate Municipal Bond Fund, for which the limit currently is 0.00%. See Class T Shareholder Service Fees below for more information.

S.34

S.35

Class T Shareholder Service Fees

Class R3 and Class R4 Shares Plan Administration Fee

Selling and/or Servicing Agent Compensation

S.36

S.37

Buying, Selling and Exchanging Shares

Share Price Determination

FUNDamentals ^tm

NAV Calculation

Each of the Fund’s share classes calculates its NAV per share as follows:


		(Value of assets of the share class)
NAV	=	− (Liabilities of the share class)

		Number of outstanding shares of the class

FUNDamentals ^tm

Business Days

S.38

For money market Funds, the Fund’s investments are valued at amortized cost, which approximates market value.

S.39

Transaction Rules and Policies

Also remember that the Fund may refuse any order to buy or exchange shares. If this happens, the Fund will return any money it received, but no interest will be paid on that money.

Order Processing

“Good Form”

Medallion Signature Guarantees

S.40

A Medallion Signature Guarantee is required if:


•	The amount is greater than $100,000.

•	You want your check made payable to someone other than the registered account owner(s).

•	Your address of record has changed within the last 30 days.

•	You want the check mailed to an address other than the address of record.

•	You want the proceeds sent to a bank account not on file.

•	You are the beneficiary of the account and the account owner is deceased (additional documents may be required).

Written Transactions

Telephone Transactions

S.41

Online Transactions

You can sell up to and including an aggregate of $100,000 of shares per day, per Fund account through the internet if you qualify for internet orders.

Customer Identification Program

S.42

Small Account Policy — Class A, B, C, T and Z Share Accounts Below $250

Small Account Policy — Class A, B, C, T and Z Share Accounts Minimum Balance Fee

S.43

Exceptions to the Small Account Policy (Accounts Below $250 and Minimum Balance Fee)

Small Account Policy — Broker/Dealer and Wrap Fee Accounts

The Funds may automatically redeem at any time broker/dealer networked accounts and wrap fee accounts that have account balances of $20 or less or have less than one share.

Cash Flows

Information Sharing Agreements

S.44

Excessive Trading Practices Policy of Non-Money Market Funds

S.45

Risks of Excessive Trading — Excessive trading creates certain risks to the Fund’s long-term shareholders and may create the following adverse effects:


•	negative impact on the Fund’s performance;

•	potential dilution of the value of the Fund’s shares;

S.46


•	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.

S.47

Excessive Trading Practices Policy of Money Market Funds

Opening an Account and Placing Orders

S.48

Accounts established directly with the Fund

S.49

Buying Shares

Eligible Investors

Class A and Class C Shares

Class B Shares Closed

S.50

Additional Class B shares will be issued only to existing investors in Class B shares and only through the following two types of transactions (Qualifying Transactions):


•	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.

Any initial purchase orders for the Fund’s Class B shares will be rejected (other than through a Qualifying Transaction that is an exchange transaction).

S.51

Class E and Class F Shares Closed

Class I Shares

Class R Shares

Class R3, Class R4 and Class R5 Shares

Class R3, Class R4 and Class R5 shares are closed to new investors and new accounts effective as of the close of business on December 31, 2010, subject to certain limited exceptions described below.

S.52

Class T Shares Closed

S.53

Class W Shares

Class Y Shares

Class Y shares are available only to the following categories of eligible investors:


•	Individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) who invest at least $1 million in Class Y shares of a single Fund; and

•	Group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

Class Z Shares

Class Z shares are available only to the categories of eligible investors described below under “Minimum Investment and Account Balance — Class Z Shares Minimum Investments”

In addition, for Class I, Class R, Class W, Class Y and Class Z shares, the Distributor, in its sole discretion, may accept investments from other institutional investors not listed above.

S.54

Minimum Initial Investments, Additional Investments and Account Balances

The table below shows the Fund’s minimum initial investment, additional investment and minimum account balance requirements, which may vary by Fund, class and type of account.

Minimum Investment and Account Balance


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance


For all Funds and classes except those listed below (non-qualified accounts)	$2,000 ^(a)	$100	$250 ^(d)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$1,000	$100	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(b)	$100	$250


Class Z	variable ^(a)(c)	$100	$250 ^(d)


^(a)		If your Class A, B, C, T or 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 systematic investment plan. If you do not do so, it 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 requirement.
^(b)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(c)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.
^(d)		If the value of your account falls below $250, your Fund account is subject to automatic redemption of Fund shares. For details, see Small Account Policy above.

S.55

Systematic Investment Plan

Minimum Investment and Account Balance — Systematic Investment Plans


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance*


For all Funds and classes except those listed below (non-qualified accounts)	$100 ^*(a)	$100	none ^*(b)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$100 ^*(b)	$50	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(c)	$100	none


Class Z	variable ^(d)	$100	none


*		If your Fund account balance is below the minimum initial investment requirement described in this table, you must make investments at least monthly.
^(a)		money market Funds — $2,000.
^(b)		money market Funds — $1,000.
^(c)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(d)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.

Class Z Shares Minimum Investments

There is no minimum initial investment in Class Z shares for the following categories of eligible investors:

•

S.56


•	Any health savings account sponsored by a third party platform and any omnibus group retirement plan for which a selling and/or servicing 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 investor participating in a wrap program sponsored by a selling and/or servicing 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.

The minimum initial investment in Class Z shares for the following eligible investors is $1,000:


•	Any individual retirement plan (assuming the eligibility criteria below are met) or group retirement plan that is not held in an omnibus manner for which a selling and/or servicing 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through an individual retirement account.

The minimum initial investment in Class Z shares for the following categories of eligible investors is $2,000:


•	Any investor buying shares through a Columbia Management state tuition plan organized under Section 529 of the Internal Revenue Code.

•	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 Legacy Columbia fund distributed by the Distributor.

•	Any trustee or director (or family member of a trustee or director) of a fund distributed by the Distributor.

S.57


•	Any investor participating in an account offered by a selling and/or servicing 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 selling and/or servicing agent 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through a non-retirement account.

•	Certain other investors as set forth in more detail in the SAI.

Dividend Diversification

S.58

Wire Purchases

Electronic Funds Transfer

Other Purchase Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing 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, Class E 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 F, Class I, Class R, Class R3, 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 Fund reserves the right to cancel your order if it 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 and/or servicing agents are responsible for sending your buy orders to the Transfer Agent and ensuring that we receive your money on time.

•	Shares bought are recorded on the books of the Fund. The Fund doesn’t issue certificates.

S.59

Selling Shares

Wire Redemptions

Electronic Funds Transfer

Systematic Withdrawal Plan

S.60

Check Redemption Service

In-Kind Distributions

Other Redemption Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing agent receives your sell order in “good form,” your shares will be sold at the next calculated net asset value 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 directly through the Funds, we will normally send the sale proceeds by mail or electronically transfer them to your bank account within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

•	If you sell your shares through a selling and/or servicing agent, the Funds will normally send the sale proceeds by Fedwire within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

S.61


•	If you paid for your shares by check or from your bank account as an Automated Clearing House (ACH) transaction, the Funds will hold the sale 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 during emergency circumstances as determined by the SEC.

•	Other restrictions may apply to retirement accounts. For information about these restrictions, contact your retirement plan administrator.

•	Also keep in mind the Funds’ Small Account Policy, which is described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies .

•	For Class E shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class E shares held by the trust, the shares automatically will convert to Class A shares of the Fund and be registered in the beneficiary’s name. For Class F shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class F shares held by the trust, the shares automatically will convert to Class B shares of the Fund and be registered in the beneficiary’s name. After such conversion, the beneficiary’s shares no longer will convert to Class E shares, but will convert to Class A shares in accordance with the applicable conversion schedule for Class B shares. Automatic conversion of Class B shares to Class A shares occurs eight years after purchase for these shares. For purposes of calculating the conversion period, the beneficiary ownership period for the Class B shares will begin at the time the Class F shares were purchased.

•	For Class E and Class F shareholders, if the beneficiary under a Columbia Advantage Plan trust exercises his or her withdrawal rights, the financial advisor may be required to refund to the Distributor any sales charge or initial commission previously retained or paid on the withdrawn Class E and/or Class F shares or amount redeemed.

S.62

Exchanging Shares

Systematic Exchanges

The rules described below for making exchanges apply to systematic exchanges.

Other Exchange Rules You Should Know


•	Exchanges are made at net asset value 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.

S.63


•	You can generally make exchanges between like share classes of any Fund. Some exceptions apply.

•	If you exchange shares from Class A shares of a 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 a 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 a 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. If your initial investment was in a 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, Class E and Class F shares of the Funds.

•	If your initial investment was in Class A shares of a non-money market Fund and you exchange shares into a 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.

•	Class T shares may be exchanged for Class T or Class A shares. Class T shares exchanged into Class A shares cannot be exchanged back into Class T shares.

•	Class Z shares of a Fund may be exchanged for Class A or Class Z shares of another 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 and/or servicing 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.

S.64

•

Same-Fund Exchange Privilege for Class Z Shares

Ways to Request a Sale or Exchange of Shares

Account established with your selling and/or servicing agent

S.65

Distributions and Taxes

Distributions to Shareholders

A mutual fund can make money two ways:


•	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 unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than it originally paid. Capital gains are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term gains) or more than one year (long-term gains).

FUNDamentals ^TM

Distributions

S.66

S.67

Taxes and Your Investment


•	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. In addition, 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 shares of the Fund.

•	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.

•	For taxable years beginning on or before December 31, 2012, 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 lower net long-term capital gain rates. It is currently unclear whether Congress will extend this provision to taxable years beginning after December 31, 2012. 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 derived from qualified dividend income.

•	For taxable years beginning on or before December 31, 2012, the maximum individual U.S. federal income tax rate on net long-term capital gain (and thus qualified dividend income) has been temporarily reduced to 15%. It is currently unclear whether Congress will extend this rate reduction to taxable years beginning after December 31, 2012.

S.68


•	Certain derivative instruments when held in a Fund’s portfolio subject the Fund to special tax rules, the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, convert capital gains into ordinary income and convert short-term capital losses into long-term capital losses. 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.

•	Certain Funds may purchase or sell (write) options, as described further in the SAI. In general, option premiums which may be received by the Fund are not immediately included in the income of the Fund. Instead, such premiums are taken into account when the option contract expires, the option is exercised by the holder, or the Fund transfers or otherwise terminates the option. If an option written by a Fund is exercised and such Fund sells or delivers the underlying security, the Fund generally will recognize capital gain or loss equal to (a) the sum of the exercise price and the option premium received by the Fund minus (b) the Fund’s basis in the security. Such gain or loss generally will be short-term or long-term depending upon the holding period of the underlying security. Gain or loss with respect to any termination of a Fund’s obligation under an option other than through the exercise of the option and the related sale or delivery of the underlying security generally will be short-term gain or loss. Thus, for example, if an option written by a Fund expires unexercised, such Fund generally will recognize short-term gain equal to the premium received.

•	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 income your share of the foreign taxes paid by the Fund. You may be able to either deduct this amount from your income or claim it as a foreign tax credit. There is no assurance that the Fund will make a special election for a taxable year, even if it is eligible to do so.

S.69


•	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 generally will be exempt from such taxes, but may be subject to other taxes, including income taxes of other states, and federal and state alternative minimum tax. 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. Distributions of 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 or disallowed.

•	The Fund is required by federal law to withhold tax on any taxable and possibly 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 taxpayer identification number (TIN) or haven’t certified to the Fund that withholding doesn’t apply; the Internal Revenue Service (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.

S.70


	FUNDamentals ^TM

Taxes

Additional Services and Compensation

Additional Management Information

S.71

S.72

S.73

Summary of Columbia Select Large-Cap Value Fund

INVESTMENT OBJECTIVE

Columbia Select Large-Cap Value Fund (the Fund) seeks to provide shareholders with long-term capital appreciation.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on Class A shares of the Fund if you and members of your immediate family (that share the same mailing address), agree to invest in the future, at least $50,000 in any of the Columbia, Columbia Acorn or RiverSource funds (including the Seligman and Threadneedle branded funds) (the Fund Family). More information about these and other discounts is available from your financial intermediary and under “Reductions/Waivers of Sales Charges — Front-End Sales Charge Reductions” on page S.24 of this prospectus and on page D.1 of Appendix D in the Fund’s Statement of Additional Information (SAI).

Shareholder Fees (fees paid directly from your investment)

Class I, R,

Class A

Class B

Class C

R4, R5 & W

Maximum sales charge (load) imposed on purchases (as a percentage of offering price)

5.75%

None

Maximum deferred sales charge (load) imposed on redemptions (as a percentage of offering price at the time of purchase, or current net asset value, whichever is less)

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

Management fees ^(a)		0.71%		0.71%		0.71%		0.71%
Distribution and/or service (12b-1) fees		0.25%		1.00%		1.00%		0.00%
Other expenses ^(a)		0.34%		0.34%		0.34%		0.16%
Total annual fund operating expenses		1.30%		2.05%		2.05%		0.87%
Less: Fee waiver/expense reimbursement ^(b)		(0.04%)		(0.04%)		(0.04%)		(0.00%)
Total annual fund operating expenses after fee waiver/expense reimbursement ^(b)		1.26%		2.01%		2.01%		0.87%

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 3p

Summary of Columbia Select Large-Cap Value Fund

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) cont.


	Class R			Class R4			Class R5			Class W

Management fees ^(a)		0.71	%		0.71	%		0.71	%		0.71	%
Distribution and/or service (12b-1) fees		0.50	%		0.00	%		0.00	%		0.25	%
Other expenses ^(a)		0.34	%		0.45	%		0.20	%		0.34	%
Total annual fund operating expenses		1.55	%		1.16	%		0.91	%		1.30	%
Less: Fee waiver/expense reimbursement ^(b)		(0.04	%)		(0.00	%)		(0.00	%)		(0.04	%)
Total annual fund operating expenses after fee waiver/expense reimbursement ^(b)		1.51	%		1.16	%		0.91	%		1.26	%


^(a)		Expense ratios have been adjusted to reflect current fees.


^(b)		The investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until Feb. 29, 2012, unless sooner terminated at the sole discretion of the Fund’s Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any) will not exceed 1.26% for Class A, 2.01% for Class B, 2.01% for Class C, 0.87% for Class I, 1.51% for Class R, 1.17% for Class R4, 0.92% for Class R5 and 1.26% for Class W.

Example


	1 year		3 years		5 years		10 years

Class A (whether or not shares are redeemed)	$	696	$	960	$	1,244	$	2,054
Class B (if shares are redeemed)	$	704	$	939	$	1,301	$	2,188
Class B (if shares are not redeemed)	$	204	$	639	$	1,101	$	2,188
Class C (if shares are redeemed)	$	304	$	639	$	1,101	$	2,381
Class C (if shares are not redeemed)	$	204	$	639	$	1,101	$	2,381
Class I (whether or not shares are redeemed)	$	89	$	278	$	483	$	1,077
Class R (whether or not shares are redeemed)	$	154	$	486	$	842	$	1,847
Class R4 (whether or not shares are redeemed)	$	118	$	369	$	639	$	1,414
Class R5 (whether or not shares are redeemed)	$	93	$	290	$	505	$	1,124
Class W (whether or not shares are redeemed)	$	128	$	408	$	710	$	1,569

4p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Summary of Columbia Select Large-Cap Value Fund

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 12% of the average value of its portfolio.

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

Under normal market conditions, the Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in the common stock of “value” companies with large market capitalizations ($4 billion or more) at the time of purchase by the Fund. The Fund considers “value” companies to be those companies believed by the investment manager to be undervalued, either historically, by the market, or by their peers. The investment manager seeks to identify value companies that it believes display certain characteristics, including but not limited to, a low price-to-earnings and/or low price-to-book ratio, positive change in senior management, positive corporate restructuring, temporary setback in price due to factors that no longer exist, positive shift in the company’s business cycle, and/or a catalyst for increase in the rate of the company’s earnings growth. The Fund may hold a small number of securities because the investment manager believes doing so allows it to adhere to its value investment approach. The Fund can invest in any economic sector and, at times, it may emphasize one or more particular sectors. The Fund will provide shareholders with at least 60 days’ written notice of any change in the 80% policy.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

Focused Portfolio Risk. Because the Fund may hold a limited number of securities, the Fund as a whole is subject to greater risk of loss if any of those securities declines in price.

Issuer Risk. An issuer may perform poorly, and therefore, the value of its securities may decline, which would negatively affect the Fund’s performance.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 5p

Summary of Columbia Select Large-Cap Value Fund

Market Risk. The market value of securities may fall, fail to rise, or fluctuate, sometimes rapidly and unpredictably. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. Focus on a particular style, for example, investment in growth or value securities, may cause the Fund to underperform other funds if that style falls out of favor with the market.

Sector Risk. If a fund emphasizes one or more economic sectors or industries, it may be more susceptible to the financial, market or economic conditions or events affecting the particular issuers, sectors or industries in which it invests than funds that do not so emphasize. The more a fund diversifies its investments, the more it spreads risk and potentially reduces the risks of loss and volatility.

Value Securities Risk. Value securities involve the risk that they may never reach what the portfolio managers believe is their full market value either because the market fails to recognize the stock’s intrinsic worth or the portfolio managers misgauged that worth. They also may decline in price, even though in theory they are already undervalued. Because different types of stocks tend to shift in and out of favor depending on market and economic conditions, the Fund’s performance may sometimes be lower or higher than that of other types of funds (such as those emphasizing growth stocks).

PAST PERFORMANCE

The following bar chart and table provide some illustration of the risks of investing in the Fund by showing, respectively:


•	how the Fund’s Class A performance has varied for each full calendar year shown on the bar chart; and

•	how the Fund’s average annual total returns compare to recognized measures of market performance shown on the table. Class W shares have not been in existence for one full calendar year as of the date of this prospectus and therefore performance information for this class is not shown.

How the Fund has performed in the past (before and after taxes) does not indicate how the Fund will perform in the future. Updated performance information can be obtained by calling toll-free 800.345.6611 or visiting columbiamanagement.com.

Class A share information is shown in the bar chart; the sales charge for Class A shares is not reflected in the bar chart. If the sales charge was reflected, returns would be lower than those shown.

6p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Summary of Columbia Select Large-Cap Value Fund

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC


Portfolio Manager	Title	Managed Fund Since
Neil T. Eigen	Portfolio Manager	1997
Richard S. Rosen	Portfolio Manager	1997

BUYING AND SELLING SHARES


	Nonqualified accounts		Individual
	(all classes		retirement		Class I,
Minimum Initial Investment	except I, R and W)		accounts		Class R		Class W
For investors other than systematic investment plans	$	2,000	$	1,000		None	$	500
Systematic investment plans	$	100	$	100		None	$	500

Nonqualified accounts

Individual

(all classes

retirement

Class I,

Additional Investments

except I, R and W)

accounts

Class R

Class W

For investors other than systematic investment plans

100

None

Systematic investment plans

100

None

Exchanging or Selling Shares

If your account was established directly with the Fund, you may request an exchange or sale of shares through one of the following methods:

By mail: Mail your exchange or sale request to:


	Regular Mail: Columbia Management Investment Services Corp., P.O. Box 8081, Boston, MA 02266-8081


	Express Mail: Columbia Management Investment Services Corp., 30 Dan Road, Canton, MA 02021-2809

By telephone or wire transfer: Call 800.345.6611. A service fee may be charged against your account for each wire sent.

TAX INFORMATION

The Fund intends to make distributions that may be taxed as ordinary income or capital gains.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 9p

Summary of Columbia Select Smaller-Cap Value Fund

INVESTMENT OBJECTIVE

Columbia Select Smaller-Cap Value Fund (the Fund) seeks to provide shareholders with long-term capital appreciation.

FEES AND EXPENSES OF THE FUND

Shareholder Fees (fees paid directly from your investment)

Class I, R,

Class A

Class B

Class C

R4 & R5

Maximum sales charge (load) imposed on purchases (as a percentage of offering price)

5.75%

None

Maximum deferred sales charge (load) imposed on redemptions (as a percentage of offering price at the time of purchase, or current net asset value, whichever is less)

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

Management fees ^(a)		0.79%		0.79%		0.79%		0.79%
Distribution and/or service (12b-1) fees		0.25%		1.00%		1.00%		0.00%
Other expenses ^(a)		0.44%		0.44%		0.44%		0.15%
Total annual fund operating expenses		1.48%		2.23%		2.23%		0.94%
Less: Fee waiver/expense reimbursement ^(b)		(0.03%)		(0.03%)		(0.03%)		(0.00%)
Total annual fund operating expenses after fee waiver/expense reimbursement ^(b)		1.45%		2.20%		2.20%		0.94%

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 11p

Summary of Columbia Select Smaller-Cap Value Fund

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) cont.


	Class R			Class R4			Class R5

Management fees ^(a)		0.79	%		0.79	%		0.79	%
Distribution and/or service (12b-1) fees		0.50	%		0.00	%		0.00	%
Other expenses ^(a)		0.44	%		0.44	%		0.19	%
Total annual fund operating expenses		1.73	%		1.23	%		0.98	%
Less: Fee waiver/expense reimbursement ^(b)		(0.03	%)		(0.00	%)		(0.00	%)
Total annual fund operating expenses after fee waiver/expense reimbursement ^(b)		1.70	%		1.23	%		0.98	%


^(a)		Expense ratios have been adjusted to reflect current fees.


^(b)		The investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until Feb. 29, 2012, unless sooner terminated at the sole discretion of the Fund’s Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any) will not exceed 1.45% for Class A, 2.20% for Class B, 2.20% for Class C, 1.00% for Class I, 1.70% for Class R, 1.30% for Class R4 and 1.05% for Class R5.

Example


	1 year		3 years		5 years		10 years

Class A (whether or not shares are redeemed)	$	714	$	1,014	$	1,335	$	2,244
Class B (if shares are redeemed)	$	723	$	995	$	1,393	$	2,377
Class B (if shares are not redeemed)	$	223	$	695	$	1,193	$	2,377
Class C (if shares are redeemed)	$	323	$	695	$	1,193	$	2,567
Class C (if shares are not redeemed)	$	223	$	695	$	1,193	$	2,567
Class I (whether or not shares are redeemed)	$	96	$	300	$	521	$	1,159
Class R (whether or not shares are redeemed)	$	173	$	542	$	937	$	2,044
Class R4 (whether or not shares are redeemed)	$	125	$	391	$	677	$	1,494
Class R5 (whether or not shares are redeemed)	$	100	$	312	$	543	$	1,206

12p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Summary of Columbia Select Smaller-Cap Value Fund

Portfolio Turnover

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

Under normal market conditions, the Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in the common stock of “value” companies with smaller market capitalizations ($3 billion or less) at the time of purchase by the Fund. The Fund considers “value” companies to be those companies believed by the investment manager to be undervalued, either historically, by the market, or by their peers. The Fund may invest up to 25% of its net assets in foreign investments. The investment manager seeks to identify value companies that it believes display certain characteristics, including but not limited to, a low price-to-earnings and/or low price-to-book ratio, positive change in senior management, positive corporate restructuring, temporary setback in price due to factors that no longer exist, positive shift in the company’s business cycle, and/or a catalyst for increase in the rate of the company’s earnings growth. The Fund may hold a small number of securities because the investment manager believes doing so allows it to adhere to its value investment approach. The Fund can invest in any economic sector and, at times, it may emphasize one or more particular sectors. The Fund will provide shareholders with at least 60 days’ written notice of any change in the 80% policy.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

Focused Portfolio Risk. Because the Fund may hold a limited number of securities, the Fund as a whole is subject to greater risk of loss if any of those securities declines in price.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 13p

Summary of Columbia Select Smaller-Cap Value Fund

Risks of Foreign Investing. Investments in foreign securities involve certain risks not associated with investments in U.S. companies. Foreign securities in the Fund’s portfolio subject the Fund to the risks associated with investing in the particular country, including the political, regulatory, economic, social and other conditions or events occurring in the country, as well as fluctuations in its currency and the risks associated with less developed custody and settlement practices.

Issuer Risk. An issuer may perform poorly, and therefore, the value of its securities may decline, which would negatively affect the Fund’s performance.

Market Risk. The market value of securities may fall, fail to rise, or fluctuate, sometimes rapidly and unpredictably. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. These risks are generally greater for small and mid-sized companies. Focus on a particular style, for example, investment in growth or value securities, may cause the Fund to underperform other funds if that style falls out of favor with the market.

Small Company Risk. Investments in small companies often involve greater risks than investments in larger, more established companies, including less predictable earnings and lack of experienced management, financial resources, product diversification and competitive strengths.

PAST PERFORMANCE

The following bar chart and table provide some illustration of the risks of investing in the Fund by showing, respectively:


•	how the Fund’s Class A performance has varied for each full calendar year shown on the bar chart; and

•	how the Fund’s average annual total returns compare to recognized measures of market performance shown on the table.

14p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Summary of Columbia Select Smaller-Cap Value Fund

Average Annual Total Returns (after applicable sales charges)

Classes

I & R4

Class R

Class R5

Since

(for periods ended

inception

Dec. 31, 2010)

1 year

5 years

10 years

(8/3/09)

(4/30/03)

(11/30/01)

Columbia Select Smaller-Cap Value Fund:

Class A — before taxes

+19.54%

+4.34%

+7.52%

N/A

Class A — after taxes on distributions

+19.54%

+3.44%

+6.97%

N/A

Class A — after taxes on distributions and redemption of fund shares

+12.70%

+3.60%

+6.56%

N/A

Class B — before taxes

+20.92%

+4.50%

+7.35%

N/A

Class C — before taxes

+24.87%

+4.83%

+7.36%

N/A

Class I — before taxes

+27.49%

N/A

+29.18%

N/A

Class R — before taxes

+26.48%

+5.31%

N/A

+10.12%

N/A

Class R4 — before taxes

+26.99%

N/A

+28.75%

N/A

Class R5 — before taxes

+27.42%

+6.20%

N/A

+8.65%

Russell 2000 Value Index (reflects no deduction for fees, expenses or taxes)

+24.50%

+3.52%

+8.42%

+26.34%

+10.41%

+8.44%

Lipper Small-Cap Core Funds Index (reflects no deduction for fees or taxes)

+25.71%

+4.76%

+6.95%

+27.60%

+10.86%

+7.67%

Lipper Small-Cap Value Funds Index (reflects no deduction for fees or taxes)

+25.74%

+4.66%

+9.60%

+28.01%

+11.72%

+9.45%

Fund performance information prior to March 7, 2011 represents that of the Fund as a series of Seligman Value Fund Series, Inc., a Maryland corporation. The Fund was reorganized into a series of Columbia Funds Series Trust II, a Massachusetts business trust, on that date.

16p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Summary of Columbia Select Smaller-Cap Value Fund

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC


Portfolio Manager	Title	Managed Fund Since
Neil T. Eigen	Portfolio Manager	1997
Richard S. Rosen	Portfolio Manager	1997

BUYING AND SELLING SHARES

Nonqualified accounts

Individual

(all classes

retirement

Class I,

Minimum Initial Investment

except I and R)

accounts

Class R

For investors other than systematic investment plans

2,000

1,000

None

Systematic investment plans

100

None

Nonqualified accounts

Individual

(all classes

retirement

Class I,

Additional Investments

except I and R)

accounts

Class R

For investors other than systematic investment plans

100

None

Systematic investment plans

100

None

Exchanging or Selling Shares

If your account was established directly with the Fund, you may request an exchange or sale of shares through one of the following methods:

By mail: Mail your exchange or sale request to:


	Regular Mail: Columbia Management Investment Services Corp., P.O. Box 8081, Boston, MA 02266-8081


	Express Mail: Columbia Management Investment Services Corp., 30 Dan Road, Canton, MA 02021-2809

By telephone or wire transfer: Call 800.345.6611. A service fee may be charged against your account for each wire sent.

TAX INFORMATION

The Fund intends to make distributions that may be taxed as ordinary income or capital gains.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 17p

More Information about the Funds

Columbia Select Large-Cap Value Fund

INVESTMENT OBJECTIVE

Columbia Select Large-Cap Value Fund (the Fund) seeks to provide shareholders with long-term capital appreciation. Because any investment involves risk, there is no assurance this objective can be achieved. Only shareholders can change the Fund’s objective.

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

The Fund uses a bottom-up stock selection approach. This means that Columbia Management Investment Advisers, LLC (the investment manager) concentrates on individual company fundamentals, rather than on a particular industry. In selecting investments, the investment manager seeks to identify value companies that it believes display certain characteristics, including but not limited to, one or more of the following:


•	a low price-to-earnings and/or low price-to-book ratio;

•	positive change in senior management;

•	positive corporate restructuring;

•	temporary setback in price due to factors that no longer exist;

•	a positive shift in the company’s business cycle; and/or

•	a catalyst for increase in the rate of the company’s earnings growth.

The Fund generally holds a small number of securities because the investment manager believes doing so allows it to adhere to its disciplined value investment approach. The investment manager seeks to maintain close contact with the management of each company in which the Fund invests or the third-party analysts covering such companies, and continually monitors Fund holdings, remaining sensitive to overvaluation and deteriorating fundamentals.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 19p

Columbia Select Large-Cap Value Fund

The Fund generally sells a stock if the investment manager believes it has become fully valued, its fundamentals have deteriorated, or ongoing evaluation reveals that there are more attractive investment opportunities available.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Focused Portfolio Risk. The Fund, because it may invest in a limited number of companies, may have more volatility and is considered to have more risk than a fund that invests in a greater number of companies because changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s net asset value. To the extent the Fund invests its assets in fewer securities, the Fund is subject to greater risk of loss if any of those securities declines in price.

Issuer Risk. An issuer may perform poorly, and therefore, the value of its securities may decline, which would negatively affect the Fund’s performance. Poor performance may be caused by poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures or other events, conditions or factors.

Market Risk. The market value of securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. The market value of securities may fluctuate, sometimes rapidly and unpredictably. In addition, focus on a particular style, for example, investment in growth or value securities, may cause the Fund to underperform other funds if that style falls out of favor with the market.

20p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Columbia Select Smaller-Cap Value Fund

INVESTMENT OBJECTIVE

Columbia Select Smaller-Cap Value Fund (the Fund) seeks to provide shareholders with long-term capital appreciation. Because any investment involves risk, there is no assurance this objective can be achieved. Only shareholders can change the Fund’s objective.

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

The Fund uses a bottom-up stock selection approach. This means that the investment manager concentrates on individual company fundamentals, rather than on a particular industry. In selecting investments, the investment manager seeks to identify value companies that it believes display certain characteristics, including but not limited to, one or more of the following:


•	a low price-to-earnings and/or low price-to-book ratio;

•	positive change in senior management;

•	positive corporate restructuring;

•	temporary setback in price due to factors that no longer exist;

•	positive shift in the company’s business cycle; and/or

•	a catalyst for increase in the rate of the company’s earnings growth.

22p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Columbia Select Smaller-Cap Value Fund

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Risks of Foreign Investing. Foreign securities are securities of issuers based outside the United States. An issuer is deemed to be based outside the United States if it is organized under the laws of another country. Foreign securities are primarily denominated in foreign currencies. In addition to the risks normally associated with domestic securities of the same type, foreign securities are subject to the following risks:

Country risk includes the risks associated with the political, economic, social and other conditions or events occurring in the country. These conditions include lack of publicly available information, less government oversight (including lack of accounting, auditing, and financial reporting standards), the possibility of government-imposed restrictions, and even the nationalization of assets. The liquidity of foreign investments may be more limited than U.S. investments, which means that at times it may be difficult to sell foreign securities at desirable prices.

Currency risk results from the constantly changing exchange rate between local currency and the U.S. dollar. Whenever the Fund holds securities valued in a foreign currency or holds the currency, changes in the exchange rate add to or subtract from the value of the investment.

Custody risk refers to the risks associated with the clearing and settling of trades. Holding securities with local agents and depositories also has risks. Low trading volumes and volatile prices in less developed markets make trades harder to complete and settle. Local agents are held only to the standard of care of the local market, which are less reliable than the U.S. market. Governments or trade groups may compel local agents to hold securities in designated depositories that are not subject to independent evaluation. The less developed a country’s securities market is, the greater the likelihood of problems occurring.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 23p

Columbia Select Smaller-Cap Value Fund

Market Risk. The market value of securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. The market value of securities may fluctuate, sometimes rapidly and unpredictably. These risks are generally greater for small and mid-sized companies, which tend to be more vulnerable than large companies to adverse developments. In addition, focus on a particular style, for example, investment in growth or value securities, may cause the Fund to underperform other funds if that style falls out of favor with the market.

Small Company Risk. Investments in small capitalization companies often involve greater risks than investments in larger, more established companies because small capitalization companies may lack the management experience, financial resources, product diversification, experience and competitive strengths of larger companies. Securities of small capitalization companies may trade on the over-the-counter market or on regional securities exchanges and the frequency and volume of their trading is substantially less and may be more volatile than is typical of larger companies.

24p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

References to “the Fund” throughout the remainder of the prospectus refer to Columbia Select Large-Cap Value Fund and Columbia Select Smaller-Cap Value Fund singularly or collectively as the context requires.

MORE ABOUT ANNUAL FUND OPERATING EXPENSES

The following information is presented in addition to, and should be read in conjunction with, “Fees and Expenses of the Fund” that appears in the Summaries of the Funds.

In addition to the contractual waiver/reimbursement arrangement described in the expense table for Columbia Select Smaller-Cap Value Fund, through March 31, 2011 the investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) of Columbia Select Smaller-Cap Value Fund, such that net fund expenses will not exceed 1.33% for Class A, 2.10% for Class B, 2.09% for Class C, 0.88% for Class I, 1.68% for Class R, 1.18% for Class R4 and 0.93% for Class R5. Any amounts waived will not be reimbursed by the Fund.

OTHER INVESTMENT STRATEGIES AND RISKS

Other Investment Strategies. In addition to the principal investment strategies previously described, the Fund may utilize investment strategies that are not principal investment strategies, including investment in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds (ETFs), also referred to as “acquired funds”), ownership of which results in the Fund bearing its proportionate share of the acquired funds’ fees and expenses and proportionate exposure to the risks associated with the acquired funds’ underlying investments. ETFs are generally designed to replicate the price and yield of a specified market index. An ETF’s share price may not track its specified market index and may trade below its net asset value, resulting in a loss. ETFs generally use a “passive” investment strategy and will not attempt to take defensive positions in volatile or declining markets. An active secondary market in an ETF’s shares

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 25p

may not develop or be maintained and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. There can be no assurance an ETF’s shares will continue to be listed on an active exchange.

Additionally, the Fund may use derivatives such as futures, options, forward contracts, and swaps (which are financial instruments that have a value which depends upon, or is derived from, the value of something else, such as one or more underlying securities, pools of securities, indexes or currencies). These derivative instruments are used to produce incremental earnings, to hedge existing positions, to increase or reduce market or credit exposure, or to increase flexibility. Losses involving derivative instruments may be substantial, because a relatively small price movement in the underlying security(ies), instrument, currency or index may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund. Derivative instruments will typically increase the Fund’s exposure to Principal Risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty credit risk, hedging risk, leverage risk and liquidity risk.

Correlation risk is related to hedging risk and is the risk that there may be an incomplete correlation between the hedge and the opposite position, which may result in increased or unanticipated losses.

Counterparty credit risk is the risk that a counterparty to the derivative instrument becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, and the Fund may obtain no recovery of its investment or may only obtain a limited recovery, and any recovery may be delayed.

Hedging risk is the risk that derivative instruments used to hedge against an opposite position may offset losses, but they may also offset gains. There is no guarantee that a hedging strategy will eliminate the risk which the hedging strategy is intended to offset, which may lead to losses within the Fund.

Leverage risk is the risk that losses from the derivative instrument may be greater than the amount invested in the derivative instrument.

Liquidity risk is the risk that the derivative instrument may be difficult or impossible to sell or terminate, which may cause the Fund to be in a position to do something the portfolio managers would not otherwise choose, including, accepting a lower price for the derivative instrument, selling other investments, or foregoing another, more appealing investment opportunity. Derivative instruments which are not traded on an exchange, including, but not limited to, forward contracts, swaps and over-the-counter options, may have increased liquidity risk.

Certain derivatives have the potential for unlimited losses, regardless of the size of the initial investment. Even though the Fund’s policies permit the use of derivatives in this manner, the portfolio managers are not required to use derivatives.

26p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

For more information on strategies and holdings, and the risks of such strategies, including derivative instruments that the Fund may use, see the Fund’s SAI and its annual and semiannual reports.

Unusual Market Conditions. The Fund may, from time to time, take temporary defensive positions, including investing more of its assets in money market securities in an attempt to respond to adverse market, economic, political, or other conditions. Although investing in these securities would serve primarily to attempt to avoid losses, this type of investing also could prevent the Fund from achieving its investment objective. During these times, the portfolio managers may make frequent securities trades that could result in increased fees, expenses and taxes, and decreased performance. Instead of investing in money market securities directly, the Fund may invest in shares of an affiliated or unaffiliated money market fund. See “Cash Reserves” under the section “Additional Management Information” for more information.

Securities Transaction Commissions. Securities transactions involve the payment by the Fund of brokerage commissions to broker-dealers, on occasion as compensation for research or brokerage services (commonly referred to as “soft dollars”), as the portfolio managers buy and sell securities for the Fund in pursuit of its objective. A description of the policies governing the Fund’s securities transactions and the dollar value of brokerage commissions paid by the Fund are set forth in the SAI. The brokerage commissions set forth in the SAI do not include implied commissions or mark-ups (implied commissions) paid by the Fund for principal transactions (transactions made directly with a dealer or other counterparty), including most fixed income securities (and certain other instruments, including derivatives). Brokerage commissions do not reflect other elements of transaction costs, including the extent to which the Fund’s purchase and sale transactions may cause the market to move and change the market price for an investment.

Although brokerage commissions and implied commissions are not reflected in the expense table under “Fees and Expenses of the Fund,” they are reflected in the total return of the Fund.

Portfolio Turnover. Trading of securities may produce capital gains, which are taxable to shareholders when distributed. Active trading may also increase the amount of brokerage commissions paid or mark-ups to broker-dealers that the Fund pays when it buys and sells securities. Capital gains and increased brokerage commissions or mark-ups paid to broker-dealers may adversely affect a fund’s performance. The Fund’s historical portfolio turnover rate, which measures how frequently the Fund buys and sells investments, is shown in the “Financial Highlights.”

Directed Brokerage. The Fund’s Board of Trustees (the Board) has adopted a policy prohibiting the investment manager, or any subadviser, from considering sales of shares of the Fund as a factor in the selection of broker-dealers through which to execute securities transactions.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 27p

Additional information regarding securities transactions can be found in the SAI.

FUND MANAGEMENT AND COMPENSATION

Investment Manager

Each Fund pays Columbia Management a fee for managing its assets. Under the Investment Management Services Agreement (Agreement), the fee for the most recent fiscal year was 0.755% and 0.935% of the Fund’s average daily net assets for Columbia Select Large-Cap Value Fund and Columbia Select Smaller-Cap Value Fund, respectively. Under the Agreement, the Funds also pay taxes, brokerage commissions, and nonadvisory expenses. A discussion regarding the basis for the Board approving the Agreement is available in the Funds’ annual shareholder report for the year ended Dec. 31, 2010.

28p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Effective March 1, 2011, the investment management services fee is equal to a percentage of the Fund’s average daily net assets, with such rate declining from 0.710% to 0.540% for Columbia Select Large-Cap Value Fund and from 0.790% to 0.700% for Columbia Select Smaller-Cap Value Fund as the Fund’s net assets increase. Prior to March 1, 2011, the annual investment management services fee rate schedule ranged from 0.755% to 0.565% for Columbia Select Large-Cap Value Fund and from 0.935% to 0.745% for Columbia Select Smaller-Cap Value Fund. The reduction in the investment management services fee rate schedule was approved by the Funds’ Board in September 2010 in connection with various initiatives to achieve consistent investment management service and fee structures across all funds in the Fund Family.

Portfolio Managers. The portfolio managers responsible for the day-to-day management of the Funds are:

Neil T. Eigen, Portfolio Manager


•	Managed the Funds since 1997.

•	Prior to the investment manager’s acquisition of J. & W. Seligman & Co. Incorporated (Seligman) in Nov. 2008, Mr. Eigen was head of the Seligman Value Team since he joined Seligman in 1997. Mr. Eigen was also a Director and Managing Director of Seligman and Director of Seligman Advisors, Inc. and Seligman Services, Inc.

•	Prior to joining Seligman, Mr. Eigen was a Senior Managing Director of Bear, Stearns & Co., serving as Chief Investment Officer and Director of Equities of Bear, Stearns Asset Management. Prior to that, he was Executive Vice President and Senior Equity Manager at Integrated Resources Asset Management. Mr. Eigen also spent six years at The Irving Trust Company as a Senior Portfolio Manager and Chairman of the Equity Selection Committee.

•	BS, New York University.

Richard S. Rosen, Portfolio Manager


•	Managed the Funds since 1997.

•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Rosen was a Managing Director of Seligman.

•	Prior to joining Seligman in 1997, Mr. Rosen was a Senior Portfolio Manager at Bear, Stearns Asset Management, and a Managing Director at Bear, Stearns & Co. Inc.

•	MBA, New York University.

Mr. Eigen and Mr. Rosen each have decision making authority with respect to the investments of each Fund, although Mr. Eigen typically makes the final decision with respect to investments made by each Fund.

The SAI provides additional information about portfolio manager compensation, management of other accounts and ownership of shares in the Funds.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 29p

Financial Highlights

Columbia Select Large-Cap Value Fund


Class A	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.31			$9.77			$15.73			$14.43			$12.79

Income from investment operations:
Net investment income (loss)		.09			.10			.10			.04			.05
Net gains (losses) (both realized and unrealized)		2.39			2.45			(5.96	)		1.26			1.60

Total from investment operations		2.48			2.55			(5.86	)		1.30			1.65

Less distributions:
Dividends from net investment income		(.04	)		(.01	)		(.08	)		(.00	) ^(a)		(.01	)
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.09	)		(.01	)		(.10	)		(.00	) ^(a)		(.01	)

Net asset value, end of period		$14.70			$12.31			$9.77			$15.73			$14.43

Total return		20.21%			26.07%			(37.20%	)		9.03%			12.92%

Ratios to average net assets ^(b)
Total expenses		1.37%			1.61%			1.61%			1.51%			1.54%

Net investment income (loss)		.66%			.87%			.72%			.29%			.40%

Supplemental data
Net assets, end of period (in millions)		$272			$203			$83			$148			$137

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

30p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Columbia Select Large-Cap Value Fund


Class B	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$11.62			$9.29			$14.96			$13.82			$12.33

Income from investment operations:
Net investment income (loss)		(.01	)		(.01	)		(.01	)		(.07	)		(.05	)
Net gains (losses) (both realized and unrealized)		2.25			2.34			(5.63	)		1.21			1.54

Total from investment operations		2.24			2.33			(5.64	)		1.14			1.49

Less distributions:
Dividends from net investment income		—			—			(.01	)		—			—
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.05	)		(.00	) ^(a)		(.03	)		—			—

Net asset value, end of period		$13.81			$11.62			$9.29			$14.96			$13.82

Total return		19.30%			25.10%			(37.68%	)		8.25%			12.08%

Ratios to average net assets ^(b)
Total expenses		2.14%			2.54%			2.37%			2.26%			2.29%

Net investment income (loss)		(.10%	)		(.08%	)		(.04%	)		(.47%	)		(.35%	)

Supplemental data
Net assets, end of period (in millions)		$5			$6			$9			$26			$37

Portfolio turnover rate		12%			24%			28%			18%			30%


Class C	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$11.63			$9.30			$14.95			$13.82			$12.32

Income from investment operations:
Net investment income (loss)		(.01	)		(.01	)		(.01	)		(.07	)		(.05	)
Net gains (losses) (both realized and unrealized)		2.26			2.34			(5.61	)		1.20			1.55

Total from investment operations		2.25			2.33			(5.62	)		1.13			1.50

Less distributions:
Dividends from net investment income		—			—			(.01	)		—			—
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.05	)		(.00	) ^(a)		(.03	)		—			—

Net asset value, end of period		$13.83			$11.63			$9.30			$14.95			$13.82

Total return		19.37%			25.07%			(37.58%	)		8.18%			12.18%

Ratios to average net assets ^(b)
Total expenses		2.13%			2.51%			2.37%			2.26%			2.29%

Net investment income (loss)		(.09%	)		(.05%	)		(.04%	)		(.47%	)		(.35%	)

Supplemental data
Net assets, end of period (in millions)		$48			$41			$38			$34			$36

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 31p

Columbia Select Large-Cap Value Fund


Class I	Year ended Dec. 31,
Per share data	2010			2009 ^(c)
Net asset value, beginning of period		$12.60			$11.64

Income from investment operations:
Net investment income (loss)		.15			.08
Net gains (losses) (both realized and unrealized)		2.47			.90

Total from investment operations		2.62			.98

Less distributions:
Dividends from net investment income		(.10	)		(.02	)
Distributions from realized gains		(.05	)		(.00	) ^(a)

Total distributions		(.15	)		(.02	)

Net asset value, end of period		$15.07			$12.60

Total return		20.80%			8.41%

Ratios to average net assets ^(b)
Total expenses		.92%			.89%	^(d)

Net investment income (loss)		1.13%			1.66%	^(d)

Supplemental data
Net assets, end of period (in millions)		$73			$24

Portfolio turnover rate		12%			24%


Class R*	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.19			$9.70			$15.63			$14.38			$12.76

Income from investment operations:
Net investment income (loss)		.05			.04			.06			.00	^(a)		.02
Net gains (losses) (both realized and unrealized)		2.37			2.45			(5.91	)		1.25			1.60

Total from investment operations		2.42			2.49			(5.85	)		1.25			1.62

Less distributions:
Dividends from net investment income		(.01	)		—			(.06	)		—			—
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.06	)		(.00	) ^(a)		(.08	)		—			—

Net asset value, end of period		$14.55			$12.19			$9.70			$15.63			$14.38

Total return		19.91%			25.69%			(37.41%	)		8.69%			12.70%

Ratios to average net assets ^(b)
Total expenses		1.66%			2.04%			1.87%			1.76%			1.79%

Net investment income (loss)		.38%			.41%			.46%			.03%			.15%

Supplemental data
Net assets, end of period (in millions)		$12			$8			$6			$8			$3

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

32p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Columbia Select Large-Cap Value Fund


Class R4	Year ended Dec. 31,
Per share data	2010			2009 ^(c)
Net asset value, beginning of period		$12.59			$11.64

Income from investment operations:
Net investment income (loss)		.11			.07
Net gains (losses) (both realized and unrealized)		2.47			.89

Total from investment operations		2.58			.96

Less distributions:
Dividends from net investment income		(.06	)		(.01	)
Distributions from realized gains		(.05	)		(.00	) ^(a)

Total distributions		(.11	)		(.01	)

Net asset value, end of period		$15.06			$12.59

Total return		20.50%			8.29%

Ratios to average net assets ^(b)
Total expenses		1.21%			1.21%	^(d)

Net investment income (loss)		.83%			1.34%	^(d)

Supplemental data
Net assets, end of period (in millions)		$—			$—

Portfolio turnover rate		12%			24%


Class R5	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.62			$9.96			$16.04			$14.64			$12.96

Income from investment operations:
Net investment income (loss)		.15			.11			.18			.13			.13
Net gains (losses) (both realized and unrealized)		2.46			2.55			(6.10	)		1.28			1.64

Total from investment operations		2.61			2.66			(5.92	)		1.41			1.77

Less distributions:
Dividends from net investment income		(.09	)		—			(.14	)		(.01	)		(.09	)
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.14	)		(.00	) ^(a)		(.16	)		(.01	)		(.09	)

Net asset value, end of period		$15.09			$12.62			$9.96			$16.04			$14.64

Total return		20.73%			26.72%			(36.84%	)		9.62%			13.66%

Ratios to average net assets ^(b)
Total expenses		.98%			1.48%			.98%			.95%			.97%

Net investment income (loss)		1.09%			1.10%			1.35%			.85%			.97%

Supplemental data
Net assets, end of period (in millions)		$2			$1			$10			$15			$13

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 33p

Columbia Select Smaller-Cap Value Fund


Class A	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.59			$9.23			$15.92			$17.67			$15.82

Income from investment operations:
Net investment income (loss)		(.11	)		(.12	)		(.17	)		(.21	)		(.22	)
Net gains (losses) (both realized and unrealized)		3.49			3.48			(6.33	)		1.43			3.51

Total from investment operations		3.38			3.36			(6.50	)		1.22			3.29

Less distributions:
Distributions from realized gains		—			—			(.19	)		(2.97	)		(1.44	)

Proceeds from regulatory settlement		.00	^(a)		.00	^(a)		—			—			—

Net asset value, end of period		$15.97			$12.59			$9.23			$15.92			$17.67

Total return		26.85%	^(b)		36.40%	^(c)		(41.19%	)		6.26%			21.38%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		1.66%			2.00%			1.89%			1.71%			1.74%

Net expenses after expense waiver/reimbursement ^(e)		1.33%			1.69%			1.89%			1.71%			1.74%

Net investment income (loss)		(.84%	)		(1.12%	)		(1.30%	)		(1.17%	)		(1.27%	)

Supplemental data
Net assets, end of period (in millions)		$381			$221			$66			$155			$168

Portfolio turnover rate		5%			7%			16%			27%			35%


Class B	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$11.15			$8.23			$14.34			$16.30			$14.79

Income from investment operations:
Net investment income (loss)		(.19	)		(.18	)		(.24	)		(.32	)		(.32	)
Net gains (losses) (both realized and unrealized)		3.08			3.10			(5.68	)		1.33			3.27

Total from investment operations		2.89			2.92			(5.92	)		1.01			2.95

Less distributions:
Distributions from realized gains		—			—			(.19	)		(2.97	)		(1.44	)

Proceeds from regulatory settlement		.00	^(a)		.00	^(a)		—			—			—

Net asset value, end of period		$14.04			$11.15			$8.23			$14.34			$16.30

Total return		25.92%	^(b)		35.48%	^(c)		(41.68%	)		5.47%			20.56%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		2.43%			2.77%			2.64%			2.46%			2.48%

Net expenses after expense waiver/reimbursement ^(e)		2.10%			2.46%			2.64%			2.46%			2.48%

Net investment income (loss)		(1.62%	)		(1.88%	)		(2.05%	)		(1.92%	)		(2.02%	)

Supplemental data
Net assets, end of period (in millions)		$27			$26			$8			$27			$41

Portfolio turnover rate		5%			7%			16%			27%			35%

See accompanying Notes to Financial Highlights.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 35p

Columbia Select Smaller-Cap Value Fund


Class C	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$11.17			$8.24			$14.34			$16.30			$14.80

Income from investment operations:
Net investment income (loss)		(.19	)		(.19	)		(.23	)		(.32	)		(.32	)
Net gains (losses) (both realized and unrealized)		3.08			3.12			(5.68	)		1.33			3.26

Total from investment operations		2.89			2.93			(5.91	)		1.01			2.94

Less distributions:
Distributions from realized gains		—			—			(.19	)		(2.97	)		(1.44	)

Proceeds from regulatory settlement		.00	^(a)		.00	^(a)		—			—			—

Net asset value, end of period		$14.06			$11.17			$8.24			$14.34			$16.30

Total return		25.87%	^(b)		35.56%	^(c)		(41.61%	)		5.47%			20.48%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		2.42%			2.90%			2.63%			2.46%			2.48%

Net expenses after expense waiver/reimbursement ^(e)		2.09%			2.67%			2.63%			2.46%			2.48%

Net investment income (loss)		(1.60%	)		(2.10%	)		(2.05%	)		(1.92%	)		(2.02%	)

Supplemental data
Net assets, end of period (in millions)		$52			$47			$37			$32			$36

Portfolio turnover rate		5%			7%			16%			27%			35%


Class I	Year ended Dec. 31,
Per share data	2010			2009 ^(f)
Net asset value, beginning of period		$13.35			$11.86

Income from investment operations:
Net investment income (loss)		(.05	)		(.01	)
Net gains (losses) (both realized and unrealized)		3.72			1.50

Total from investment operations		3.67			1.49

Proceeds from regulatory settlement		.00	^(a)		—

Net asset value, end of period		$17.02			$13.35

Total return		27.49%	^(b)		12.56%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		1.09%			1.14%	^(g)

Net expenses after expense waiver/reimbursement ^(e)		.88%			.88%	^(g)

Net investment income (loss)		(.38%	)		(.23%	) ^(g)

Supplemental data
Net assets, end of period (in millions)		$10			$6

Portfolio turnover rate		5%			7%

See accompanying Notes to Financial Highlights.

36p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Columbia Select Smaller-Cap Value Fund


Class R*	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.35			$9.08			$15.70			$17.53			$15.72

Income from investment operations:
Net investment income (loss)		(.16	)		(.16	)		(.19	)		(.25	)		(.26	)
Net gains (losses) (both realized and unrealized)		3.43			3.43			(6.24	)		1.39			3.51

Total from investment operations		3.27			3.27			(6.43	)		1.14			3.25

Less distributions:
Distributions from realized gains		—			—			(.19	)		(2.97	)		(1.44	)

Proceeds from regulatory settlement		.00	^(a)		.00	^(a)		—			—			—

Net asset value, end of period		$15.62			$12.35			$9.08			$15.70			$17.53

Total return		26.48%	^(b)		36.01%	^(c)		(41.32%	)		5.83%			21.27%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		1.87%			2.31%			2.14%			1.96%			1.99%

Net expenses after expense waiver/reimbursement ^(e)		1.66%			2.19%			2.14%			1.96%			1.99%

Net investment income (loss)		(1.16%	)		(1.62%	)		(1.55%	)		(1.42%	)		(1.52%	)

Supplemental data
Net assets, end of period (in millions)		$16			$11			$9			$11			$4

Portfolio turnover rate		5%			7%			16%			27%			35%


Class R4	Year ended Dec. 31,
Per share data	2010			2009 ^(f)
Net asset value, beginning of period		$13.34			$11.86

Income from investment operations:
Net investment income (loss)		(.10	)		(.03	)
Net gains (losses) (both realized and unrealized)		3.70			1.51

Total from investment operations		3.60			1.48

Proceeds from regulatory settlement		.00	^(a)		—

Net asset value, end of period		$16.94			$13.34

Total return		26.99%	^(b)		12.48%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		1.39%			1.43%	^(g)

Net expenses after expense waiver/reimbursement ^(e)		1.18%			1.18%	^(g)

Net investment income (loss)		(.69%	)		(.58%	) ^(g)

Supplemental data
Net assets, end of period (in millions)		$4			$—

Portfolio turnover rate		5%			7%

See accompanying Notes to Financial Highlights.

COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS 37p

Columbia Select Smaller-Cap Value Fund


Class R5	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$13.35			$9.72			$16.65			$18.26			$16.21

Income from investment operations:
Net investment income (loss)		(.06	)		(.09	)		(.08	)		(.12	)		(.12	)
Net gains (losses) (both realized and unrealized)		3.72			3.72			(6.66	)		1.48			3.61

Total from investment operations		3.66			3.63			(6.74	)		1.36			3.49

Less distributions:
Distributions from realized gains		—			—			(.19	)		(2.97	)		(1.44	)

Proceeds from regulatory settlement		.00	^(a)		.00	^(a)		—			—			—

Net asset value, end of period		$17.01			$13.35			$9.72			$16.65			$18.26

Total return		27.42%	^(b)		37.35%	^(c)		(40.82%	)		6.85%			22.11%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		1.14%			1.51%			1.19%			1.15%			1.18%

Net expenses after expense waiver/reimbursement ^(e)		.93%			1.46%			1.19%			1.15%			1.18%

Net investment income (loss)		(.44%	)		(.88%	)		(.61%	)		(.61%	)		(.71%	)

Supplemental data
Net assets, end of period (in millions)		$2			$2			$7			$11			$10

Portfolio turnover rate		5%			7%			16%			27%			35%

Notes to Financial Highlights


^*		Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.


^(a)		Rounds to less than $0.01 per share.


^(b)		During the year ended Dec. 31, 2010, the Fund received its portion of proceeds from a regulatory settlement. Had the Fund not received these proceeds, the total return would have been lower by 0.01%.


^(c)		During the year ended Dec. 31, 2009, the Fund received its portion of proceeds from a regulatory settlement. Had the Fund not received these proceeds, the total return would have been lower by 0.02%.


^(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)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds).


^(f)		For the period from Aug. 3, 2009 (when shares became available) to Dec. 31, 2009.


^(g)		Annualized.

Information prior to March 7, 2011 represents that of the Fund as a series of Seligman Value Fund Series, Inc., a Maryland corporation. The Fund was reorganized into a series of Columbia Funds Series Trust II, a Massachusetts business trust, on that date.

38p COLUMBIA SELECT VALUE FUNDS — 2011 PROSPECTUS

Choosing a Share Class

The Funds

S.1

Comparison of Share Classes

Share Class Features


•	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.

FUNDamentals ^tm

Selling and/or Servicing Agents

S.2


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class A*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	none	none

Class B*	Closed to new investors. ^(h)	up to $49,999	Converts to Class A shares generally eight years after purchase. ⁽ⁱ⁾

Class C*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	up to $999,999; no limit for eligible employee benefit plans. ^(j)	none

Class E	Closed to new investors and new accounts. ^(k)	none	none

Class F	Closed to new investors and new accounts. ^(k)	up to $250,000. ^(l)	Converts to Class E shares eight years after purchase. ⁽ⁱ⁾

Class I*	Available only to the Funds (i.e., Fund-of-Fund investments).	none	none

Class R*	Available only to eligible retirement plans and health savings accounts; no minimum initial investment.	none	none

Class R3*	Effective after the close of business on December 31, 2010, Class R3 shares are 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. ⁽ⁿ⁾	none	none

Class R4*	Effective after the close of business on December 31, 2010, Class R4 shares are 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. ⁽ⁿ⁾	none	none

S.3


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class R5*	Effective after the close of business on December 31, 2010, Class R5 shares are 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, health savings accounts and, if approved by the Distributor, institutional or corporate accounts above a threshold established by the Distributor (currently $1 million per Fund or $10 million in all Funds) and bank trust departments. ⁽ⁿ⁾	none	none

Class T	Available only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy funds into various Columbia funds (formerly named Liberty funds).	none	none

Class W*	Available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs.	none	none

Class Y*	Available to certain categories of investors which are subject to minimum initial investment requirements; currently offered only to former shareholders of the former Columbia Funds Institutional Trust. ^(q)	none	none

Class Z*	Available only to certain eligible investors, which are subject to different minimum initial investment requirements, ranging from $0 to $2,000.	none	none


	Front-End Sales Charges ^(b)	Contingent Deferred Sales Charges (CDSCs) ^(b)


Class A*	5.75% maximum, declining to 0.00% on investments of $1 million or more. None for money market Funds and certain other Funds. ^(f)	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 of purchase. ^(g)

Class B*	none	5.00% maximum, gradually declining to 0.00% after six years. ⁽ⁱ⁾

Class C*	none	1.00% on certain investments redeemed within one year of purchase.

Class E	4.50% maximum, declining to 0.00% on investments of $500,000 or more.	1.00% on certain investments of between $1 million and $5 million redeemed within one year of purchase.

S.4


		Non 12b-1
	Maximum Distribution and Service (12b-1) Fees ^(c)	Service Fees ^(d)


Class R4*	none	0.25% ^(m)

Class R5*	none	none

Class T	none	up to 0.50%. ^(o)

Class W*	0.25% distribution and service fees, with certain exceptions. ^(c)	none

Class Y*	none	none

Class Z*	none	none


*		For money market Funds, new investments must be made in Class A, Class I, Class T, Class W or Class Z shares, subject to eligibility. Class C and Class R shares of the money market Funds 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. The money market Funds offer other classes of shares only to facilitate exchanges with other Funds offering such share classes.
^(a)		See Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders for more details on the eligible investors and minimum initial and subsequent investment and account balance requirements.
^(b)		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 charge policies, see Choosing a Share Class — Reductions/Waivers of Sales Charges .
^(c)		These are the maximum applicable distribution and/or shareholder service fees. Because these fees are paid out of Fund assets on an on-going 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. For Legacy Columbia funds with Class A shares subject to both a distribution and service fee, the aggregate fees are limited to not more than 0.25%. Columbia Money Market Fund (formerly RiverSource Cash Management 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. The Distributor has voluntarily agreed to waive all or a portion of distribution and/or service fees for certain classes of certain Funds. For information on these waivers, see Choosing a Share Class — Distribution and Service Fees . Compensation paid to selling and/or servicing agents may be suspended to the extent of the Distributor’s waiver of the 12b-1 fees on these specific Fund share classes.
^(d)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees and Class T Shares — Shareholder Service Fees .
^(e)		The minimum initial investment requirement is $5,000 for RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund, and $10,000 for Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund and Columbia Absolute Return Currency and Income Fund. For more details on the minimum initial investment requirement applicable to other Funds, see Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders .
^(f)		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, and RiverSource S&P 500 Index Fund.
^(g)		There is no CDSC on Class A shares of the money market Funds or the Funds identified in footnote (f) above. Legacy Columbia fund Class A shareholders and Legacy RiverSource fund shareholders who purchased Class A shares without an initial sales charge because their accounts aggregated between $1 million and $50 million at the time of purchase and who purchased shares on or before September 3, 2010 will incur, for Legacy Columbia fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC and for legacy RiverSource fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within 18 months of purchase and redemptions after one year will not be subject to a CDSC.

S.6


^(h)		The Funds no longer accept investments from new or existing investors in Class B shares, except through reinvestment of dividend and/or capital gain distributions by existing Class B shareholders, or a permitted exchange, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class B Shares Closed . Unless contrary instructions are received in advance by the Fund, any purchase orders (except those submitted by a selling and/or servicing agent through the National Securities Clearing Corporation (NSCC) that are initial investments in Class B shares or that are orders for additional Class B shares of the Fund received from existing investors in Class B shares, including orders made through an active systematic investment plan, will automatically be invested in Class A shares of the Fund, without regard to the normal minimum initial investment requirement for Class A shares, but subject to the applicable front-end sales charge. Your selling and/or servicing agent may have different policies, including automatically redirecting the purchase order to a money market fund. See Choosing a Share Class — Class A Shares — Front-end Sales Charge for additional information about Class A shares .
⁽ⁱ⁾		Timing of conversion and CDSC schedule will vary depending on the Fund and the date of your original purchase of Class B shares. For more information on the timing of conversion of Class B shares to Class A shares, see Choosing a Share Class — Class B Shares — Conversion of Class B Shares to Class A Shares . Class B shares of Columbia Short Term Municipal Bond Fund do not convert to Class A shares. For information on the timing of the conversion of Class F shares to Class E shares, see Choosing a Share Class — Class F Shares — Commissions and Conversion to Class E Shares .
^(j)		There is no investment limit on Class C shares purchased by employee benefit plans created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans, that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper.
^(k)		The Funds no longer accept investments from new or existing investors in Class E or Class F shares, except that existing Class E and/or Class F shareholders who opened and funded their account prior to September 22, 2006 may continue to invest in Class E and/or Class F shares, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class E and Class F Shares Closed . Class E and Class F shares are designed for investors who wish to make an irrevocable gift to a child, grandchild or other individual.
^(l)		If you hold Class F shares of the Fund and your account has a value of less than $250,000, you may purchase additional Class F shares of the Fund in amounts that increase your account value up to a maximum of $250,000. The value of your account, for this purpose, includes the value of all Class F shares in eligible accounts held by you and your “immediate family.” For more information about account value aggregation and eligible accounts, see Choosing a Share Class — Reductions/Waivers of Sales Charges . If you have reached the $250,000 limit, any additional amounts you invest in Class F shares of the Fund will be invested in Class E shares of the Fund, without regard to the normal minimum investment amount required for Class E shares. Such investments will, however, be subject to the applicable front-end sales charge.
^(m)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees .
⁽ⁿ⁾		Shareholders who opened and funded a Class R3, Class R4 or Class R5 shares account with a Fund as of the close of business on December 31, 2010 (including accounts once funded that subsequently reached a zero balance) may continue to make additional purchases of the share class, and existing Class R3, Class R4 or Class R5 accounts may continue to allow new investors or participants to be established in their Fund account. For more information on eligible investors in these share classes and the closing of these share classes, see Buying Shares — Eligible Investors — Class R3 Shares, R4 Shares and Class R5 Shares .
^(o)		For more information, see Class T Shares — Shareholder Service Fees .
^(p)		Class T Shareholders who purchased Class T shares without a front-end sales charge because their accounts aggregated between $1 million and $50 million at the time of the purchase and who purchased shares on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC.
^(q)		Class Y shares are available only to the following categories of investors: (i) individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) that invest at least $1 million in Class Y shares of a single Fund and (ii) group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

S.7

Sales Charges and Commissions

Class A Shares — Front-End Sales Charge

S.8


							Amount
							retained by
					Sales		or paid to
			Sales		charge		selling
			charge		as a		and/or
			as a		% of the		servicing
			% of the		net		agents as a
	Dollar amount of		offering		amount		% of the
Breakpoint Schedule For:	shares bought ^(a)		price ^(b)		invested ^(b)		offering price



Columbia California Intermediate Municipal Bond Fund,	$	0—$99,999		3.25%		3.36%		2.75%

Columbia Connecticut Intermediate Municipal Bond Fund,	$	100,000—$249,999		2.50%		2.56%		2.15%

Columbia Georgia Intermediate Municipal Bond Fund,	$	250,000—$499,999		2.00%		2.04%		1.75%

Columbia Intermediate Bond Fund,	$	500,000—$999,999		1.50%		1.53%		1.25%

Columbia Intermediate Municipal Bond Fund,	$	1,000,000 or more		0.00%		0.00%		0.00%	^(c)(d)

Columbia LifeGoal ^® Income Portfolio,

Columbia Maryland Intermediate Municipal Bond Fund,

Columbia Massachusetts Intermediate Municipal Bond Fund,

Columbia New Jersey Intermediate Municipal Bond Fund,

Columbia New York Intermediate Municipal Bond Fund,

Columbia North Carolina Intermediate Municipal Bond Fund,

Columbia Oregon Intermediate Municipal Bond Fund,

Columbia Rhode Island Intermediate Municipal Bond Fund,

Columbia Short-Intermediate Bond Fund,

Columbia South Carolina Intermediate Municipal Bond Fund,

Columbia Total Return Bond Fund and

Columbia Virginia Intermediate Municipal Bond Fund



Columbia Short-Term Bond Fund and	$	0—$99,999		1.00%		1.01%		0.75%

Columbia Short-Term Municipal Bond Fund	$	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)(d)


*		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund and RiverSource S&P 500 Index Fund. “ Funds-of-Funds (equity) ” includes — Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia Portfolio Builder Aggressive Fund, Columbia Portfolio Builder Moderate Aggressive Fund, Columbia Portfolio Builder Moderate Fund, Columbia Portfolio Builder Total Equity Fund, Columbia Retirement Plus 2010 Fund, Columbia Retirement Plus 2015 Fund, Columbia Retirement Plus 2020 Fund, Columbia Retirement Plus 2025 Fund, Columbia Retirement Plus 2030 Fund, Columbia Retirement Plus 2035 Fund, Columbia Retirement Plus 2040 Fund, Columbia Retirement Plus 2045 Fund. “ Funds-of-Funds (fixed income) ” includes — Columbia Income Builder Fund, Columbia Income Builder Fund II, Columbia Income Builder Fund III, Columbia Portfolio Builder Conservative Fund and Columbia Portfolio Builder Moderate Conservative Fund. Columbia Asset Allocation Fund, Columbia Asset Allocation Fund II, Columbia Balanced Fund and Columbia Liberty 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.

S.11


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources (except for the Funds listed below): 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The Distributor may be reimbursed if a CDSC is deducted when the shares are redeemed. Currently, the Distributor does not make such payments on purchases of the following Funds for purchases with a total market value of $1 million or more: Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia U.S. Treasury Index Fund and RiverSource S&P 500 Index Fund.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Class A Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class A shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase. Shareholders who purchased shares of a Legacy RiverSource fund on or before Sept. 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within 18 months of purchase.

	•	Fund shareholders who purchased shares after September 3, 2010 will incur a CDSC if those shares are redeemed 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.

The CDSC on Class A shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

S.12

FUNDamentals ^tm

Contingent Deferred Sales Charge

Class A Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy $1 million or more of Class A shares, according to the following schedule:

Class A Shares — Commission Schedule (Paid by the Distributor to Selling and/or Service Agents)*


	Commission Level
	(as a % of net asset
Purchase Amount	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.
**		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor sales commissions on purchases (that are coded as commission-eligible trades) in amounts of less than $1 million.

S.13

Class B Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class B shares, but you may pay a CDSC when you sell Class B shares.

Class B Shares — CDSC

The CDSC on Class B shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	generally declines each year until there is no sales charge for redeeming shares.

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

				Columbia California Intermediate Municipal Bond Fund,
				Columbia Georgia Intermediate Municipal Bond Fund,
				Columbia Connecticut Intermediate Municipal Bond Fund,
				Columbia Intermediate Bond Fund, Columbia Intermediate
				Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
				Columbia Maryland Intermediate Municipal Bond Fund,
				Columbia Massachusetts Intermediate Municipal Bond
				Fund, Columbia New Jersey Intermediate Municipal Bond Fund,
				Columbia New York Intermediate Municipal Bond Fund,
				Columbia North Carolina Intermediate Municipal Bond Fund,
				Columbia Oregon Intermediate Municipal Bond Fund, Columbia
				Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of				Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those			Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right			Columbia Virginia Intermediate Municipal Bond Fund


One		5.00	%	3.00%
Two		4.00	%	3.00%
Three		3.00	%**	2.00%
Four		3.00	%	1.00%
Five		2.00	%	None
Six		1.00	%	None

S.14

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

		Columbia California Intermediate Municipal Bond Fund,
		Columbia Georgia Intermediate Municipal Bond Fund,
		Columbia Connecticut Intermediate Municipal Bond Fund,
		Columbia Intermediate Bond Fund, Columbia Intermediate
		Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
		Columbia Maryland Intermediate Municipal Bond Fund,
		Columbia Massachusetts Intermediate Municipal Bond
		Fund,Columbia New Jersey Intermediate Municipal Bond Fund,
		Columbia New York Intermediate Municipal Bond Fund,
		Columbia North Carolina Intermediate Municipal Bond Fund,
		Columbia Oregon Intermediate Municipal Bond Fund, Columbia
		Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of		Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those	Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right	Columbia Virginia Intermediate Municipal Bond Fund


Seven	None	None
Eight	None	None
Nine	Conversion to Class A Shares	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.
**		For shares purchased in a Legacy RiverSource fund (other than a Seligman fund) on or prior to June 12, 2009, the CDSC percentage for year three is 4%.

Class B shares of Columbia Short Term Municipal Bond Fund are not subject to a CDSC.

Class B Shares — Commissions

S.15

Class B Shares — Conversion to Class A Shares

The following rules apply to the conversion of Class B shares to Class A shares:


•	Class B shares are converted on or about the 15th day of the month that they become eligible for conversion. For purposes of determining the month when your Class B shares are eligible for conversion, the start of the holding period is the first day of the month in which your purchase was made.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class A shares at the same time.

•	You’ll receive the same dollar value of Class A shares as the Class B shares that were converted. Class B shares that you received from an exchange of Class B shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

Class C Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class C shares, but you may pay a CDSC when you sell Class C shares.

S.16

Class C Shares — CDSC


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	is reduced to 0.00% on shares redeemed a year or more after purchase.

Class C Shares — Commissions

Class E Shares — Front-End Sales Charge

The front-end sales charge you’ll pay on Class E shares:


•	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.

Class E Shares — Front-End Sales Charge — Breakpoint Schedule


			Sales charge		Amount retained by or
	Sales charge		as a % of the		paid to selling and/or
Dollar amount of	as a % of the		net amount		servicing agents as a %
shares bought ^(a)	offering price ^(b)		invested ^(b)		of the offering price


$0—$49,999		4.50%		4.71%		4.00%
$50,000—$99,999		3.50%		3.63%		3.00%
$100,000—$249,999		2.50%		2.56%		2.00%
$250,000—$499,999		1.25%		1.27%		1.00%
$500,000—$999,999		0.00%		0.00%		0.00%
$1,000,000 or more		0.00%		0.00%		0.00%	^(c)

S.17


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following out of its own resources: 1.00% on purchases up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $5 million and 0.25% on purchases of $5 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.

Class E Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class E shares that you bought without an initial sales charge.


•	If you bought Class E shares without an initial sales charge because your accounts aggregated between $1 million and $5 million at the time of purchase, you will incur a 1.00% CDSC if you redeem those shares within one year of buying them.

•	Subsequent Class E share purchases that bring your aggregate account value to $1 million or more (but less than $5 million) will also be subject to a CDSC if you redeem them within one year of buying them.

The CDSC on Class E shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

Class E Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy Class E shares, according to the following schedule:

S.18


*		Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages.

Class F Shares — Commissions and Conversion to Class E Shares

The following rules apply to the conversion of Class F shares to Class E shares:


•	Class F shares are converted on or about the 15th day of the month that they become eligible for conversion.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class E shares at the same time.

•	You’ll receive the same dollar value of Class E shares as the Class F shares that were converted. Class F shares that you received from an exchange of Class F shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

S.20

Class T Shares — Front-End Sales Charge — Breakpoint Schedule


									Amount retained
			Sales charge			Sales charge			by or paid to
			as a %			as a %			selling and/or
			of the			of the			servicing agents
Breakpoint	Dollar amount of		offering			net amount			as a % of the
Schedule For:	shares bought ^(a)		price ^(b)			invested ^(b)			offering price


	$	0—$49,999		5.75	%		6.10	%		5.00	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Equity Funds	$	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)(d)

	$	0—$49,999		4.75	%		4.99	%		4.25	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Fixed-Income Funds	$	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)(d)


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources: 1.00% on purchases of $1 million up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $50 million and 0.25% on purchases of $50 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on purchases up to but not including $3 million (including those in amounts of less than $1 million), up to 0.50% on purchases of $3 million up to but not including $50 million, and up to 0.25% on purchases of $50 million or more.

Class T Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class T shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:

S.22


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase.

	•	Shareholders who purchased shares of a Fund after September 3, 2010 will incur a CDSC if those shares are redeemed 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 of 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.

The CDSC on Class T shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

Class T Shares — Commissions

S.23

S.25

FUNDamentals ^tm

Your “Immediate Family” and Account Value Aggregation

Eligible Accounts

The following accounts are eligible for account value aggregation as described above:


•	Individual or joint accounts;

•	Roth and traditional Individual Retirement Accounts (IRAs), Simplified Employee Pension accounts (SEPs), Savings Investment Match Plans for Employees of Small Employers accounts (SIMPLEs) and Tax Sheltered Custodial Accounts (TSCAs);

•	Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors (UTMA) accounts for which you, your spouse, or your domestic partner is parent or guardian of the minor child;

•	Revocable trust accounts for which you or an immediate family member, individually, is the beneficial owner/grantor;

•	Accounts held in the name of your, your spouse’s, or your domestic partner’s sole proprietorship or single owner limited liability company or S corporation;

•	Qualified retirement plan assets, provided that you are the sole owner of the business sponsoring the plan, are the sole participant (other than a spouse) in the plan, and have no intention of adding participants to the plan; and

•	Investments in wrap accounts;

provided that each of the accounts identified above is invested in Class A, Class B, Class C, Class E, Class F, Class T, Class W and/or Class Z shares of the Funds.

S.26

The following accounts are not eligible for account value aggregation as described above:


•	Accounts of pension and retirement plans with multiple participants, such as 401(k) plans (which are combined to reduce the sales charge for the entire pension or retirement plan and therefore are not used to reduce the sales charge for your individual accounts);

•	Accounts invested in Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of the Funds;

•	Investments in 529 plans, donor advised funds, variable annuities, variable life insurance products, or managed separate accounts;

•	Charitable and irrevocable trust accounts; and

•	Accounts holding shares of money market Funds that used the Columbia brand before May 1, 2010.

Front-End Sales Charge Waivers

The following categories of investors may buy Class A, Class E and Class T shares of the Funds at net asset value, without payment of any front-end sales charge that would otherwise apply:


•	Current or retired Fund Board members, officers or employees of the Funds or Columbia Management or its affiliates ⁽¹⁾ ;

•	Current or retired Ameriprise Financial Services, Inc. financial advisors and employees of such financial advisors ⁽¹⁾ ;

•	Registered representatives and other employees of affiliated or unaffiliated selling and/or servicing agent having a selling agreement with the Distributor ⁽¹⁾ ;

•	Registered broker/dealer firms that have entered into a dealer agreement with the Distributor may buy Class A shares without paying a front-end sales charge for their investment account only;

•	Portfolio managers employed by subadvisers of the Funds ⁽¹⁾ ;

•	Partners and employees of outside legal counsel to the Funds or the Funds’ directors or trustees who regularly provide advice and services to the Funds, or to their directors or trustees;

•	Direct rollovers from qualified employee benefit plans, provided that the rollover involves a transfer to Class A shares in the same Fund;

•	Purchases made:


	•	With dividend or capital gain distributions from a Fund or from the same class of another Fund;

S.27


	•	Through or under a wrap fee product or other investment product sponsored by a selling and/or servicing agent that charges an account management fee or other managed agency/asset allocation accounts or programs involving fee-based compensation arrangements that have or that clear trades through a selling and/or servicing agent that has a selling agreement with the Distributor;

	•	Through state sponsored college savings plans established under Section 529 of the Internal Revenue Code; or

	•	Through banks, trust companies and thrift institutions, acting as fiduciaries;


•	Separate accounts established and maintained by an insurance company which are exempt from registration under Section 3(c)(11);

•	Purchases made through “employee benefit plans” created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper; and


⁽¹⁾		Including their spouses or domestic partners, children or step-children, parents, step-parents or legal guardians, and their spouse’s or domestic partner’s parents, step-parents, or legal guardians.


•	At the Fund’s discretion, front-end sales charges may be waived for shares issued in plans of reorganization, such as mergers, asset acquisitions and exchange offers, to which the Fund is a party.

CDSC Waivers

CDSC — Waivers of the CDSC for Class A, Class C, Class E, Class F and Class T shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	for which no sales commission or transaction fee was paid to an authorized selling and/or servicing agent at the time of purchase;

•	purchased through reinvestment of dividend and capital gain distributions;

S.28


•	in an account that has been closed because it falls below the minimum account balance;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	that result from returns of excess contributions made to retirement plans or individual retirement accounts, so long as the selling and/or servicing agent returns the applicable portion of any commission paid by the Distributor;

•	of Class A shares of a Fund initially purchased by an employee benefit plan;

•	other than Class A shares, of a Fund initially purchased by an employee benefit plan that are not connected with a plan level termination;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies );

•	at a Fund’s discretion, issued in connection with plans of reorganization, including but not limited to mergers, asset acquisitions and exchange offers, to which the Fund is a party; and

•	by certain other investors as set forth in more detail in the SAI.

CDSC — Waivers of the CDSC for Class B shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies ); and

•	by certain other investors, including certain institutions as set forth in more detail in the SAI.

Please see the SAI for more information about the sales charge reductions and waivers described here.

S.29

Repurchases

Distribution and Service Fees

S.30

The table below shows the maximum annual distribution and/or service fees (as an annual % of average daily net assets) and the combined amount of such fees applicable to each share class:


	Distribution	Service	Combined
	Fee	Fee	Total


Class A	up to 0.25%	up to 0.25%	up to 0.35% ^(a)(b)(c)
Class B	0.75%	0.25%	1.00% ^(a)(b)
Class C	0.75% ^(c)	0.25%	1.00% ^(b)(d)
Class E	0.10%	0.25%	0.35%
Class F	0.75%	0.25%	1.00%
Class I	none	none	none
Class R (Legacy Columbia funds)	0.50%	— ^(e)	0.50%
Class R (Legacy RiverSource funds)	up to 0.50%	up to 0.25%	0.50% ^(e)
Class R3	0.25%	0.25% ^(f)	0.50% ^(f)
Class R4	none	0.25% ^(f)	0.25% ^(f)
Class R5	none	none	none
Class T	none	0.50% ^(g)	0.50% ^(g)
Class W	up to 0.25%	up to 0.25%	0.25% ^(c)
Class Y	none	none	none
Class Z	none	none	none


^(a)		As shown in the table below, the maximum distribution and service fees of Class A shares varies among the Funds, as follows:


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Legacy RiverSource funds (other than Columbia Money Market Fund)	Up to 0.25%	Up to 0.25%	0.25%


Columbia Money Market Fund	—	—	0.10%


Columbia Asset Allocation Fund, Columbia Balanced Fund, Columbia Conservative High Yield Fund, Columbia Contrarian Core Fund, Columbia Disciplined Value Fund, Columbia Dividend Income Fund, Columbia Large Cap Growth Fund, Columbia Mid Cap Growth Fund, Columbia Oregon Intermediate Municipal Bond Fund, Columbia Intermediate Bond Fund, Columbia Real Estate Equity Fund, Columbia Small Cap Core Fund, Columbia Small Cap Growth Fund I, Columbia Technology 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.

S.31


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Columbia Blended Equity Fund, Columbia Bond Fund, Columbia California Tax-Exempt Fund, Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Emerging Markets Fund, Columbia Federal Securities Fund, Columbia Greater China Fund, Columbia High Yield Opportunity Fund, Columbia Liberty Fund, Columbia Energy and Natural Resources Fund, Columbia International Bond Fund, Columbia International Growth Fund, Columbia International Stock Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia Mid Cap Core Fund, Columbia Small Cap Value Fund I, Columbia Strategic Investor Fund, Columbia Massachusetts Tax-Exempt Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia New York Tax-Exempt Fund, Columbia Pacific/Asia Fund, Columbia Rhode Island Intermediate Municipal Bond Fund, Columbia Select Large Cap Growth Fund, Columbia Select Opportunities Fund, Columbia Select Small Cap Fund, Columbia Short-Intermediate Bond Fund, Columbia Strategic Income Fund, Columbia U.S. Treasury Index Fund, Columbia Value and Restructuring Fund, Columbia World Equity Fund	—	0.25%	0.25%


Columbia High Yield Municipal Fund, Columbia Intermediate Municipal Bond Fund, Columbia Tax Exempt Fund	—	0.20%	0.20%


Columbia Asset Allocation Fund II, Columbia California Intermediate Municipal Bond Fund, Columbia Convertible Securities Fund, Columbia Georgia Intermediate Municipal Bond Fund, Columbia Global Value Fund, Columbia High Income Fund, Columbia International Value Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico Global Fund, Columbia Maryland Intermediate Municipal Bond Fund, Columbia North Carolina Intermediate Municipal Bond Fund, Columbia Short Term Bond Fund, Columbia Short Term Municipal Bond Fund, Columbia Small Cap Growth Fund II, Columbia South Carolina Intermediate Municipal Bond Fund, Columbia Total Return Bond Fund, Columbia Virginia Intermediate Municipal Bond Fund, Columbia Large Cap Value Fund, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia LifeGoal ^® Income Portfolio, Columbia Marsico 21st Century Fund, Columbia Marsico Growth Fund, Columbia Marsico International Opportunities Fund, Columbia Mid Cap Value Fund, Columbia Multi-Advisor International Equity Fund, Columbia Masters International Equity Portfolio, Columbia Small Cap Value Fund II, Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia Overseas Value Fund	—	—	0.25%; these Funds pay a combined distribution and service fee pursuant to their combined distribution and shareholder servicing plan for Class A shares.


^(b)		The service fees for Class A shares, Class B shares and Class C shares of certain Funds depend on when the shares were purchased, as described below. Service Fee for Class A shares and Class B shares of Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-

S.32


		Exempt Fund and Columbia New York Tax-Exempt Fund — The annual service fee may equal up to 0.10% on net assets attributable to shares of these Funds issued prior to December 1, 1994 and 0.25% on net assets attributable to Fund shares issued thereafter. This arrangement results in a rate of service fee for Fund shares that is a blend between the 0.10% and 0.25% rates. For the fiscal year ended October 31, 2009, the blended service fee was 0.24% of the Fund’s average net assets for each of these Funds, other than Columbia Massachusetts Tax-Exempt Fund, which had a blended service fee of 0.23%. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Liberty Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to April 1, 1989 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended September 30, 2009, the blended service fee was 0.24% of the Fund’s average daily net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Strategic Income Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to January 1, 1993 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all Fund shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended May 31, 2010, the blended service fee was 0.25% of the Fund’s average net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia High Yield Municipal Fund, Columbia Intermediate Municipal 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 shares and Class C shares for Columbia Intermediate Municipal Bond Fund — The annual distribution fee shall be 0.65% of the average daily net assets of the Fund’s Class B shares 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 pay distribution fees of up to 0.75% and service fees of up to 0.10%, for a combined total of 0.85%.
^(c)		Fee amounts noted apply to all Funds other than Columbia Money Market Fund (formerly RiverSource Cash Management 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 voluntarily agreed, effective April 15, 2010, to waive the 12b-1 fees it receives from Class A, Class C, Class R (formerly Class R2) and Class W shares of Columbia Money Market Fund and from Class A, Class C and Class R (formerly Class R2) shares of Columbia Government Money Market Fund. Compensation paid to broker-dealers and other financial intermediaries 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 a portion of the distribution fee for Class C shares of the following Funds so that the combined distribution and service fee (or the distribution fee for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund) does not exceed the specified percentage annually: 0.40% for Columbia Intermediate Municipal Bond Fund; 0.45% for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund; 0.56% for Columbia Short Term Bond Fund; 0.65% for Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Rhode Island Intermediate Municipal Bond Fund; 0.80% for Columbia High Yield Municipal Fund and Columbia Tax-Exempt Fund; 0.85% for Columbia Conservative High Yield Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Federal Securities Fund, Columbia High Yield Opportunity Fund, Columbia Intermediate Bond Fund, Columbia Strategic Income Fund and Columbia U.S. Treasury Index Fund. These arrangements may be modified or terminated by the Distributor at any time.
^(e)		Class R shares of Legacy Columbia funds pay a distribution fee pursuant to a distribution (Rule 12b-1) plan for Class R shares. The Legacy Columbia funds do not have a shareholder service plan for Class R shares. The Legacy RiverSource funds 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 Legacy RiverSource fund Class R shares, 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.
^(f)		The shareholder service fees for Class R3 and Class R4 shares are not paid pursuant to a 12b-1 plan. Under a plan administration services agreement, the Funds’ Class R3 and Class R4 shares pay for plan administration services, including services such as implementation and conversion services, account set-up

S.33


		and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and health savings accounts.
^(g)		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 (including Columbia Asset Allocation Fund) and 0.40% for fixed income Funds. The Funds currently limit such fees to a maximum of 0.30% for equity Funds and 0.15% for fixed-income Funds other than Columbia Rhode Island Intermediate Municipal Bond Fund, for which the limit currently is 0.00%. See Class T Shareholder Service Fees below for more information.

S.34

S.35

Class T Shareholder Service Fees

Class R3 and Class R4 Shares Plan Administration Fee

Selling and/or Servicing Agent Compensation

S.36

S.37

Buying, Selling and Exchanging Shares

Share Price Determination

FUNDamentals ^tm

NAV Calculation

Each of the Fund’s share classes calculates its NAV per share as follows:


		(Value of assets of the share class)
NAV	=	− (Liabilities of the share class)

		Number of outstanding shares of the class

FUNDamentals ^tm

Business Days

S.38

For money market Funds, the Fund’s investments are valued at amortized cost, which approximates market value.

S.39

Transaction Rules and Policies

Also remember that the Fund may refuse any order to buy or exchange shares. If this happens, the Fund will return any money it received, but no interest will be paid on that money.

Order Processing

“Good Form”

Medallion Signature Guarantees

S.40

A Medallion Signature Guarantee is required if:


•	The amount is greater than $100,000.

•	You want your check made payable to someone other than the registered account owner(s).

•	Your address of record has changed within the last 30 days.

•	You want the check mailed to an address other than the address of record.

•	You want the proceeds sent to a bank account not on file.

•	You are the beneficiary of the account and the account owner is deceased (additional documents may be required).

Written Transactions

Telephone Transactions

S.41

Online Transactions

You can sell up to and including an aggregate of $100,000 of shares per day, per Fund account through the internet if you qualify for internet orders.

Customer Identification Program

S.42

Small Account Policy — Class A, B, C, T and Z Share Accounts Below $250

Small Account Policy — Class A, B, C, T and Z Share Accounts Minimum Balance Fee

S.43

Exceptions to the Small Account Policy (Accounts Below $250 and Minimum Balance Fee)

Small Account Policy — Broker/Dealer and Wrap Fee Accounts

The Funds may automatically redeem at any time broker/dealer networked accounts and wrap fee accounts that have account balances of $20 or less or have less than one share.

Cash Flows

Information Sharing Agreements

S.44

Excessive Trading Practices Policy of Non-Money Market Funds

S.45

Risks of Excessive Trading — Excessive trading creates certain risks to the Fund’s long-term shareholders and may create the following adverse effects:


•	negative impact on the Fund’s performance;

•	potential dilution of the value of the Fund’s shares;

S.46


•	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.

S.47

Excessive Trading Practices Policy of Money Market Funds

Opening an Account and Placing Orders

S.48

Accounts established directly with the Fund

S.49

Buying Shares

Eligible Investors

Class A and Class C Shares

Class B Shares Closed

S.50

Additional Class B shares will be issued only to existing investors in Class B shares and only through the following two types of transactions (Qualifying Transactions):


•	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.

Any initial purchase orders for the Fund’s Class B shares will be rejected (other than through a Qualifying Transaction that is an exchange transaction).

S.51

Class E and Class F Shares Closed

Class I Shares

Class R Shares

Class R3, Class R4 and Class R5 Shares

Class R3, Class R4 and Class R5 shares are closed to new investors and new accounts effective as of the close of business on December 31, 2010, subject to certain limited exceptions described below.

S.52

Class T Shares Closed

S.53

Class W Shares

Class Y Shares

Class Y shares are available only to the following categories of eligible investors:


•	Individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) who invest at least $1 million in Class Y shares of a single Fund; and

•	Group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

Class Z Shares

Class Z shares are available only to the categories of eligible investors described below under “Minimum Investment and Account Balance — Class Z Shares Minimum Investments”

In addition, for Class I, Class R, Class W, Class Y and Class Z shares, the Distributor, in its sole discretion, may accept investments from other institutional investors not listed above.

S.54

Minimum Initial Investments, Additional Investments and Account Balances

The table below shows the Fund’s minimum initial investment, additional investment and minimum account balance requirements, which may vary by Fund, class and type of account.

Minimum Investment and Account Balance


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance


For all Funds and classes except those listed below (non-qualified accounts)	$2,000 ^(a)	$100	$250 ^(d)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$1,000	$100	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(b)	$100	$250


Class Z	variable ^(a)(c)	$100	$250 ^(d)


^(a)		If your Class A, B, C, T or 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 systematic investment plan. If you do not do so, it 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 requirement.
^(b)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(c)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.
^(d)		If the value of your account falls below $250, your Fund account is subject to automatic redemption of Fund shares. For details, see Small Account Policy above.

S.55

Systematic Investment Plan

Minimum Investment and Account Balance — Systematic Investment Plans


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance*


For all Funds and classes except those listed below (non-qualified accounts)	$100 ^*(a)	$100	none ^*(b)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$100 ^*(b)	$50	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(c)	$100	none


Class Z	variable ^(d)	$100	none


*		If your Fund account balance is below the minimum initial investment requirement described in this table, you must make investments at least monthly.
^(a)		money market Funds — $2,000.
^(b)		money market Funds — $1,000.
^(c)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(d)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.

Class Z Shares Minimum Investments

There is no minimum initial investment in Class Z shares for the following categories of eligible investors:

•

S.56


•	Any health savings account sponsored by a third party platform and any omnibus group retirement plan for which a selling and/or servicing 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 investor participating in a wrap program sponsored by a selling and/or servicing 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.

The minimum initial investment in Class Z shares for the following eligible investors is $1,000:


•	Any individual retirement plan (assuming the eligibility criteria below are met) or group retirement plan that is not held in an omnibus manner for which a selling and/or servicing 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through an individual retirement account.

The minimum initial investment in Class Z shares for the following categories of eligible investors is $2,000:


•	Any investor buying shares through a Columbia Management state tuition plan organized under Section 529 of the Internal Revenue Code.

•	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 Legacy Columbia fund distributed by the Distributor.

•	Any trustee or director (or family member of a trustee or director) of a fund distributed by the Distributor.

S.57


•	Any investor participating in an account offered by a selling and/or servicing 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 selling and/or servicing agent 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through a non-retirement account.

•	Certain other investors as set forth in more detail in the SAI.

Dividend Diversification

S.58

Wire Purchases

Electronic Funds Transfer

Other Purchase Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing 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, Class E 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 F, Class I, Class R, Class R3, 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 Fund reserves the right to cancel your order if it 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 and/or servicing agents are responsible for sending your buy orders to the Transfer Agent and ensuring that we receive your money on time.

•	Shares bought are recorded on the books of the Fund. The Fund doesn’t issue certificates.

S.59

Selling Shares

Wire Redemptions

Electronic Funds Transfer

Systematic Withdrawal Plan

S.60

Check Redemption Service

In-Kind Distributions

Other Redemption Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing agent receives your sell order in “good form,” your shares will be sold at the next calculated net asset value 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 directly through the Funds, we will normally send the sale proceeds by mail or electronically transfer them to your bank account within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

•	If you sell your shares through a selling and/or servicing agent, the Funds will normally send the sale proceeds by Fedwire within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

S.61


•	If you paid for your shares by check or from your bank account as an Automated Clearing House (ACH) transaction, the Funds will hold the sale 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 during emergency circumstances as determined by the SEC.

•	Other restrictions may apply to retirement accounts. For information about these restrictions, contact your retirement plan administrator.

•	Also keep in mind the Funds’ Small Account Policy, which is described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies .

•	For Class E shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class E shares held by the trust, the shares automatically will convert to Class A shares of the Fund and be registered in the beneficiary’s name. For Class F shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class F shares held by the trust, the shares automatically will convert to Class B shares of the Fund and be registered in the beneficiary’s name. After such conversion, the beneficiary’s shares no longer will convert to Class E shares, but will convert to Class A shares in accordance with the applicable conversion schedule for Class B shares. Automatic conversion of Class B shares to Class A shares occurs eight years after purchase for these shares. For purposes of calculating the conversion period, the beneficiary ownership period for the Class B shares will begin at the time the Class F shares were purchased.

•	For Class E and Class F shareholders, if the beneficiary under a Columbia Advantage Plan trust exercises his or her withdrawal rights, the financial advisor may be required to refund to the Distributor any sales charge or initial commission previously retained or paid on the withdrawn Class E and/or Class F shares or amount redeemed.

S.62

Exchanging Shares

Systematic Exchanges

The rules described below for making exchanges apply to systematic exchanges.

Other Exchange Rules You Should Know


•	Exchanges are made at net asset value 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.

S.63


•	You can generally make exchanges between like share classes of any Fund. Some exceptions apply.

•	If you exchange shares from Class A shares of a 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 a 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 a 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. If your initial investment was in a 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, Class E and Class F shares of the Funds.

•	If your initial investment was in Class A shares of a non-money market Fund and you exchange shares into a 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.

•	Class T shares may be exchanged for Class T or Class A shares. Class T shares exchanged into Class A shares cannot be exchanged back into Class T shares.

•	Class Z shares of a Fund may be exchanged for Class A or Class Z shares of another 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 and/or servicing 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.

S.64

•

Same-Fund Exchange Privilege for Class Z Shares

Ways to Request a Sale or Exchange of Shares

Account established with your selling and/or servicing agent

S.65

Distributions and Taxes

Distributions to Shareholders

A mutual fund can make money two ways:


•	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 unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than it originally paid. Capital gains are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term gains) or more than one year (long-term gains).

FUNDamentals ^TM

Distributions

S.66

S.67

Taxes and Your Investment


•	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. In addition, 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 shares of the Fund.

•	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.

•	For taxable years beginning on or before December 31, 2012, 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 lower net long-term capital gain rates. It is currently unclear whether Congress will extend this provision to taxable years beginning after December 31, 2012. 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 derived from qualified dividend income.

•	For taxable years beginning on or before December 31, 2012, the maximum individual U.S. federal income tax rate on net long-term capital gain (and thus qualified dividend income) has been temporarily reduced to 15%. It is currently unclear whether Congress will extend this rate reduction to taxable years beginning after December 31, 2012.

S.68


•	Certain derivative instruments when held in a Fund’s portfolio subject the Fund to special tax rules, the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, convert capital gains into ordinary income and convert short-term capital losses into long-term capital losses. 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.

•	Certain Funds may purchase or sell (write) options, as described further in the SAI. In general, option premiums which may be received by the Fund are not immediately included in the income of the Fund. Instead, such premiums are taken into account when the option contract expires, the option is exercised by the holder, or the Fund transfers or otherwise terminates the option. If an option written by a Fund is exercised and such Fund sells or delivers the underlying security, the Fund generally will recognize capital gain or loss equal to (a) the sum of the exercise price and the option premium received by the Fund minus (b) the Fund’s basis in the security. Such gain or loss generally will be short-term or long-term depending upon the holding period of the underlying security. Gain or loss with respect to any termination of a Fund’s obligation under an option other than through the exercise of the option and the related sale or delivery of the underlying security generally will be short-term gain or loss. Thus, for example, if an option written by a Fund expires unexercised, such Fund generally will recognize short-term gain equal to the premium received.

•	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 income your share of the foreign taxes paid by the Fund. You may be able to either deduct this amount from your income or claim it as a foreign tax credit. There is no assurance that the Fund will make a special election for a taxable year, even if it is eligible to do so.

S.69


•	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 generally will be exempt from such taxes, but may be subject to other taxes, including income taxes of other states, and federal and state alternative minimum tax. 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. Distributions of 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 or disallowed.

•	The Fund is required by federal law to withhold tax on any taxable and possibly 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 taxpayer identification number (TIN) or haven’t certified to the Fund that withholding doesn’t apply; the Internal Revenue Service (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.

S.70

FUNDamentals ^TM

Taxes

Additional Services and Compensation

Additional Management Information

S.71

S.72

S.73

Summary of Columbia Select Large-Cap Value Fund

Example

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example includes contractual commitments to waive fees and reimburse expenses expiring as indicated in the preceding table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


	1 year		3 years		5 years		10 years

Class Z	$	103	$	330	$	576	$	1,284

Portfolio Turnover

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

4p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

Summary of Columbia Select Large-Cap Value Fund

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

Focused Portfolio Risk. Because the Fund may hold a limited number of securities, the Fund as a whole is subject to greater risk of loss if any of those securities declines in price.

Issuer Risk. An issuer may perform poorly, and therefore, the value of its securities may decline, which would negatively affect the Fund’s performance.

PAST PERFORMANCE

Class Z shares have not been in existence for one full calendar year as of the date of this prospectus and therefore performance information is not shown. The following bar chart and table provide some illustration of the risks of investing in the Fund by showing, for the Fund’s Class A shares (which are not offered under this prospectus), respectively:


•	how the Fund’s Class A performance has varied for each full calendar year shown on the bar chart; and

•	how the Fund’s Class A average annual total returns compare to recognized measures of market performance shown on the table.

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 5p

Summary of Columbia Select Large-Cap Value Fund

Average Annual Total Returns (without sales charge)

(for periods ended Dec. 31, 2010)

1 year

5 years

10 years

Columbia Select Large-Cap Value Fund:

Class A* — before taxes

+20.21%

+3.22%

+2.40%

Class A* — after taxes on distributions

+20.09%

+3.12%

+2.25%

Class A* — after taxes on distributions and redemption of fund shares

+13.29%

+2.71%

+1.97%

Russell 1000 Value Index (reflects no deduction for fees, expenses or taxes)

+15.51%

+1.28%

+3.26%

S&P 500 Index (reflects no deduction for fees, expenses or taxes)

+15.06%

+2.29%

+1.41%

Lipper Large-Cap Value Funds Index (reflects no deduction for fees or taxes)

+13.02%

+1.52%

+1.89%


*		The returns shown are for Class A shares without the applicable front-end sales charge. Class Z shares, which are sold without a sales charge, would have substantially similar annual returns as Class A shares because the classes of shares invest in the same portfolio of securities and would differ only to the extent that the classes do not have the same expenses. Class A share returns have not been adjusted to reflect differences in class-related expenses. If differences in class-related expenses were reflected (i.e., if expenses of Class Z shares were reflected in the Class A share returns), the returns shown for Class A shares for all periods would be higher.

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC


Portfolio Manager	Title	Managed Fund Since

Neil T. Eigen	Portfolio Manager	1997
Richard S. Rosen	Portfolio Manager	1997

BUYING AND SELLING SHARES


		Class Z

Minimum initial investment		Variable*
Additional investments		$100


*		The minimum initial investment amount for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor.

Exchanging or Selling Shares

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 7p

Summary of Columbia Select Smaller-Cap Value Fund

Example

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example includes contractual commitments to waive fees and reimburse expenses expiring as indicated in the preceding table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


	1 year		3 years		5 years		10 years

Class Z	$	122	$	388	$	674	$	1,491

Portfolio Turnover

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

Under normal market conditions, the Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in the common stock of “value” companies with smaller market capitalizations ($3 billion or less) at the time of purchase by the Fund. The Fund considers “value” companies to be those companies believed by the investment manager to be undervalued, either historically, by the market, or by their peers. The Fund may invest up to 25% of its net assets in foreign investments. The investment manager seeks to identify value companies that it believes display certain characteristics, including but not limited to, a low price-to-earnings and/or low price-to-book ratio, positive change in senior management, positive corporate restructuring, temporary setback in price due to factors that no longer exist, positive shift in the company’s business cycle, and/or a catalyst for increase in the rate of the company’s earnings growth. The Fund may hold a small number of securities because the investment manager believes doing so allows it to adhere to its value investment approach. The Fund can invest in any economic sector and, at times, it may emphasize one or more particular sectors. The Fund will provide shareholders with at least 60 days’ written notice of any change in the 80% policy.

10p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

Summary of Columbia Select Smaller-Cap Value Fund

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

Focused Portfolio Risk. Because the Fund may hold a limited number of securities, the Fund as a whole is subject to greater risk of loss if any of those securities declines in price.

Issuer Risk. An issuer may perform poorly, and therefore, the value of its securities may decline, which would negatively affect the Fund’s performance.

Market Risk. The market value of securities may fall, fail to rise, or fluctuate, sometimes rapidly and unpredictably. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. These risks are generally greater for small and mid-sized companies. Focus on a particular style, for example, investment in growth or value securities, may cause the Fund to underperform other funds if that style falls out of favor with the market.

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 11p

Summary of Columbia Select Smaller-Cap Value Fund

PAST PERFORMANCE


•	how the Fund’s Class A performance has varied for each full calendar year shown on the bar chart; and

•	how the Fund’s Class A average annual total returns compare to recognized measures of market performance shown on the table.

The sales charge for Class A shares is not reflected in the bar chart or the table. Class Z shares are not subject to a sales charge. If the Class A sales charge was reflected, returns would be lower than those shown.

12p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

Summary of Columbia Select Smaller-Cap Value Fund

Average Annual Total Returns (without sales charge)

(for periods ended Dec. 31, 2010)

1 year

5 years

10 years

Columbia Select Smaller-Cap Value Fund:

Class A* — before taxes

+26.85%

+5.59%

+8.16%

Class A* — after taxes on distributions

+26.85%

+4.67%

+7.60%

Class A* — after taxes on distributions and redemption of fund shares

+17.45%

+4.68%

+7.15%

Russell 2000 Value Index (reflects no deduction for fees, expenses or taxes)

+24.50%

+3.52%

+8.42%

Lipper Small-Cap Core Funds Index (reflects no deduction for fees or taxes)

+25.71%

+4.76%

+6.95%

Lipper Small-Cap Value Funds Index (reflects no deduction for fees or taxes)

+25.74%

+4.66%

+9.60%


*		The returns shown are for Class A shares without the applicable front-end sales charge. Class Z shares, which are sold without a sales charge, would have substantially similar annual returns as Class A shares because the classes of shares invest in the same portfolio of securities and would differ only to the extent that the classes do not have the same expenses. Class A share returns have not been adjusted to reflect differences in class-related expenses. If differences in class-related expenses were reflected (i.e., if expenses of Class Z shares were reflected in the Class A share returns), the returns shown for Class A shares for all periods would be higher.

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC


Portfolio Manager	Title	Managed Fund Since

Neil T. Eigen	Portfolio Manager	1997
Richard S. Rosen	Portfolio Manager	1997

BUYING AND SELLING SHARES


		Class Z

Minimum initial investment		Variable*
Additional investments		$100


*		The minimum initial investment amount for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor.

Exchanging or Selling Shares

14p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

More Information about the Funds

Columbia Select Large-Cap Value Fund

INVESTMENT OBJECTIVE

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND


•	a low price-to-earnings and/or low price-to-book ratio;

•	positive change in senior management;

•	positive corporate restructuring;

•	temporary setback in price due to factors that no longer exist;

•	a positive shift in the company’s business cycle; and/or

•	a catalyst for increase in the rate of the company’s earnings growth.

16p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

Columbia Select Large-Cap Value Fund

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 17p

Columbia Select Smaller-Cap Value Fund

INVESTMENT OBJECTIVE

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND


•	a low price-to-earnings and/or low price-to-book ratio;

•	positive change in senior management;

•	positive corporate restructuring;

•	temporary setback in price due to factors that no longer exist;

•	positive shift in the company’s business cycle; and/or

•	a catalyst for increase in the rate of the company’s earnings growth.

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 19p

Columbia Select Smaller-Cap Value Fund

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

20p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

Columbia Select Smaller-Cap Value Fund

Market Risk. The market value of securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. The market value of securities may fluctuate, sometimes rapidly and unpredictably. These risks are generally greater for small and mid-sized companies, which tend to be more vulnerable than large companies to adverse developments. In addition, focus on a particular style, for example, investment in growth or value securities, may cause the Fund to underperform other funds if that style falls out of favor with the market.

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 21p

MORE ABOUT ANNUAL FUND OPERATING EXPENSES

The following information is presented in addition to, and should be read in conjunction with, “Fees and Expenses of the Fund” that appears in the Summaries of the Funds.

In addition to the contractual waiver/reimbursement arrangement described in the expense table for Columbia Select Smaller-Cap Value Fund, through March 31, 2011 the investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) of Columbia Select Smaller-Cap Value Fund, such that net fund expenses will not exceed 1.08% for Class Z. Any amounts waived will not be reimbursed by the Fund.

OTHER INVESTMENT STRATEGIES AND RISKS

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 23p

or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. There can be no assurance an ETF’s shares will continue to be listed on an active exchange.

Leverage risk is the risk that losses from the derivative instrument may be greater than the amount invested in the derivative instrument.

24p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

For more information on strategies and holdings, and the risks of such strategies, including derivative instruments that the Fund may use, see the Fund’s SAI and its annual and semiannual reports.

Although brokerage commissions and implied commissions are not reflected in the expense table under “Fees and Expenses of the Fund,” they are reflected in the total return of the Fund.

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 25p

Additional information regarding securities transactions can be found in the SAI.

FUND MANAGEMENT AND COMPENSATION

Investment Manager

26p COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS

Portfolio Managers. The portfolio managers responsible for the day-to-day management of the Funds are:

Neil T. Eigen, Portfolio Manager


•	Managed the Funds since 1997.

•	Prior to the investment manager’s acquisition of J. & W. Seligman & Co. Incorporated (Seligman) in Nov. 2008, Mr. Eigen was head of the Seligman Value Team since he joined Seligman in 1997. Mr. Eigen was also a Director and Managing Director of Seligman and Director of Seligman Advisors, Inc. and Seligman Services, Inc.

•	Prior to joining Seligman, Mr. Eigen was a Senior Managing Director of Bear, Stearns & Co., serving as Chief Investment Officer and Director of Equities of Bear, Stearns Asset Management. Prior to that, he was Executive Vice President and Senior Equity Manager at Integrated Resources Asset Management. Mr. Eigen also spent six years at The Irving Trust Company as a Senior Portfolio Manager and Chairman of the Equity Selection Committee.

•	BS, New York University.

Richard S. Rosen, Portfolio Manager


•	Managed the Funds since 1997.

•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Rosen was a Managing Director of Seligman.

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 27p

Financial Highlights

The financial highlights tables are intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single Fund share. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. The total returns in the tables represent the rate that an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions, if any). Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year. The information has been derived from the financial statements audited by the Fund’s Independent Registered Public Accounting Firm Ernst & Young LLP, whose report, along with the Fund’s financial statements and financial highlights, is included in the annual report which, if not included with this prospectus, is available upon request.

Columbia Select Large-Cap Value Fund


	Year ended
Class Z	Dec. 31,
Per share data	2010 ^(a)
Net asset value, beginning of period		$13.48

Income from investment operations:
Net investment income (loss)		.03
Net gains (losses) (both realized and unrealized)		1.70

Total from investment operations		1.73

Less distributions:
Dividends from net investment income		(.09	)
Distributions from realized gains		(.05	)

Total distributions		(.14	)

Net asset value, end of period		$15.07

Total return		12.88	%

Ratios to average net assets ^(b)
Total expenses		1.11	% ^(c)

Net investment income (loss)		.87	% ^(c)

Supplemental data
Net assets, end of period (in millions)		$—

Portfolio turnover rate		12	%

Notes to Financial Highlights


^(a)		For the period from Sept. 27, 2010 (when shares became available) to Dec. 31, 2010.


^(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.

COLUMBIA SELECT VALUE FUNDS — 2011 CLASS Z PROSPECTUS 29p

Choosing a Share Class

The Funds

S.1

Comparison of Share Classes

Share Class Features


•	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.

FUNDamentals ^tm

Selling and/or Servicing Agents

S.2


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class A*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	none	none

Class B*	Closed to new investors. ^(h)	up to $49,999	Converts to Class A shares generally eight years after purchase. ⁽ⁱ⁾

Class C*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	up to $999,999; no limit for eligible employee benefit plans. ^(j)	none

Class E	Closed to new investors and new accounts. ^(k)	none	none

Class F	Closed to new investors and new accounts. ^(k)	up to $250,000. ^(l)	Converts to Class E shares eight years after purchase. ⁽ⁱ⁾

Class I*	Available only to the Funds (i.e., Fund-of-Fund investments).	none	none

Class R*	Available only to eligible retirement plans and health savings accounts; no minimum initial investment.	none	none

Class R3*	Effective after the close of business on December 31, 2010, Class R3 shares are 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. ⁽ⁿ⁾	none	none

Class R4*	Effective after the close of business on December 31, 2010, Class R4 shares are 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. ⁽ⁿ⁾	none	none

S.3


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class R5*	Effective after the close of business on December 31, 2010, Class R5 shares are 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, health savings accounts and, if approved by the Distributor, institutional or corporate accounts above a threshold established by the Distributor (currently $1 million per Fund or $10 million in all Funds) and bank trust departments. ⁽ⁿ⁾	none	none

Class T	Available only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy funds into various Columbia funds (formerly named Liberty funds).	none	none

Class W*	Available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs.	none	none

Class Y*	Available to certain categories of investors which are subject to minimum initial investment requirements; currently offered only to former shareholders of the former Columbia Funds Institutional Trust. ^(q)	none	none

Class Z*	Available only to certain eligible investors, which are subject to different minimum initial investment requirements, ranging from $0 to $2,000.	none	none


	Front-End Sales Charges ^(b)	Contingent Deferred Sales Charges (CDSCs) ^(b)


Class A*	5.75% maximum, declining to 0.00% on investments of $1 million or more. None for money market Funds and certain other Funds. ^(f)	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 of purchase. ^(g)

Class B*	none	5.00% maximum, gradually declining to 0.00% after six years. ⁽ⁱ⁾

Class C*	none	1.00% on certain investments redeemed within one year of purchase.

Class E	4.50% maximum, declining to 0.00% on investments of $500,000 or more.	1.00% on certain investments of between $1 million and $5 million redeemed within one year of purchase.

S.4


		Non 12b-1
	Maximum Distribution and Service (12b-1) Fees ^(c)	Service Fees ^(d)


Class R4*	none	0.25% ^(m)

Class R5*	none	none

Class T	none	up to 0.50%. ^(o)

Class W*	0.25% distribution and service fees, with certain exceptions. ^(c)	none

Class Y*	none	none

Class Z*	none	none


*		For money market Funds, new investments must be made in Class A, Class I, Class T, Class W or Class Z shares, subject to eligibility. Class C and Class R shares of the money market Funds 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. The money market Funds offer other classes of shares only to facilitate exchanges with other Funds offering such share classes.
^(a)		See Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders for more details on the eligible investors and minimum initial and subsequent investment and account balance requirements.
^(b)		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 charge policies, see Choosing a Share Class — Reductions/Waivers of Sales Charges .
^(c)		These are the maximum applicable distribution and/or shareholder service fees. Because these fees are paid out of Fund assets on an on-going 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. For Legacy Columbia funds with Class A shares subject to both a distribution and service fee, the aggregate fees are limited to not more than 0.25%. Columbia Money Market Fund (formerly RiverSource Cash Management 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. The Distributor has voluntarily agreed to waive all or a portion of distribution and/or service fees for certain classes of certain Funds. For information on these waivers, see Choosing a Share Class — Distribution and Service Fees . Compensation paid to selling and/or servicing agents may be suspended to the extent of the Distributor’s waiver of the 12b-1 fees on these specific Fund share classes.
^(d)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees and Class T Shares — Shareholder Service Fees .
^(e)		The minimum initial investment requirement is $5,000 for RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund, and $10,000 for Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund and Columbia Absolute Return Currency and Income Fund. For more details on the minimum initial investment requirement applicable to other Funds, see Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders .
^(f)		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, and RiverSource S&P 500 Index Fund.
^(g)		There is no CDSC on Class A shares of the money market Funds or the Funds identified in footnote (f) above. Legacy Columbia fund Class A shareholders and Legacy RiverSource fund shareholders who purchased Class A shares without an initial sales charge because their accounts aggregated between $1 million and $50 million at the time of purchase and who purchased shares on or before September 3, 2010 will incur, for Legacy Columbia fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC and for legacy RiverSource fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within 18 months of purchase and redemptions after one year will not be subject to a CDSC.

S.6


^(h)		The Funds no longer accept investments from new or existing investors in Class B shares, except through reinvestment of dividend and/or capital gain distributions by existing Class B shareholders, or a permitted exchange, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class B Shares Closed . Unless contrary instructions are received in advance by the Fund, any purchase orders (except those submitted by a selling and/or servicing agent through the National Securities Clearing Corporation (NSCC) that are initial investments in Class B shares or that are orders for additional Class B shares of the Fund received from existing investors in Class B shares, including orders made through an active systematic investment plan, will automatically be invested in Class A shares of the Fund, without regard to the normal minimum initial investment requirement for Class A shares, but subject to the applicable front-end sales charge. Your selling and/or servicing agent may have different policies, including automatically redirecting the purchase order to a money market fund. See Choosing a Share Class — Class A Shares — Front-end Sales Charge for additional information about Class A shares .
⁽ⁱ⁾		Timing of conversion and CDSC schedule will vary depending on the Fund and the date of your original purchase of Class B shares. For more information on the timing of conversion of Class B shares to Class A shares, see Choosing a Share Class — Class B Shares — Conversion of Class B Shares to Class A Shares . Class B shares of Columbia Short Term Municipal Bond Fund do not convert to Class A shares. For information on the timing of the conversion of Class F shares to Class E shares, see Choosing a Share Class — Class F Shares — Commissions and Conversion to Class E Shares .
^(j)		There is no investment limit on Class C shares purchased by employee benefit plans created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans, that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper.
^(k)		The Funds no longer accept investments from new or existing investors in Class E or Class F shares, except that existing Class E and/or Class F shareholders who opened and funded their account prior to September 22, 2006 may continue to invest in Class E and/or Class F shares, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class E and Class F Shares Closed . Class E and Class F shares are designed for investors who wish to make an irrevocable gift to a child, grandchild or other individual.
^(l)		If you hold Class F shares of the Fund and your account has a value of less than $250,000, you may purchase additional Class F shares of the Fund in amounts that increase your account value up to a maximum of $250,000. The value of your account, for this purpose, includes the value of all Class F shares in eligible accounts held by you and your “immediate family.” For more information about account value aggregation and eligible accounts, see Choosing a Share Class — Reductions/Waivers of Sales Charges . If you have reached the $250,000 limit, any additional amounts you invest in Class F shares of the Fund will be invested in Class E shares of the Fund, without regard to the normal minimum investment amount required for Class E shares. Such investments will, however, be subject to the applicable front-end sales charge.
^(m)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees .
⁽ⁿ⁾		Shareholders who opened and funded a Class R3, Class R4 or Class R5 shares account with a Fund as of the close of business on December 31, 2010 (including accounts once funded that subsequently reached a zero balance) may continue to make additional purchases of the share class, and existing Class R3, Class R4 or Class R5 accounts may continue to allow new investors or participants to be established in their Fund account. For more information on eligible investors in these share classes and the closing of these share classes, see Buying Shares — Eligible Investors — Class R3 Shares, R4 Shares and Class R5 Shares .
^(o)		For more information, see Class T Shares — Shareholder Service Fees .
^(p)		Class T Shareholders who purchased Class T shares without a front-end sales charge because their accounts aggregated between $1 million and $50 million at the time of the purchase and who purchased shares on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC.
^(q)		Class Y shares are available only to the following categories of investors: (i) individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) that invest at least $1 million in Class Y shares of a single Fund and (ii) group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

S.7

Sales Charges and Commissions

Class A Shares — Front-End Sales Charge

S.8


							Amount
							retained by
					Sales		or paid to
			Sales		charge		selling
			charge		as a		and/or
			as a		% of the		servicing
			% of the		net		agents as a
	Dollar amount of		offering		amount		% of the
Breakpoint Schedule For:	shares bought ^(a)		price ^(b)		invested ^(b)		offering price



Columbia California Intermediate Municipal Bond Fund,	$	0—$99,999		3.25%		3.36%		2.75%

Columbia Connecticut Intermediate Municipal Bond Fund,	$	100,000—$249,999		2.50%		2.56%		2.15%

Columbia Georgia Intermediate Municipal Bond Fund,	$	250,000—$499,999		2.00%		2.04%		1.75%

Columbia Intermediate Bond Fund,	$	500,000—$999,999		1.50%		1.53%		1.25%

Columbia Intermediate Municipal Bond Fund,	$	1,000,000 or more		0.00%		0.00%		0.00%	^(c)(d)

Columbia LifeGoal ^® Income Portfolio,

Columbia Maryland Intermediate Municipal Bond Fund,

Columbia Massachusetts Intermediate Municipal Bond Fund,

Columbia New Jersey Intermediate Municipal Bond Fund,

Columbia New York Intermediate Municipal Bond Fund,

Columbia North Carolina Intermediate Municipal Bond Fund,

Columbia Oregon Intermediate Municipal Bond Fund,

Columbia Rhode Island Intermediate Municipal Bond Fund,

Columbia Short-Intermediate Bond Fund,

Columbia South Carolina Intermediate Municipal Bond Fund,

Columbia Total Return Bond Fund and

Columbia Virginia Intermediate Municipal Bond Fund



Columbia Short-Term Bond Fund and	$	0—$99,999		1.00%		1.01%		0.75%

Columbia Short-Term Municipal Bond Fund	$	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)(d)


*		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund and RiverSource S&P 500 Index Fund. “ Funds-of-Funds (equity) ” includes — Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia Portfolio Builder Aggressive Fund, Columbia Portfolio Builder Moderate Aggressive Fund, Columbia Portfolio Builder Moderate Fund, Columbia Portfolio Builder Total Equity Fund, Columbia Retirement Plus 2010 Fund, Columbia Retirement Plus 2015 Fund, Columbia Retirement Plus 2020 Fund, Columbia Retirement Plus 2025 Fund, Columbia Retirement Plus 2030 Fund, Columbia Retirement Plus 2035 Fund, Columbia Retirement Plus 2040 Fund, Columbia Retirement Plus 2045 Fund. “ Funds-of-Funds (fixed income) ” includes — Columbia Income Builder Fund, Columbia Income Builder Fund II, Columbia Income Builder Fund III, Columbia Portfolio Builder Conservative Fund and Columbia Portfolio Builder Moderate Conservative Fund. Columbia Asset Allocation Fund, Columbia Asset Allocation Fund II, Columbia Balanced Fund and Columbia Liberty 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.

S.11


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources (except for the Funds listed below): 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The Distributor may be reimbursed if a CDSC is deducted when the shares are redeemed. Currently, the Distributor does not make such payments on purchases of the following Funds for purchases with a total market value of $1 million or more: Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia U.S. Treasury Index Fund and RiverSource S&P 500 Index Fund.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Class A Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class A shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase. Shareholders who purchased shares of a Legacy RiverSource fund on or before Sept. 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within 18 months of purchase.

	•	Fund shareholders who purchased shares after September 3, 2010 will incur a CDSC if those shares are redeemed 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.

The CDSC on Class A shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

S.12

FUNDamentals ^tm

Contingent Deferred Sales Charge

Class A Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy $1 million or more of Class A shares, according to the following schedule:

Class A Shares — Commission Schedule (Paid by the Distributor to Selling and/or Service Agents)*


	Commission Level
	(as a % of net asset
Purchase Amount	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.
**		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor sales commissions on purchases (that are coded as commission-eligible trades) in amounts of less than $1 million.

S.13

Class B Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class B shares, but you may pay a CDSC when you sell Class B shares.

Class B Shares — CDSC

The CDSC on Class B shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	generally declines each year until there is no sales charge for redeeming shares.

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

				Columbia California Intermediate Municipal Bond Fund,
				Columbia Georgia Intermediate Municipal Bond Fund,
				Columbia Connecticut Intermediate Municipal Bond Fund,
				Columbia Intermediate Bond Fund, Columbia Intermediate
				Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
				Columbia Maryland Intermediate Municipal Bond Fund,
				Columbia Massachusetts Intermediate Municipal Bond
				Fund, Columbia New Jersey Intermediate Municipal Bond Fund,
				Columbia New York Intermediate Municipal Bond Fund,
				Columbia North Carolina Intermediate Municipal Bond Fund,
				Columbia Oregon Intermediate Municipal Bond Fund, Columbia
				Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of				Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those			Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right			Columbia Virginia Intermediate Municipal Bond Fund


One		5.00	%	3.00%
Two		4.00	%	3.00%
Three		3.00	%**	2.00%
Four		3.00	%	1.00%
Five		2.00	%	None
Six		1.00	%	None

S.14

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

		Columbia California Intermediate Municipal Bond Fund,
		Columbia Georgia Intermediate Municipal Bond Fund,
		Columbia Connecticut Intermediate Municipal Bond Fund,
		Columbia Intermediate Bond Fund, Columbia Intermediate
		Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
		Columbia Maryland Intermediate Municipal Bond Fund,
		Columbia Massachusetts Intermediate Municipal Bond
		Fund,Columbia New Jersey Intermediate Municipal Bond Fund,
		Columbia New York Intermediate Municipal Bond Fund,
		Columbia North Carolina Intermediate Municipal Bond Fund,
		Columbia Oregon Intermediate Municipal Bond Fund, Columbia
		Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of		Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those	Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right	Columbia Virginia Intermediate Municipal Bond Fund


Seven	None	None
Eight	None	None
Nine	Conversion to Class A Shares	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.
**		For shares purchased in a Legacy RiverSource fund (other than a Seligman fund) on or prior to June 12, 2009, the CDSC percentage for year three is 4%.

Class B shares of Columbia Short Term Municipal Bond Fund are not subject to a CDSC.

Class B Shares — Commissions

S.15

Class B Shares — Conversion to Class A Shares

The following rules apply to the conversion of Class B shares to Class A shares:


•	Class B shares are converted on or about the 15th day of the month that they become eligible for conversion. For purposes of determining the month when your Class B shares are eligible for conversion, the start of the holding period is the first day of the month in which your purchase was made.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class A shares at the same time.

•	You’ll receive the same dollar value of Class A shares as the Class B shares that were converted. Class B shares that you received from an exchange of Class B shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

Class C Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class C shares, but you may pay a CDSC when you sell Class C shares.

S.16

Class C Shares — CDSC


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	is reduced to 0.00% on shares redeemed a year or more after purchase.

Class C Shares — Commissions

Class E Shares — Front-End Sales Charge

The front-end sales charge you’ll pay on Class E shares:


•	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.

Class E Shares — Front-End Sales Charge — Breakpoint Schedule


			Sales charge		Amount retained by or
	Sales charge		as a % of the		paid to selling and/or
Dollar amount of	as a % of the		net amount		servicing agents as a %
shares bought ^(a)	offering price ^(b)		invested ^(b)		of the offering price


$0—$49,999		4.50%		4.71%		4.00%
$50,000—$99,999		3.50%		3.63%		3.00%
$100,000—$249,999		2.50%		2.56%		2.00%
$250,000—$499,999		1.25%		1.27%		1.00%
$500,000—$999,999		0.00%		0.00%		0.00%
$1,000,000 or more		0.00%		0.00%		0.00%	^(c)

S.17


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following out of its own resources: 1.00% on purchases up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $5 million and 0.25% on purchases of $5 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.

Class E Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class E shares that you bought without an initial sales charge.


•	If you bought Class E shares without an initial sales charge because your accounts aggregated between $1 million and $5 million at the time of purchase, you will incur a 1.00% CDSC if you redeem those shares within one year of buying them.

•	Subsequent Class E share purchases that bring your aggregate account value to $1 million or more (but less than $5 million) will also be subject to a CDSC if you redeem them within one year of buying them.

The CDSC on Class E shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

Class E Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy Class E shares, according to the following schedule:

S.18


*		Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages.

Class F Shares — Commissions and Conversion to Class E Shares

The following rules apply to the conversion of Class F shares to Class E shares:


•	Class F shares are converted on or about the 15th day of the month that they become eligible for conversion.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class E shares at the same time.

•	You’ll receive the same dollar value of Class E shares as the Class F shares that were converted. Class F shares that you received from an exchange of Class F shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

S.20

Class T Shares — Front-End Sales Charge — Breakpoint Schedule


									Amount retained
			Sales charge			Sales charge			by or paid to
			as a %			as a %			selling and/or
			of the			of the			servicing agents
Breakpoint	Dollar amount of		offering			net amount			as a % of the
Schedule For:	shares bought ^(a)		price ^(b)			invested ^(b)			offering price


	$	0—$49,999		5.75	%		6.10	%		5.00	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Equity Funds	$	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)(d)

	$	0—$49,999		4.75	%		4.99	%		4.25	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Fixed-Income Funds	$	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)(d)


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources: 1.00% on purchases of $1 million up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $50 million and 0.25% on purchases of $50 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on purchases up to but not including $3 million (including those in amounts of less than $1 million), up to 0.50% on purchases of $3 million up to but not including $50 million, and up to 0.25% on purchases of $50 million or more.

Class T Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class T shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:

S.22


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase.

	•	Shareholders who purchased shares of a Fund after September 3, 2010 will incur a CDSC if those shares are redeemed 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 of 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.

The CDSC on Class T shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

Class T Shares — Commissions

S.23

S.25

FUNDamentals ^tm

Your “Immediate Family” and Account Value Aggregation

Eligible Accounts

The following accounts are eligible for account value aggregation as described above:


•	Individual or joint accounts;

•	Roth and traditional Individual Retirement Accounts (IRAs), Simplified Employee Pension accounts (SEPs), Savings Investment Match Plans for Employees of Small Employers accounts (SIMPLEs) and Tax Sheltered Custodial Accounts (TSCAs);

•	Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors (UTMA) accounts for which you, your spouse, or your domestic partner is parent or guardian of the minor child;

•	Revocable trust accounts for which you or an immediate family member, individually, is the beneficial owner/grantor;

•	Accounts held in the name of your, your spouse’s, or your domestic partner’s sole proprietorship or single owner limited liability company or S corporation;

•	Qualified retirement plan assets, provided that you are the sole owner of the business sponsoring the plan, are the sole participant (other than a spouse) in the plan, and have no intention of adding participants to the plan; and

•	Investments in wrap accounts;

provided that each of the accounts identified above is invested in Class A, Class B, Class C, Class E, Class F, Class T, Class W and/or Class Z shares of the Funds.

S.26

The following accounts are not eligible for account value aggregation as described above:


•	Accounts of pension and retirement plans with multiple participants, such as 401(k) plans (which are combined to reduce the sales charge for the entire pension or retirement plan and therefore are not used to reduce the sales charge for your individual accounts);

•	Accounts invested in Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of the Funds;

•	Investments in 529 plans, donor advised funds, variable annuities, variable life insurance products, or managed separate accounts;

•	Charitable and irrevocable trust accounts; and

•	Accounts holding shares of money market Funds that used the Columbia brand before May 1, 2010.

Front-End Sales Charge Waivers

The following categories of investors may buy Class A, Class E and Class T shares of the Funds at net asset value, without payment of any front-end sales charge that would otherwise apply:


•	Current or retired Fund Board members, officers or employees of the Funds or Columbia Management or its affiliates ⁽¹⁾ ;

•	Current or retired Ameriprise Financial Services, Inc. financial advisors and employees of such financial advisors ⁽¹⁾ ;

•	Registered representatives and other employees of affiliated or unaffiliated selling and/or servicing agent having a selling agreement with the Distributor ⁽¹⁾ ;

•	Registered broker/dealer firms that have entered into a dealer agreement with the Distributor may buy Class A shares without paying a front-end sales charge for their investment account only;

•	Portfolio managers employed by subadvisers of the Funds ⁽¹⁾ ;

•	Partners and employees of outside legal counsel to the Funds or the Funds’ directors or trustees who regularly provide advice and services to the Funds, or to their directors or trustees;

•	Direct rollovers from qualified employee benefit plans, provided that the rollover involves a transfer to Class A shares in the same Fund;

•	Purchases made:


	•	With dividend or capital gain distributions from a Fund or from the same class of another Fund;

S.27


	•	Through or under a wrap fee product or other investment product sponsored by a selling and/or servicing agent that charges an account management fee or other managed agency/asset allocation accounts or programs involving fee-based compensation arrangements that have or that clear trades through a selling and/or servicing agent that has a selling agreement with the Distributor;

	•	Through state sponsored college savings plans established under Section 529 of the Internal Revenue Code; or

	•	Through banks, trust companies and thrift institutions, acting as fiduciaries;


•	Separate accounts established and maintained by an insurance company which are exempt from registration under Section 3(c)(11);

•	Purchases made through “employee benefit plans” created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper; and


⁽¹⁾		Including their spouses or domestic partners, children or step-children, parents, step-parents or legal guardians, and their spouse’s or domestic partner’s parents, step-parents, or legal guardians.


•	At the Fund’s discretion, front-end sales charges may be waived for shares issued in plans of reorganization, such as mergers, asset acquisitions and exchange offers, to which the Fund is a party.

CDSC Waivers

CDSC — Waivers of the CDSC for Class A, Class C, Class E, Class F and Class T shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	for which no sales commission or transaction fee was paid to an authorized selling and/or servicing agent at the time of purchase;

•	purchased through reinvestment of dividend and capital gain distributions;

S.28


•	in an account that has been closed because it falls below the minimum account balance;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	that result from returns of excess contributions made to retirement plans or individual retirement accounts, so long as the selling and/or servicing agent returns the applicable portion of any commission paid by the Distributor;

•	of Class A shares of a Fund initially purchased by an employee benefit plan;

•	other than Class A shares, of a Fund initially purchased by an employee benefit plan that are not connected with a plan level termination;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies );

•	at a Fund’s discretion, issued in connection with plans of reorganization, including but not limited to mergers, asset acquisitions and exchange offers, to which the Fund is a party; and

•	by certain other investors as set forth in more detail in the SAI.

CDSC — Waivers of the CDSC for Class B shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies ); and

•	by certain other investors, including certain institutions as set forth in more detail in the SAI.

Please see the SAI for more information about the sales charge reductions and waivers described here.

S.29

Repurchases

Distribution and Service Fees

S.30

The table below shows the maximum annual distribution and/or service fees (as an annual % of average daily net assets) and the combined amount of such fees applicable to each share class:


	Distribution	Service	Combined
	Fee	Fee	Total


Class A	up to 0.25%	up to 0.25%	up to 0.35% ^(a)(b)(c)
Class B	0.75%	0.25%	1.00% ^(a)(b)
Class C	0.75% ^(c)	0.25%	1.00% ^(b)(d)
Class E	0.10%	0.25%	0.35%
Class F	0.75%	0.25%	1.00%
Class I	none	none	none
Class R (Legacy Columbia funds)	0.50%	— ^(e)	0.50%
Class R (Legacy RiverSource funds)	up to 0.50%	up to 0.25%	0.50% ^(e)
Class R3	0.25%	0.25% ^(f)	0.50% ^(f)
Class R4	none	0.25% ^(f)	0.25% ^(f)
Class R5	none	none	none
Class T	none	0.50% ^(g)	0.50% ^(g)
Class W	up to 0.25%	up to 0.25%	0.25% ^(c)
Class Y	none	none	none
Class Z	none	none	none


^(a)		As shown in the table below, the maximum distribution and service fees of Class A shares varies among the Funds, as follows:


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Legacy RiverSource funds (other than Columbia Money Market Fund)	Up to 0.25%	Up to 0.25%	0.25%


Columbia Money Market Fund	—	—	0.10%


Columbia Asset Allocation Fund, Columbia Balanced Fund, Columbia Conservative High Yield Fund, Columbia Contrarian Core Fund, Columbia Disciplined Value Fund, Columbia Dividend Income Fund, Columbia Large Cap Growth Fund, Columbia Mid Cap Growth Fund, Columbia Oregon Intermediate Municipal Bond Fund, Columbia Intermediate Bond Fund, Columbia Real Estate Equity Fund, Columbia Small Cap Core Fund, Columbia Small Cap Growth Fund I, Columbia Technology 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.

S.31


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Columbia Blended Equity Fund, Columbia Bond Fund, Columbia California Tax-Exempt Fund, Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Emerging Markets Fund, Columbia Federal Securities Fund, Columbia Greater China Fund, Columbia High Yield Opportunity Fund, Columbia Liberty Fund, Columbia Energy and Natural Resources Fund, Columbia International Bond Fund, Columbia International Growth Fund, Columbia International Stock Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia Mid Cap Core Fund, Columbia Small Cap Value Fund I, Columbia Strategic Investor Fund, Columbia Massachusetts Tax-Exempt Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia New York Tax-Exempt Fund, Columbia Pacific/Asia Fund, Columbia Rhode Island Intermediate Municipal Bond Fund, Columbia Select Large Cap Growth Fund, Columbia Select Opportunities Fund, Columbia Select Small Cap Fund, Columbia Short-Intermediate Bond Fund, Columbia Strategic Income Fund, Columbia U.S. Treasury Index Fund, Columbia Value and Restructuring Fund, Columbia World Equity Fund	—	0.25%	0.25%


Columbia High Yield Municipal Fund, Columbia Intermediate Municipal Bond Fund, Columbia Tax Exempt Fund	—	0.20%	0.20%


Columbia Asset Allocation Fund II, Columbia California Intermediate Municipal Bond Fund, Columbia Convertible Securities Fund, Columbia Georgia Intermediate Municipal Bond Fund, Columbia Global Value Fund, Columbia High Income Fund, Columbia International Value Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico Global Fund, Columbia Maryland Intermediate Municipal Bond Fund, Columbia North Carolina Intermediate Municipal Bond Fund, Columbia Short Term Bond Fund, Columbia Short Term Municipal Bond Fund, Columbia Small Cap Growth Fund II, Columbia South Carolina Intermediate Municipal Bond Fund, Columbia Total Return Bond Fund, Columbia Virginia Intermediate Municipal Bond Fund, Columbia Large Cap Value Fund, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia LifeGoal ^® Income Portfolio, Columbia Marsico 21st Century Fund, Columbia Marsico Growth Fund, Columbia Marsico International Opportunities Fund, Columbia Mid Cap Value Fund, Columbia Multi-Advisor International Equity Fund, Columbia Masters International Equity Portfolio, Columbia Small Cap Value Fund II, Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia Overseas Value Fund	—	—	0.25%; these Funds pay a combined distribution and service fee pursuant to their combined distribution and shareholder servicing plan for Class A shares.


^(b)		The service fees for Class A shares, Class B shares and Class C shares of certain Funds depend on when the shares were purchased, as described below. Service Fee for Class A shares and Class B shares of Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-

S.32


		Exempt Fund and Columbia New York Tax-Exempt Fund — The annual service fee may equal up to 0.10% on net assets attributable to shares of these Funds issued prior to December 1, 1994 and 0.25% on net assets attributable to Fund shares issued thereafter. This arrangement results in a rate of service fee for Fund shares that is a blend between the 0.10% and 0.25% rates. For the fiscal year ended October 31, 2009, the blended service fee was 0.24% of the Fund’s average net assets for each of these Funds, other than Columbia Massachusetts Tax-Exempt Fund, which had a blended service fee of 0.23%. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Liberty Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to April 1, 1989 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended September 30, 2009, the blended service fee was 0.24% of the Fund’s average daily net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Strategic Income Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to January 1, 1993 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all Fund shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended May 31, 2010, the blended service fee was 0.25% of the Fund’s average net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia High Yield Municipal Fund, Columbia Intermediate Municipal 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 shares and Class C shares for Columbia Intermediate Municipal Bond Fund — The annual distribution fee shall be 0.65% of the average daily net assets of the Fund’s Class B shares 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 pay distribution fees of up to 0.75% and service fees of up to 0.10%, for a combined total of 0.85%.
^(c)		Fee amounts noted apply to all Funds other than Columbia Money Market Fund (formerly RiverSource Cash Management 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 voluntarily agreed, effective April 15, 2010, to waive the 12b-1 fees it receives from Class A, Class C, Class R (formerly Class R2) and Class W shares of Columbia Money Market Fund and from Class A, Class C and Class R (formerly Class R2) shares of Columbia Government Money Market Fund. Compensation paid to broker-dealers and other financial intermediaries 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 a portion of the distribution fee for Class C shares of the following Funds so that the combined distribution and service fee (or the distribution fee for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund) does not exceed the specified percentage annually: 0.40% for Columbia Intermediate Municipal Bond Fund; 0.45% for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund; 0.56% for Columbia Short Term Bond Fund; 0.65% for Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Rhode Island Intermediate Municipal Bond Fund; 0.80% for Columbia High Yield Municipal Fund and Columbia Tax-Exempt Fund; 0.85% for Columbia Conservative High Yield Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Federal Securities Fund, Columbia High Yield Opportunity Fund, Columbia Intermediate Bond Fund, Columbia Strategic Income Fund and Columbia U.S. Treasury Index Fund. These arrangements may be modified or terminated by the Distributor at any time.
^(e)		Class R shares of Legacy Columbia funds pay a distribution fee pursuant to a distribution (Rule 12b-1) plan for Class R shares. The Legacy Columbia funds do not have a shareholder service plan for Class R shares. The Legacy RiverSource funds 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 Legacy RiverSource fund Class R shares, 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.
^(f)		The shareholder service fees for Class R3 and Class R4 shares are not paid pursuant to a 12b-1 plan. Under a plan administration services agreement, the Funds’ Class R3 and Class R4 shares pay for plan administration services, including services such as implementation and conversion services, account set-up

S.33


		and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and health savings accounts.
^(g)		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 (including Columbia Asset Allocation Fund) and 0.40% for fixed income Funds. The Funds currently limit such fees to a maximum of 0.30% for equity Funds and 0.15% for fixed-income Funds other than Columbia Rhode Island Intermediate Municipal Bond Fund, for which the limit currently is 0.00%. See Class T Shareholder Service Fees below for more information.

S.34

S.35

Class T Shareholder Service Fees

Class R3 and Class R4 Shares Plan Administration Fee

Selling and/or Servicing Agent Compensation

S.36

S.37

Buying, Selling and Exchanging Shares

Share Price Determination

FUNDamentals ^tm

NAV Calculation

Each of the Fund’s share classes calculates its NAV per share as follows:


		(Value of assets of the share class)
NAV	=	− (Liabilities of the share class)

		Number of outstanding shares of the class

FUNDamentals ^tm

Business Days

S.38

For money market Funds, the Fund’s investments are valued at amortized cost, which approximates market value.

S.39

Transaction Rules and Policies

Also remember that the Fund may refuse any order to buy or exchange shares. If this happens, the Fund will return any money it received, but no interest will be paid on that money.

Order Processing

“Good Form”

Medallion Signature Guarantees

S.40

A Medallion Signature Guarantee is required if:


•	The amount is greater than $100,000.

•	You want your check made payable to someone other than the registered account owner(s).

•	Your address of record has changed within the last 30 days.

•	You want the check mailed to an address other than the address of record.

•	You want the proceeds sent to a bank account not on file.

•	You are the beneficiary of the account and the account owner is deceased (additional documents may be required).

Written Transactions

Telephone Transactions

S.41

Online Transactions

You can sell up to and including an aggregate of $100,000 of shares per day, per Fund account through the internet if you qualify for internet orders.

Customer Identification Program

S.42

Small Account Policy — Class A, B, C, T and Z Share Accounts Below $250

Small Account Policy — Class A, B, C, T and Z Share Accounts Minimum Balance Fee

S.43

Exceptions to the Small Account Policy (Accounts Below $250 and Minimum Balance Fee)

Small Account Policy — Broker/Dealer and Wrap Fee Accounts

The Funds may automatically redeem at any time broker/dealer networked accounts and wrap fee accounts that have account balances of $20 or less or have less than one share.

Cash Flows

Information Sharing Agreements

S.44

Excessive Trading Practices Policy of Non-Money Market Funds

S.45

Risks of Excessive Trading — Excessive trading creates certain risks to the Fund’s long-term shareholders and may create the following adverse effects:


•	negative impact on the Fund’s performance;

•	potential dilution of the value of the Fund’s shares;

S.46


•	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.

S.47

Excessive Trading Practices Policy of Money Market Funds

Opening an Account and Placing Orders

S.48

Accounts established directly with the Fund

S.49

Buying Shares

Eligible Investors

Class A and Class C Shares

Class B Shares Closed

S.50

Additional Class B shares will be issued only to existing investors in Class B shares and only through the following two types of transactions (Qualifying Transactions):


•	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.

Any initial purchase orders for the Fund’s Class B shares will be rejected (other than through a Qualifying Transaction that is an exchange transaction).

S.51

Class E and Class F Shares Closed

Class I Shares

Class R Shares

Class R3, Class R4 and Class R5 Shares

Class R3, Class R4 and Class R5 shares are closed to new investors and new accounts effective as of the close of business on December 31, 2010, subject to certain limited exceptions described below.

S.52

Class T Shares Closed

S.53

Class W Shares

Class Y Shares

Class Y shares are available only to the following categories of eligible investors:


•	Individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) who invest at least $1 million in Class Y shares of a single Fund; and

•	Group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

Class Z Shares

Class Z shares are available only to the categories of eligible investors described below under “Minimum Investment and Account Balance — Class Z Shares Minimum Investments”

In addition, for Class I, Class R, Class W, Class Y and Class Z shares, the Distributor, in its sole discretion, may accept investments from other institutional investors not listed above.

S.54

Minimum Initial Investments, Additional Investments and Account Balances

The table below shows the Fund’s minimum initial investment, additional investment and minimum account balance requirements, which may vary by Fund, class and type of account.

Minimum Investment and Account Balance


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance


For all Funds and classes except those listed below (non-qualified accounts)	$2,000 ^(a)	$100	$250 ^(d)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$1,000	$100	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(b)	$100	$250


Class Z	variable ^(a)(c)	$100	$250 ^(d)


^(a)		If your Class A, B, C, T or 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 systematic investment plan. If you do not do so, it 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 requirement.
^(b)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(c)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.
^(d)		If the value of your account falls below $250, your Fund account is subject to automatic redemption of Fund shares. For details, see Small Account Policy above.

S.55

Systematic Investment Plan

Minimum Investment and Account Balance — Systematic Investment Plans


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance*


For all Funds and classes except those listed below (non-qualified accounts)	$100 ^*(a)	$100	none ^*(b)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$100 ^*(b)	$50	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(c)	$100	none


Class Z	variable ^(d)	$100	none


*		If your Fund account balance is below the minimum initial investment requirement described in this table, you must make investments at least monthly.
^(a)		money market Funds — $2,000.
^(b)		money market Funds — $1,000.
^(c)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(d)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.

Class Z Shares Minimum Investments

There is no minimum initial investment in Class Z shares for the following categories of eligible investors:

•

S.56


•	Any health savings account sponsored by a third party platform and any omnibus group retirement plan for which a selling and/or servicing 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 investor participating in a wrap program sponsored by a selling and/or servicing 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.

The minimum initial investment in Class Z shares for the following eligible investors is $1,000:


•	Any individual retirement plan (assuming the eligibility criteria below are met) or group retirement plan that is not held in an omnibus manner for which a selling and/or servicing 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through an individual retirement account.

The minimum initial investment in Class Z shares for the following categories of eligible investors is $2,000:


•	Any investor buying shares through a Columbia Management state tuition plan organized under Section 529 of the Internal Revenue Code.

•	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 Legacy Columbia fund distributed by the Distributor.

•	Any trustee or director (or family member of a trustee or director) of a fund distributed by the Distributor.

S.57


•	Any investor participating in an account offered by a selling and/or servicing 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 selling and/or servicing agent 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through a non-retirement account.

•	Certain other investors as set forth in more detail in the SAI.

Dividend Diversification

S.58

Wire Purchases

Electronic Funds Transfer

Other Purchase Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing 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, Class E 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 F, Class I, Class R, Class R3, 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 Fund reserves the right to cancel your order if it 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 and/or servicing agents are responsible for sending your buy orders to the Transfer Agent and ensuring that we receive your money on time.

•	Shares bought are recorded on the books of the Fund. The Fund doesn’t issue certificates.

S.59

Selling Shares

Wire Redemptions

Electronic Funds Transfer

Systematic Withdrawal Plan

S.60

Check Redemption Service

In-Kind Distributions

Other Redemption Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing agent receives your sell order in “good form,” your shares will be sold at the next calculated net asset value 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 directly through the Funds, we will normally send the sale proceeds by mail or electronically transfer them to your bank account within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

•	If you sell your shares through a selling and/or servicing agent, the Funds will normally send the sale proceeds by Fedwire within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

S.61


•	If you paid for your shares by check or from your bank account as an Automated Clearing House (ACH) transaction, the Funds will hold the sale 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 during emergency circumstances as determined by the SEC.

•	Other restrictions may apply to retirement accounts. For information about these restrictions, contact your retirement plan administrator.

•	Also keep in mind the Funds’ Small Account Policy, which is described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies .

•	For Class E shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class E shares held by the trust, the shares automatically will convert to Class A shares of the Fund and be registered in the beneficiary’s name. For Class F shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class F shares held by the trust, the shares automatically will convert to Class B shares of the Fund and be registered in the beneficiary’s name. After such conversion, the beneficiary’s shares no longer will convert to Class E shares, but will convert to Class A shares in accordance with the applicable conversion schedule for Class B shares. Automatic conversion of Class B shares to Class A shares occurs eight years after purchase for these shares. For purposes of calculating the conversion period, the beneficiary ownership period for the Class B shares will begin at the time the Class F shares were purchased.

•	For Class E and Class F shareholders, if the beneficiary under a Columbia Advantage Plan trust exercises his or her withdrawal rights, the financial advisor may be required to refund to the Distributor any sales charge or initial commission previously retained or paid on the withdrawn Class E and/or Class F shares or amount redeemed.

S.62

Exchanging Shares

Systematic Exchanges

The rules described below for making exchanges apply to systematic exchanges.

Other Exchange Rules You Should Know


•	Exchanges are made at net asset value 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.

S.63


•	You can generally make exchanges between like share classes of any Fund. Some exceptions apply.

•	If you exchange shares from Class A shares of a 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 a 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 a 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. If your initial investment was in a 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, Class E and Class F shares of the Funds.

•	If your initial investment was in Class A shares of a non-money market Fund and you exchange shares into a 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.

•	Class T shares may be exchanged for Class T or Class A shares. Class T shares exchanged into Class A shares cannot be exchanged back into Class T shares.

•	Class Z shares of a Fund may be exchanged for Class A or Class Z shares of another 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 and/or servicing 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.

S.64

•

Same-Fund Exchange Privilege for Class Z Shares

Ways to Request a Sale or Exchange of Shares

Account established with your selling and/or servicing agent

S.65

Distributions and Taxes

Distributions to Shareholders

A mutual fund can make money two ways:


•	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 unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than it originally paid. Capital gains are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term gains) or more than one year (long-term gains).

FUNDamentals ^TM

Distributions

S.66

S.67

Taxes and Your Investment


•	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. In addition, 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 shares of the Fund.

•	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.

•	For taxable years beginning on or before December 31, 2012, 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 lower net long-term capital gain rates. It is currently unclear whether Congress will extend this provision to taxable years beginning after December 31, 2012. 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 derived from qualified dividend income.

•	For taxable years beginning on or before December 31, 2012, the maximum individual U.S. federal income tax rate on net long-term capital gain (and thus qualified dividend income) has been temporarily reduced to 15%. It is currently unclear whether Congress will extend this rate reduction to taxable years beginning after December 31, 2012.

S.68


•	Certain derivative instruments when held in a Fund’s portfolio subject the Fund to special tax rules, the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, convert capital gains into ordinary income and convert short-term capital losses into long-term capital losses. 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.

•	Certain Funds may purchase or sell (write) options, as described further in the SAI. In general, option premiums which may be received by the Fund are not immediately included in the income of the Fund. Instead, such premiums are taken into account when the option contract expires, the option is exercised by the holder, or the Fund transfers or otherwise terminates the option. If an option written by a Fund is exercised and such Fund sells or delivers the underlying security, the Fund generally will recognize capital gain or loss equal to (a) the sum of the exercise price and the option premium received by the Fund minus (b) the Fund’s basis in the security. Such gain or loss generally will be short-term or long-term depending upon the holding period of the underlying security. Gain or loss with respect to any termination of a Fund’s obligation under an option other than through the exercise of the option and the related sale or delivery of the underlying security generally will be short-term gain or loss. Thus, for example, if an option written by a Fund expires unexercised, such Fund generally will recognize short-term gain equal to the premium received.

•	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 income your share of the foreign taxes paid by the Fund. You may be able to either deduct this amount from your income or claim it as a foreign tax credit. There is no assurance that the Fund will make a special election for a taxable year, even if it is eligible to do so.

S.69


•	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 generally will be exempt from such taxes, but may be subject to other taxes, including income taxes of other states, and federal and state alternative minimum tax. 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. Distributions of 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 or disallowed.

•	The Fund is required by federal law to withhold tax on any taxable and possibly 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 taxpayer identification number (TIN) or haven’t certified to the Fund that withholding doesn’t apply; the Internal Revenue Service (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.

S.70

FUNDamentals ^TM

Taxes

Additional Services and Compensation

Additional Management Information

S.71

S.72

S.73

Summary of the Fund

INVESTMENT OBJECTIVE

Columbia Seligman Communications and Information Fund (the Fund) seeks to provide shareholders with capital gain.

FEES AND EXPENSES OF THE FUND

Shareholder Fees (fees paid directly from your investment)

Class I, R,

Class A

Class B

Class C

R3, R4 & R5

Maximum sales charge (load) imposed on purchases
(as a percentage of offering price)

5.75%

None

Maximum deferred sales charge (load) imposed on redemptions (as a percentage of offering price at the time of purchase, or current net asset value, whichever is less)

None

Annual Fund Operating Expenses ^(a) (expenses that you pay each year as a percentage of the value of your investment)


	Class A		Class B		Class C		Class I
Management fees		0.85%		0.85%		0.85%		0.85%
Distribution and/or service (12b-1) fees		0.25%		1.00%		1.00%		0.00%
Other expenses		0.26%		0.26%		0.26%		0.10%
Total annual fund operating expenses		1.36%		2.11%		2.11%		0.95%

Annual Fund Operating Expenses ^(a) (expenses that you pay each year as a percentage of the value of your investment)


	Class R		Class R3		Class R4		Class R5
Management fees		0.85%		0.85%		0.85%		0.85%
Distribution and/or service (12b-1) fees		0.50%		0.25%		0.00%		0.00%
Other expenses		0.26%		0.39%		0.39%		0.14%
Total annual fund operating expenses		1.61%		1.49%		1.24%		0.99%


^(a)		The expense ratios have been adjusted to reflect current fees.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 3p

Example

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem your shares at the end of those periods (unless otherwise noted). The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


	1 year		3 years		5 years		10 years

Class A (whether or not shares are redeemed)	$	706	$	981	$	1,278	$	2,121
Class B (if shares are redeemed)	$	714	$	961	$	1,335	$	2,254
Class B (if shares are not redeemed)	$	214	$	661	$	1,135	$	2,254
Class C (if shares are redeemed)	$	314	$	661	$	1,135	$	2,446
Class C (if shares are not redeemed)	$	214	$	661	$	1,135	$	2,446
Class I (whether or not shares are redeemed)	$	97	$	303	$	526	$	1,171
Class R (whether or not shares are redeemed)	$	164	$	508	$	877	$	1,916
Class R3 (whether or not shares are redeemed)	$	152	$	471	$	814	$	1,785
Class R4 (whether or not shares are redeemed)	$	126	$	394	$	682	$	1,505
Class R5 (whether or not shares are redeemed)	$	101	$	316	$	548	$	1,218

Portfolio Turnover

4p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

Under normal market conditions, the Fund will invest at least 80% of its net assets (including the amount of any borrowings for investment purposes) in securities of companies operating in the communications, information and related industries. Accordingly, the Fund invests in companies operating in the information technology and telecommunications sectors as well as those in the media industry. In addition, as noted above, the Fund may invest in related industries, which provides the Fund with broad investment flexibility to invest in any industry and many of the issuers in which the Fund invests are technology and technology-related companies. These technology and technology-related companies may include companies operating in any industry, including but not limited to software, hardware, health care, medical technology and technology services, such as the internet. The Fund may invest up to 25% of its net assets in foreign investments. The Fund will provide shareholders with at least 60 days’ written notice of any change in the 80% policy.

The Fund may invest in securities of large companies that are well established and can be expected to grow with the market. The Fund may also invest in small-to-medium size companies that the investment manager believes provide opportunities to benefit from the rapidly changing technologies and the expansion of the communications, information and related industries. These securities generally include common stocks.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

Issuer Risk. An issuer may perform poorly, and therefore, the value of its securities may decline, which would negatively affect the Fund’s performance.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 5p

Small and Mid-Sized Company Risk. Investments in small and medium size companies often involve greater risks than investments in larger, more established companies, including less predictable earnings and lack of experienced management, financial resources, product diversification and competitive strengths.

PAST PERFORMANCE

The following bar chart and table provide some illustration of the risks of investing in the Fund by showing, respectively:


•	how the Fund’s Class A performance has varied for each full calendar year shown on the bar chart; and

•	how the Fund’s average annual total returns compare to recognized measures of market performance shown on the table.

Class A share information is shown in the bar chart; the sales charge for Class A shares is not reflected in the bar chart. If the sales charge was reflected, returns would be lower than those shown.

After-tax returns are shown only for Class A shares. After-tax returns for the other classes will vary. After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on your tax situation and most likely will differ from the returns shown in the table. If you hold your shares in a tax-deferred account, such as a 401(k) plan or an IRA, the after-tax returns do not apply to you since you will not incur taxes until you begin to withdraw from your account.

6p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

Average Annual Total Returns (after applicable sales charges)

Classes

I, R3, R4

Class R

Class R5

Since

inception

(for periods ended Dec. 31, 2010)

1 year

5 years

10 years

(8/3/09)

(4/30/03)

(11/30/01)

Columbia Seligman Communications and Information Fund:

Class A — before taxes

+8.65%

+9.08%

+5.50%

N/A

Class A — after taxes on distributions

+8.65%

+9.08%

+5.45%

N/A

Class A — after taxes on distributions and redemption of fund shares

+5.62%

+7.90%

+4.79%

N/A

Class B — before taxes

+9.40%

+9.27%

+5.32%

N/A

Class C — before taxes

+13.43%

+9.56%

+5.33%

N/A

Class I — before taxes

+15.71%

N/A

+23.94%

N/A

Class R — before taxes

+14.86%

+10.06%

N/A

+12.86%

N/A

Class R3 — before taxes

+15.11%

N/A

+23.27%

N/A

Class R4 — before taxes

+15.36%

N/A

+23.56%

N/A

Class R5 — before taxes

+15.69%

+10.86%

N/A

+7.37%

S&P North American Technology Sector Index (reflects no deduction for fees, expenses or taxes)

+12.65%

+5.83%

–0.86%

+21.49%

+9.14%

+2.59%

Lipper Science & Technology Funds Index (reflects no deduction for fees or taxes)

+17.85%

+5.33%

–1.92%

+24.53%

+9.27%

+2.64%

Fund performance information prior to March 7, 2011 represents that of the Fund as a series of Columbia Seligman Communications and Information Fund, Inc., a Maryland corporation. The Fund was reorganized into a series of Columbia Funds Series Trust II, a Massachusetts business trust, on that date.

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC


Portfolio Manager	Title	Managed Fund Since
Paul H. Wick	Portfolio Manager	1990
Richard M. Parower, CFA	Co-Portfolio Manager	2000
Sangeeth Peruri	Technology Team Member	2000
Vishal Saluja	Technology Team Member	2011
Sushil Wagle	Technology Team Member	2011

8p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

BUYING AND SELLING SHARES

Nonqualified accounts

Individual

(all classes

retirement

Class I,

Minimum Initial Investment

except I and R)

accounts

Class R

For investors other than systematic investment plans

2,000

1,000

None

Systematic investment plans

100

None

Nonqualified accounts

Individual

(all classes

retirement

Class I,

Additional Investments

except I and R)

accounts

Class R

For investors other than systematic investment plans

100

None

Systematic investment plans

100

None

Exchanging or Selling Shares

If your account was established directly with the Fund, you may request an exchange or sale of shares through one of the following methods:

By mail: Mail your exchange or sale request to:

Regular Mail: Columbia Management Investment Services Corp.,
P.O. Box 8081, Boston, MA 02266-8081

Express Mail: Columbia Management Investment Services Corp.,
30 Dan Road, Canton, MA 02021-2809

By telephone or wire transfer: Call 800.345.6611. A service fee may be charged against your account for each wire sent.

TAX INFORMATION

The Fund intends to make distributions that may be taxed as ordinary income or capital gains.

FINANCIAL INTERMEDIARY COMPENSATION

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the financial intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary to recommend the Fund over another investment. Ask your financial intermediary or visit their website for more information.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 9p

More Information about the Fund

INVESTMENT OBJECTIVE

Columbia Seligman Communications and Information Fund (the Fund) seeks to provide shareholders with capital gain. Because any investment involves risk, there is no assurance this objective can be achieved. Only shareholders can change the Fund’s objective.

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

The Fund uses a bottom-up stock selection approach. This means that the investment manager (Columbia Management Investment Advisers, LLC) uses extensive in-depth research into specific companies in the communications, information and related industries to find those companies that it believes offer the greatest prospects for future growth. In selecting individual securities, the investment manager looks for companies that it believes display or are expected to display:


•	Robust growth prospects

•	High profit margins or return on capital

•	Attractive valuation relative to expected earnings or cash flow

•	Quality management

•	Unique competitive advantages

10p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

The Fund generally sells a stock if the investment manager believes:


•	its target price is reached,

•	its valuation becomes excessive,

•	its earnings or revenue growth are disappointing,

•	its underlying fundamentals have deteriorated, or

•	more attractive investment opportunities are believed to be available.

The Fund may purchase American Depositary Receipts (ADRs), which are publicly traded instruments generally issued by domestic banks or trust companies that represent a security of a foreign issuer.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Concentration Risk. The Fund concentrates its investments in companies in the communications, information and related industries. The market prices of these stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments. These stocks may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. In such an environment, those companies with high market valuations may appear less attractive to investors, which may cause sharp decreases in the companies’ market prices. Therefore, the Fund may be susceptible to factors affecting these industries and the Fund’s net asset value may fluctuate more than a fund that invests in a wider range of industries. In addition, the rapid pace of change within many of these industries tends to create a more volatile operating environment than in other industries.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 11p

12p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

Sector Risk. The Fund will invest a substantial portion of its assets in technology and technology-related companies. The market prices of technology and technology-related stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments. These stocks may fall rapidly in and out of favor with investors, which may cause sudden selling and dramatically lower market prices. These stocks also may be affected adversely by changes in technology, consumer and business purchasing patterns, government regulation and/or obsolete products or services. In addition, a rising interest rate environment tends to negatively affect technology and technology-related companies. In such an environment, those companies with high market valuations may appear less attractive to investors, which may cause sharp decreases in the companies’ market prices. Further, those technology and technology-related companies seeking to finance their expansion would have increased borrowing costs, which may negatively impact their earnings. As a result, these factors may negatively affect the performance of the Fund. The Fund’s net asset value may fluctuate more than a fund that invests in a wider range of industries. Technology and technology-related companies are often smaller and less experienced companies and may be subject to greater risks than larger companies, such as limited product lines, markets and financial and managerial resources. These risks may be heightened for technology companies in foreign markets.

Small and Mid-Sized Company Risk. Investments in small and medium sized companies often involve greater risks than investments in larger, more established companies because small and medium companies may lack the management experience, financial resources, product diversification, experience and competitive strengths of larger companies. Securities of small and medium companies may trade on the over-the-counter market or on regional securities exchanges and the frequency and volume of their trading may be substantially less and may be more volatile than is typical of larger companies.

MORE ABOUT ANNUAL FUND OPERATING EXPENSES

The following information is presented in addition to, and should be read in conjunction with, “Fees and Expenses of the Fund” that appears in the Summary of the Fund.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 13p

Calculation of Annual Fund Operating Expenses. Annual fund operating expenses are based on expenses incurred during the Fund’s most recently completed fiscal year and are expressed as a percentage (expense ratio) of the Fund’s average net assets during the fiscal period. The expense ratios are adjusted to reflect current fee arrangements, but are not adjusted to reflect the Fund’s average net assets as of a different period or a different point in time, as the Fund’s asset levels will fluctuate. In general, the Fund’s expense ratios will increase as its assets decrease, such that the Fund’s actual expense ratios may be higher than the expense ratios presented in the table. The investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until February 29, 2012, unless sooner terminated at the sole discretion of the Fund’s Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any) will not exceed 1.54% for Class A, 2.29% for Class B, 2.29% for Class C, 1.17% for Class I, 1.79% for Class R, 1.72% for Class R3, 1.47% for Class R4 and 1.22% for Class R5. The commitment by the investment manager and its affiliates to waive fees and/or cap (reimburse) expenses is expected to limit the impact of any increase in the Fund’s operating expenses that would otherwise result because of a decrease in the Fund’s assets in the current fiscal year.

OTHER INVESTMENT STRATEGIES AND RISKS

14p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

Hedging risk is the risk that derivative instruments used to hedge against an opposite position, may offset losses, but they may also offset gains. There is no guarantee that a hedging strategy will eliminate the risk which the hedging strategy is intended to offset, which may lead to losses within the Fund.

Leverage risk is the risk that losses from the derivative instrument may be greater than the amount invested in the derivative instrument.

For more information on strategies and holdings, and the risks of such strategies, including derivative instruments that the Fund may use, see the Fund’s SAI and its annual and semiannual reports.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 15p

Although brokerage commissions and implied commissions are not reflected in the expense table under “Fees and Expenses of the Fund,” they are reflected in the total return of the Fund.

Additional information regarding securities transactions can be found in the SAI.

16p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

FUND MANAGEMENT AND COMPENSATION

Investment Manager

Funds managed by Columbia Management have received an order from the Securities and Exchange Commission that permits Columbia Management, subject to the approval of the Board, to appoint a subadviser or change the terms of a subadvisory agreement for a fund without first obtaining shareholder approval. The order permits the Fund to add or change unaffiliated subadvisers or change the fees paid to subadvisers from time to time without the expense and delays associated with obtaining shareholder approval of the change. The Fund is in the process of seeking shareholder approval to operate the Fund in this manner. There is no assurance shareholder approval will be received, and no changes will be made without shareholder approval until that time. For more information, see the SAI.

The Fund pays Columbia Management a fee for managing its assets. Under the Investment Management Services Agreement (Agreement), the fee for the most recent fiscal year was 0.85% of the Fund’s average daily net assets. Under the Agreement, the Fund also pays taxes, brokerage commissions, and nonadvisory expenses. A discussion regarding the basis for the Board approving the Agreement is available in the Fund’s annual shareholder report for the year ended Dec. 31, 2010.

Portfolio Managers. The portfolio managers responsible for the day-to-day management of the Fund are:

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 17p

Paul H. Wick, Portfolio Manager


•	Managed the Fund since 1990.


•	Prior to the investment manager’s acquisition of J. & W. Seligman & Co. Incorporated (Seligman) in Nov. 2008, Mr. Wick was a Managing Director of Seligman.

•	Joined Seligman in 1987.

•	Began investment career in 1987.

•	BA, Duke; MBA, Duke/Fuqua.

Richard M. Parower, CFA, Co-Portfolio Manager


•	Managed the Fund since 2000.


•	Mr. Parower provides assistance to Mr. Wick in managing the Fund through his research and contributions to the investment decisions with respect to companies in the application software, information technology services and international sectors.


•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Parower was a Managing Director of Seligman.


•	Joined Seligman in 2000.


•	Began investment career in 1988.


•	BA, Washington University; MBA, Columbia University.

Sangeeth Peruri, Technology Team Member


•	Management responsibilities for the Fund since 2000.


•	Mr. Peruri provides assistance to Mr. Wick in managing the Fund through his research and contributions to the investment decisions with respect to companies in the analog and communications ICs, as well as other subsectors of the semiconductor sector.


•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Peruri was a Managing Director of Seligman.


•	Joined Seligman in 2000.


•	Began investment career in 1999.


•	BA, Brown University.

Vishal Saluja, Technology Team member


•	Management responsibilities for the Fund since 2011.


•	Mr. Saluja provides assistance to Mr. Wick in managing the Fund through his research and contributions to the investment decisions with respect to companies in the life science technology and electronic design software sectors.

18p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS

Financial Highlights


	Year ended December 31,
	2010			2009			2008			2007			2006
Class A
Per share data
Net asset value, beginning of period		$38.78			$24.25			$38.20			$33.24			$27.29

Income from investment operations:
Net investment loss		(.29	)		(.37	)		(.36	)		(.32	)		(.27	)
Net realized and unrealized gain (loss) on investments		6.20			14.81			(13.59	)		5.28			6.22
Increase from payments by affiliate		.01			—			—			—			—

Total from investment operations		5.92			14.44			(13.95	)		4.96			5.95

Proceeds from regulatory settlement		.01			.09			—			—			—

Net asset value, end of period		$44.71			$38.78			$24.25			$38.20			$33.24

Total return		15.29%	^(a),(b)		59.92%	^(a)		(36.52%	)		14.92%			21.80%

Ratios to average net assets ^(c)
Expenses prior to fees waived or expenses reimbursed		1.36%			1.61%			1.52%			1.46%			1.51%

Net expenses after fees waived or expenses reimbursed ^(d)		1.36%			1.61%			1.52%			1.46%			1.49%

Net investment loss		(0.72%	)		(1.18%	)		(1.12%	)		(0.89%	)		(0.88%	)

Supplemental data
Net assets, end of period (in thousands)		$3,066,071			$2,788,834			$1,642,388			$2,907,051			$2,612,744

Portfolio turnover		105%			150%			133%			206%			187%

See accompanying Notes to Financial Highlights.

20p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS


	Year ended December 31,
	2010			2009			2008			2007			2006
Class R5
Per share data
Net asset value, beginning of period		$40.28			$25.08			$39.32			$34.07			$27.83

Income from investment operations:
Net investment loss		(.15	)		(.27	)		(.21	)		(.17	)		(.13	)
Net realized and unrealized gain (loss) on investments		6.45			15.38			(14.03	)		5.42			6.37
Increase from payments by affiliate		.01			—			—			—			—

Total from investment operations		6.31			15.11			(14.24	)		5.25			6.24

Proceeds from regulatory settlement		.01			.09			—			—			—

Net asset value, end of period		$46.60			$40.28			$25.08			$39.32			$34.07

Total return		15.69%	^(a),(b)		60.60%	^(a)		(36.22%	)		15.41%			22.42%

Ratios to average net assets ^(c)
Expenses prior to fees waived or expenses reimbursed		1.00%			1.27%			1.04%			1.01%			1.04%

Net expenses after fees waived or expenses reimbursed ^(d)		1.00%			1.27%			1.04%			1.01%			1.02%

Net investment loss		(0.37%	)		(0.87%	)		(0.64%	)		(0.44%	)		(0.41%	)

Supplemental data
Net assets, end of period (in thousands)		$18,414			$14,853			$20,164			$33,473			$23,805

Portfolio turnover		105%			150%			133%			206%			187%

Notes to Financial Highlights


^(a)		During the years ended December 31, 2010 and 2009, the Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total returns would have been lower by 0.02% and 0.36%, respectively.


^(b)		During the year ended December 31, 2010, the Fund received a payment by an affiliate. Had the Fund not received this payment, the total return would have been lower by 0.03%.


^(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)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds).


^(e)		For the period from August 3, 2009 (when shares became available) to December 31, 2009.


^(f)		Annualized.


^(g)		Effective September 7, 2010, Class R2 shares were renamed Class R shares.

Information prior to March 7, 2011 represents that of the Fund as a series of Columbia Seligman Communications and Information Fund, Inc., a Maryland corporation. The Fund was reorganized into a series of Columbia Funds series Trust II, a Massachusetts business trust, on that date.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 PROSPECTUS 27p

Choosing a Share Class

The Funds

S.1

Comparison of Share Classes

Share Class Features


•	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.

FUNDamentals ^tm

Selling and/or Servicing Agents

S.2


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class A*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	none	none

Class B*	Closed to new investors. ^(h)	up to $49,999	Converts to Class A shares generally eight years after purchase. ⁽ⁱ⁾

Class C*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	up to $999,999; no limit for eligible employee benefit plans. ^(j)	none

Class E	Closed to new investors and new accounts. ^(k)	none	none

Class F	Closed to new investors and new accounts. ^(k)	up to $250,000. ^(l)	Converts to Class E shares eight years after purchase. ⁽ⁱ⁾

Class I*	Available only to the Funds (i.e., Fund-of-Fund investments).	none	none

Class R*	Available only to eligible retirement plans and health savings accounts; no minimum initial investment.	none	none

Class R3*	Effective after the close of business on December 31, 2010, Class R3 shares are 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. ⁽ⁿ⁾	none	none

Class R4*	Effective after the close of business on December 31, 2010, Class R4 shares are 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. ⁽ⁿ⁾	none	none

S.3


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class R5*	Effective after the close of business on December 31, 2010, Class R5 shares are 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, health savings accounts and, if approved by the Distributor, institutional or corporate accounts above a threshold established by the Distributor (currently $1 million per Fund or $10 million in all Funds) and bank trust departments. ⁽ⁿ⁾	none	none

Class T	Available only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy funds into various Columbia funds (formerly named Liberty funds).	none	none

Class W*	Available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs.	none	none

Class Y*	Available to certain categories of investors which are subject to minimum initial investment requirements; currently offered only to former shareholders of the former Columbia Funds Institutional Trust. ^(q)	none	none

Class Z*	Available only to certain eligible investors, which are subject to different minimum initial investment requirements, ranging from $0 to $2,000.	none	none


	Front-End Sales Charges ^(b)	Contingent Deferred Sales Charges (CDSCs) ^(b)


Class A*	5.75% maximum, declining to 0.00% on investments of $1 million or more. None for money market Funds and certain other Funds. ^(f)	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 of purchase. ^(g)

Class B*	none	5.00% maximum, gradually declining to 0.00% after six years. ⁽ⁱ⁾

Class C*	none	1.00% on certain investments redeemed within one year of purchase.

Class E	4.50% maximum, declining to 0.00% on investments of $500,000 or more.	1.00% on certain investments of between $1 million and $5 million redeemed within one year of purchase.

S.4


		Non 12b-1
	Maximum Distribution and Service (12b-1) Fees ^(c)	Service Fees ^(d)


Class R4*	none	0.25% ^(m)

Class R5*	none	none

Class T	none	up to 0.50%. ^(o)

Class W*	0.25% distribution and service fees, with certain exceptions. ^(c)	none

Class Y*	none	none

Class Z*	none	none


*		For money market Funds, new investments must be made in Class A, Class I, Class T, Class W or Class Z shares, subject to eligibility. Class C and Class R shares of the money market Funds 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. The money market Funds offer other classes of shares only to facilitate exchanges with other Funds offering such share classes.
^(a)		See Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders for more details on the eligible investors and minimum initial and subsequent investment and account balance requirements.
^(b)		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 charge policies, see Choosing a Share Class — Reductions/Waivers of Sales Charges .
^(c)		These are the maximum applicable distribution and/or shareholder service fees. Because these fees are paid out of Fund assets on an on-going 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. For Legacy Columbia funds with Class A shares subject to both a distribution and service fee, the aggregate fees are limited to not more than 0.25%. Columbia Money Market Fund (formerly RiverSource Cash Management 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. The Distributor has voluntarily agreed to waive all or a portion of distribution and/or service fees for certain classes of certain Funds. For information on these waivers, see Choosing a Share Class — Distribution and Service Fees . Compensation paid to selling and/or servicing agents may be suspended to the extent of the Distributor’s waiver of the 12b-1 fees on these specific Fund share classes.
^(d)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees and Class T Shares — Shareholder Service Fees .
^(e)		The minimum initial investment requirement is $5,000 for RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund, and $10,000 for Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund and Columbia Absolute Return Currency and Income Fund. For more details on the minimum initial investment requirement applicable to other Funds, see Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders .
^(f)		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, and RiverSource S&P 500 Index Fund.
^(g)		There is no CDSC on Class A shares of the money market Funds or the Funds identified in footnote (f) above. Legacy Columbia fund Class A shareholders and Legacy RiverSource fund shareholders who purchased Class A shares without an initial sales charge because their accounts aggregated between $1 million and $50 million at the time of purchase and who purchased shares on or before September 3, 2010 will incur, for Legacy Columbia fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC and

S.6


		for legacy RiverSource fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within 18 months of purchase and redemptions after one year will not be subject to a CDSC.
^(h)		The Funds no longer accept investments from new or existing investors in Class B shares, except through reinvestment of dividend and/or capital gain distributions by existing Class B shareholders, or a permitted exchange, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class B Shares Closed . Unless contrary instructions are received in advance by the Fund, any purchase orders (except those submitted by a selling and/or servicing agent through the National Securities Clearing Corporation (NSCC) that are initial investments in Class B shares or that are orders for additional Class B shares of the Fund received from existing investors in Class B shares, including orders made through an active systematic investment plan, will automatically be invested in Class A shares of the Fund, without regard to the normal minimum initial investment requirement for Class A shares, but subject to the applicable front-end sales charge. Your selling and/or servicing agent may have different policies, including automatically redirecting the purchase order to a money market fund. See Choosing a Share Class — Class A Shares — Front-end Sales Charge for additional information about Class A shares .
⁽ⁱ⁾		Timing of conversion and CDSC schedule will vary depending on the Fund and the date of your original purchase of Class B shares. For more information on the timing of conversion of Class B shares to Class A shares, see Choosing a Share Class — Class B Shares — Conversion of Class B Shares to Class A Shares . Class B shares of Columbia Short Term Municipal Bond Fund do not convert to Class A shares. For information on the timing of the conversion of Class F shares to Class E shares, see Choosing a Share Class — Class F Shares — Commissions and Conversion to Class E Shares .
^(j)		There is no investment limit on Class C shares purchased by employee benefit plans created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans, that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper.
^(k)		The Funds no longer accept investments from new or existing investors in Class E or Class F shares, except that existing Class E and/or Class F shareholders who opened and funded their account prior to September 22, 2006 may continue to invest in Class E and/or Class F shares, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class E and Class F Shares Closed . Class E and Class F shares are designed for investors who wish to make an irrevocable gift to a child, grandchild or other individual.
^(l)		If you hold Class F shares of the Fund and your account has a value of less than $250,000, you may purchase additional Class F shares of the Fund in amounts that increase your account value up to a maximum of $250,000. The value of your account, for this purpose, includes the value of all Class F shares in eligible accounts held by you and your “immediate family.” For more information about account value aggregation and eligible accounts, see Choosing a Share Class — Reductions/Waivers of Sales Charges . If you have reached the $250,000 limit, any additional amounts you invest in Class F shares of the Fund will be invested in Class E shares of the Fund, without regard to the normal minimum investment amount required for Class E shares. Such investments will, however, be subject to the applicable front-end sales charge.
^(m)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees .
⁽ⁿ⁾		Shareholders who opened and funded a Class R3, Class R4 or Class R5 shares account with a Fund as of the close of business on December 31, 2010 (including accounts once funded that subsequently reached a zero balance) may continue to make additional purchases of the share class, and existing Class R3, Class R4 or Class R5 accounts may continue to allow new investors or participants to be established in their Fund account. For more information on eligible investors in these share classes and the closing of these share classes, see Buying Shares — Eligible Investors — Class R3 Shares, R4 Shares and Class R5 Shares .
^(o)		For more information, see Class T Shares — Shareholder Service Fees .
^(p)		Class T Shareholders who purchased Class T shares without a front-end sales charge because their accounts aggregated between $1 million and $50 million at the time of the purchase and who purchased shares on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC.
^(q)		Class Y shares are available only to the following categories of investors: (i) individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) that invest at least $1 million in Class Y shares of a single Fund and (ii) group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

S.7

Sales Charges and Commissions

Class A Shares — Front-End Sales Charge

S.8


							Amount
							retained by
					Sales		or paid to
			Sales		charge		selling
			charge		as a		and/or
			as a		% of the		servicing
			% of the		net		agents as a
	Dollar amount of		offering		amount		% of the
Breakpoint Schedule For:	shares bought ^(a)		price ^(b)		invested ^(b)		offering price



Columbia California Intermediate Municipal Bond Fund,	$	0—$99,999		3.25%		3.36%		2.75%

Columbia Connecticut Intermediate Municipal Bond Fund,	$	100,000—$249,999		2.50%		2.56%		2.15%

Columbia Georgia Intermediate Municipal Bond Fund,	$	250,000—$499,999		2.00%		2.04%		1.75%

Columbia Intermediate Bond Fund,	$	500,000—$999,999		1.50%		1.53%		1.25%

Columbia Intermediate Municipal Bond Fund,	$	1,000,000 or more		0.00%		0.00%		0.00%	^(c)(d)

Columbia LifeGoal ^® Income Portfolio,

Columbia Maryland Intermediate Municipal Bond Fund,

Columbia Massachusetts Intermediate Municipal Bond Fund,

Columbia New Jersey Intermediate Municipal Bond Fund,

Columbia New York Intermediate Municipal Bond Fund,

Columbia North Carolina Intermediate Municipal Bond Fund,

Columbia Oregon Intermediate Municipal Bond Fund,

Columbia Rhode Island Intermediate Municipal Bond Fund,

Columbia Short-Intermediate Bond Fund,

Columbia South Carolina Intermediate Municipal Bond Fund,

Columbia Total Return Bond Fund and

Columbia Virginia Intermediate Municipal Bond Fund



Columbia Short-Term Bond Fund and	$	0—$99,999		1.00%		1.01%		0.75%

Columbia Short-Term Municipal Bond Fund	$	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)(d)


*		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund and RiverSource S&P 500 Index Fund. “ Funds-of-Funds (equity) ” includes — Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia Portfolio Builder Aggressive Fund, Columbia Portfolio Builder Moderate Aggressive Fund, Columbia Portfolio Builder Moderate Fund, Columbia Portfolio Builder Total Equity Fund, Columbia Retirement Plus 2010 Fund, Columbia Retirement Plus 2015 Fund, Columbia Retirement Plus 2020 Fund, Columbia Retirement Plus 2025 Fund, Columbia Retirement Plus 2030 Fund, Columbia Retirement Plus 2035 Fund, Columbia Retirement Plus 2040 Fund, Columbia Retirement Plus 2045 Fund. “ Funds-of-Funds (fixed income) ” includes — Columbia Income Builder Fund, Columbia Income Builder Fund II, Columbia Income Builder Fund III, Columbia Portfolio Builder Conservative Fund and Columbia Portfolio Builder Moderate Conservative Fund. Columbia Asset Allocation Fund, Columbia Asset Allocation Fund II, Columbia Balanced Fund and Columbia Liberty 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.

S.11


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources (except for the Funds listed below): 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The Distributor may be reimbursed if a CDSC is deducted when the shares are redeemed. Currently, the Distributor does not make such payments on purchases of the following Funds for purchases with a total market value of $1 million or more: Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia U.S. Treasury Index Fund and RiverSource S&P 500 Index Fund.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Class A Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class A shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase. Shareholders who purchased shares of a Legacy RiverSource fund on or before Sept. 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within 18 months of purchase.

	•	Fund shareholders who purchased shares after September 3, 2010 will incur a CDSC if those shares are redeemed 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.

The CDSC on Class A shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

S.12

FUNDamentals ^tm

Contingent Deferred Sales Charge

Class A Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy $1 million or more of Class A shares, according to the following schedule:

Class A Shares — Commission Schedule (Paid by the Distributor to Selling and/or Service Agents)*


	Commission Level
	(as a % of net asset
Purchase Amount	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.
**		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor sales commissions on purchases (that are coded as commission-eligible trades) in amounts of less than $1 million.

S.13

Class B Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class B shares, but you may pay a CDSC when you sell Class B shares.

Class B Shares — CDSC

The CDSC on Class B shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	generally declines each year until there is no sales charge for redeeming shares.

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

				Columbia California Intermediate Municipal Bond Fund,
				Columbia Georgia Intermediate Municipal Bond Fund,
				Columbia Connecticut Intermediate Municipal Bond Fund,
				Columbia Intermediate Bond Fund, Columbia Intermediate
				Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
				Columbia Maryland Intermediate Municipal Bond Fund,
				Columbia Massachusetts Intermediate Municipal Bond
				Fund, Columbia New Jersey Intermediate Municipal Bond Fund,
				Columbia New York Intermediate Municipal Bond Fund,
				Columbia North Carolina Intermediate Municipal Bond Fund,
				Columbia Oregon Intermediate Municipal Bond Fund, Columbia
				Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of				Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those			Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right			Columbia Virginia Intermediate Municipal Bond Fund


One		5.00	%	3.00%
Two		4.00	%	3.00%
Three		3.00	%**	2.00%
Four		3.00	%	1.00%
Five		2.00	%	None
Six		1.00	%	None

S.14

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

		Columbia California Intermediate Municipal Bond Fund,
		Columbia Georgia Intermediate Municipal Bond Fund,
		Columbia Connecticut Intermediate Municipal Bond Fund,
		Columbia Intermediate Bond Fund, Columbia Intermediate
		Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
		Columbia Maryland Intermediate Municipal Bond Fund,
		Columbia Massachusetts Intermediate Municipal Bond
		Fund,Columbia New Jersey Intermediate Municipal Bond Fund,
		Columbia New York Intermediate Municipal Bond Fund,
		Columbia North Carolina Intermediate Municipal Bond Fund,
		Columbia Oregon Intermediate Municipal Bond Fund, Columbia
		Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of		Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those	Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right	Columbia Virginia Intermediate Municipal Bond Fund


Seven	None	None
Eight	None	None
Nine	Conversion to Class A Shares	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.
**		For shares purchased in a Legacy RiverSource fund (other than a Seligman fund) on or prior to June 12, 2009, the CDSC percentage for year three is 4%.

Class B shares of Columbia Short Term Municipal Bond Fund are not subject to a CDSC.

Class B Shares — Commissions

S.15

Class B Shares — Conversion to Class A Shares

The following rules apply to the conversion of Class B shares to Class A shares:


•	Class B shares are converted on or about the 15th day of the month that they become eligible for conversion. For purposes of determining the month when your Class B shares are eligible for conversion, the start of the holding period is the first day of the month in which your purchase was made.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class A shares at the same time.

•	You’ll receive the same dollar value of Class A shares as the Class B shares that were converted. Class B shares that you received from an exchange of Class B shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

Class C Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class C shares, but you may pay a CDSC when you sell Class C shares.

S.16

Class C Shares — CDSC


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	is reduced to 0.00% on shares redeemed a year or more after purchase.

Class C Shares — Commissions

Class E Shares — Front-End Sales Charge

The front-end sales charge you’ll pay on Class E shares:


•	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.

Class E Shares — Front-End Sales Charge — Breakpoint Schedule


			Sales charge		Amount retained by or
	Sales charge		as a % of the		paid to selling and/or
Dollar amount of	as a % of the		net amount		servicing agents as a %
shares bought ^(a)	offering price ^(b)		invested ^(b)		of the offering price


$0—$49,999		4.50%		4.71%		4.00%
$50,000—$99,999		3.50%		3.63%		3.00%
$100,000—$249,999		2.50%		2.56%		2.00%
$250,000—$499,999		1.25%		1.27%		1.00%
$500,000—$999,999		0.00%		0.00%		0.00%
$1,000,000 or more		0.00%		0.00%		0.00%	^(c)

S.17


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following out of its own resources: 1.00% on purchases up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $5 million and 0.25% on purchases of $5 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.

Class E Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class E shares that you bought without an initial sales charge.


•	If you bought Class E shares without an initial sales charge because your accounts aggregated between $1 million and $5 million at the time of purchase, you will incur a 1.00% CDSC if you redeem those shares within one year of buying them.

•	Subsequent Class E share purchases that bring your aggregate account value to $1 million or more (but less than $5 million) will also be subject to a CDSC if you redeem them within one year of buying them.

The CDSC on Class E shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

Class E Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy Class E shares, according to the following schedule:

S.18


*		Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages.

Class F Shares — Commissions and Conversion to Class E Shares

The following rules apply to the conversion of Class F shares to Class E shares:


•	Class F shares are converted on or about the 15th day of the month that they become eligible for conversion.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class E shares at the same time.

•	You’ll receive the same dollar value of Class E shares as the Class F shares that were converted. Class F shares that you received from an exchange of Class F shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

S.20

Class T Shares — Front-End Sales Charge — Breakpoint Schedule


									Amount retained
			Sales charge			Sales charge			by or paid to
			as a %			as a %			selling and/or
			of the			of the			servicing agents
Breakpoint	Dollar amount of		offering			net amount			as a % of the
Schedule For:	shares bought ^(a)		price ^(b)			invested ^(b)			offering price


	$	0—$49,999		5.75	%		6.10	%		5.00	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Equity Funds	$	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)(d)

	$	0—$49,999		4.75	%		4.99	%		4.25	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Fixed-Income Funds	$	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)(d)


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources: 1.00% on purchases of $1 million up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $50 million and 0.25% on purchases of $50 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on purchases up to but not including $3 million (including those in amounts of less than $1 million), up to 0.50% on purchases of $3 million up to but not including $50 million, and up to 0.25% on purchases of $50 million or more.

Class T Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class T shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:

S.22


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase.

	•	Shareholders who purchased shares of a Fund after September 3, 2010 will incur a CDSC if those shares are redeemed 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 of 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.

The CDSC on Class T shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

Class T Shares — Commissions

S.23

S.25

FUNDamentals ^tm

Your “Immediate Family” and Account Value Aggregation

Eligible Accounts

The following accounts are eligible for account value aggregation as described above:


•	Individual or joint accounts;

•	Roth and traditional Individual Retirement Accounts (IRAs), Simplified Employee Pension accounts (SEPs), Savings Investment Match Plans for Employees of Small Employers accounts (SIMPLEs) and Tax Sheltered Custodial Accounts (TSCAs);

•	Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors (UTMA) accounts for which you, your spouse, or your domestic partner is parent or guardian of the minor child;

•	Revocable trust accounts for which you or an immediate family member, individually, is the beneficial owner/grantor;

•	Accounts held in the name of your, your spouse’s, or your domestic partner’s sole proprietorship or single owner limited liability company or S corporation;

•	Qualified retirement plan assets, provided that you are the sole owner of the business sponsoring the plan, are the sole participant (other than a spouse) in the plan, and have no intention of adding participants to the plan; and

•	Investments in wrap accounts;

provided that each of the accounts identified above is invested in Class A, Class B, Class C, Class E, Class F, Class T, Class W and/or Class Z shares of the Funds.

S.26

The following accounts are not eligible for account value aggregation as described above:


•	Accounts of pension and retirement plans with multiple participants, such as 401(k) plans (which are combined to reduce the sales charge for the entire pension or retirement plan and therefore are not used to reduce the sales charge for your individual accounts);

•	Accounts invested in Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of the Funds;

•	Investments in 529 plans, donor advised funds, variable annuities, variable life insurance products, or managed separate accounts;

•	Charitable and irrevocable trust accounts; and

•	Accounts holding shares of money market Funds that used the Columbia brand before May 1, 2010.

Front-End Sales Charge Waivers

The following categories of investors may buy Class A, Class E and Class T shares of the Funds at net asset value, without payment of any front-end sales charge that would otherwise apply:


•	Current or retired Fund Board members, officers or employees of the Funds or Columbia Management or its affiliates ⁽¹⁾ ;

•	Current or retired Ameriprise Financial Services, Inc. financial advisors and employees of such financial advisors ⁽¹⁾ ;

•	Registered representatives and other employees of affiliated or unaffiliated selling and/or servicing agent having a selling agreement with the Distributor ⁽¹⁾ ;

•	Registered broker/dealer firms that have entered into a dealer agreement with the Distributor may buy Class A shares without paying a front-end sales charge for their investment account only;

•	Portfolio managers employed by subadvisers of the Funds ⁽¹⁾ ;

•	Partners and employees of outside legal counsel to the Funds or the Funds’ directors or trustees who regularly provide advice and services to the Funds, or to their directors or trustees;

•	Direct rollovers from qualified employee benefit plans, provided that the rollover involves a transfer to Class A shares in the same Fund;

•	Purchases made:


	•	With dividend or capital gain distributions from a Fund or from the same class of another Fund;

S.27


	•	Through or under a wrap fee product or other investment product sponsored by a selling and/or servicing agent that charges an account management fee or other managed agency/asset allocation accounts or programs involving fee-based compensation arrangements that have or that clear trades through a selling and/or servicing agent that has a selling agreement with the Distributor;

	•	Through state sponsored college savings plans established under Section 529 of the Internal Revenue Code; or

	•	Through banks, trust companies and thrift institutions, acting as fiduciaries;


•	Separate accounts established and maintained by an insurance company which are exempt from registration under Section 3(c)(11);

•	Purchases made through “employee benefit plans” created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper; and


⁽¹⁾		Including their spouses or domestic partners, children or step-children, parents, step-parents or legal guardians, and their spouse’s or domestic partner’s parents, step-parents, or legal guardians.


•	At the Fund’s discretion, front-end sales charges may be waived for shares issued in plans of reorganization, such as mergers, asset acquisitions and exchange offers, to which the Fund is a party.

CDSC Waivers

CDSC — Waivers of the CDSC for Class A, Class C, Class E, Class F and Class T shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	for which no sales commission or transaction fee was paid to an authorized selling and/or servicing agent at the time of purchase;

•	purchased through reinvestment of dividend and capital gain distributions;

S.28


•	in an account that has been closed because it falls below the minimum account balance;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	that result from returns of excess contributions made to retirement plans or individual retirement accounts, so long as the selling and/or servicing agent returns the applicable portion of any commission paid by the Distributor;

•	of Class A shares of a Fund initially purchased by an employee benefit plan;

•	other than Class A shares, of a Fund initially purchased by an employee benefit plan that are not connected with a plan level termination;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies );

•	at a Fund’s discretion, issued in connection with plans of reorganization, including but not limited to mergers, asset acquisitions and exchange offers, to which the Fund is a party; and

•	by certain other investors as set forth in more detail in the SAI.

CDSC — Waivers of the CDSC for Class B shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies ); and

•	by certain other investors, including certain institutions as set forth in more detail in the SAI.

Please see the SAI for more information about the sales charge reductions and waivers described here.

S.29

Repurchases

Distribution and Service Fees

S.30

The table below shows the maximum annual distribution and/or service fees (as an annual % of average daily net assets) and the combined amount of such fees applicable to each share class:


	Distribution	Service	Combined
	Fee	Fee	Total


Class A	up to 0.25%	up to 0.25%	up to 0.35% ^(a)(b)(c)
Class B	0.75%	0.25%	1.00% ^(a)(b)
Class C	0.75% ^(c)	0.25%	1.00% ^(b)(d)
Class E	0.10%	0.25%	0.35%
Class F	0.75%	0.25%	1.00%
Class I	none	none	none
Class R (Legacy Columbia funds)	0.50%	— ^(e)	0.50%
Class R (Legacy RiverSource funds)	up to 0.50%	up to 0.25%	0.50% ^(e)
Class R3	0.25%	0.25% ^(f)	0.50% ^(f)
Class R4	none	0.25% ^(f)	0.25% ^(f)
Class R5	none	none	none
Class T	none	0.50% ^(g)	0.50% ^(g)
Class W	up to 0.25%	up to 0.25%	0.25% ^(c)
Class Y	none	none	none
Class Z	none	none	none


^(a)		As shown in the table below, the maximum distribution and service fees of Class A shares varies among the Funds, as follows:


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Legacy RiverSource funds (other than Columbia Money Market Fund)	Up to 0.25%	Up to 0.25%	0.25%


Columbia Money Market Fund	—	—	0.10%


Columbia Asset Allocation Fund, Columbia Balanced Fund, Columbia Conservative High Yield Fund, Columbia Contrarian Core Fund, Columbia Disciplined Value Fund, Columbia Dividend Income Fund, Columbia Large Cap Growth Fund, Columbia Mid Cap Growth Fund, Columbia Oregon Intermediate Municipal Bond Fund, Columbia Intermediate Bond Fund, Columbia Real Estate Equity Fund, Columbia Small Cap Core Fund, Columbia Small Cap Growth Fund I, Columbia Technology 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.

S.31


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Columbia Blended Equity Fund, Columbia Bond Fund, Columbia California Tax-Exempt Fund, Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Emerging Markets Fund, Columbia Federal Securities Fund, Columbia Greater China Fund, Columbia High Yield Opportunity Fund, Columbia Liberty Fund, Columbia Energy and Natural Resources Fund, Columbia International Bond Fund, Columbia International Growth Fund, Columbia International Stock Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia Mid Cap Core Fund, Columbia Small Cap Value Fund I, Columbia Strategic Investor Fund, Columbia Massachusetts Tax-Exempt Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia New York Tax-Exempt Fund, Columbia Pacific/Asia Fund, Columbia Rhode Island Intermediate Municipal Bond Fund, Columbia Select Large Cap Growth Fund, Columbia Select Opportunities Fund, Columbia Select Small Cap Fund, Columbia Short-Intermediate Bond Fund, Columbia Strategic Income Fund, Columbia U.S. Treasury Index Fund, Columbia Value and Restructuring Fund, Columbia World Equity Fund	—	0.25%	0.25%


Columbia High Yield Municipal Fund, Columbia Intermediate Municipal Bond Fund, Columbia Tax Exempt Fund	—	0.20%	0.20%


Columbia Asset Allocation Fund II, Columbia California Intermediate Municipal Bond Fund, Columbia Convertible Securities Fund, Columbia Georgia Intermediate Municipal Bond Fund, Columbia Global Value Fund, Columbia High Income Fund, Columbia International Value Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico Global Fund, Columbia Maryland Intermediate Municipal Bond Fund, Columbia North Carolina Intermediate Municipal Bond Fund, Columbia Short Term Bond Fund, Columbia Short Term Municipal Bond Fund, Columbia Small Cap Growth Fund II, Columbia South Carolina Intermediate Municipal Bond Fund, Columbia Total Return Bond Fund, Columbia Virginia Intermediate Municipal Bond Fund, Columbia Large Cap Value Fund, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia LifeGoal ^® Income Portfolio, Columbia Marsico 21st Century Fund, Columbia Marsico Growth Fund, Columbia Marsico International Opportunities Fund, Columbia Mid Cap Value Fund, Columbia Multi-Advisor International Equity Fund, Columbia Masters International Equity Portfolio, Columbia Small Cap Value Fund II, Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia Overseas Value Fund	—	—	0.25%; these Funds pay a combined distribution and service fee pursuant to their combined distribution and shareholder servicing plan for Class A shares.


^(b)		The service fees for Class A shares, Class B shares and Class C shares of certain Funds depend on when the shares were purchased, as described below. Service Fee for Class A shares and Class B shares of Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-

S.32


		Exempt Fund and Columbia New York Tax-Exempt Fund — The annual service fee may equal up to 0.10% on net assets attributable to shares of these Funds issued prior to December 1, 1994 and 0.25% on net assets attributable to Fund shares issued thereafter. This arrangement results in a rate of service fee for Fund shares that is a blend between the 0.10% and 0.25% rates. For the fiscal year ended October 31, 2009, the blended service fee was 0.24% of the Fund’s average net assets for each of these Funds, other than Columbia Massachusetts Tax-Exempt Fund, which had a blended service fee of 0.23%. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Liberty Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to April 1, 1989 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended September 30, 2009, the blended service fee was 0.24% of the Fund’s average daily net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Strategic Income Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to January 1, 1993 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all Fund shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended May 31, 2010, the blended service fee was 0.25% of the Fund’s average net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia High Yield Municipal Fund, Columbia Intermediate Municipal 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 shares and Class C shares for Columbia Intermediate Municipal Bond Fund — The annual distribution fee shall be 0.65% of the average daily net assets of the Fund’s Class B shares 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 pay distribution fees of up to 0.75% and service fees of up to 0.10%, for a combined total of 0.85%.
^(c)		Fee amounts noted apply to all Funds other than Columbia Money Market Fund (formerly RiverSource Cash Management 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 voluntarily agreed, effective April 15, 2010, to waive the 12b-1 fees it receives from Class A, Class C, Class R (formerly Class R2) and Class W shares of Columbia Money Market Fund and from Class A, Class C and Class R (formerly Class R2) shares of Columbia Government Money Market Fund. Compensation paid to broker-dealers and other financial intermediaries 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 a portion of the distribution fee for Class C shares of the following Funds so that the combined distribution and service fee (or the distribution fee for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund) does not exceed the specified percentage annually: 0.40% for Columbia Intermediate Municipal Bond Fund; 0.45% for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund; 0.56% for Columbia Short Term Bond Fund; 0.65% for Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Rhode Island Intermediate Municipal Bond Fund; 0.80% for Columbia High Yield Municipal Fund and Columbia Tax-Exempt Fund; 0.85% for Columbia Conservative High Yield Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Federal Securities Fund, Columbia High Yield Opportunity Fund, Columbia Intermediate Bond Fund, Columbia Strategic Income Fund and Columbia U.S. Treasury Index Fund. These arrangements may be modified or terminated by the Distributor at any time.
^(e)		Class R shares of Legacy Columbia funds pay a distribution fee pursuant to a distribution (Rule 12b-1) plan for Class R shares. The Legacy Columbia funds do not have a shareholder service plan for Class R shares. The Legacy RiverSource funds 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 Legacy RiverSource fund Class R shares, 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.
^(f)		The shareholder service fees for Class R3 and Class R4 shares are not paid pursuant to a 12b-1 plan. Under a plan administration services agreement, the Funds’ Class R3 and Class R4 shares pay for plan administration services, including services such as implementation and conversion services, account set-up

S.33


		and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and health savings accounts.
^(g)		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 (including Columbia Asset Allocation Fund) and 0.40% for fixed income Funds. The Funds currently limit such fees to a maximum of 0.30% for equity Funds and 0.15% for fixed-income Funds other than Columbia Rhode Island Intermediate Municipal Bond Fund, for which the limit currently is 0.00%. See Class T Shareholder Service Fees below for more information.

S.34

S.35

Class T Shareholder Service Fees

Class R3 and Class R4 Shares Plan Administration Fee

Selling and/or Servicing Agent Compensation

S.36

S.37

Buying, Selling and Exchanging Shares

Share Price Determination

FUNDamentals ^tm

NAV Calculation

Each of the Fund’s share classes calculates its NAV per share as follows:


		(Value of assets of the share class)
NAV	=	− (Liabilities of the share class)

		Number of outstanding shares of the class

FUNDamentals ^tm

Business Days

S.38

For money market Funds, the Fund’s investments are valued at amortized cost, which approximates market value.

S.39

Transaction Rules and Policies

Also remember that the Fund may refuse any order to buy or exchange shares. If this happens, the Fund will return any money it received, but no interest will be paid on that money.

Order Processing

“Good Form”

Medallion Signature Guarantees

S.40

A Medallion Signature Guarantee is required if:


•	The amount is greater than $100,000.

•	You want your check made payable to someone other than the registered account owner(s).

•	Your address of record has changed within the last 30 days.

•	You want the check mailed to an address other than the address of record.

•	You want the proceeds sent to a bank account not on file.

•	You are the beneficiary of the account and the account owner is deceased (additional documents may be required).

Written Transactions

Telephone Transactions

S.41

Online Transactions

You can sell up to and including an aggregate of $100,000 of shares per day, per Fund account through the internet if you qualify for internet orders.

Customer Identification Program

S.42

Small Account Policy — Class A, B, C, T and Z Share Accounts Below $250

Small Account Policy — Class A, B, C, T and Z Share Accounts Minimum Balance Fee

S.43

Exceptions to the Small Account Policy (Accounts Below $250 and Minimum Balance Fee)

Small Account Policy — Broker/Dealer and Wrap Fee Accounts

The Funds may automatically redeem at any time broker/dealer networked accounts and wrap fee accounts that have account balances of $20 or less or have less than one share.

Cash Flows

Information Sharing Agreements

S.44

Excessive Trading Practices Policy of Non-Money Market Funds

S.45

Risks of Excessive Trading — Excessive trading creates certain risks to the Fund’s long-term shareholders and may create the following adverse effects:


•	negative impact on the Fund’s performance;

•	potential dilution of the value of the Fund’s shares;

S.46


•	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.

S.47

Excessive Trading Practices Policy of Money Market Funds

Opening an Account and Placing Orders

S.48

Accounts established directly with the Fund

S.49

Buying Shares

Eligible Investors

Class A and Class C Shares

Class B Shares Closed

S.50

Additional Class B shares will be issued only to existing investors in Class B shares and only through the following two types of transactions (Qualifying Transactions):


•	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.

Any initial purchase orders for the Fund’s Class B shares will be rejected (other than through a Qualifying Transaction that is an exchange transaction).

S.51

Class E and Class F Shares Closed

Class I Shares

Class R Shares

Class R3, Class R4 and Class R5 Shares

Class R3, Class R4 and Class R5 shares are closed to new investors and new accounts effective as of the close of business on December 31, 2010, subject to certain limited exceptions described below.

S.52

Class T Shares Closed

S.53

Class W Shares

Class Y Shares

Class Y shares are available only to the following categories of eligible investors:


•	Individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) who invest at least $1 million in Class Y shares of a single Fund; and

•	Group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

Class Z Shares

Class Z shares are available only to the categories of eligible investors described below under “Minimum Investment and Account Balance — Class Z Shares Minimum Investments”

In addition, for Class I, Class R, Class W, Class Y and Class Z shares, the Distributor, in its sole discretion, may accept investments from other institutional investors not listed above.

S.54

Minimum Initial Investments, Additional Investments and Account Balances

The table below shows the Fund’s minimum initial investment, additional investment and minimum account balance requirements, which may vary by Fund, class and type of account.

Minimum Investment and Account Balance


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance


For all Funds and classes except those listed below (non-qualified accounts)	$2,000 ^(a)	$100	$250 ^(d)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$1,000	$100	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(b)	$100	$250


Class Z	variable ^(a)(c)	$100	$250 ^(d)


^(a)		If your Class A, B, C, T or 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 systematic investment plan. If you do not do so, it 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 requirement.
^(b)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(c)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.
^(d)		If the value of your account falls below $250, your Fund account is subject to automatic redemption of Fund shares. For details, see Small Account Policy above.

S.55

Systematic Investment Plan

Minimum Investment and Account Balance — Systematic Investment Plans


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance*


For all Funds and classes except those listed below (non-qualified accounts)	$100 ^*(a)	$100	none ^*(b)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$100 ^*(b)	$50	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(c)	$100	none


Class Z	variable ^(d)	$100	none


*		If your Fund account balance is below the minimum initial investment requirement described in this table, you must make investments at least monthly.
^(a)		money market Funds — $2,000.
^(b)		money market Funds — $1,000.
^(c)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(d)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.

Class Z Shares Minimum Investments

There is no minimum initial investment in Class Z shares for the following categories of eligible investors:

•

S.56


•	Any health savings account sponsored by a third party platform and any omnibus group retirement plan for which a selling and/or servicing 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 investor participating in a wrap program sponsored by a selling and/or servicing 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.

The minimum initial investment in Class Z shares for the following eligible investors is $1,000:


•	Any individual retirement plan (assuming the eligibility criteria below are met) or group retirement plan that is not held in an omnibus manner for which a selling and/or servicing 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through an individual retirement account.

The minimum initial investment in Class Z shares for the following categories of eligible investors is $2,000:


•	Any investor buying shares through a Columbia Management state tuition plan organized under Section 529 of the Internal Revenue Code.

•	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 Legacy Columbia fund distributed by the Distributor.

•	Any trustee or director (or family member of a trustee or director) of a fund distributed by the Distributor.

S.57


•	Any investor participating in an account offered by a selling and/or servicing 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 selling and/or servicing agent 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through a non-retirement account.

•	Certain other investors as set forth in more detail in the SAI.

Dividend Diversification

S.58

Wire Purchases

Electronic Funds Transfer

Other Purchase Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing 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, Class E 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 F, Class I, Class R, Class R3, 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 Fund reserves the right to cancel your order if it 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 and/or servicing agents are responsible for sending your buy orders to the Transfer Agent and ensuring that we receive your money on time.

•	Shares bought are recorded on the books of the Fund. The Fund doesn’t issue certificates.

S.59

Selling Shares

Wire Redemptions

Electronic Funds Transfer

Systematic Withdrawal Plan

S.60

Check Redemption Service

In-Kind Distributions

Other Redemption Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing agent receives your sell order in “good form,” your shares will be sold at the next calculated net asset value 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 directly through the Funds, we will normally send the sale proceeds by mail or electronically transfer them to your bank account within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

•	If you sell your shares through a selling and/or servicing agent, the Funds will normally send the sale proceeds by Fedwire within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

S.61


•	If you paid for your shares by check or from your bank account as an Automated Clearing House (ACH) transaction, the Funds will hold the sale 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 during emergency circumstances as determined by the SEC.

•	Other restrictions may apply to retirement accounts. For information about these restrictions, contact your retirement plan administrator.

•	Also keep in mind the Funds’ Small Account Policy, which is described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies .

•	For Class E shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class E shares held by the trust, the shares automatically will convert to Class A shares of the Fund and be registered in the beneficiary’s name. For Class F shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class F shares held by the trust, the shares automatically will convert to Class B shares of the Fund and be registered in the beneficiary’s name. After such conversion, the beneficiary’s shares no longer will convert to Class E shares, but will convert to Class A shares in accordance with the applicable conversion schedule for Class B shares. Automatic conversion of Class B shares to Class A shares occurs eight years after purchase for these shares. For purposes of calculating the conversion period, the beneficiary ownership period for the Class B shares will begin at the time the Class F shares were purchased.

•	For Class E and Class F shareholders, if the beneficiary under a Columbia Advantage Plan trust exercises his or her withdrawal rights, the financial advisor may be required to refund to the Distributor any sales charge or initial commission previously retained or paid on the withdrawn Class E and/or Class F shares or amount redeemed.

S.62

Exchanging Shares

Systematic Exchanges

The rules described below for making exchanges apply to systematic exchanges.

Other Exchange Rules You Should Know


•	Exchanges are made at net asset value 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.

S.63


•	You can generally make exchanges between like share classes of any Fund. Some exceptions apply.

•	If you exchange shares from Class A shares of a 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 a 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 a 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. If your initial investment was in a 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, Class E and Class F shares of the Funds.

•	If your initial investment was in Class A shares of a non-money market Fund and you exchange shares into a 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.

•	Class T shares may be exchanged for Class T or Class A shares. Class T shares exchanged into Class A shares cannot be exchanged back into Class T shares.

•	Class Z shares of a Fund may be exchanged for Class A or Class Z shares of another 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 and/or servicing 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.

S.64

•

Same-Fund Exchange Privilege for Class Z Shares

Ways to Request a Sale or Exchange of Shares

Account established with your selling and/or servicing agent

S.65

Distributions and Taxes

Distributions to Shareholders

A mutual fund can make money two ways:


•	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 unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than it originally paid. Capital gains are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term gains) or more than one year (long-term gains).

FUNDamentals ^TM

Distributions

S.66

S.67

Taxes and Your Investment


•	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. In addition, 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 shares of the Fund.

•	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.

•	For taxable years beginning on or before December 31, 2012, 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 lower net long-term capital gain rates. It is currently unclear whether Congress will extend this provision to taxable years beginning after December 31, 2012. 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 derived from qualified dividend income.

•	For taxable years beginning on or before December 31, 2012, the maximum individual U.S. federal income tax rate on net long-term capital gain (and thus qualified dividend income) has been temporarily reduced to 15%. It is currently unclear whether Congress will extend this rate reduction to taxable years beginning after December 31, 2012.

S.68


•	Certain derivative instruments when held in a Fund’s portfolio subject the Fund to special tax rules, the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, convert capital gains into ordinary income and convert short-term capital losses into long-term capital losses. 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.

•	Certain Funds may purchase or sell (write) options, as described further in the SAI. In general, option premiums which may be received by the Fund are not immediately included in the income of the Fund. Instead, such premiums are taken into account when the option contract expires, the option is exercised by the holder, or the Fund transfers or otherwise terminates the option. If an option written by a Fund is exercised and such Fund sells or delivers the underlying security, the Fund generally will recognize capital gain or loss equal to (a) the sum of the exercise price and the option premium received by the Fund minus (b) the Fund’s basis in the security. Such gain or loss generally will be short-term or long-term depending upon the holding period of the underlying security. Gain or loss with respect to any termination of a Fund’s obligation under an option other than through the exercise of the option and the related sale or delivery of the underlying security generally will be short-term gain or loss. Thus, for example, if an option written by a Fund expires unexercised, such Fund generally will recognize short-term gain equal to the premium received.

•	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 income your share of the foreign taxes paid by the Fund. You may be able to either deduct this amount from your income or claim it as a foreign tax credit. There is no assurance that the Fund will make a special election for a taxable year, even if it is eligible to do so.

S.69


•	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 generally will be exempt from such taxes, but may be subject to other taxes, including income taxes of other states, and federal and state alternative minimum tax. 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. Distributions of 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 or disallowed.

•	The Fund is required by federal law to withhold tax on any taxable and possibly 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 taxpayer identification number (TIN) or haven’t certified to the Fund that withholding doesn’t apply; the Internal Revenue Service (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.

S.70


	FUNDamentals ^TM

Taxes

Additional Services and Compensation

Additional Management Information

S.71

S.72

S.73

Summary of the Fund

INVESTMENT OBJECTIVE

Columbia Seligman Communications and Information Fund (the Fund) seeks to provide shareholders with capital gain.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class Z shares of the Fund.

Shareholder Fees (fees paid directly from your investment)


	Class Z
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)		None
Maximum deferred sales charge (load) imposed on redemptions (as a percentage of offering price at the time of purchase, or current net asset value, whichever is less)		None

Annual Fund Operating Expenses ^(a) (expenses that you pay each year as a percentage of the value of your investment)


	Class Z
Management fees		0.85%
Distribution and/or service (12b-1) fees		0.00%
Other expenses		0.26%
Total annual fund operating expenses		1.11%


^(a)		The expense ratios have been adjusted to reflect current fees.

Example

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem your shares at the end of those periods (unless otherwise noted). The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


	1 year		3 years		5 years		10 years

Class Z	$	113	$	353	$	612	$	1,356

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 3p

Portfolio Turnover

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

Active Management Risk. Due to its active management, the Fund could underperform other mutual funds with similar investment objectives.

4p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS

Issuer Risk. An issuer may perform poorly, and therefore, the value of its securities may decline, which would negatively affect the Fund’s performance.

PAST PERFORMANCE

Class Z shares have not had one full calendar year of performance as of the date of this prospectus and therefore performance is not yet available. The following bar chart and table provide some illustration of the risks of investing in the Fund by showing, for the Fund’s Class A shares (which are not offered under this prospectus), respectively:


•	how the Fund’s Class A performance has varied for each full calendar year shown on the bar chart; and

•	how the Fund’s Class A average annual total returns compare to recognized measures of market performance shown on the table.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 5p

Average Annual Total Returns (without sales charge)

(for periods ended Dec. 31, 2010)

1 year

5 years

10 years

Columbia Seligman Communications and Information Fund:

Class A* — before taxes

+15.29%

+10.38%

+6.12%

Class A* — after taxes on distributions

+15.29%

+10.38%

+6.07%

Class A* — after taxes on distributions and redemption of fund shares

+9.94%

+9.06%

+5.36%

S&P North American Technology Sector Index (reflects no deduction for fees, expenses or taxes)

+12.65%

+5.83%

–0.86%

Lipper Science & Technology Funds Index (reflects no deduction for fees or taxes)

+17.85%

+5.33%

–1.92%


*		The returns shown are for Class A shares without the applicable front-end sales charge. Class Z shares, which are sold without sales charges, would have substantially similar annual returns as Class A shares because the classes of shares invest in the same portfolio of securities and would differ only to the extent that the classes do not have the same expenses. Class A share returns have not been adjusted to reflect differences in class-related expenses. If differences in class-related expenses were reflected (i.e., if expenses of Class Z shares were reflected in the Class A share returns), the returns shown for Class A shares for all periods would be higher.

FUND MANAGEMENT

Investment Manager: Columbia Management Investment Advisers, LLC


Portfolio Manager	Title	Managed Fund Since
Paul H. Wick	Portfolio Manager	1990
Richard M. Parower, CFA	Co-Portfolio Manager	2000
Sangeeth Peruri	Technology Team Member	2000
Vishal Saluja	Technology Team Member	2011
Sushil Wagle	Technology Team Member	2011

BUYING AND SELLING SHARES


	Class Z
Minimum initial investment		Variable	^*
Additional investment		$100


*		The minimum initial investment amount for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor.

Exchanging or Selling Shares

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 7p

More Information about the Fund

INVESTMENT OBJECTIVE

PRINCIPAL INVESTMENT STRATEGIES OF THE FUND


•	Robust growth prospects

•	High profit margins or return on capital

•	Attractive valuation relative to expected earnings or cash flow

•	Quality management

•	Unique competitive advantages

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 9p

The Fund generally sells a stock if the investment manager believes:


•	its target price is reached,

•	its valuation becomes excessive,

•	its earnings or revenue growth are disappointing,

•	its underlying fundamentals have deteriorated, or

•	more attractive investment opportunities are believed to be available.

The Fund may purchase American Depositary Receipts (ADRs), which are publicly traded instruments generally issued by domestic banks or trust companies that represent a security of a foreign issuer.

PRINCIPAL RISKS OF INVESTING IN THE FUND

Please remember that with any mutual fund investment you may lose money. Principal risks associated with an investment in the Fund include:

10p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 11p

prices. Further, those technology or technology-related companies seeking to finance their expansion would have increased borrowing costs, which may negatively impact their earnings. As a result, these factors may negatively affect the performance of the Fund. The Fund’s net asset value may fluctuate more than a fund that invests in a wider range of industries. Technology and technology-related companies are often smaller and less experienced companies and may be subject to greater risks than larger companies, such as limited product lines, markets and financial and managerial resources. These risks may be heightened for technology companies in foreign markets. Finally, the Fund may be susceptible to factors affecting the technology and technology-related industries, and the Fund’s net asset value may fluctuate more than a fund that invests in a wider range of industries.

MORE ABOUT ANNUAL FUND OPERATING EXPENSES

The following information is presented in addition to, and should be read in conjunction with, “Fees and Expenses of the Fund” that appears in the Summary of the Fund.

Calculation of Annual Fund Operating Expenses. Annual fund operating expenses are based on expenses incurred during the Fund’s most recently completed fiscal year and are expressed as a percentage (expense ratio) of the Fund’s average net assets during the fiscal period. The expense ratios are adjusted to reflect current fee arrangements, but are not adjusted to reflect the Fund’s average net assets as of a different period or a different point in time, as the Fund’s asset levels will fluctuate. In general, the Fund’s expenses ratios will increase as its assets decrease, such that the Fund’s actual expense ratios may be higher than the expense ratios presented in the table. The investment manager and its affiliates have contractually agreed to waive certain fees and to reimburse certain expenses (other than acquired fund fees and expenses, if any) until February 29, 2012, unless sooner terminated at the sole discretion of the Fund’s Board. Any amounts waived will not be reimbursed by the Fund. Under this agreement, net fund expenses (excluding acquired fund fees and expenses, if any) will not exceed 1.29% for Class Z. The commitment by the investment manager and its affiliates to waive fees and/or cap (reimburse) expenses is expected to limit the impact of any increase in the Fund’s operating expenses that would otherwise result because of a decrease in the Fund’s assets in the current fiscal year.

12p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS

OTHER INVESTMENT STRATEGIES AND RISKS

Other Investment Strategies. In addition to the principal investment strategies previously described, the Fund may utilize investment strategies that are not principal investment strategies, including investment in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds (ETFs), also referred to as “acquired funds”), ownership of which results in the Fund bearing its proportionate share of the acquired funds’ fees and expenses and proportionate exposure to the risks associated with acquired funds’ underlying investments. ETFs are generally designed to replicate the price and yield of a specified market index. An ETF’s share price may not track its specified market index and may trade below its net assets value, resulting in a loss. ETFs generally use a “passive” investment strategy and will not attempt to take defensive positions in volatile or declining markets. An active secondary market in an ETF’s shares may not develop or be maintained and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. There can be no assurance an ETF’s shares will continue to be listed on an active exchange.

Additionally, the Fund may use derivatives such as futures, options, forward contracts, and swaps (which are financial instruments that have a value which depends upon, or is derived from, the value of something else, such as one or more underlying securities, pools of securities, indexes or currencies). These derivative instruments are used to produce incremental earnings, to hedge existing positions, to increase or reduce market or credit exposure, or to increase flexibility. Losses involving derivative instruments may be substantial, because a relatively small price movement in the underlying security(ies), instrument, currency or index may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund. Derivative instruments will typically increase the Fund’s exposure to the Principal Risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty credit risk, hedging risk, leverage risk, and liquidity risk.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 13p

Leverage risk is the risk that losses from the derivative instrument may be greater than the amount invested in the derivative instrument.

For more information on strategies and holdings, and the risks of such strategies, including derivative instruments that the Fund may use, see the Fund’s SAI and its annual and semiannual reports.

14p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS

Although brokerage commissions and implied commissions are not reflected in the expense table under “Fees and Expenses of the Fund,” they are reflected in the total return of the Fund.

Directed Brokerage. The Fund’s Board of Directors (Board) has adopted a policy prohibiting the investment manager, or any subadviser, from considering sales of shares of the Fund as a factor in the selection of broker-dealers through which to execute securities transactions.

Additional information regarding securities transactions can be found in the SAI.

FUND MANAGEMENT AND COMPENSATION

Investment Manager

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 15p

Portfolio Managers. The portfolio managers responsible for the day-to-day management of the Fund are:

Paul H. Wick, Portfolio Manager


•	Managed the Fund since 1990.

•	Prior to the investment manager’s acquisition of J. & W. Seligman & Co. Incorporated (Seligman) in Nov. 2008, Mr. Wick was a Managing Director of Seligman.

•	Joined Seligman in 1987.

•	Began investment career in 1987.

•	BA, Duke; MBA, Duke/Fuqua.

Richard M. Parower, CFA, Co-Portfolio Manager


•	Managed the Fund since 2000.

•	Mr. Parower provides assistance to Mr. Wick in managing the Fund through his research and contributions to the investment decisions with respect to companies in the application software, information technology services and international sectors.

•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Parower was a Managing Director of Seligman.

•	Joined Seligman in 2000.

•	Began investment career in 1988.

•	BA, Washington University; MBA, Columbia University.

Sangeeth Peruri, Technology Team Member


•	Management responsibilities for the Fund since 2000.

16p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS


•	Mr. Peruri provides assistance to Mr. Wick in managing the Fund through his research and contributions to the investment decisions with respect to companies in the analog and communications ICs, as well as other subsectors of the semiconductor sector.


•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Peruri was a Managing Director of Seligman.


•	Joined Seligman in 2000.


•	Began investment career in 1999.


•	BA, Brown University.

Vishal Saluja, Technology Team Member


•	Management responsibilities for the Fund since 2011.


•	Mr. Saluja provides assistance to Mr. Wick in managing the Fund through his research and contributions to the investment decisions with respect to companies in the life science technology and electronic design software sectors.


•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Saluja was a Managing Director of Seligman.


•	Joined Seligman in 2000.


•	Began investment career in 1990.


•	B.S. and Bachelor of Applied Science, Wharton School, University of Pennsylvania; MBA, Stanford University.

Sushil Wagle, Technology Team Member


•	Management responsibilities for the Fund since 2011.


•	Mr. Wagle provides assistance to Mr. Wick in managing the Fund through his research and contributions to the investment decisions with respect to companies in the enterprise hardware and storage, and telecommunications services sectors.


•	Prior to the investment manager’s acquisition of Seligman in Nov. 2008, Mr. Wagle was Vice President of Information Technology at Seligman.


•	Joined Seligman in 1998.


•	Began investment career in 2000.


•	B.S. and M.S., Stevens Institute of Technology.

The SAI provides additional information about portfolio manager compensation, management of other accounts and ownership of shares in the Fund.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS 17p

Financial Highlights


	Year ended
Class Z	December 31,
Per share data	2010 ^(a)
Net asset value, beginning of period		$41.62

Income from investment operations:
Net investment loss		(.06	)
Net realized and unrealized gain on investments		5.05
Increase from payments by affiliate		.01

Total from investment operations		5.00

Net asset value, end of period		$46.62

Total return		12.01%	^(b)

Ratios to average net assets ^(c)
Expenses prior to fees waived or expenses reimbursed		1.13%	^(d)

Net expenses after fees waived or expenses reimbursed ^(e)		1.13%	^(d)

Net investment loss		(0.50%	) ^(d)

Supplemental data
Net assets, end of period (in thousands)		$679

Portfolio turnover		105%

Notes to Financial Highlights


^(a)		For the period from September 27, 2010 (when shares became available) to December 31, 2010.


^(b)		During the year ended December 31, 2010, the Fund received a payment by an affiliate. Had the Fund not received this payment, the total return would have been lower by 0.03%.


^(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)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds).

Information prior to March 7, 2011 represents that of the Fund as a series of Columbia Seligman Communications and Information Fund, Inc., a Maryland corporation. The Fund was reorganized into a series of Columbia Funds Series Trust II, a Massachusetts business trust, on that date.

18p COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2011 CLASS Z PROSPECTUS

Choosing a Share Class

The Funds

S.1

Comparison of Share Classes

Share Class Features


•	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.

FUNDamentals ^tm

Selling and/or Servicing Agents

S.2


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class A*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	none	none

Class B*	Closed to new investors. ^(h)	up to $49,999	Converts to Class A shares generally eight years after purchase. ⁽ⁱ⁾

Class C*	Available to the general public for investment; minimum initial investment is $2,000 for most investors. ^(e)	up to $999,999; no limit for eligible employee benefit plans. ^(j)	none

Class E	Closed to new investors and new accounts. ^(k)	none	none

Class F	Closed to new investors and new accounts. ^(k)	up to $250,000. ^(l)	Converts to Class E shares eight years after purchase. ⁽ⁱ⁾

Class I*	Available only to the Funds (i.e., Fund-of-Fund investments).	none	none

Class R*	Available only to eligible retirement plans and health savings accounts; no minimum initial investment.	none	none

Class R3*	Effective after the close of business on December 31, 2010, Class R3 shares are 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. ⁽ⁿ⁾	none	none

Class R4*	Effective after the close of business on December 31, 2010, Class R4 shares are 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. ⁽ⁿ⁾	none	none

S.3


		Investment	Conversion
	Eligible Investors and Minimum Initial Investments ^(a)	Limits	Features


Class R5*	Effective after the close of business on December 31, 2010, Class R5 shares are 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, health savings accounts and, if approved by the Distributor, institutional or corporate accounts above a threshold established by the Distributor (currently $1 million per Fund or $10 million in all Funds) and bank trust departments. ⁽ⁿ⁾	none	none

Class T	Available only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy funds into various Columbia funds (formerly named Liberty funds).	none	none

Class W*	Available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs.	none	none

Class Y*	Available to certain categories of investors which are subject to minimum initial investment requirements; currently offered only to former shareholders of the former Columbia Funds Institutional Trust. ^(q)	none	none

Class Z*	Available only to certain eligible investors, which are subject to different minimum initial investment requirements, ranging from $0 to $2,000.	none	none


	Front-End Sales Charges ^(b)	Contingent Deferred Sales Charges (CDSCs) ^(b)


Class A*	5.75% maximum, declining to 0.00% on investments of $1 million or more. None for money market Funds and certain other Funds. ^(f)	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 of purchase. ^(g)

Class B*	none	5.00% maximum, gradually declining to 0.00% after six years. ⁽ⁱ⁾

Class C*	none	1.00% on certain investments redeemed within one year of purchase.

Class E	4.50% maximum, declining to 0.00% on investments of $500,000 or more.	1.00% on certain investments of between $1 million and $5 million redeemed within one year of purchase.

S.4


		Non 12b-1
	Maximum Distribution and Service (12b-1) Fees ^(c)	Service Fees ^(d)


Class R4*	none	0.25% ^(m)

Class R5*	none	none

Class T	none	up to 0.50%. ^(o)

Class W*	0.25% distribution and service fees, with certain exceptions. ^(c)	none

Class Y*	none	none

Class Z*	none	none


*		For money market Funds, new investments must be made in Class A, Class I, Class T, Class W or Class Z shares, subject to eligibility. Class C and Class R shares of the money market Funds 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. The money market Funds offer other classes of shares only to facilitate exchanges with other Funds offering such share classes.
^(a)		See Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders for more details on the eligible investors and minimum initial and subsequent investment and account balance requirements.
^(b)		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 charge policies, see Choosing a Share Class — Reductions/Waivers of Sales Charges .
^(c)		These are the maximum applicable distribution and/or shareholder service fees. Because these fees are paid out of Fund assets on an on-going 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. For Legacy Columbia funds with Class A shares subject to both a distribution and service fee, the aggregate fees are limited to not more than 0.25%. Columbia Money Market Fund (formerly RiverSource Cash Management 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. The Distributor has voluntarily agreed to waive all or a portion of distribution and/or service fees for certain classes of certain Funds. For information on these waivers, see Choosing a Share Class — Distribution and Service Fees . Compensation paid to selling and/or servicing agents may be suspended to the extent of the Distributor’s waiver of the 12b-1 fees on these specific Fund share classes.
^(d)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees and Class T Shares — Shareholder Service Fees .
^(e)		The minimum initial investment requirement is $5,000 for RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund and Columbia Inflation Protected Securities Fund, and $10,000 for Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund and Columbia Absolute Return Currency and Income Fund. For more details on the minimum initial investment requirement applicable to other Funds, see Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders .
^(f)		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, and RiverSource S&P 500 Index Fund.
^(g)		There is no CDSC on Class A shares of the money market Funds or the Funds identified in footnote (f) above. Legacy Columbia fund Class A shareholders and Legacy RiverSource fund shareholders who purchased Class A shares without an initial sales charge because their accounts aggregated between $1 million and $50 million at the time of purchase and who purchased shares on or before September 3, 2010 will incur, for Legacy Columbia fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC and for legacy RiverSource fund Class A shareholders, a 1.00% CDSC if those shares are redeemed within 18 months of purchase and redemptions after one year will not be subject to a CDSC.

S.6


^(h)		The Funds no longer accept investments from new or existing investors in Class B shares, except through reinvestment of dividend and/or capital gain distributions by existing Class B shareholders, or a permitted exchange, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class B Shares Closed . Unless contrary instructions are received in advance by the Fund, any purchase orders (except those submitted by a selling and/or servicing agent through the National Securities Clearing Corporation (NSCC) that are initial investments in Class B shares or that are orders for additional Class B shares of the Fund received from existing investors in Class B shares, including orders made through an active systematic investment plan, will automatically be invested in Class A shares of the Fund, without regard to the normal minimum initial investment requirement for Class A shares, but subject to the applicable front-end sales charge. Your selling and/or servicing agent may have different policies, including automatically redirecting the purchase order to a money market fund. See Choosing a Share Class — Class A Shares — Front-end Sales Charge for additional information about Class A shares .
⁽ⁱ⁾		Timing of conversion and CDSC schedule will vary depending on the Fund and the date of your original purchase of Class B shares. For more information on the timing of conversion of Class B shares to Class A shares, see Choosing a Share Class — Class B Shares — Conversion of Class B Shares to Class A Shares . Class B shares of Columbia Short Term Municipal Bond Fund do not convert to Class A shares. For information on the timing of the conversion of Class F shares to Class E shares, see Choosing a Share Class — Class F Shares — Commissions and Conversion to Class E Shares .
^(j)		There is no investment limit on Class C shares purchased by employee benefit plans created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans, that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper.
^(k)		The Funds no longer accept investments from new or existing investors in Class E or Class F shares, except that existing Class E and/or Class F shareholders who opened and funded their account prior to September 22, 2006 may continue to invest in Class E and/or Class F shares, as described in more detail under Buying, Selling and Exchanging Shares — Opening an Account and Placing Orders — Buying Shares — Class E and Class F Shares Closed . Class E and Class F shares are designed for investors who wish to make an irrevocable gift to a child, grandchild or other individual.
^(l)		If you hold Class F shares of the Fund and your account has a value of less than $250,000, you may purchase additional Class F shares of the Fund in amounts that increase your account value up to a maximum of $250,000. The value of your account, for this purpose, includes the value of all Class F shares in eligible accounts held by you and your “immediate family.” For more information about account value aggregation and eligible accounts, see Choosing a Share Class — Reductions/Waivers of Sales Charges . If you have reached the $250,000 limit, any additional amounts you invest in Class F shares of the Fund will be invested in Class E shares of the Fund, without regard to the normal minimum investment amount required for Class E shares. Such investments will, however, be subject to the applicable front-end sales charge.
^(m)		For more information, see Class R3 and Class R4 Shares — Plan Administration Fees .
⁽ⁿ⁾		Shareholders who opened and funded a Class R3, Class R4 or Class R5 shares account with a Fund as of the close of business on December 31, 2010 (including accounts once funded that subsequently reached a zero balance) may continue to make additional purchases of the share class, and existing Class R3, Class R4 or Class R5 accounts may continue to allow new investors or participants to be established in their Fund account. For more information on eligible investors in these share classes and the closing of these share classes, see Buying Shares — Eligible Investors — Class R3 Shares, R4 Shares and Class R5 Shares .
^(o)		For more information, see Class T Shares — Shareholder Service Fees .
^(p)		Class T Shareholders who purchased Class T shares without a front-end sales charge because their accounts aggregated between $1 million and $50 million at the time of the purchase and who purchased shares on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase and redemptions after one year will not be subject to a CDSC.
^(q)		Class Y shares are available only to the following categories of investors: (i) individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) that invest at least $1 million in Class Y shares of a single Fund and (ii) group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

S.7

Sales Charges and Commissions

Class A Shares — Front-End Sales Charge

S.8


							Amount
							retained by
					Sales		or paid to
			Sales		charge		selling
			charge		as a		and/or
			as a		% of the		servicing
			% of the		net		agents as a
	Dollar amount of		offering		amount		% of the
Breakpoint Schedule For:	shares bought ^(a)		price ^(b)		invested ^(b)		offering price



Columbia California Intermediate Municipal Bond Fund,	$	0—$99,999		3.25%		3.36%		2.75%

Columbia Connecticut Intermediate Municipal Bond Fund,	$	100,000—$249,999		2.50%		2.56%		2.15%

Columbia Georgia Intermediate Municipal Bond Fund,	$	250,000—$499,999		2.00%		2.04%		1.75%

Columbia Intermediate Bond Fund,	$	500,000—$999,999		1.50%		1.53%		1.25%

Columbia Intermediate Municipal Bond Fund,	$	1,000,000 or more		0.00%		0.00%		0.00%	^(c)(d)

Columbia LifeGoal ^® Income Portfolio,

Columbia Maryland Intermediate Municipal Bond Fund,

Columbia Massachusetts Intermediate Municipal Bond Fund,

Columbia New Jersey Intermediate Municipal Bond Fund,

Columbia New York Intermediate Municipal Bond Fund,

Columbia North Carolina Intermediate Municipal Bond Fund,

Columbia Oregon Intermediate Municipal Bond Fund,

Columbia Rhode Island Intermediate Municipal Bond Fund,

Columbia Short-Intermediate Bond Fund,

Columbia South Carolina Intermediate Municipal Bond Fund,

Columbia Total Return Bond Fund and

Columbia Virginia Intermediate Municipal Bond Fund



Columbia Short-Term Bond Fund and	$	0—$99,999		1.00%		1.01%		0.75%

Columbia Short-Term Municipal Bond Fund	$	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)(d)


*		The following Funds are not subject to a front-end sales charge or a CDSC on Class A shares: Columbia Large Cap Index Fund, Columbia Large Cap Enhanced Core Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund and RiverSource S&P 500 Index Fund. “ Funds-of-Funds (equity) ” includes — Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia Portfolio Builder Aggressive Fund, Columbia Portfolio Builder Moderate Aggressive Fund, Columbia Portfolio Builder Moderate Fund, Columbia Portfolio Builder Total Equity Fund, Columbia Retirement Plus 2010 Fund, Columbia Retirement Plus 2015 Fund, Columbia Retirement Plus 2020 Fund, Columbia Retirement Plus 2025 Fund, Columbia Retirement Plus 2030 Fund, Columbia Retirement Plus 2035 Fund, Columbia Retirement Plus 2040 Fund, Columbia Retirement Plus 2045 Fund. “ Funds-of-Funds (fixed income) ” includes — Columbia Income Builder Fund, Columbia Income Builder Fund II, Columbia Income Builder Fund III, Columbia Portfolio Builder Conservative Fund and Columbia Portfolio Builder Moderate Conservative Fund. Columbia Asset Allocation Fund, Columbia Asset Allocation Fund II, Columbia Balanced Fund and Columbia Liberty 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.

S.11


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources (except for the Funds listed below): 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The Distributor may be reimbursed if a CDSC is deducted when the shares are redeemed. Currently, the Distributor does not make such payments on purchases of the following Funds for purchases with a total market value of $1 million or more: Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia U.S. Treasury Index Fund and RiverSource S&P 500 Index Fund.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Class A Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class A shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase. Shareholders who purchased shares of a Legacy RiverSource fund on or before Sept. 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within 18 months of purchase.

	•	Fund shareholders who purchased shares after September 3, 2010 will incur a CDSC if those shares are redeemed 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.

The CDSC on Class A shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

S.12

FUNDamentals ^tm

Contingent Deferred Sales Charge

Class A Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy $1 million or more of Class A shares, according to the following schedule:

Class A Shares — Commission Schedule (Paid by the Distributor to Selling and/or Service Agents)*


	Commission Level
	(as a % of net asset
Purchase Amount	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.
**		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor sales commissions on purchases (that are coded as commission-eligible trades) in amounts of less than $1 million.

S.13

Class B Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class B shares, but you may pay a CDSC when you sell Class B shares.

Class B Shares — CDSC

The CDSC on Class B shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	generally declines each year until there is no sales charge for redeeming shares.

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

				Columbia California Intermediate Municipal Bond Fund,
				Columbia Georgia Intermediate Municipal Bond Fund,
				Columbia Connecticut Intermediate Municipal Bond Fund,
				Columbia Intermediate Bond Fund, Columbia Intermediate
				Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
				Columbia Maryland Intermediate Municipal Bond Fund,
				Columbia Massachusetts Intermediate Municipal Bond
				Fund, Columbia New Jersey Intermediate Municipal Bond Fund,
				Columbia New York Intermediate Municipal Bond Fund,
				Columbia North Carolina Intermediate Municipal Bond Fund,
				Columbia Oregon Intermediate Municipal Bond Fund, Columbia
				Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of				Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those			Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right			Columbia Virginia Intermediate Municipal Bond Fund


One		5.00	%	3.00%
Two		4.00	%	3.00%
Three		3.00	%**	2.00%
Four		3.00	%	1.00%
Five		2.00	%	None
Six		1.00	%	None

S.14

Class B Shares — CDSC Schedule for the Funds


	Applicable CDSC*

		Columbia California Intermediate Municipal Bond Fund,
		Columbia Georgia Intermediate Municipal Bond Fund,
		Columbia Connecticut Intermediate Municipal Bond Fund,
		Columbia Intermediate Bond Fund, Columbia Intermediate
		Municipal Bond Fund, Columbia LifeGoal ^® Income Portfolio,
		Columbia Maryland Intermediate Municipal Bond Fund,
		Columbia Massachusetts Intermediate Municipal Bond
		Fund,Columbia New Jersey Intermediate Municipal Bond Fund,
		Columbia New York Intermediate Municipal Bond Fund,
		Columbia North Carolina Intermediate Municipal Bond Fund,
		Columbia Oregon Intermediate Municipal Bond Fund, Columbia
		Rhode Island Intermediate Municipal Bond Fund, Columbia
Number of		Short Term Bond Fund, Columbia South Carolina Intermediate
Years Class B	All funds except those	Municipal Bond Fund, Columbia Total Return Bond Fund and
Shares Held	listed to the right	Columbia Virginia Intermediate Municipal Bond Fund


Seven	None	None
Eight	None	None
Nine	Conversion to Class A Shares	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.
**		For shares purchased in a Legacy RiverSource fund (other than a Seligman fund) on or prior to June 12, 2009, the CDSC percentage for year three is 4%.

Class B shares of Columbia Short Term Municipal Bond Fund are not subject to a CDSC.

Class B Shares — Commissions

S.15

Class B Shares — Conversion to Class A Shares

The following rules apply to the conversion of Class B shares to Class A shares:


•	Class B shares are converted on or about the 15th day of the month that they become eligible for conversion. For purposes of determining the month when your Class B shares are eligible for conversion, the start of the holding period is the first day of the month in which your purchase was made.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class A shares at the same time.

•	You’ll receive the same dollar value of Class A shares as the Class B shares that were converted. Class B shares that you received from an exchange of Class B shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

Class C Shares — Sales Charges

You don’t pay a front-end sales charge when you buy Class C shares, but you may pay a CDSC when you sell Class C shares.

S.16

Class C Shares — CDSC


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower,

•	will not be applied to any shares you receive through reinvested distributions or on any amount that represents appreciation in the value of your shares, and

•	is reduced to 0.00% on shares redeemed a year or more after purchase.

Class C Shares — Commissions

Class E Shares — Front-End Sales Charge

The front-end sales charge you’ll pay on Class E shares:


•	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.

Class E Shares — Front-End Sales Charge — Breakpoint Schedule


			Sales charge		Amount retained by or
	Sales charge		as a % of the		paid to selling and/or
Dollar amount of	as a % of the		net amount		servicing agents as a %
shares bought ^(a)	offering price ^(b)		invested ^(b)		of the offering price


$0—$49,999		4.50%		4.71%		4.00%
$50,000—$99,999		3.50%		3.63%		3.00%
$100,000—$249,999		2.50%		2.56%		2.00%
$250,000—$499,999		1.25%		1.27%		1.00%
$500,000—$999,999		0.00%		0.00%		0.00%
$1,000,000 or more		0.00%		0.00%		0.00%	^(c)

S.17


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following out of its own resources: 1.00% on purchases up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $5 million and 0.25% on purchases of $5 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.

Class E Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class E shares that you bought without an initial sales charge.


•	If you bought Class E shares without an initial sales charge because your accounts aggregated between $1 million and $5 million at the time of purchase, you will incur a 1.00% CDSC if you redeem those shares within one year of buying them.

•	Subsequent Class E share purchases that bring your aggregate account value to $1 million or more (but less than $5 million) will also be subject to a CDSC if you redeem them within one year of buying them.

The CDSC on Class E shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

Class E Shares — Commissions

The Distributor may also pay your selling and/or servicing agent a cumulative commission when you buy Class E shares, according to the following schedule:

S.18


*		Because of rounding in the calculation, the actual CDSC you pay may be more or less than the CDSC calculated using these percentages.

Class F Shares — Commissions and Conversion to Class E Shares

The following rules apply to the conversion of Class F shares to Class E shares:


•	Class F shares are converted on or about the 15th day of the month that they become eligible for conversion.

•	Any shares you received from reinvested distributions on these shares generally will convert to Class E shares at the same time.

•	You’ll receive the same dollar value of Class E shares as the Class F shares that were converted. Class F shares that you received from an exchange of Class F shares of another Fund will convert based on the day you bought the original shares.

•	No sales charge or other charges apply, and conversions are free from U.S. federal income tax.

S.20

Class T Shares — Front-End Sales Charge — Breakpoint Schedule


									Amount retained
			Sales charge			Sales charge			by or paid to
			as a %			as a %			selling and/or
			of the			of the			servicing agents
Breakpoint	Dollar amount of		offering			net amount			as a % of the
Schedule For:	shares bought ^(a)		price ^(b)			invested ^(b)			offering price


	$	0—$49,999		5.75	%		6.10	%		5.00	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Equity Funds	$	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)(d)

	$	0—$49,999		4.75	%		4.99	%		4.25	%

	$	50,000—$99,999		4.50	%		4.71	%		3.75	%

Fixed-Income Funds	$	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)(d)


^(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)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the Distributor may pay selling and/or servicing agents the following amounts out of its own resources: 1.00% on purchases of $1 million up to but not including $3 million, 0.50% on purchases of $3 million up to but not including $50 million and 0.25% on purchases of $50 million or more. The Distributor pays selling and/or servicing agents on investments of $1 million or more, but may be reimbursed if a CDSC is deducted when the shares are sold.
^(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the Distributor the following sales commissions on purchases that are coded as commission-eligible trades: 1.00% on purchases up to but not including $3 million (including those in amounts of less than $1 million), up to 0.50% on purchases of $3 million up to but not including $50 million, and up to 0.25% on purchases of $50 million or more.

Class T Shares — CDSC

In some cases, you’ll pay a CDSC if you sell Class T shares that you bought without an initial sales charge.


•	If you bought 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 in accordance with the following policies:

S.22


	•	Shareholders who purchased shares of a Legacy Columbia fund on or before September 3, 2010 will incur a 1.00% CDSC if those shares are redeemed within one year of purchase.

	•	Shareholders who purchased shares of a Fund after September 3, 2010 will incur a CDSC if those shares are redeemed 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 of 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.

The CDSC on Class T shares:


•	is applied to the net asset value at the time of your purchase or sale, whichever is lower, and

•	will not be applied to any shares you receive through reinvested distributions or any amount that represents appreciation in the value of your shares.

In certain circumstances, the CDSC may not apply. See Choosing a Share Class — Reductions/Waivers of Sales Charges for details.

Class T Shares — Commissions

S.23

S.25

FUNDamentals ^tm

Your “Immediate Family” and Account Value Aggregation

Eligible Accounts

The following accounts are eligible for account value aggregation as described above:


•	Individual or joint accounts;

•	Roth and traditional Individual Retirement Accounts (IRAs), Simplified Employee Pension accounts (SEPs), Savings Investment Match Plans for Employees of Small Employers accounts (SIMPLEs) and Tax Sheltered Custodial Accounts (TSCAs);

•	Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors (UTMA) accounts for which you, your spouse, or your domestic partner is parent or guardian of the minor child;

•	Revocable trust accounts for which you or an immediate family member, individually, is the beneficial owner/grantor;

•	Accounts held in the name of your, your spouse’s, or your domestic partner’s sole proprietorship or single owner limited liability company or S corporation;

•	Qualified retirement plan assets, provided that you are the sole owner of the business sponsoring the plan, are the sole participant (other than a spouse) in the plan, and have no intention of adding participants to the plan; and

•	Investments in wrap accounts;

provided that each of the accounts identified above is invested in Class A, Class B, Class C, Class E, Class F, Class T, Class W and/or Class Z shares of the Funds.

S.26

The following accounts are not eligible for account value aggregation as described above:


•	Accounts of pension and retirement plans with multiple participants, such as 401(k) plans (which are combined to reduce the sales charge for the entire pension or retirement plan and therefore are not used to reduce the sales charge for your individual accounts);

•	Accounts invested in Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of the Funds;

•	Investments in 529 plans, donor advised funds, variable annuities, variable life insurance products, or managed separate accounts;

•	Charitable and irrevocable trust accounts; and

•	Accounts holding shares of money market Funds that used the Columbia brand before May 1, 2010.

Front-End Sales Charge Waivers

The following categories of investors may buy Class A, Class E and Class T shares of the Funds at net asset value, without payment of any front-end sales charge that would otherwise apply:


•	Current or retired Fund Board members, officers or employees of the Funds or Columbia Management or its affiliates ⁽¹⁾ ;

•	Current or retired Ameriprise Financial Services, Inc. financial advisors and employees of such financial advisors ⁽¹⁾ ;

•	Registered representatives and other employees of affiliated or unaffiliated selling and/or servicing agent having a selling agreement with the Distributor ⁽¹⁾ ;

•	Registered broker/dealer firms that have entered into a dealer agreement with the Distributor may buy Class A shares without paying a front-end sales charge for their investment account only;

•	Portfolio managers employed by subadvisers of the Funds ⁽¹⁾ ;

•	Partners and employees of outside legal counsel to the Funds or the Funds’ directors or trustees who regularly provide advice and services to the Funds, or to their directors or trustees;

•	Direct rollovers from qualified employee benefit plans, provided that the rollover involves a transfer to Class A shares in the same Fund;

•	Purchases made:


	•	With dividend or capital gain distributions from a Fund or from the same class of another Fund;

S.27


	•	Through or under a wrap fee product or other investment product sponsored by a selling and/or servicing agent that charges an account management fee or other managed agency/asset allocation accounts or programs involving fee-based compensation arrangements that have or that clear trades through a selling and/or servicing agent that has a selling agreement with the Distributor;

	•	Through state sponsored college savings plans established under Section 529 of the Internal Revenue Code; or

	•	Through banks, trust companies and thrift institutions, acting as fiduciaries;


•	Separate accounts established and maintained by an insurance company which are exempt from registration under Section 3(c)(11);

•	Purchases made through “employee benefit plans” created under section 401(a), 401(k), 457 and 403(b), and qualified deferred compensation plans that have a plan level or omnibus account maintained with the Fund or the Transfer Agent and transacts directly with the Fund or the Transfer Agent through a third party administrator or third party recordkeeper; and


⁽¹⁾		Including their spouses or domestic partners, children or step-children, parents, step-parents or legal guardians, and their spouse’s or domestic partner’s parents, step-parents, or legal guardians.


•	At the Fund’s discretion, front-end sales charges may be waived for shares issued in plans of reorganization, such as mergers, asset acquisitions and exchange offers, to which the Fund is a party.

CDSC Waivers

CDSC — Waivers of the CDSC for Class A, Class C, Class E, Class F and Class T shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	for which no sales commission or transaction fee was paid to an authorized selling and/or servicing agent at the time of purchase;

•	purchased through reinvestment of dividend and capital gain distributions;

S.28


•	in an account that has been closed because it falls below the minimum account balance;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	that result from returns of excess contributions made to retirement plans or individual retirement accounts, so long as the selling and/or servicing agent returns the applicable portion of any commission paid by the Distributor;

•	of Class A shares of a Fund initially purchased by an employee benefit plan;

•	other than Class A shares, of a Fund initially purchased by an employee benefit plan that are not connected with a plan level termination;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies );

•	at a Fund’s discretion, issued in connection with plans of reorganization, including but not limited to mergers, asset acquisitions and exchange offers, to which the Fund is a party; and

•	by certain other investors as set forth in more detail in the SAI.

CDSC — Waivers of the CDSC for Class B shares. The CDSC will be waived on redemptions of shares:


•	in the event of the shareholder’s death;

•	that result from required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70 1 / 2 ;

•	in connection with the Fund’s Small Account Policy (which is described below in Buying, Selling and Exchanging Shares — Transaction Rules and Policies ); and

•	by certain other investors, including certain institutions as set forth in more detail in the SAI.

Please see the SAI for more information about the sales charge reductions and waivers described here.

S.29

Repurchases

Distribution and Service Fees

S.30

The table below shows the maximum annual distribution and/or service fees (as an annual % of average daily net assets) and the combined amount of such fees applicable to each share class:


	Distribution	Service	Combined
	Fee	Fee	Total


Class A	up to 0.25%	up to 0.25%	up to 0.35% ^(a)(b)(c)
Class B	0.75%	0.25%	1.00% ^(a)(b)
Class C	0.75% ^(c)	0.25%	1.00% ^(b)(d)
Class E	0.10%	0.25%	0.35%
Class F	0.75%	0.25%	1.00%
Class I	none	none	none
Class R (Legacy Columbia funds)	0.50%	— ^(e)	0.50%
Class R (Legacy RiverSource funds)	up to 0.50%	up to 0.25%	0.50% ^(e)
Class R3	0.25%	0.25% ^(f)	0.50% ^(f)
Class R4	none	0.25% ^(f)	0.25% ^(f)
Class R5	none	none	none
Class T	none	0.50% ^(g)	0.50% ^(g)
Class W	up to 0.25%	up to 0.25%	0.25% ^(c)
Class Y	none	none	none
Class Z	none	none	none


^(a)		As shown in the table below, the maximum distribution and service fees of Class A shares varies among the Funds, as follows:


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Legacy RiverSource funds (other than Columbia Money Market Fund)	Up to 0.25%	Up to 0.25%	0.25%


Columbia Money Market Fund	—	—	0.10%


Columbia Asset Allocation Fund, Columbia Balanced Fund, Columbia Conservative High Yield Fund, Columbia Contrarian Core Fund, Columbia Disciplined Value Fund, Columbia Dividend Income Fund, Columbia Large Cap Growth Fund, Columbia Mid Cap Growth Fund, Columbia Oregon Intermediate Municipal Bond Fund, Columbia Intermediate Bond Fund, Columbia Real Estate Equity Fund, Columbia Small Cap Core Fund, Columbia Small Cap Growth Fund I, Columbia Technology 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.

S.31


	Maximum	Maximum	Maximum
	Class A	Class A	Class A
Funds	Distribution Fee	Service Fee	Combined Total


Columbia Blended Equity Fund, Columbia Bond Fund, Columbia California Tax-Exempt Fund, Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Emerging Markets Fund, Columbia Federal Securities Fund, Columbia Greater China Fund, Columbia High Yield Opportunity Fund, Columbia Liberty Fund, Columbia Energy and Natural Resources Fund, Columbia International Bond Fund, Columbia International Growth Fund, Columbia International Stock Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia Mid Cap Core Fund, Columbia Small Cap Value Fund I, Columbia Strategic Investor Fund, Columbia Massachusetts Tax-Exempt Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia New York Tax-Exempt Fund, Columbia Pacific/Asia Fund, Columbia Rhode Island Intermediate Municipal Bond Fund, Columbia Select Large Cap Growth Fund, Columbia Select Opportunities Fund, Columbia Select Small Cap Fund, Columbia Short-Intermediate Bond Fund, Columbia Strategic Income Fund, Columbia U.S. Treasury Index Fund, Columbia Value and Restructuring Fund, Columbia World Equity Fund	—	0.25%	0.25%


Columbia High Yield Municipal Fund, Columbia Intermediate Municipal Bond Fund, Columbia Tax Exempt Fund	—	0.20%	0.20%


Columbia Asset Allocation Fund II, Columbia California Intermediate Municipal Bond Fund, Columbia Convertible Securities Fund, Columbia Georgia Intermediate Municipal Bond Fund, Columbia Global Value Fund, Columbia High Income Fund, Columbia International Value Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico Global Fund, Columbia Maryland Intermediate Municipal Bond Fund, Columbia North Carolina Intermediate Municipal Bond Fund, Columbia Short Term Bond Fund, Columbia Short Term Municipal Bond Fund, Columbia Small Cap Growth Fund II, Columbia South Carolina Intermediate Municipal Bond Fund, Columbia Total Return Bond Fund, Columbia Virginia Intermediate Municipal Bond Fund, Columbia Large Cap Value Fund, Columbia LifeGoal ^® Balanced Growth Portfolio, Columbia LifeGoal ^® Growth Portfolio, Columbia LifeGoal ^® Income and Growth Portfolio, Columbia LifeGoal ^® Income Portfolio, Columbia Marsico 21st Century Fund, Columbia Marsico Growth Fund, Columbia Marsico International Opportunities Fund, Columbia Mid Cap Value Fund, Columbia Multi-Advisor International Equity Fund, Columbia Masters International Equity Portfolio, Columbia Small Cap Value Fund II, Columbia Large Cap Enhanced Core Fund, Columbia Large Cap Index Fund, Columbia Mid Cap Index Fund, Columbia Small Cap Index Fund, Columbia Overseas Value Fund	—	—	0.25%; these Funds pay a combined distribution and service fee pursuant to their combined distribution and shareholder servicing plan for Class A shares.


^(b)		The service fees for Class A shares, Class B shares and Class C shares of certain Funds depend on when the shares were purchased, as described below. Service Fee for Class A shares and Class B shares of Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-

S.32


		Exempt Fund and Columbia New York Tax-Exempt Fund — The annual service fee may equal up to 0.10% on net assets attributable to shares of these Funds issued prior to December 1, 1994 and 0.25% on net assets attributable to Fund shares issued thereafter. This arrangement results in a rate of service fee for Fund shares that is a blend between the 0.10% and 0.25% rates. For the fiscal year ended October 31, 2009, the blended service fee was 0.24% of the Fund’s average net assets for each of these Funds, other than Columbia Massachusetts Tax-Exempt Fund, which had a blended service fee of 0.23%. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Liberty Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to April 1, 1989 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended September 30, 2009, the blended service fee was 0.24% of the Fund’s average daily net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia Strategic Income Fund — The annual service fee may equal up to 0.15% on net assets attributable to shares of this Fund issued prior to January 1, 1993 and 0.25% on net assets attributable to shares issued thereafter. This arrangement results in a rate of service fee for all Fund shares that is a blend between the 0.15% and 0.25% rates. For the fiscal year ended May 31, 2010, the blended service fee was 0.25% of the Fund’s average net assets. Service Fee for Class A shares, Class B shares and Class C shares of Columbia High Yield Municipal Fund, Columbia Intermediate Municipal 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 shares and Class C shares for Columbia Intermediate Municipal Bond Fund — The annual distribution fee shall be 0.65% of the average daily net assets of the Fund’s Class B shares 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 pay distribution fees of up to 0.75% and service fees of up to 0.10%, for a combined total of 0.85%.
^(c)		Fee amounts noted apply to all Funds other than Columbia Money Market Fund (formerly RiverSource Cash Management 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 voluntarily agreed, effective April 15, 2010, to waive the 12b-1 fees it receives from Class A, Class C, Class R (formerly Class R2) and Class W shares of Columbia Money Market Fund and from Class A, Class C and Class R (formerly Class R2) shares of Columbia Government Money Market Fund. Compensation paid to broker-dealers and other financial intermediaries 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 a portion of the distribution fee for Class C shares of the following Funds so that the combined distribution and service fee (or the distribution fee for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund) does not exceed the specified percentage annually: 0.40% for Columbia Intermediate Municipal Bond Fund; 0.45% for Columbia California Tax-Exempt Fund, Columbia Connecticut Tax-Exempt Fund, Columbia Massachusetts Tax-Exempt Fund and Columbia New York Tax-Exempt Fund; 0.56% for Columbia Short Term Bond Fund; 0.65% for Columbia Connecticut Intermediate Municipal Bond Fund, Columbia Massachusetts Intermediate Municipal Bond Fund, Columbia New Jersey Intermediate Municipal Bond Fund, Columbia New York Intermediate Municipal Bond Fund, Columbia Oregon Intermediate Municipal Bond Fund and Columbia Rhode Island Intermediate Municipal Bond Fund; 0.80% for Columbia High Yield Municipal Fund and Columbia Tax-Exempt Fund; 0.85% for Columbia Conservative High Yield Fund, Columbia Core Bond Fund, Columbia Corporate Income Fund, Columbia Federal Securities Fund, Columbia High Yield Opportunity Fund, Columbia Intermediate Bond Fund, Columbia Strategic Income Fund and Columbia U.S. Treasury Index Fund. These arrangements may be modified or terminated by the Distributor at any time.
^(e)		Class R shares of Legacy Columbia funds pay a distribution fee pursuant to a distribution (Rule 12b-1) plan for Class R shares. The Legacy Columbia funds do not have a shareholder service plan for Class R shares. The Legacy RiverSource funds 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 Legacy RiverSource fund Class R shares, 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.
^(f)		The shareholder service fees for Class R3 and Class R4 shares are not paid pursuant to a 12b-1 plan. Under a plan administration services agreement, the Funds’ Class R3 and Class R4 shares pay for plan administration services, including services such as implementation and conversion services, account set-up

S.33


		and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and health savings accounts.
^(g)		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 (including Columbia Asset Allocation Fund) and 0.40% for fixed income Funds. The Funds currently limit such fees to a maximum of 0.30% for equity Funds and 0.15% for fixed-income Funds other than Columbia Rhode Island Intermediate Municipal Bond Fund, for which the limit currently is 0.00%. See Class T Shareholder Service Fees below for more information.

S.34

S.35

Class T Shareholder Service Fees

Class R3 and Class R4 Shares Plan Administration Fee

Selling and/or Servicing Agent Compensation

S.36

S.37

Buying, Selling and Exchanging Shares

Share Price Determination

FUNDamentals ^tm

NAV Calculation

Each of the Fund’s share classes calculates its NAV per share as follows:


		(Value of assets of the share class)
NAV	=	− (Liabilities of the share class)

		Number of outstanding shares of the class

FUNDamentals ^tm

Business Days

S.38

For money market Funds, the Fund’s investments are valued at amortized cost, which approximates market value.

S.39

Transaction Rules and Policies

Also remember that the Fund may refuse any order to buy or exchange shares. If this happens, the Fund will return any money it received, but no interest will be paid on that money.

Order Processing

“Good Form”

Medallion Signature Guarantees

S.40

A Medallion Signature Guarantee is required if:


•	The amount is greater than $100,000.

•	You want your check made payable to someone other than the registered account owner(s).

•	Your address of record has changed within the last 30 days.

•	You want the check mailed to an address other than the address of record.

•	You want the proceeds sent to a bank account not on file.

•	You are the beneficiary of the account and the account owner is deceased (additional documents may be required).

Written Transactions

Telephone Transactions

S.41

Online Transactions

You can sell up to and including an aggregate of $100,000 of shares per day, per Fund account through the internet if you qualify for internet orders.

Customer Identification Program

S.42

Small Account Policy — Class A, B, C, T and Z Share Accounts Below $250

Small Account Policy — Class A, B, C, T and Z Share Accounts Minimum Balance Fee

S.43

Exceptions to the Small Account Policy (Accounts Below $250 and Minimum Balance Fee)

Small Account Policy — Broker/Dealer and Wrap Fee Accounts

The Funds may automatically redeem at any time broker/dealer networked accounts and wrap fee accounts that have account balances of $20 or less or have less than one share.

Cash Flows

Information Sharing Agreements

S.44

Excessive Trading Practices Policy of Non-Money Market Funds

S.45

Risks of Excessive Trading — Excessive trading creates certain risks to the Fund’s long-term shareholders and may create the following adverse effects:


•	negative impact on the Fund’s performance;

•	potential dilution of the value of the Fund’s shares;

S.46


•	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.

S.47

Excessive Trading Practices Policy of Money Market Funds

Opening an Account and Placing Orders

S.48

Accounts established directly with the Fund

S.49

Buying Shares

Eligible Investors

Class A and Class C Shares

Class B Shares Closed

S.50

Additional Class B shares will be issued only to existing investors in Class B shares and only through the following two types of transactions (Qualifying Transactions):


•	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.

Any initial purchase orders for the Fund’s Class B shares will be rejected (other than through a Qualifying Transaction that is an exchange transaction).

S.51

Class E and Class F Shares Closed

Class I Shares

Class R Shares

Class R3, Class R4 and Class R5 Shares

Class R3, Class R4 and Class R5 shares are closed to new investors and new accounts effective as of the close of business on December 31, 2010, subject to certain limited exceptions described below.

S.52

Class T Shares Closed

S.53

Class W Shares

Class Y Shares

Class Y shares are available only to the following categories of eligible investors:


•	Individual investors and institutional clients (endowments, foundations, defined benefit plans, etc.) who invest at least $1 million in Class Y shares of a single Fund; and

•	Group retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans) with plan assets of at least $10 million.

Class Z Shares

Class Z shares are available only to the categories of eligible investors described below under “Minimum Investment and Account Balance — Class Z Shares Minimum Investments”

In addition, for Class I, Class R, Class W, Class Y and Class Z shares, the Distributor, in its sole discretion, may accept investments from other institutional investors not listed above.

S.54

Minimum Initial Investments, Additional Investments and Account Balances

The table below shows the Fund’s minimum initial investment, additional investment and minimum account balance requirements, which may vary by Fund, class and type of account.

Minimum Investment and Account Balance


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance


For all Funds and classes except those listed below (non-qualified accounts)	$2,000 ^(a)	$100	$250 ^(d)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$1,000	$100	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(b)	$100	$250


Class Z	variable ^(a)(c)	$100	$250 ^(d)


^(a)		If your Class A, B, C, T or 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 systematic investment plan. If you do not do so, it 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 requirement.
^(b)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(c)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.
^(d)		If the value of your account falls below $250, your Fund account is subject to automatic redemption of Fund shares. For details, see Small Account Policy above.

S.55

Systematic Investment Plan

Minimum Investment and Account Balance — Systematic Investment Plans


	Minimum	Minimum	Minimum
	Initial	Additional	Account
	investment	investments	balance*


For all Funds and classes except those listed below (non-qualified accounts)	$100 ^*(a)	$100	none ^*(b)


For all Funds and classes except those listed below (Individual Retirement Accounts)	$100 ^*(b)	$50	none


Columbia 120/20 Contrarian Equity Fund, Columbia Global Extended Alpha Fund, Columbia Absolute Return Currency and Income Fund	$10,000	$100	$5,000


RiverSource Disciplined Small Cap Value Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund	$5,000	$100	$2,500


Class I, Class R	none	none	none


Class W	$500	none	$500


Class Y	variable ^(c)	$100	none


Class Z	variable ^(d)	$100	none


*		If your Fund account balance is below the minimum initial investment requirement described in this table, you must make investments at least monthly.
^(a)		money market Funds — $2,000.
^(b)		money market Funds — $1,000.
^(c)		The minimum initial investment amount for Class Y shares varies depending on eligibility. For eligibility details, see Buying, Selling and Exchanging Shares — Buying Shares — Eligible Investors — Class Y Shares.
^(d)		The minimum initial investment requirement for Class Z shares is $0, $1,000 or $2,000 depending upon the category of eligible investor. For details, see Class Z Shares Minimum Investments below.

Class Z Shares Minimum Investments

There is no minimum initial investment in Class Z shares for the following categories of eligible investors:

•

S.56


•	Any health savings account sponsored by a third party platform and any omnibus group retirement plan for which a selling and/or servicing 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 investor participating in a wrap program sponsored by a selling and/or servicing 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.

The minimum initial investment in Class Z shares for the following eligible investors is $1,000:


•	Any individual retirement plan (assuming the eligibility criteria below are met) or group retirement plan that is not held in an omnibus manner for which a selling and/or servicing 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through an individual retirement account.

The minimum initial investment in Class Z shares for the following categories of eligible investors is $2,000:


•	Any investor buying shares through a Columbia Management state tuition plan organized under Section 529 of the Internal Revenue Code.

•	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 Legacy Columbia fund distributed by the Distributor.

•	Any trustee or director (or family member of a trustee or director) of a fund distributed by the Distributor.

S.57


•	Any investor participating in an account offered by a selling and/or servicing 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 selling and/or servicing agent 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 person employed as of April 30, 2010 by the former investment manager, distributor or transfer agent of the Legacy Columbia funds is eligible to make new and subsequent purchases in the Class Z shares through a non-retirement account.

•	Certain other investors as set forth in more detail in the SAI.

Dividend Diversification

S.58

Wire Purchases

Electronic Funds Transfer

Other Purchase Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing 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, Class E 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 F, Class I, Class R, Class R3, 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 Fund reserves the right to cancel your order if it 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 and/or servicing agents are responsible for sending your buy orders to the Transfer Agent and ensuring that we receive your money on time.

•	Shares bought are recorded on the books of the Fund. The Fund doesn’t issue certificates.

S.59

Selling Shares

Wire Redemptions

Electronic Funds Transfer

Systematic Withdrawal Plan

S.60

Check Redemption Service

In-Kind Distributions

Other Redemption Rules You Should Know


•	Once the Transfer Agent or your selling and/or servicing agent receives your sell order in “good form,” your shares will be sold at the next calculated net asset value 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 directly through the Funds, we will normally send the sale proceeds by mail or electronically transfer them to your bank account within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

•	If you sell your shares through a selling and/or servicing agent, the Funds will normally send the sale proceeds by Fedwire within three business days after the Transfer Agent or your selling and/or servicing agent receives your order in “good form.”

S.61


•	If you paid for your shares by check or from your bank account as an Automated Clearing House (ACH) transaction, the Funds will hold the sale 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 during emergency circumstances as determined by the SEC.

•	Other restrictions may apply to retirement accounts. For information about these restrictions, contact your retirement plan administrator.

•	Also keep in mind the Funds’ Small Account Policy, which is described above in Buying, Selling and Exchanging Shares — Transaction Rules and Policies .

•	For Class E shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class E shares held by the trust, the shares automatically will convert to Class A shares of the Fund and be registered in the beneficiary’s name. For Class F shareholders, if, at the time of the trust’s termination, the beneficiary does not elect to redeem Class F shares held by the trust, the shares automatically will convert to Class B shares of the Fund and be registered in the beneficiary’s name. After such conversion, the beneficiary’s shares no longer will convert to Class E shares, but will convert to Class A shares in accordance with the applicable conversion schedule for Class B shares. Automatic conversion of Class B shares to Class A shares occurs eight years after purchase for these shares. For purposes of calculating the conversion period, the beneficiary ownership period for the Class B shares will begin at the time the Class F shares were purchased.

•	For Class E and Class F shareholders, if the beneficiary under a Columbia Advantage Plan trust exercises his or her withdrawal rights, the financial advisor may be required to refund to the Distributor any sales charge or initial commission previously retained or paid on the withdrawn Class E and/or Class F shares or amount redeemed.

S.62

Exchanging Shares

Systematic Exchanges

The rules described below for making exchanges apply to systematic exchanges.

Other Exchange Rules You Should Know


•	Exchanges are made at net asset value 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.

S.63


•	You can generally make exchanges between like share classes of any Fund. Some exceptions apply.

•	If you exchange shares from Class A shares of a 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 a 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 a 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. If your initial investment was in a 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, Class E and Class F shares of the Funds.

•	If your initial investment was in Class A shares of a non-money market Fund and you exchange shares into a 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.

•	Class T shares may be exchanged for Class T or Class A shares. Class T shares exchanged into Class A shares cannot be exchanged back into Class T shares.

•	Class Z shares of a Fund may be exchanged for Class A or Class Z shares of another 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 and/or servicing 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.

S.64

•

Same-Fund Exchange Privilege for Class Z Shares

Ways to Request a Sale or Exchange of Shares

Account established with your selling and/or servicing agent

S.65

Distributions and Taxes

Distributions to Shareholders

A mutual fund can make money two ways:


•	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 unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than it originally paid. Capital gains are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term gains) or more than one year (long-term gains).

FUNDamentals ^TM

Distributions

S.66

S.67

Taxes and Your Investment


•	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. In addition, 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 shares of the Fund.

•	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.

•	For taxable years beginning on or before December 31, 2012, 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 lower net long-term capital gain rates. It is currently unclear whether Congress will extend this provision to taxable years beginning after December 31, 2012. 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 derived from qualified dividend income.

•	For taxable years beginning on or before December 31, 2012, the maximum individual U.S. federal income tax rate on net long-term capital gain (and thus qualified dividend income) has been temporarily reduced to 15%. It is currently unclear whether Congress will extend this rate reduction to taxable years beginning after December 31, 2012.

S.68


•	Certain derivative instruments when held in a Fund’s portfolio subject the Fund to special tax rules, the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, convert capital gains into ordinary income and convert short-term capital losses into long-term capital losses. 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.

•	Certain Funds may purchase or sell (write) options, as described further in the SAI. In general, option premiums which may be received by the Fund are not immediately included in the income of the Fund. Instead, such premiums are taken into account when the option contract expires, the option is exercised by the holder, or the Fund transfers or otherwise terminates the option. If an option written by a Fund is exercised and such Fund sells or delivers the underlying security, the Fund generally will recognize capital gain or loss equal to (a) the sum of the exercise price and the option premium received by the Fund minus (b) the Fund’s basis in the security. Such gain or loss generally will be short-term or long-term depending upon the holding period of the underlying security. Gain or loss with respect to any termination of a Fund’s obligation under an option other than through the exercise of the option and the related sale or delivery of the underlying security generally will be short-term gain or loss. Thus, for example, if an option written by a Fund expires unexercised, such Fund generally will recognize short-term gain equal to the premium received.

•	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 income your share of the foreign taxes paid by the Fund. You may be able to either deduct this amount from your income or claim it as a foreign tax credit. There is no assurance that the Fund will make a special election for a taxable year, even if it is eligible to do so.

S.69


•	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 generally will be exempt from such taxes, but may be subject to other taxes, including income taxes of other states, and federal and state alternative minimum tax. 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. Distributions of 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 or disallowed.

•	The Fund is required by federal law to withhold tax on any taxable and possibly 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 taxpayer identification number (TIN) or haven’t certified to the Fund that withholding doesn’t apply; the Internal Revenue Service (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.

S.70

FUNDamentals ^TM

Taxes

Additional Services and Compensation

Additional Management Information

S.71

S.72

S.73

STATEMENT OF ADDITIONAL INFORMATION
March 7, 2011


Columbia Funds Series Trust II
Columbia 120/20 Contrarian Equity Fund
Class A: RCEAX	Class B: RZZBX	Class C: RECCX
Class I: —	Class Z: CCEZX
Columbia Absolute Return Currency and Income Fund
Class A: RARAX	Class B: —	Class C: RARCX
Class I: RVAIX	Class W: RACWX	Class Z: CACZX
Columbia AMT-Free Tax-Exempt Bond Fund
Class A: INTAX	Class B: ITEBX	Class C: RTCEX
Class Z: CATZX
Columbia Asia Pacific ex-Japan Fund
Class A: CAJAX	Class C: CAJCX	Class R: CAJRX
Class R5: TAPRX	Class Z: CAJZX
Columbia Diversified Bond Fund
Class A: INBNX	Class B: ININX	Class C: AXBCX
Class I: RDBIX	Class R: —	Class R3: RSDBX
Class R4: IDBYX	Class R5: RSVBX	Class W: RVBWX
Class Z: CDBZX
Columbia Diversified Equity Income Fund
Class A: INDZX	Class B: IDEBX	Class C: ADECX
Class I: ADIIX	Class R: RDEIX	Class R3: RDERX
Class R4: IDQYX	Class R5: RSEDX	Class W: —
Class Z: CDVZX
Columbia Dividend Opportunity Fund
Class A: INUTX	Class B: IUTBX	Class C: ACUIX
Class I: RSOIX	Class R: RSOOX	Class R4: RSORX
Class R5: RSDFX	Class W: —	Class Z: CDOZX
Columbia Emerging Markets Bond Fund
Class A: REBAX	Class B: —	Class C: REBCX
Class I: RSMIX	Class R4: —	Class W: REMWX
Class Z: CMBZX
Columbia Emerging Markets Opportunity Fund
Class A: IDEAX	Class B: IEMBX	Class C: RMCEX
Class I: RSRIX	Class R: REMRX	Class R4: —
Class R5: REMFX	Class W: CMOWX	Class Z: CEOZX
Columbia Equity Value Fund
Class A: IEVAX	Class B: INEGX	Class C: REVCX
Class I: —	Class R: REVRX	Class R3: RSEVX
Class R4: AEVYX	Class R5: RSEYX	Class W: CEVWX
Class Z: CEVZX
Columbia European Equity Fund
Class A: AXEAX	Class B: AEEBX	Class C: REECX
Class I: —	Class R4: —	Class Z: CEEZX
Columbia Floating Rate Fund
Class A: RFRAX	Class B: RSFBX	Class C: RFRCX
Class I: RFRIX	Class R: CFRRX	Class R4: —
Class R5: RFRFX	Class W: RFRWX	Class Z: CFRZX
Columbia Frontier Fund
Class A: SLFRX	Class B: SLFBX	Class C: SLFCX
Class I: —	Class R: SFFRX	Class R4: SFFTX
Class R5: SFFIX	Class Z: CFOZX
Columbia Global Bond Fund
Class A: IGBFX	Class B: IGLOX	Class C: AGBCX
Class I: AGBIX	Class R: —	Class R4: RGBRX
Class W: RGBWX	Class Z: CGBZX
Columbia Global Equity Fund
Class A: IGIGX	Class B: IDGBX	Class C: RGCEX
Class I: —	Class R: —	Class R4: IDGYX
Class R5: RGERX	Class W: —	Class Z: CGEZX
Columbia Global Extended Alpha Fund
Class A: RTAAX	Class B: —	Class C: RTACX
Class I: —	Class R: REAOX	Class R4: REYRX
Class Z: CEAZX
Columbia Government Money Market Fund
Class A: SCMXX	Class B: SCBXX	Class C: SCCXX
Class R: SMRXX	Class R5: SMIXX	Class Z: CGZXX
Columbia High Yield Bond Fund
Class A: INEAX	Class B: IEIBX	Class C: APECX
Class I: RSHIX	Class R: —	Class R3: —
Class R4: RSHYX	Class R5: RSHRX	Class W: RHYWX
Class Z: CHYZX
Columbia Income Builder Fund
Class A: RBBAX	Class B: RBBBX	Class C: RBBCX
Class R4: —	Class R: CBURX	Class Z: CBUZX
Columbia Income Opportunities Fund
Class A: AIOAX	Class B: AIOBX	Class C: RIOCX
Class I: AOPIX	Class R: CIORX	Class R4: —
Class W: CIOWX	Class Z: CIOZX
Columbia Inflation Protected Securities Fund
Class A: APSAX	Class B: APSBX	Class C: RIPCX
Class I: AIPIX	Class R: RIPRX	Class R4: —
Class W: RIPWX	Class Z: CIPZX
Columbia Large Core Quantitative Fund
Class A: AQEAX	Class B: AQEBX	Class C: RDCEX
Class I: ALEIX	Class R: —	Class R4: RQEYX
Class R5: RSIPX	Class W: RDEWX	Class Z: CCRZX
Columbia Large Growth Quantitative Fund
Class A: RDLAX	Class B: —	Class C: RDLCX
Class I: RDLIX	Class R: —	Class R4: RDLFX
Class W: RDLWX	Class Z: CLQZX
Columbia Large Value Quantitative Fund
Class A: RLCAX	Class B: —	Class C: RDCCX
Class I: —	Class R: RLCOX	Class R4: RLCYX
Class W: RLCWX	Class Z: CVQZX
Columbia Limited Duration Credit Fund
Class A: ALDAX	Class B: ALDBX	Class C: RDCLX
Class I: ALDIX	Class R4: —	Class W: RLDWX
Class Z: CLDZX
Columbia Marsico Flexible Capital Fund
Class A: CCMAX	Class C: CCFCX	Class I: —
Class R: CCFRX	Class Z: CCMZX
Columbia Mid Cap Growth Opportunity Fund
Class A: INVPX	Class B: IDQBX	Class C: AESCX
Class I: AQUIX	Class R: —	Class R3: —
Class R4: IESYX	Class Z: CVOZX
Columbia Mid Cap Value Opportunity Fund
Class A: AMVAX	Class B: AMVBX	Class C: AMVCX
Class I: RMCIX	Class R: RMVTX	Class R3: RMCRX
Class R4: RMCVX	Class R5: RSCMX	Class W: —
Class Z: CMOZX
Columbia Minnesota Tax-Exempt Fund
Class A: IMNTX	Class B: IDSMX	Class C: RMTCX
Class Z: CMNZX
Columbia Money Market Fund
Class A: IDSXX	Class B: ACBXX	Class C: RCCXX
Class I: RCIXX	Class R: RVRXX	Class R5: —
Class W: RCWXX	Class Z: IDYXX
Columbia Multi-Advisor International Value Fund
Class A: APIAX	Class B: AXIBX	Class C: APICX
Class I: APRIX	Class R4: —	Class Z: CMVZX
Columbia Multi-Advisor Small Cap Value Fund
Class A: ASVAX	Class B: ASVBX	Class C: APVCX
Class I: —	Class R: RSVTX	Class R3: RSVRX
Class R4: RSGLX	Class R5: RSCVX	Class Z: CMAZX
Columbia Portfolio Builder Aggressive Fund
Class A: AXBAX	Class B: AXPBX	Class C: RBGCX
Class R: CPARX	Class R4: —	Class Z: CPAZX


Columbia Portfolio Builder Conservative Fund
Class A: ABDAX	Class B: ABBDX	Class C: RPCCX
Class R: CBURX	Class R4: —	Class Z: CBVZX
Columbia Portfolio Builder Moderate Aggressive Fund
Class A: AXMAX	Class B: ABMBX	Class C: AGECX
Class R: CBARX	Class R4: —	Class Z: CBAZX
Columbia Portfolio Builder Moderate Conservative Fund
Class A: AUCAX	Class B: AMDBX	Class C: RBMCX
Class R: CPMRX	Class R4: —	Class Z: CPMZX
Columbia Portfolio Builder Moderate Fund
Class A: ABUAX	Class B: AURBX	Class C: AMTCX
Class R: CBMRX	Class R4: —	Class Z: CBMZX
Columbia Recovery and Infrastructure Fund
Class A: RRIAX	Class B: RRIBX	Class C: RRICX
Class I: RRIIX	Class R: RRIRX	Class R4: RRIYX
Class R5: RRIZX	Class Z: CRIZX
Columbia Retirement Plus 2010 Fund
Class A: —	Class C: CRTCX	Class R: —
Class Z: RSSPX
Columbia Retirement Plus 2015 Fund
Class A: —	Class C: CRPCX	Class R: —
Class Z: RSFNX
Columbia Retirement Plus 2020 Fund
Class A: —	Class C: CRUCX	Class R: —
Class Z: RSNFX
Columbia Retirement Plus 2025 Fund
Class A: —	Class C: CRLCX	Class R: —
Class Z: RSMEX
Columbia Retirement Plus 2030 Fund
Class A: —	Class C: CRRCX	Class R: —
Class Z: RPTYX
Columbia Retirement Plus 2035 Fund
Class A: —	Class C: CRPZX	Class R: —
Class Z: RPOYX
Columbia Retirement Plus 2040 Fund
Class A: —	Class C: CRWCX	Class R: —
Class Z: RPFYX
Columbia Retirement Plus 2045 Fund
Class A: —	Class C: CRFCX	Class R: —
Class R4: RSNNX	Class Z: RRPYX
Columbia Select Large-Cap Value Fund
Class A: SLVAX	Class B: SLVBX	Class C: SLVCX
Class I: —	Class R: SLVRX	Class R4: SLVTX
Class R5: SLVIX	Class W: CSVWX	Class Z: CSVZX
Columbia Select Smaller-Cap Value Fund
Class A: SSCVX	Class B: SSCBX	Class C: SVMCX
Class I: —	Class R: SSVRX	Class R4: SSLRX
Class R5: SSVIX	Class Z: CSSZX
Columbia Seligman Communications and Information Fund
Class A: SLMCX	Class B: SLMBX	Class C: SCICX
Class I: —	Class R: SCIRX	Class R3: SCIOX
Class R4: SCIFX	Class R5: SCMIX	Class Z: CCIZX
Columbia Seligman Global Technology Fund
Class A: SHGTX	Class B: SHTBX	Class C: SHTCX
Class I: —	Class R: SGTRX	Class R4: SGTSX
Class R5: SGTTX	Class Z: CSGZX
Columbia Strategic Allocation Fund
Class A: IMRFX	Class B: IMRBX	Class C: RSSCX
Class I: —	Class R: —	Class R4: IDRYX
Class Z: CSAZX
Columbia U.S. Government Mortgage Fund
Class A: AUGAX	Class B: AUGBX	Class C: AUGCX
Class I: RVGIX	Class R4: RSGYX	Class Z: CUGZX
RiverSource California Tax-Exempt Trust
RiverSource California Tax-Exempt Fund
Class A: ICALX	Class B: ACABX	Class C: RCTCX
RiverSource Dimensions Series, Inc.
RiverSource Disciplined Small and Mid Cap Equity Fund
Class A: RDSAX	Class B: —	Class C: RDSCX
Class I: RDSIX	Class R4: —	Class W: RSDVX
RiverSource Disciplined Small Cap Value Fund
Class A: RDVAX	Class B: —	Class C: RDVCX
Class I: RCVIX	Class R: —	Class R3: —
RiverSource Global Series, Inc.
Threadneedle Global Equity Income Fund
Class A: RTNAX	Class B: —	Class C: RTNEX
Class I: —	Class R: RGEOX	Class R4: RGEYX
RiverSource Government Income Series, Inc.
RiverSource Short Duration U.S. Government Fund
Class A: IFINX	Class B: ISHOX	Class C: AXFCX
Class I: AGMIX	Class R: RSDRX	Class R4: IDFYX
Class W: RSDWX
RiverSource Income Series, Inc.
Columbia Income Builder Fund II
Class A: RSMAX	Class B: RSMBX	Class C: RSMCX
Class R4: —
Columbia Income Builder Fund III
Class A: RSBAX	Class B: REIVX	Class C: RIECX
Class R4: —
RiverSource International Managers Series, Inc.
RiverSource Partners International Select Growth Fund
Class A: AXGAX	Class B: APIBX	Class C: RIACX
Class I: AIGGX	Class R: RISRX	Class R4: —
Class R5: RISSX
RiverSource Partners International Small Cap Fund
Class A: AISCX	Class B: APNBX	Class C: RISLX
Class I: RPSCX	Class R: —	Class R4: —
Class R5: —
RiverSource International Series, Inc.
RiverSource Disciplined International Equity Fund
Class A: RDIAX	Class B: RDIBX	Class C: RDICX
Class I: RSDIX	Class R: RDIOX	Class R4: RDIRX
Class W: RDIWX
Threadneedle International Opportunity Fund
Class A: INIFX	Class B: IWWGX	Class C: ROPCX
Class I: ATNIX	Class R: —	Class R4: IDIYX
RiverSource Investment Series, Inc.
RiverSource Balanced Fund
Class A: INMUX	Class B: IDMBX	Class C: RVBCX
Class R: RVBRX	Class R4: IDMYX	Class R5: RVBSX
RiverSource Managers Series, Inc.
RiverSource Partners Fundamental Value Fund
Class A: AFVAX	Class B: AFVBX	Class C: AFVCX
Class I: AFVIX	Class R4: —
RiverSource Market Advantage Series, Inc.
Columbia Portfolio Builder Total Equity Fund
Class A: AXTAX	Class B: AXTBX	Class C: RBTCX
Class R4: —
RiverSource S&P 500 Index Fund
Class A: ADIDX	Class Z: ADIEX
RiverSource Small Company Index Fund
Class A: ISIAX	Class B: ISIBX	Class R4: ISCYX
RiverSource Sector Series, Inc.
RiverSource Real Estate Fund
Class A: ARLAX	Class B: AESBX	Class C: RRECX
Class I: AESIX	Class R4: —	Class W: RREWX

Statement of Additional Information – March 7, 2011


RiverSource Selected Series, Inc.
RiverSource Precious Metals and Mining Fund
Class A: INPMX	Class B: INPBX	Class C: RPMCX
Class I: —	Class R4: AEVYX
RiverSource Special Tax-Exempt Series Trust
RiverSource New York Tax-Exempt Fund
Class A: INYKX	Class B: —	Class C: RNTCX
RiverSource Strategic Allocation Series, Inc.
RiverSource Strategic Income Allocation Fund
Class A: RSGAX	Class B: RIABX	Class C: RAICX
Class R: RSDOX	Class R4: RSTRX	Class R5: RSFRX
RiverSource Tax-Exempt Income Series, Inc.
RiverSource Tax-Exempt High Income Fund
Class A: INHYX	Class B: IHYBX	Class C: AHECX
RiverSource Tax-Exempt Series, Inc.
RiverSource Intermediate Tax-Exempt Fund
Class A: INFAX	Class B: INFBX	Class C: RTICX
Seligman Capital Fund, Inc.
Class A: SCFIX	Class B: SLCBX	Class C: SCLCX
Class I: —	Class R: SCFRX	Class R5: SCLIX
Seligman Growth Fund, Inc.
Class A: SGRFX	Class B: SGBTX	Class C: SGRCX
Class I: —	Class R: SGRFX	Class R4: SGRSX
Class R5: SGFIX
Seligman LaSalle Real Estate Fund Series, Inc.
RiverSource LaSalle Global Real Estate Fund
Class A: SLDAX	Class C: SLDCX	Class I: —
Class R: SLDRX	Class R4: SLDTX	Class R5: SLDIX
RiverSource LaSalle Monthly Dividend Real Estate Fund
Class A: SREAX	Class B: SREBX	Class C: SRECX
Class I: —	Class R: SRERX	Class R4: SLRCX
Class R5: SREIX
Seligman Municipal Fund Series, Inc.
Seligman Minnesota Municipal Class
Class A: SMNNX	Class C: SMNCX
Seligman National Municipal Class
Class A: SNXEX	Class C: SNACX
Seligman New York Municipal Class
Class A: SNYTX	Class C: SNYCX
Seligman Municipal Series Trust
Seligman California Municipal High Yield Series
Class A: SCHYX	Class C: SCHCX
Seligman California Municipal Quality Series
Class A: SCTQX	Class C: SCQCX

This is the Statement of Additional Information (“SAI”) for each of the funds listed on the previous pages. This SAI is not a prospectus. It should be read together with the appropriate current fund prospectus, the date of which can be found in Table 1 of this SAI.

Each fund’s financial statements for its most recent fiscal period are contained in the fund’s annual or semiannual report to shareholders. The Independent Registered Public Accounting Firm’s Report and the Financial Statements, including Notes to the Financial Statements and the Schedule of Investments in Securities and any applicable Schedule of Affiliated Funds, contained in the Annual Report, are incorporated in this SAI by reference. No other portion of the Annual Report is incorporated by reference. For a free copy of a fund prospectus, annual or semiannual report, contact your financial intermediary (or selling/servicing agent) or write to the family of funds, which includes Columbia, RiverSource, Seligman and Threadneedle branded funds (collectively, the “Fund Family”), at c/o Columbia Management Investment Services Corp., P.O. Box 8081, Boston, MA 02266-8081, call 800.345.6611 or visit columbiamanagement.com.

Each fund is governed by a Board of Directors/Trustees (the “Board”) that meets regularly to review a wide variety of matters affecting the funds. Detailed information about fund governance, the funds’ investment manager, Columbia Management Investment Advisers, LLC (the “investment manager” or “Columbia Management”), a wholly-owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”), and other aspects of fund management can be found by referencing the Table of Contents or the List of Tables on the following pages.

Statement of Additional Information – March 7, 2011

Table 1. Fund Fiscal Year Ends, Prospectus Date and Investment Categories


Fund	Fiscal Year End	Prospectus Date	Fund Investment Category
Columbia 120/20 Contrarian Equity	April 30	June 29, 2010	Equity

Columbia Absolute Return Currency and Income	October 31	Dec. 30, 2010	Taxable fixed income*

Columbia AMT-Free Tax-Exempt Bond	November 30	Jan. 28, 2011	Tax-exempt fixed income

Columbia Asia Pacific ex-Japan	October 31	Dec. 30, 2010	Equity

Columbia Diversified Bond	August 31	Oct. 29, 2010	Taxable fixed income

Columbia Diversified Equity Income	September 30	Nov. 29, 2010	Equity

Columbia Dividend Opportunity	June 30	Aug. 27, 2010	Equity

Columbia Emerging Markets Bond	October 31	Dec. 30, 2010	Taxable fixed income

Columbia Emerging Markets Opportunity	October 31	Dec. 30, 2010	Equity

Columbia Equity Value	March 31	May 28, 2010	Equity

Columbia European Equity	October 31	Dec. 30, 2010	Equity

Columbia Floating Rate	July 31	Sept. 27, 2010	Taxable fixed income

Columbia Frontier	October 31	Dec. 30, 2010	Equity

Columbia Global Bond	October 31	Dec. 30, 2010	Taxable fixed income

Columbia Global Equity	October 31	Dec. 30, 2010	Equity

Columbia Global Extended Alpha Fund	October 31	Dec. 30, 2010	Equity

Columbia Government Money Market	December 31	March 7, 2011	Taxable Money Market

Columbia High Yield Bond	May 31	July 30, 2010	Taxable fixed income

Columbia Income Builder Fund	January 31**	April 1, 2010	Fund-of-funds – fixed income

Columbia Income Builder Fund II	January 31**	April 1, 2010	Fund-of-funds – fixed income

Columbia Income Builder Fund III	January 31**	April 1, 2010	Fund-of-funds – fixed income

Columbia Income Opportunities	July 31	Sept. 27, 2010	Taxable fixed income

Columbia Inflation Protected Securities	July 31	Sept. 27, 2010	Taxable fixed income

Columbia Large Core Quantitative Equity	July 31	Sept. 27, 2010	Equity

Columbia Large Growth Quantitative	September 30	Nov. 29, 2010	Equity

Columbia Large Value Quantitative	September 30	Nov. 29, 2010	Equity

Columbia Limited Duration Credit	July 31	Sept. 27, 2010	Taxable fixed income

Columbia Marsico Flexible Capital	August 31	Sept. 22, 2010	Equity

Columbia Mid Cap Growth Opportunity	November 30	Jan. 22, 2010	Equity

Columbia Mid Cap Value Opportunity	September 30	Nov. 29, 2010	Equity

Columbia Minnesota Tax-Exempt	August 31	Oct. 29, 2010	State tax-exempt fixed income

Columbia Money Market	July 31	Sept. 27, 2010	Taxable money market

Columbia Multi-Advisor International Value	October 31	Dec. 30, 2010	Equity

Columbia Multi-Advisor Small Cap Value	May 31	July 30, 2010	Equity

Columbia Portfolio Builder Aggressive	January 31	April 1, 2010	Fund-of-funds – equity

Columbia Portfolio Builder Conservative	January 31	April 1, 2010	Fund-of-funds – fixed income

Columbia Portfolio Builder Moderate	January 31	April 1, 2010	Fund-of-funds – equity

Columbia Portfolio Builder Moderate Aggressive	January 31	April 1, 2010	Fund-of-funds – equity

Columbia Portfolio Builder Moderate Conservative	January 31	April 1, 2010	Fund-of-funds – fixed income

Columbia Portfolio Builder Total Equity	January 31	April 1, 2010	Fund-of-funds – equity

Columbia Recovery and Infrastructure	April 30	June 29, 2010	Equity

Columbia Retirement Plus 2010	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Retirement Plus 2015	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Retirement Plus 2020	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Retirement Plus 2025	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Retirement Plus 2030	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Retirement Plus 2035	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Retirement Plus 2040	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Retirement Plus 2045	April 30	June 29, 2010	Fund-of-funds – equity

Columbia Select Large-Cap Value	December 31	March 7, 2011	Equity

Columbia Select Smaller-Cap Value	December 31	March 7, 2011	Equity

Columbia Seligman Communications and Information	December 31	March 7, 2011	Equity

Statement of Additional Information – March 7, 2011

Page 3


Fund	Fiscal Year End	Prospectus Date	Fund Investment Category
Columbia Seligman Global Technology	October 31	Dec. 30, 2010	Equity

Columbia Strategic Allocation	September 30	Nov. 29, 2010	Balanced

Columbia U.S. Government Mortgage	May 31	July 30, 2010	Taxable fixed income

RiverSource Balanced	September 30	Nov. 29, 2010	Balanced

RiverSource California Tax-Exempt	August 31	Oct. 29, 2010	State tax-exempt fixed income

RiverSource Disciplined International Equity	October 31	Dec. 30, 2010	Equity

RiverSource Disciplined Small and Mid Cap Equity	July 31	Sept. 27, 2010	Equity

RiverSource Disciplined Small Cap Value	July 31	Sept. 27, 2010	Equity

RiverSource Intermediate Tax-Exempt	November 30	Jan. 29, 2010	Tax-exempt fixed income

RiverSource LaSalle Global Real Estate	December 31	March 1, 2010	Equity

RiverSource LaSalle Monthly Dividend Real Estate	December 31	March 1, 2010	Equity

RiverSource New York Tax-Exempt	August 31	Oct. 29, 2010	State tax-exempt fixed income

RiverSource Partners Fundamental Value	May 31	July 30, 2010	Equity

RiverSource Partners International Select Growth	October 31	Dec. 30, 2010	Equity

RiverSource Partners International Small Cap	October 31	Dec. 30, 2010	Equity

RiverSource Precious Metals and Mining	March 31	May 28, 2010	Equity

RiverSource Real Estate	June 30	Aug. 27, 2010	Equity

RiverSource S&P 500 Index	January 31	April 1, 2010	Equity

RiverSource Short Duration U.S. Government	May 31	July 30, 2010	Taxable fixed income

RiverSource Small Company Index	January 31	April 1, 2010	Equity

RiverSource Strategic Income Allocation	September 30	Nov. 29, 2010	Taxable fixed income*

RiverSource Tax-Exempt High Income	November 30	Jan. 29, 2010	Tax-exempt fixed income

Seligman California Municipal High-Yield	September 30	Nov. 29, 2010	State tax-exempt fixed income

Seligman California Municipal Quality	September 30	Nov. 29, 2010	State tax-exempt fixed income

Seligman Capital	December 31	March 1, 2010	Equity

Seligman Growth	December 31	March 1, 2010	Equity

Seligman Minnesota Municipal	September 30	Nov. 29, 2010	State tax-exempt fixed income

Seligman National Municipal	September 30	Nov. 29, 2010	Tax-exempt fixed income

Seligman New York Municipal	September 30	Nov. 29, 2010	State tax-exempt fixed income

Threadneedle Global Equity Income Fund	October 31	Dec. 30, 2009	Equity

Threadneedle International Opportunity	October 31	Dec. 30, 2009	Equity


*		The taxable fixed income fund investment category includes Columbia Absolute Return Currency and Income Fund, which is an alternative investment strategy. Although RiverSource Strategic Income Allocation Fund is a taxable fixed income fund, it may invest up to 10% of its portfolio in equity securities.

**		The fund changed its fiscal year end effective Jan. 31, 2008 from May 31 to Jan. 31. For 2008, the information shown is for the period from June 1, 2007 to Jan. 31, 2008. For years prior to 2008, the fiscal period ended May 31.

Statement of Additional Information – March 7, 2011

Page 4

Fundamental and Nonfundamental Investment Policies

Fundamental investment policies adopted by a fund cannot be changed without the approval of a majority of the outstanding voting securities of the fund (i.e., shareholders) as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). Nonfundamental investment policies may be changed by the Board at any time.

Notwithstanding any of a fund’s other investment policies, each fund, subject to certain limitations, may invest its assets in an open-end management investment company having substantially the same investment objectives, policies, and restrictions as the fund for the purpose of having those assets managed as part of a combined pool.

FUNDAMENTAL POLICIES

Fundamental policies are policies that can be changed only with shareholder approval. The chart below shows fund-specific policies that may be changed only with shareholder approval. The chart indicates whether or not the fund has a policy on a particular topic. A dash indicates that the fund does not have a policy on a particular topic. Please see “Investment Strategies and Types of Investments” for more information regarding your fund’s investment strategies. The specific policy is stated in the paragraphs that follow the table.

Table 2. Fundamental Policies

Invest

Buy on

Buy or

Buy more

more than

Concentrate

Issue

margin/

sell real

Buy or sell

than 10% of

5% in an

in any one

Invest less

Act as an

Borrow

senior

sell

Fund

estate

commodities

an issuer

issuer

industry

than 80%

underwriter

Lending

money

securities

short

Columbia 120/20 Contrarian Equity

—

Columbia Absolute Return Currency and Income

—

Columbia AMT-Free Tax-Exempt Bond

^(a)

—

Columbia Asia Pacific ex-Japan

—

Columbia Diversified Bond

—

Columbia Diversified Equity Income

—

Columbia Dividend Opportunity

—

Columbia Emerging Markets Bond

—

Columbia Emerging Markets Opportunity

—

Columbia Equity Value

—

Columbia European Equity

—

Columbia Floating Rate

—

Columbia Global Bond

—

Columbia Global Equity

—

Columbia Global Extended Alpha

—

Columbia Government Money Market

—

E11

—

Columbia High Yield Bond

—

Columbia Income Builder Fund*

—

Columbia Income Builder Fund II*

—

Columbia Income Builder Fund III*

—

Columbia Income Opportunities

—

Columbia Inflation Protected Securities

—

Columbia Large Core Quantitative

—

Columbia Large Growth Quantitative

—

Columbia Large Value Quantitative

—

Columbia Limited Duration Credit

—

Columbia Marsico Flexible Capital

—

E14

—

Columbia Mid Cap Growth Opportunity

—

Columbia Mid Cap Value Opportunity

—

Columbia Minnesota Tax-Exempt

—

Statement of Additional Information – March 7, 2011

Page 5

Invest

Buy on

Buy or

Buy more

more than

Concentrate

Issue

margin/

sell real

Buy or sell

than 10% of

5% in an

in any one

Invest less

Act as an

Borrow

senior

sell

Fund

estate

commodities

an issuer

issuer

industry

than 80%

underwriter

Lending

money

securities

short

Columbia Money Market

—

Columbia Multi-Advisor International Value

—

Columbia Multi-Advisor Small Cap Value

—

Columbia Portfolio Builder Aggressive*

—

Columbia Portfolio Builder Conservative*

—

Columbia Portfolio Builder Moderate*

—

Columbia Portfolio Builder Moderate Aggressive*

—

Columbia Portfolio Builder Moderate Conservative*

—

Columbia Portfolio Builder Total Equity*

—

Columbia Recovery and Infrastructure

—

Columbia Retirement Plus 2010*

—

Columbia Retirement Plus 2015*

—

Columbia Retirement Plus 2020*

—

Columbia Retirement Plus 2025*

—

Columbia Retirement Plus 2030*

—

Columbia Retirement Plus 2035*

—

Columbia Retirement Plus 2040*

—

Columbia Retirement Plus 2045*

—

Columbia Select Large-Cap Value

E10

—

Columbia Select Smaller-Cap Value

E10

—

Columbia Seligman Communications and Information

E13

—

Columbia Seligman Global Technology

E10

—

Columbia Strategic Allocation

—

Columbia U.S. Government Mortgage

—

RiverSource Balanced

—

RiverSource California Tax-Exempt

—

RiverSource Disciplined International Equity

—

RiverSource Disciplined Small and Mid Cap Equity

—

RiverSource Disciplined Small Cap Value

—

RiverSource Intermediate Tax-Exempt

^(b)

—

RiverSource LaSalle Global Real Estate

E12

—

RiverSource LaSalle Monthly Dividend Real Estate

—

E12

—

RiverSource New York Tax-Exempt

—

RiverSource Partners Fundamental Value

—

RiverSource Partners International Select Growth

—

RiverSource Partners International Small Cap

—

RiverSource Precious Metals and Mining

^(c)

—

RiverSource Real Estate

—

RiverSource S&P 500 Index

—

RiverSource Short Duration U.S. Government

—

RiverSource Small Company Index

—

RiverSource Strategic Income Allocation

—

Statement of Additional Information – March 7, 2011

Page 6

Invest

Buy on

Buy or

Buy more

more than

Concentrate

Issue

margin/

sell real

Buy or sell

than 10% of

5% in an

in any one

Invest less

Act as an

Borrow

senior

sell

Fund

estate

commodities

an issuer

issuer

industry

than 80%

underwriter

Lending

money

securities

short

RiverSource Tax-Exempt High Income

—

Seligman California Municipal High-Yield

^(d)

—

^(e)

Seligman California Municipal Quality

^(d)

—

^(e)

Seligman Capital

E10

—

Seligman Frontier

E10

—

Seligman Growth

E10

—

Seligman Minnesota Municipal

—

Seligman National Municipal

—

Seligman New York Municipal

—

Threadneedle Global Equity Income

—

Threadneedle International Opportunity

—


*		The fund-of-funds invests in a combination of underlying funds. These underlying funds have adopted their own investment policies that may be more or less restrictive than those of the fund-of-funds. The policies of the underlying funds may permit a fund to engage in investment strategies indirectly that would otherwise be prohibited under the fund’s investment restrictions.
(a)		The fund does not intend to purchase bonds or other debt securities the interest from which is subject to the alternative minimum tax.
(b)		For purposes of this policy, the fund will not include any investments subject to the alternative minimum tax.
(c)		Additionally, the fund may purchase gold, silver, or other precious metals, strategic metals or other metals occurring naturally with such metals.
(d)		The policy includes futures contracts.
(e)		A fund may be deemed an underwriter in connection with the purchase and sale of portfolio securities.


A.	Buy or sell real estate


	A1 –	The fund will not buy or sell real estate, unless acquired as a result of ownership of securities or other instruments, except this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business or real estate investment trusts. For purposes of this policy, real estate includes real estate limited partnerships.

	A2 –	The fund will not buy or sell real estate, commodities or commodity contracts. For purposes of this policy, real estate includes real estate limited partnerships.

	A3 –	The fund will not purchase or hold any real estate, except that a fund may invest in securities secured by real estate or interests therein or issued by persons (other than real estate investment trusts) which deal in real estate or interests therein.

	A4 –	The fund will not purchase or hold any real estate, including limited partnership interests on real property, except that the fund may invest in securities secured by real estate or interests therein or issued by persons (other than real estate investment trusts) which deal in real estate or interests therein.

	A5 –	The fund will not purchase or hold any real estate, except a fund may invest (through investments in Underlying exchange-traded funds) in securities secured by real estate or interests therein or issued by persons (including real estate investment trusts) which deal in real estate or interests therein.

	A6 –	The fund will not buy or hold any real estate or securities of corporations or trusts whose principal business is investing in interests in real estate.

	A7 –	The fund will not purchase or hold any real estate, except that the fund may (A) invest in (i) securities directly or indirectly secured by real estate or interests therein or issued by companies which invest in real estate or interests therein or (ii) securities of issuers that deal in real estate or are engaged in the real estate business, including but not limited to real estate investment trusts (and, in the case of RiverSource LaSalle Global Real Estate, RiverSource Global Real Estate Companies, as defined in the fund’s prospectus), and (B) hold and sell real estate acquired through default, liquidation, or other distributions of an interest in real estate as a result of a fund’s ownership of such securities.


	A8 –	The fund will not buy or sell real estate, unless acquired as a result of ownership of securities or other instruments, except this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business real estate investment trusts (REITs) or entities similar to REITs formed under the laws of non-U.S. companies. For purposes of this policy, real estate includes real estate limited partnerships.

Statement of Additional Information – March 7, 2011

Page 7


B.	Buy or sell physical commodities


	B1 –	The fund will not buy or sell physical commodities unless acquired as a result of ownership of securities or other instruments, except this shall not prevent the fund from buying or selling options and futures contracts or from investing in securities or other instruments backed by, or whose value is derived from, physical commodities.


B2 –	The fund will not buy or sell physical commodities unless acquired as a result of ownership of securities or other instruments, except this shall not prevent the fund from buying or selling options, futures contracts and foreign currency or from investing in securities or other instruments backed by, or whose value is derived from, physical commodities.

B3 –

The fund will not buy or sell physical commodities unless acquired as a result of ownership of securities or other instruments, except this shall not prevent the fund from buying or selling options, futures contracts and foreign currency (and, in the case of Columbia Marsico Flexible Capital, swaps) or from entering into forward currency contracts or from investing in securities or other instruments backed by, or whose value is derived from, physical commodities.


B4 –	The fund will not buy or sell commodities, except that the fund may to the extent consistent with its investment objective(s), invest in securities of companies that purchase or sell commodities or which invest in such programs, and purchase and sell options, forward contracts, futures contracts, and options on futures contracts and enter into swap contracts and other financial transactions relating to commodities. This restriction does not apply to foreign currency transactions including without limitation forward currency contracts.

B5 –	The fund will not purchase or sell commodities or commodity contracts.

B6 –	The fund will not purchase or sell commodities or commodity contracts, except to the extent permissible under applicable law and interpretations, as they may be amended from time to time.


C.	Buy more than 10% of an issuer


	C1 –	The fund will not purchase more than 10% of the outstanding voting securities of an issuer, except that up to 25% of the fund’s assets may be invested without regard to this 10% limitation. For tax-exempt funds, for purposes of this policy, the terms of a municipal security determine the issuer.

	C2 –	The fund will not purchase securities (except securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities) of any one issuer if, as a result, more than 5% of its total assets will be invested in the securities of such issuer or it would own more than 10% of the voting securities of such issuer, except that: (a) up to 25% of its total assets may be invested without regard to these limitations; and (b) a fund’s assets may be invested in the securities of one or more management investment companies to the extent permitted by the 1940 Act, the rules and regulations thereunder, or any applicable exemptive relief.

	C3 –	The fund will not make any investment inconsistent with its classification as a diversified company under the 1940 Act.

	C4 –	The fund will not invest more than 5% of its gross assets (taken at market) in the securities of any one issuer, other than the U.S. Government, its agencies or instrumentalities, or buy more than 10% of the voting securities of any one issuer, other than U.S. Government agencies or instrumentalities.


D.	Invest more than 5% in an issuer


	D1 –	The fund will not invest more than 5% of its total assets in securities of any company, government, or political subdivision thereof, except the limitation will not apply to investments in securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities, or other investment companies, and except that up to 25% of the fund’s total assets may be invested without regard to this 5% limitation. For tax-exempt funds, for purposes of this policy, the terms of a municipal security determine the issuer.

	D2 –	The fund will not, as to 50% of the value of its total assets, purchase securities of any issuer if immediately thereafter more than 5% of total assets at market value would be invested in the securities of any issuer (except that this limitation does not apply to obligations issued or guaranteed as to principal and interest by the U.S. Government or its agencies or instrumentalities).


E.	Concentrate


	E1 –	The fund will not concentrate in any one industry. According to the present interpretation by the Securities and Exchange Commission (SEC), this means that up to 25% of the fund’s total assets, based on current market value at time of purchase, can be invested in any one industry.

Statement of Additional Information – March 7, 2011

Page 8


E2 –	The fund will not concentrate in any one industry. According to the present interpretation by the SEC, this means that up to 25% of the fund’s total assets, based on current market value at time of purchase, can be invested in any one industry. The fund itself does not intend to concentrate, however, the aggregation of holdings of the underlying funds may result in the fund indirectly investing more than 25% of its assets in a particular industry. The fund does not control the investments of the underlying funds and any indirect concentration will occur only as a result of the fund following its investment objectives by investing in the underlying funds.

E3 –	The fund will not invest less than 25% of its total assets in the precious metals industry, based on current market value at the time of purchase, unless market conditions temporarily require a defensive investment strategy.

E4 –	The fund will not concentrate in any one industry unless that industry represents more than 25% of the index tracked by the fund. For all other industries, in accordance with the current interpretation by the SEC, this means that up to 25% of the fund’s total assets, based on current market value at time of purchase, can be invested in any one industry.

E5 –	While the fund may invest 25% or more of its total assets in the securities of foreign governmental and corporate entities located in the same country, it will not invest 25% or more of its total assets in any single foreign governmental issuer.

E6 –	The fund will not concentrate in any one industry. According to the present interpretation by the SEC, this means that up to 25% of the fund’s total assets, based on current market value at time of purchase, can be invested in any one industry. For purposes of this restriction, loans will be considered investments in the industry of the underlying borrower, rather than that of the seller of the loan.

E7 –	The fund will not concentrate in any one industry, provided however, that this restriction shall not apply to securities or obligations issued or guaranteed by the U.S. Government, banks or bank holding companies or finance companies. For all other industries, this means that up to 25% of the fund’s total assets, based on current market value at the time of purchase, can be invested in any one industry.

E8 –	The fund will not purchase any securities which would cause 25% or more of the value of its total assets at the time of purchase to be invested in the securities of one or more issuers conducting their principal business activities in the same industry, provided that: a) there is no limitation with respect to obligations issued or guaranteed by the U.S. Government, any state or territory of the United States, or any of their agencies, instrumentalities or political subdivisions; and b) notwithstanding this limitation or any other fundamental investment limitation, assets may be invested in the securities of one or more management investment companies to the extent permitted by the 1940 Act, the rules and regulations thereunder and any applicable exemptive relief.

E9 –	The fund will not invest more than 25% of total assets, at market value, in any one industry; except that municipal securities and securities of the U.S. Government, its agencies and instrumentalities are not considered an industry for purposes of this limitation.


E10 –	The fund will not invest 25% or more of its total assets, at market value, in the securities of issuers in any particular industry, provided that this limitation shall exclude securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities.


E11 –	The fund will not invest more than 25% of the market value of its total assets in securities of issuers in any one industry, provided that the fund reserves the right to concentrate investments in money market instruments issued by the U.S. Government or its agencies or instrumentalities or banks or bank holding companies.

E12 –	The fund will not invest 25% or more of its total assets, at market value, in the securities of issuers in any particular industry, except that the fund will invest at least 25% of the value of its total assets in securities of issuers principally engaged in the real estate industry (in which the fund intends to concentrate) and may invest without limit in securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities.

E13 –	The fund will not invest 25% or more of its total assets, at market value, in the securities of issuers in any particular industry, except that the fund will invest at least 25% of the value of its total assets in securities of companies principally engaged in the communications, information and related industries and provided that this limitation shall exclude securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities.

E14 –

The fund will not concentrate in any one industry (other than U.S. government securities, provided that this limitation shall exclude securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities). According to the present interpretation by the Securities and Exchange Commission (SEC), this means that up to 25% of the fund’s total assets, based on current market value at time of purchase, can be invested in any one industry.

Statement of Additional Information – March 7, 2011

Page 9

For purposes of applying the limitation set forth in the concentration policy, above, the funds will generally use the industry classifications provided by the Global Industry Classification System.


F.	Invest less than 80%


	F1 –	The fund will not under normal market conditions, invest less than 80% of its net assets in municipal obligations that are generally exempt from federal income tax as well as respective state and local income tax.

	F2 –	The fund will not under normal market conditions, invest less than 80% of its net assets in bonds and notes issued by or on behalf of state and local governmental units whose interest, in the opinion of counsel for the issuer, is exempt from federal income tax and is not subject to the alternative minimum tax.

	F3 –	The fund will not under normal market conditions, invest less than 80% of its net assets in bonds and other debt securities issued by or on behalf of state or local governmental units whose interest, in the opinion of counsel for the issuer, is exempt from federal income tax.

	F4 –	The fund will not, under normal market conditions, invest less than 80% of its net assets in securities the interest on which is exempt from regular federal income tax and (except for Seligman National Municipal) regular, personal income tax of its designated state, and temporary investments in taxable securities will be limited to 20% of the value of the fund’s net assets.


G.	Act as an underwriter


	G1 –	The fund will not act as an underwriter (sell securities for others). However, under the securities laws, the fund may be deemed to be an underwriter when it purchases securities directly from the issuer and later resells them.

	G2 –	The fund will not underwrite the securities of other issuers, except insofar as the fund may be deemed an underwriter under the Securities Act of 1933 (the 1933 Act) in disposing of a portfolio security or in connection with investments in other investment companies.

	G3 –	The fund will not underwrite the securities of other issuers; make “short” sales of securities, or purchase securities on “margin”; write or purchase put or call options.


H.	Lending


	H1 –	The fund will not lend securities or participate in an interfund lending program if the total of all such loans would exceed 33 1 / 3 % of the fund’s total assets except this fundamental investment policy shall not prohibit the fund from purchasing money market securities, loans, loan participation or other debt securities, or from entering into repurchase agreements. For funds-of-funds – equity, under current Board policy, the fund has no current intention to borrow to a material extent.

	H2 –	The fund will not make loans, except to the extent that the purchase of notes, bonds or other evidences of indebtedness or deposits with banks may be considered loans.

	H3 –	The fund will not make loans except to the extent that the purchase of notes, bonds or other evidences of indebtedness or the entry into repurchase agreements or deposits with banks may be considered loans. The fund does not have a present intention of entering into repurchase agreements.

	H4 –	The fund will not make loans, except as permitted by the 1940 Act or any rule thereunder, any SEC or SEC staff interpretations thereof or any exemptions therefrom which may be granted by the SEC.

	H5 –	The fund will not make loans, except loans of portfolio securities and except to the extent that the purchase of notes, bonds or other evidences of indebtedness, the entry into repurchase agreements or deposits with banks, may be considered loans.


I.	Borrowing


	I1 –	The fund will not borrow money, except for temporary purposes (not for leveraging or investment) in an amount not exceeding 33 1 / 3 % of its total assets (including the amount borrowed) less liabilities (other than borrowings) immediately after the borrowings. For funds-of-funds – equity, under current Board policy, the fund has no current intention to borrow to a material extent.

Statement of Additional Information – March 7, 2011

Page 10


	I2 –	The fund will not borrow money, except from banks for temporary purposes (such as meeting redemption requests or for extraordinary or emergency purposes) in an amount not to exceed 10% of the value of its total assets at the time the borrowing is made (not including the amount borrowed). The fund will not purchase additional portfolio securities if the fund has outstanding borrowings in excess of 5% of the value of its total assets.


J.	Issue senior securities


	J1 –	The fund will not issue senior securities, except as permitted under the 1940 Act, the rules and regulations thereunder and any applicable exemptive relief.

	J2 –	The fund will not issue senior securities or borrow money, except as permitted by the 1940 Act or any rule thereunder, any SEC or SEC staff interpretations thereof or any exemptions therefrom which may be granted by the SEC.

	J3 –	The fund will not issue senior securities or borrow money, except from banks for temporary purposes in an amount not exceeding 5% of the value of its total assets.


K.	Buy on margin/sell short


	K1 –	The fund will not buy on margin or sell short or deal in options to buy or sell securities.


	K2 –	The fund will not write or purchase put, call, straddle or spread options; purchase securities on margin or sell “short”; or underwrite the securities of other issuers.

	K3 –	The fund will not purchase securities on margin except as permitted by the 1940 Act or any rule thereunder, any SEC or SEC staff interpretations thereof or any exemptions therefrom which may be granted by the SEC.

In addition to the policies described above and any fundamental policy described in the prospectus:

For Columbia Money Market, the fund will not:


	•	Purchase common stocks, preferred stocks, warrants, other equity securities, corporate bonds or debentures, state bonds, municipal bonds, or industrial revenue bonds.

For Columbia Government Money Market, the fund will not:


	•	Mortgage or pledge any of its assets, except to the extent, up to a maximum of 5% of its total assets, necessary to secure permissible borrowings.

	•	Buy securities of any company which, with their predecessors, have been in operation less than three continuous years, provided however, that securities guaranteed by a company that (including predecessors) has been in operation at least three continuous years shall be excluded.

	•	Invest in securities with contractual or other restrictions on resale, except in connection with repurchase agreements.

	•	Deal with its directors and officers, or firms they are associated with, in the purchase or sale of securities except as broker, or purchase or hold the securities of any issuer, if to its knowledge, directors or officers of the fund or of the fund’s investment manager individually owning beneficially more than 0.5% of the securities of that other company own in the aggregate more than 5% of such securities.

	•	Invest in the securities of companies for purposes of exercising control or management of such companies or in securities issued by other investment companies, except in connection with a merger, consolidation, acquisition or reorganization or for the purpose of hedging the fund’s obligations under its deferred compensation plan for directors.

For RiverSource LaSalle Global Real Estate and RiverSource LaSalle Monthly Dividend Real Estate, the fund will not:


	•	Purchase or hold the securities of any issuer, if to its knowledge, directors or officers of the fund individually owning beneficially more than 0.5% of the outstanding securities of that issuer own in the aggregate more than 5% of such securities.

For Seligman California Municipal High Yield, Seligman California Municipal Quality, Seligman Minnesota Municipal, Seligman National Municipal and Seligman New York Municipal, the fund will not:


	•	Invest in securities issued by other investment companies, except in connection with a merger, consolidation, acquisition or reorganization, or for the purpose of hedging a fund’s obligations under its deferred compensation plan for directors/trustees.

	•	Purchase or hold the securities of any issuer, if to its knowledge, directors/trustees or officers of a fund individually owning beneficially more than 0.5% of the securities of that issuer own in the aggregate more than 5% of such securities.

Statement of Additional Information – March 7, 2011

Page 11


	•	Mortgage or pledge any of its assets, except to secure permitted borrowings noted above.

For Seligman Capital and Seligman Growth, the fund will not:


	•	Deal with its directors or officers, or firms they are associated with, in the purchase or sale of securities of other issuers, except as broker.

For Seligman Capital, Columbia Seligman Communications and Information, Columbia Frontier, Columbia Seligman Global Technology, Columbia Select Growth, Columbia Select Large-Cap Value and Columbia Select Smaller-Cap Value, the fund will not:


	•	Purchase or hold the securities of any issuer, if to its knowledge, directors or officers of the fund and, only in the case of Columbia Seligman Global Technology, the directors and officers of the fund’s investment manager, individually owning beneficially more than 0.5% of the outstanding securities of that issuer own in the aggregate more than 5% of such securities.

	•	Enter into repurchase agreements of more than one week’s duration if more than 10% of the fund’s net assets would be so invested.

NONFUNDAMENTAL POLICIES

Nonfundamental policies are policies that can be changed by the Board without shareholder approval. The following nonfundamental policies are in addition to those described in the prospectus.

For funds other than money market funds:


	•	No more than 15% of the fund’s net assets will be held in securities and other instruments that are illiquid.

For money market funds:


	•	No more than 5% of the fund’s net assets will be held in securities and other instruments that are illiquid.

Additionally, regarding limiting investments in foreign securities:

For Columbia 120/20 Contrarian Equity, Columbia Diversified Bond, Columbia Diversified Equity Income, Columbia Dividend Opportunity, Columbia Equity Value, Columbia Floating Rate, Columbia High Yield Bond, Columbia Income Opportunities, Columbia Inflation Protected Securities, Columbia Large Core Quantitative, Columbia Large Growth Quantitative, Columbia Large Value Quantitative, Columbia Mid Cap Growth Opportunity, Columbia Mid Cap Value Opportunity, Columbia Multi-Advisor Small Cap Value, Columbia Recovery and Infrastructure, Seligman Capital, Columbia Select Large-Cap Value, Columbia Select Smaller-Cap Value, Columbia Seligman Communications and Information, Columbia Frontier, RiverSource Balanced, RiverSource Disciplined Small and Mid Cap Equity, RiverSource Disciplined Small Cap Value, RiverSource LaSalle Monthly Dividend Real Estate, Columbia Limited Duration Credit, RiverSource Partners Fundamental Value, RiverSource Real Estate and Seligman Growth:


	•	Up to 25% of the fund’s net assets may be invested in foreign investments.

For RiverSource Precious Metals and Mining:


	•	Under normal market conditions, the fund intends to invest at least 50% of its total assets in foreign investments.

For RiverSource Short Duration U.S. Government and Columbia U.S. Government Mortgage:


	•	Up to 20% of the fund’s net assets may be invested in foreign investments.

For Columbia Strategic Allocation:


	•	The fund may invest its total assets, up to 50%, in foreign investments.

Statement of Additional Information – March 7, 2011

Page 12

Investment Strategies and Types of Investments

This table shows many of the various investment strategies and investments the funds are allowed to engage in and purchase. It is intended to show the breadth of investments that the investment manager or subadviser (individually and collectively, the “investment manager”) may make on behalf of a fund. For a description of principal risks for an individual fund, please see the applicable prospectus for that fund. Notwithstanding a fund’s ability to utilize these strategies and investments, the investment manager is not obligated to use them at any particular time. For example, even though the investment manager is authorized to adopt temporary defensive positions and is authorized to attempt to hedge against certain types of risk, these practices are left to the investment manager’s sole discretion.

Fund-of-funds invest in a combination of underlying funds, although they may invest directly in stocks, bonds and other securities. These underlying funds have their own investment strategies and types of investments they are allowed to engage in and purchase. Fund-of-funds currently only invest in underlying funds, which may invest directly in securities and engage in investment strategies, indicated in the table below.

Investment strategies and types of investments: A black circle indicates that the investment strategy or type of investment generally is authorized for a category of funds. Exceptions are noted in the footnotes to the table. See Table 1 for fund categories.

Table 3. Investment Strategies and Types of Investments

Funds-of-Funds –

Taxable

Tax-Exempt

State

Equity and

Fixed

Money

Fixed

Tax-Exempt

Investment strategy

Balanced

Equity

Fixed Income

Income

Market

Income

Fixed Income

Agency and government securities

•

Borrowing

•

Cash/money market instruments

•

Collateralized bond obligations

•

• A

•

—

•

Commercial paper

•

Common stock

•

• B

—

Convertible securities

•

• C

—

•

Corporate bonds

•

Debt obligations

•

Depositary receipts

•

—

Derivative instruments (including options and futures)

•

—

•

Exchange-traded funds

•

—

•

Floating rate loans

•

—

•

—

Foreign currency transactions

•

—

•

—

Foreign securities

•

Funding agreements

•

High yield debt securities (junk bonds)

•

—

•

• J

Illiquid and restricted securities

•

Indexed securities

•

—

•

Inflation protected securities

•

Initial Public Offerings (IPOs)

•

Inverse floaters

•

—

•

Investment companies

•

Lending of portfolio securities

•

Loan participations

•

—

•

Mortgage- and asset-backed securities

•

• F

•

Mortgage dollar rolls

•

—

•

Municipal obligations

•

Statement of Additional Information – March 7, 2011

Page 13

Funds-of-Funds –

Taxable

Tax-Exempt

State

Equity and

Fixed

Money

Fixed

Tax-Exempt

Investment strategy

Balanced

Equity

Fixed Income

Income

Market

Income

Fixed Income

Pay-in-kind securities

•

—

•

Preferred stock

•

• H

—

• H

—

Real estate investment trusts

•

—

•

Repurchase agreements

•

Reverse repurchase agreements

•

Short sales

•

—

Sovereign debt

•

Structured investments

•

Swap agreements

•

—

•

Variable- or floating-rate securities

•

Warrants

•

—

•

—

When-issued securities and forward commitments

•

—

•

Zero-coupon and step-coupon securities

•


A.		The following funds are not authorized to invest in collateralized bond obligations: RiverSource Partners International Select Growth, Columbia Multi-Advisor International Value, RiverSource Partners International Small Cap, and Columbia Multi-Advisor Small Cap Value.

B.		The following funds are not authorized to invest in common stock: RiverSource Short Duration U.S. Government, Columbia U.S. Government Mortgage.

C.		The following funds are not authorized to invest in convertible securities: RiverSource Short Duration U.S. Government, Columbia U.S. Government Mortgage.

D.		While the fund is prohibited from investing in corporate bonds, it may invest in securities classified as corporate bonds if they meet the requirements of Rule 2a-7 of the 1940 Act.

E.		The following fund is authorized to invest in inverse floaters: RiverSource Real Estate.

F.		The following funds are not authorized to invest in mortgage- and asset-backed securities: RiverSource S&P 500 Index and RiverSource Small Company Index.

G.		The following funds are authorized to invest in mortgage dollar rolls: RiverSource Real Estate.

H.		The following funds are not authorized to invest in preferred stock: RiverSource Tax-Exempt High Income, RiverSource Intermediate Tax-Exempt, Columbia AMT-Free Tax-Exempt Bond, RiverSource Short Duration U.S. Government, Columbia U.S. Government Mortgage.

I.		Except for Seligman California Municipal High-Yield, Seligman California Municipal Quality, Seligman Minnesota Municipal and Seligman New York Municipal, which are prohibited from selling short, the funds are not prohibited from engaging in short sales, however, each fund will seek Board approval prior to utilizing short sales as an active part of its investment strategy.

J.		The following funds are not authorized to invest in high yield debt securities: Seligman California Municipal Quality, Seligman Minnesota, Seligman National and Seligman New York.

Statement of Additional Information – March 7, 2011

Page 14

Information Regarding Risks and Investment Strategies

RISKS

The following is a summary of risk characteristics. Following this summary is a description of certain investments and investment strategies and the risks most commonly associated with them (including certain risks not described below and, in some cases, a more comprehensive discussion of how the risks apply to a particular investment or investment strategy). A mutual fund’s risk profile is largely defined by the fund’s primary portfolio holdings and investment strategies. However, most mutual funds are allowed to use certain other strategies and investments that may have different risk characteristics. Accordingly, one or more of the following types of risk may be associated with a fund at any time (for a description of principal risks and investment strategies for an individual fund, please see that fund’s prospectus):

Active Management Risk. For a fund that is actively managed, its performance will reflect in part the ability of the portfolio managers to select securities and to make investment decisions that are suited to achieving the fund’s investment objectives. Due to its active management, a fund could underperform other mutual funds with similar investment objectives and strategies.

Affiliated Fund Risk. For funds-of-funds, the risk that the investment manager may have potential conflicts of interest in selecting underlying funds because the fees paid to it by some underlying funds are higher than the fees paid by other underlying funds. However, the investment manager is a fiduciary to the funds and is legally obligated to act in their best interests when selecting underlying funds.

Allocation Risk. For funds-of-funds, the risk that the investment manager’s evaluations regarding asset classes or underlying funds may be incorrect. There is no guarantee that the underlying funds will achieve their investment objectives. There is also a risk that the selected underlying funds’ performance may be lower than the performance of the asset class they were selected to represent or may be lower than the performance of alternative underlying funds that could have been selected to represent the asset class.

Asian Pacific Region Risk. Many of the countries in the Asian Pacific Region are developing both politically and economically, and may have relatively unstable governments and economies based on a limited number of commodities or industries. Securities markets in the Asian Pacific Region are smaller and have a lower trading volume than those in the United States, which may result in the securities of some companies in the Asian Pacific Region being less liquid than similar U.S. or other foreign securities. Some currencies in the Asian Pacific Region are more volatile than the U.S. dollar, and some countries in the Asian Pacific Region have restricted the flow of money in and out of the country. As a result, many of the risks detailed above under “Risks of Foreign Investing” may be more pronounced due to concentration of the Fund’s investments in the Asian Pacific Region.

Borrowing Risk. To the extent the fund borrows money for investment purposes, which is commonly referred to as “leveraging,” the fund’s exposure to fluctuations in the prices of its assets will be increased as compared to the fund’s exposure if the fund did not borrow. The fund’s borrowing activities will exaggerate any increase or decrease in the net asset value of the fund. In addition, the interest which the fund pays on borrowed money, together with any additional costs of maintaining a borrowing facility, are additional costs borne by the fund and could reduce or eliminate any net investment profits. Unless profits on assets acquired with borrowed funds exceed the costs of borrowing, the use of borrowing will diminish the investment performance of the fund compared with what it would have been without borrowing. When the fund borrows money it must comply with certain asset coverage requirements, which at times may require the fund to dispose of some of its holdings, even though it may be disadvantageous to do so at the time.

Common Stock Risk. An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock held by the fund. Also, the prices of common stocks are sensitive to general movements in the stock market and a drop in the stock market may depress the price of common stocks to which the fund has exposure. Common stock prices fluctuate for several reasons, including changes to investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or when political or economic events affecting an issuer occurs. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase.

Concentration Risk. Investments that are concentrated in a particular issuer, geographic region, or sector will make the fund’s portfolio value more susceptible to the events or conditions impacting the issuer, geographic region, or sector. Because of the fund’s concentration, the fund’s overall value may decline to a greater degree than if the fund held a less concentrated portfolio.

Statement of Additional Information – March 7, 2011

Page 15

Confidential Information Access Risk. For funds investing in floating rate loans, the investment manager normally will seek to avoid the receipt of material, non-public information (Confidential Information) about the issuers of floating rate loans being considered for acquisition by the fund, or held in the fund. In many instances, issuers of floating rate loans offer to furnish Confidential Information to prospective purchasers or holders of the issuer’s floating rate loans to help potential investors assess the value of the loan. The investment manager’s decision not to receive Confidential Information from these issuers may disadvantage the fund as compared to other floating rate loan investors, and may adversely affect the price the fund pays for the loans it purchases, or the price at which the fund sells the loans. Further, in situations when holders of floating rate loans are asked, for example, to grant consents, waivers or amendments, the investment manager’s ability to assess the desirability of such consents, waivers or amendments may be compromised. For these and other reasons, it is possible that the investment manager’s decision under normal circumstances not to receive Confidential Information could adversely affect the fund’s performance.

Counterparty Risk. Counterparty risk is the risk that a counterparty to a financial instrument entered into by the fund or held by a special purpose or structured vehicle becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The fund may obtain only limited recovery or may obtain no recovery in such circumstances. The fund will typically enter into financial instrument transactions with counterparties whose credit rating is investment grade, or, if unrated, determined to be of comparable quality by the investment manager.

Credit Risk. Credit risk is the risk that one or more fixed income securities in the fund’s portfolio will decline in price or fail to pay interest or repay principal when due because the issuer of the security experiences a decline in its financial status and is unable or unwilling to honor its obligations, including the payment of interest or the repayment of principal. Adverse conditions in the credit markets can adversely affect the broader global economy, including the credit quality of issuers of fixed income securities in which the fund may invest. Changes by nationally recognized statistical rating organizations in its rating of securities and in the ability of an issuer to make scheduled payments may also affect the value of the fund’s investments. To the extent the fund invests in below-investment grade securities, it will be exposed to a greater amount of credit risk than a fund which invests solely in investment grade securities. The prices of lower grade securities are more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn, than are the prices of higher grade securities. Fixed income securities of below investment grade quality are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due and therefore involve a greater risk of default. If the fund purchases unrated securities, or if the rating of a security is reduced after purchase, the fund will depend on the investment manager’s analysis of credit risk more heavily than usual.

Currency Risk. The performance of the fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar, particularly if the fund invests a significant percentage of its assets in foreign securities or other assets denominated in currencies other than the U.S. dollar.

Derivatives Risk. Derivatives are financial instruments that have a value which depends upon, or is derived from, the value of something else, such as one or more underlying securities, pools of securities, options, futures, indexes or currencies. Losses involving derivative instruments may be substantial, because a relatively small price movement in the underlying security(ies), instrument, currency or index may result in a substantial loss for the fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within a fund. Derivative instruments in which the fund invests will typically increase the fund’s exposure to its principal risks (as described in the fund’s prospectus) to which it is otherwise exposed, and may expose the fund to additional risks, including correlation risk, counterparty credit risk, hedging risk, leverage risk, and liquidity risk.

Counterparty credit risk is the risk that a counterparty to the derivative instrument becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, and the fund may obtain no recovery of its investment or may only obtain a limited recovery, and any recovery may be delayed.

Leverage risk is the risk that losses from the derivative instrument may be greater than the amount invested in the derivative instrument. Certain derivatives have the potential for unlimited losses, regardless of the size of the initial investment.

Statement of Additional Information – March 7, 2011

Page 16

Liquidity risk is the risk that the derivative instrument may be difficult or impossible to sell or terminate, which may cause the fund to be in a position to do something the investment manager would not otherwise choose, including accepting a lower price for the derivative instrument, selling other investments or foregoing another, more appealing investment opportunity. Derivative instruments, which are not traded on an exchange, including, but not limited to, forward contracts, swaps, and over-the-counter options may have liquidity risk.

Certain derivatives have the potential for unlimited losses regardless of the size of the initial investment.

Exchange-Traded Fund (ETF) Risk. An ETF’s share price may not track its specified market index and may trade below its net asset value. ETFs generally use a “passive” investment strategy and will not attempt to take defensive positions in volatile or declining markets. An active secondary market in an ETF’s shares may not develop or be maintained and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. There can be no assurance an ETF’s shares will continue to be listed on an active exchange. In addition, shareholders bear both their proportionate share of the fund’s expenses and similar expenses incurred through ownership of the ETF.

The funds generally expect to purchase shares of ETFs through broker-dealers in transactions on a securities exchange, and in such cases the funds will pay customary brokerage commissions for each purchase and sale. Shares of an ETF may also be acquired by depositing a specified portfolio of the ETF’s underlying securities, as well as a cash payment generally equal to accumulated dividends of the securities (net of expenses) up to the time of deposit, with the ETF’s custodian, in exchange for which the ETF will issue a quantity of new shares sometimes referred to as a “creation unit”. Similarly, shares of an ETF purchased on an exchange may be accumulated until they represent a creation unit, and the creation unit may redeemed in kind for a portfolio of the underlying securities (based on the ETF’s net asset value) together with a cash payment generally equal to accumulated dividends as of the date of redemption. The funds may redeem creation units for the underlying securities (and any applicable cash), and may assemble a portfolio of the underlying securities (and any required cash) to purchase creation units. The funds’ ability to redeem creation units may be limited by the 1940 Act, which provides that ETFs will not be obligated to redeem shares held by the funds in an amount exceeding one percent of their total outstanding securities during any period of less than 30 days.

There is a risk that ETFs in which a fund invests may terminate due to extraordinary events. For example, any of the service providers to ETFs, such as the trustee or sponsor, may close or otherwise fail to perform their obligations to the ETF, and the ETF may not be able to find a substitute service provider. Also, ETFs may be dependent upon licenses to use the various indices as a basis for determining their compositions and/or otherwise to use certain trade names. If these licenses are terminated, the ETFs may also terminate. In addition, an ETF may terminate if its net assets fall below a certain amount.

Focused Portfolio Risk. The fund expects to invest in a limited number of companies. Accordingly, the fund may have more volatility and is considered to have more risk than a fund that invests in a greater number of companies because changes in the value of a single security may have a more significant effect, either negative or positive, on the fund’s net asset value. To the extent the Fund invests its assets in fewer securities, the fund is subject to greater risk of loss if any of those securities declines in price.

Foreign Currency Risk. The Fund’s exposure to foreign currencies subjects the Fund to constantly changing exchange rates and the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being sold forward. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and economic or political developments in the U.S. or abroad. As a result, the Fund’s exposure to foreign currencies may reduce the returns of the Fund. Trading of foreign currencies also includes the risk of clearing and settling trades which, if prices are volatile, may be difficult.

Foreign/Emerging Markets Risk. Foreign securities are securities of issuers based outside the United States. An issuer is deemed to be based outside the United States if it is organized under the laws of another country. Foreign securities are primarily denominated in foreign currencies. In addition to the risks normally associated with domestic securities of the same type, foreign securities are subject to the following risks:

Country risk includes the political, economic, and other conditions of the country. These conditions include lack of publicly available information, less government oversight and regulation of business and industry practices of stock exchanges, brokers and listed companies than in the U.S. (including lack of uniform accounting, auditing, and financial reporting standards comparable to those applicable to domestic companies). In addition, with certain foreign countries, there is the possibility of nationalization, expropriation, the imposition of additional withholding or confiscatory taxes, political, social, or economic instability, diplomatic developments that could affect investments in those countries, or other unforeseen actions by regulatory bodies (such as changes to settlement or custody procedures). It may be more difficult for an investor’s agents to keep currently informed about corporate actions such as stock dividends or other matters that may affect the prices of portfolio securities. The liquidity of foreign investments may be more limited than for most U.S. investments, which means

Statement of Additional Information – March 7, 2011

Page 17

that, at times it may be difficult to sell foreign securities at desirable prices. Payment for securities without delivery may be required in certain foreign markets and, when participating in new issues, some foreign countries require payment to be made in advance of issuance (at the time of issuance, the market value of the security may be more or less than the purchase price). Fixed commissions on some foreign stock exchanges are generally higher than negotiated commissions on U.S. exchanges. Further, the Fund may encounter difficulties or be unable to pursue legal remedies and obtain judgments in foreign courts. The introduction of a single currency, the euro, on Jan. 1, 1999 for participating European nations in the Economic and Monetary Union (EU) presents unique risks. The most important is the exposure to the economic, political and social development of the member countries in the EU.

Currency risk results from the constantly changing exchange rates between local currency and the U.S. dollar. Whenever the fund holds securities valued in a foreign currency or holds the currency, changes in the exchange rate add to or subtract from the value of the investment.

Custody risk refers to the process of clearing and settling trades. It also covers holding securities with local agents and depositories. Low trading volumes and volatile prices in less developed markets make trades harder to complete and settle. Local agents are held only to the standard of care of the local market. Governments or trade groups may compel local agents to hold securities in designated depositories that are not subject to independent evaluation. The less developed a country’s securities market is, the greater the likelihood of problems occurring.

Emerging markets risk includes the dramatic pace of change (economic, social, and political) in these countries as well as the other considerations listed above. These markets are in early stages of development and may be very volatile. They can be marked by extreme inflation, devaluation of currencies, dependence on trade partners, and hostile relations with neighboring countries.

Geographic Concentration Risk. The fund may be particularly susceptible to economic, political or regulatory events affecting companies and countries within the specific geographic region in which the fund focuses its investments. Currency devaluations could occur in countries that have not yet experienced currency devaluation to date, or could continue to occur in countries that have already experienced such devaluations. As a result, the fund may be more volatile than a more geographically diversified fund.

For state-specific funds. Because state-specific tax-exempt funds invest primarily in the municipal securities issued by the state and political sub-divisions of the state, each fund will be particularly affected by political and economic changes, adverse conditions to an industry significant to the area and other developments in the state in which it invests. This vulnerability to factors affecting the state’s tax-exempt investments will be significantly greater than that of a more geographically diversified fund, which may result in greater losses and volatility. See Appendix B for details. The value of municipal securities owned by a fund also may be adversely affected by future changes in federal or state income tax laws.

In addition, because of the relatively small number of issuers of tax-exempt securities and because the state-specific funds may concentrate in a segment of the tax-exempt debt market, such as revenue bonds for health care facilities, housing or airports, the fund may invest a higher percentage of its assets in a single issuer and, therefore, be more exposed to the risk of loss by investing in a few issuers than a fund that invests more broadly. At times, the fund and other accounts managed by the investment manager may own all or most of the debt of a particular issuer. These investments may cause the value of a fund’s shares to change more than the values of other funds’ shares that invest in more diversified investments. This concentration of ownership may make it more difficult to sell, or to determine the fair value of, these investments. The yields on the securities in which the fund invests generally are dependent on a variety of factors, including the financial condition of the issuer or other obligor, the revenue source from which the debt service is payable, general economic and monetary conditions, conditions in the relevant market, the size of a particular issue, the maturity of the obligation, and the rating of the issue. Because many tax-exempt bonds may be revenue or general obligations of local governments or authorities, ratings on tax-exempt bonds may be different from the ratings given to the general obligation bonds of a particular state.

More information about state specific risks may be available from official state resources.

Highly Leveraged Transactions Risk. Certain corporate loans and corporate debt securities involve refinancings, recapitalizations, mergers and acquisitions, and other financings for general corporate purposes. These investments also may include senior obligations of a borrower issued in connection with a restructuring pursuant to Chapter 11 of the U.S. Bankruptcy Code (commonly known as “debtor-in-possession” financings), provided that such senior obligations are determined by the fund’s investment manager upon its credit analysis to be a suitable investment by the fund. In such highly leveraged transactions, the borrower assumes large amounts of debt in order to have the financial resources to attempt to achieve its business objectives. Such business objectives may include but are not limited to: management’s taking over control of a company (leveraged buy-out); reorganizing the assets and liabilities of a company (leveraged recapitalization); or acquiring another company. Loans or securities that are part of highly leveraged transactions involve a greater risk (including default and bankruptcy) than other investments.

Statement of Additional Information – March 7, 2011

Page 18

Impairment of Collateral Risk. The value of collateral, if any, securing a floating rate loan can decline, and may be insufficient to meet the borrower’s obligations or difficult to liquidate. In addition, the fund’s access to collateral may be limited by bankruptcy or other insolvency laws. Further, certain floating rate loans may not be fully collateralized and may decline in value.

Indexing Risk. For funds that are managed to an index, the fund’s performance will rise and fall, subject to any tracking error, as the performance of the index rises and falls.

Inflation-Protected Securities Risk. Inflation-protected debt securities tend to react to change in real interest rates. Real interest rates can be described as nominal interest rates minus the expected impact of inflation. In general, the price of an inflation-protected debt security falls when real interest rates rise, and rises when real interest rates fall. Interest payments on inflation-protected debt securities will vary as the principal and/or interest is adjusted for inflation and may be more volatile than interest paid on ordinary bonds. In periods of deflation, the fund may have no income at all. Income earned by a shareholder depends on the amount of principal invested and that principal cannot seek to grow with inflation unless the investor reinvests the portion of fund distributions that comes from inflation adjustments.

Infrastructure-Related Companies Risk. Investments in infrastructure-related securities have greater exposure to adverse economic, regulatory, political, legal, and other changes affecting the issuers of such securities. Infrastructure-related businesses are subject to a variety of factors that may adversely affect their business or operations including high interest costs in connection with capital construction programs, costs associated with environmental and other regulations, the effects of economic slowdown and surplus capacity, increased competition from other providers of services, uncertainties concerning availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Additionally, infrastructure-related entities may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, service interruption and/or legal challenges due to environmental, operational or other mishaps and the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards. There is also the risk that corruption may negatively affect publicly-funded infrastructure projects, especially in foreign markets, resulting in delays and cost overruns.

Initial Public Offering (IPO) Risk. IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations. To the extent a fund determines to invest in IPOs it may not be able to invest to the extent desired, because, for example, only a small portion (if any) of the securities being offered in an IPO may be made available. The investment performance of a fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when the fund is able to do so. In addition, as a fund increases in size, the impact of IPOs on the fund’s performance will generally decrease. IPOs sold within 12 months of purchase will result in increased short-term capital gains, which will be taxable to shareholders as ordinary income.

Interest Rate Risk. The securities in the portfolio are subject to the risk of losses attributable to changes in interest rates. Interest rate risk is generally associated with bond prices: when interest rates rise, bond prices generally fall. In general, the longer the maturity or duration of a bond, the greater its sensitivity to changes in interest rates. Interest rate changes also may increase prepayments of debt obligations, which in turn would increase prepayment risk.

Issuer Risk. An issuer, or the value of its securities, may perform poorly. Poor performance may be caused by poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, or other factors.

Leverage Risk. Leverage occurs when the fund increases its assets available for investment using borrowings, short sales, derivatives, or similar instruments or techniques. Due to the fact that short sales involve borrowing securities and then selling them, the fund’s short sales effectively leverage the fund’s assets. The use of leverage may make any change in the fund’s net asset value (“NAV”) even greater and thus result in increased volatility of returns. The fund’s assets that are used as collateral to secure the short sales may decrease in value while the short positions are outstanding, which may force the fund to use its other assets to increase the collateral. Leverage can also create an interest expense that may lower the fund’s overall returns. Lastly, there is no guarantee that a leveraging strategy will be successful.

Liquidity Risk. The risk associated from a lack of marketability of securities which may make it difficult or impossible to sell at desirable prices in order to minimize loss. The Fund may have to lower the selling price, sell other investments, or forego another, more appealing investment opportunity.

Market Risk. The market value of securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry, or the market as a whole. The market value of securities may fluctuate, sometimes rapidly and unpredictably. This risk is generally greater for small and mid-sized companies, which tend to be more vulnerable to adverse developments. In addition, focus on a particular style, for example, investment in growth or value securities, may cause the Fund to underperform other mutual funds if that style falls out of favor with the market.

Statement of Additional Information – March 7, 2011

Page 19

Master Limited Partnership Risk. Investments in securities (units) of master limited partnerships involve risks that differ from an investment in common stock. Holders of the units of master limited partnerships have more limited control and limited rights to vote on matters affecting the partnership. There are also certain tax risks associated with an investment in units of master limited partnerships. In addition, conflicts of interest may exist between common unit holders, subordinated unit holders and the general partner of a master limited partnership, including a conflict arising as a result of incentive distribution payments.

Mortgage-Related and Other Asset-Backed Securities Risk. Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, if a fund holds mortgage-related securities, it may exhibit additional volatility. This is known as extension risk. In addition, adjustable and fixed rate mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner.

Municipal Securities Risk. The value of a municipal security may be affected by legislative or administrative actions as well as by the economics of the region where the issuer of the municipal security is located. For example, a significant restructuring of federal income tax rates could cause municipal security prices to fall. Lower income tax rates could reduce the advantage of owning municipal securities.

Non-Diversification Risk. A non-diversified fund may invest more of its assets in fewer companies than if it were a diversified fund. Because each investment has a greater effect on the fund’s performance, the fund may be more exposed to the risks of loss and volatility than a fund that invests more broadly.

Portfolio Trading and Turnover Risks. Portfolio trading may be undertaken to accomplish the investment objectives of the funds in relation to actual and anticipated movements in interest rates, securities markets and for other reasons. In addition, a security may be sold and another of comparable quality purchased at approximately the same time to take advantage of what the investment manager believes to be a temporary price disparity between the two securities. Temporary price disparities between two comparable securities may result from supply and demand imbalances where, for example, a temporary oversupply of certain securities may cause a temporarily low price for such security, as compared with other securities of like quality and characteristics. A fund may also engage in short-term trading consistent with its investment objectives. Securities may be sold in anticipation of a market decline or purchased in anticipation of a market rise and later sold, or to recognize a gain.

A change in the securities held by a fund is known as “portfolio turnover.” The use of certain derivative instruments with relatively short maturities may tend to exaggerate the portfolio turnover rate for a fund. High portfolio turnover may involve correspondingly greater expenses to the fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Trading in debt obligations does not generally involve the payment of brokerage commissions, but does involve indirect transaction costs. The use of futures contracts may involve the payment of commissions to futures commission merchants. The higher the rate of portfolio turnover of the fund, the higher the transaction costs borne by the fund generally will be. Transactions in the fund’s portfolio securities may result in realization of taxable capital gains (including short-term capital gains which are generally taxed to stockholders at ordinary income tax rates). The trading costs and tax effects associated with portfolio turnover may adversely affect the fund’s performance.

Prepayment and Extension Risk. The risk that a bond or other security might be called, or otherwise converted, prepaid, or redeemed, before maturity. This risk is primarily associated with asset-backed securities, including mortgage backed securities. If a security is converted, prepaid, or redeemed, before maturity, particularly during a time of declining interest rates, the portfolio managers may not be able to reinvest in securities providing as high a level of income, resulting in a reduced yield to the fund. Conversely, as interest rates rise, the likelihood of prepayment decreases. The portfolio managers may be unable to capitalize on securities with higher interest rates because the Fund’s investments are locked in at a lower rate for a longer period of time.

Quantitative Model Risk. Securities selected using quantitative methods may perform differently from the market as a whole as a result of the factors used in the quantitative method, the weight placed on each factor, and changes in the factors’ historical trends. The quantitative methodology employed by the investment manager has been extensively tested using historical securities market data, but has only recently begun to be used to manage the funds. There can be no assurance that the methodology will enable the fund to achieve its objective.

Real Estate Industry Risk. Certain underlying funds concentrate their investments in securities of companies operating in the real estate industry, making the fund is more susceptible to risks associated with the ownership of real estate and with the real estate industry in general. These risks can include fluctuations in the value of the underlying properties, defaults by borrowers or tenants, market saturation, decreases in market rates for rents, and other economic, political, or regulatory occurrences affecting the real estate industry, including REITs.

Statement of Additional Information – March 7, 2011

Page 20

REITs depend upon specialized management skills, may have limited financial resources, may have less trading volume, and may be subject to more abrupt or erratic price movements than the overall securities markets. REITs are also subject to the risk of failing to qualify for tax-free pass-through of income. Some REITs (especially mortgage REITs) are affected by risks similar to those associated with investments in debt securities including changes in interest rates and the quality of credit extended.

Reinvestment Risk. The risk that an investor will not be able to reinvest income or principal at the same rate it currently is earning.

Retirement Goal Risk. For Retirement Plus Funds, the investor may have different needs than the quantitative model anticipates.

Sector Risk. Investments that are concentrated in a particular issuer, geographic region, or sector will be more susceptible to changes in price. The more a fund diversifies, the more it spreads risk and potentially reduces the risks of loss and volatility.

Short Selling Risk. The fund may make short sales, which involves selling a security the fund does not own in anticipation that the security’s price will decline. The fund must borrow those securities to make delivery to the buyer. The fund may not always be able to borrow a security it wants to sell short. The fund will suffer a loss if it sells a security short and the value of the security rises rather than falls. It is possible that the fund’s long positions will decline in value at the same time that the value of its short positions increase, thereby increasing potential losses to the fund. Short sales expose the fund to the risk that it will be required to buy the security sold short (also known as “covering” the short position) at a time when the security has appreciated in value, thus resulting in a loss to the fund. The fund may also be required to close out a short position at a time when it might not otherwise choose, for example, if the lender of the security calls it back, which may have the effect of reducing or eliminating potential gain, or cause the fund to realize a loss. Short positions introduce more risk to the fund than long positions (purchases) because the maximum sustainable loss on a security purchased (held long) is limited to the amount paid for the security plus the transaction costs, whereas there is no maximum attainable price of the shorted security. Therefore, in theory, securities sold short have unlimited risk. Additionally, the fund’s use of short sales in effect “leverages” the fund, as the fund intends to use the cash proceeds from short sales to invest in additional long positions. This leverage effect potentially exposes the fund to greater risks due to unanticipated market movements, which may magnify losses and increase the volatility of returns. See Leverage Risk and Market Risk.

Small and Mid-Sized Company Risk. Investments in small and medium companies often involve greater risks than investments in larger, more established companies because small and medium companies may lack the management experience, financial resources, product diversification, experience, and competitive strengths of larger companies. Additionally, in many instances the securities of small and medium companies are traded only over-the-counter or on regional securities exchanges and the frequency and volume of their trading is substantially less and may be more volatile than is typical of larger companies.

Tax Risk. As a regulated investment company, a fund must derive at least 90% of its gross income for each taxable year from sources treated as “qualifying income” under the Internal Revenue Code of 1986, as amended. The fund currently intends to take positions in forward currency contracts with notional value up to the fund’s total net assets. Although foreign currency gains currently constitute “qualifying income” the Treasury Department has the authority to issue regulations excluding from the definition of “qualifying incomes” a fund’s foreign currency gains not “directly related” to its “principal business” of investing in stocks or securities (or options and futures with respect thereto). Such regulations might treat gains from some of the fund’s foreign currency-denominated positions as not “qualifying income” and there is a remote possibility that such regulations might be applied retroactively, in which case, the fund might not qualify as a regulated investment company for one or more years. In the event the Treasury Department issues such regulations, the fund’s Board of Directors may authorize a significant change in investment strategy or fund liquidation.

Technology and Technology-Related Investment Risks. The market prices of technology and technology-related stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments. These stocks may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. These stocks also may be affected adversely by changes in technology, consumer and business purchasing patterns, government regulation and/or obsolete products or services. In addition, a rising interest rate environment tends to negatively affect technology and technology-related companies. In such an environment, those companies with high market valuations may appear less attractive to investors, which may cause sharp decreases in the companies’ market prices. Further, those technology or technology-related companies seeking to finance their expansion would have increased borrowing costs, which may negatively impact their earnings. As a result, these factors may negatively affect the performance of the fund. Finally, the fund may be susceptible to factors affecting the technology and technology-related industries. Technology and technology-related companies are often smaller and less experienced companies and may be subject to greater risks than larger

Statement of Additional Information – March 7, 2011

Page 21

companies, such as limited product lines, markets and financial and managerial resources. These risks may be heightened for technology companies in foreign markets.

Tracking Error Risk. For funds that are managed to an index, the fund may not track the index perfectly because differences between the index and the fund’s portfolio can cause differences in performance. The investment manager purchases securities and other instruments in an attempt to replicate the performance of the index. However, the tools that the investment manager uses to replicate the index are not perfect and the fund’s performance is affected by factors such as the size of the fund’s portfolio, transaction costs, management fees and expenses, brokerage commissions and fees, the extent and timing of cash flows in and out of the fund and changes in the index.

In addition, the returns from a specific type of security (for example, mid-cap stocks) may trail returns from other asset classes or the overall market. Each type of security will go through cycles of doing better or worse than stocks or bonds in general. These periods may last for several years.

Underlying Fund Selection Risk. For funds-of-funds, the risk that the selected underlying funds’ performance may be lower than the performance of the asset class they were selected to represent or may be lower than the performance of alternative underlying funds that could have been selected to represent the investment category.

INVESTMENT STRATEGIES

The following information supplements the discussion of each fund’s investment objectives, policies, and strategies that are described in the prospectus and in this SAI. The following describes strategies that many mutual funds use and types of securities that they purchase. Please refer to the table titled Investment Strategies and Types of Investments to see which are applicable to various categories of funds.

Agency and Government Securities

The U.S. government, its agencies and instrumentalities, and government-sponsored enterprises issue many different types of securities. U.S. Treasury bonds, notes, and bills and securities, including mortgage pass through certificates of the Government National Mortgage Association (GNMA), are guaranteed by the U.S. government.

Other U.S. government securities are issued or guaranteed by federal agencies or instrumentalities or government-sponsored enterprises but are not guaranteed by the U.S. government. This may increase the credit risk associated with these investments. Government-sponsored entities issuing securities include privately owned, publicly chartered entities created to reduce borrowing costs for certain sectors of the economy, such as farmers, homeowners, and students. They include the Federal Farm Credit Bank System, Farm Credit Financial Assistance Corporation, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation ^* (FHLMC), Federal National Mortgage Association ^* (FNMA), Student Loan Marketing Association (SLMA), and Resolution Trust Corporation (RTC). Government-sponsored entities may issue discount notes (with maturities ranging from overnight to 360 days) and bonds. Agency and government securities are subject to the same concerns as other debt obligations. (See also Debt Obligations and Mortgage- and Asset-Backed Securities.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with agency and government securities include: Inflation Risk, Interest Rate Risk, Prepayment and Extension Risk, and Reinvestment Risk.


*		On Sept. 7, 2008, the Federal Housing Finance Agency (FHFA), an agency of the U.S. government, placed the FHLMC and FNMA into conservatorship, a statutory process with the objective of returning the entities to normal business operations. FHFA will act as the conservator to operate the enterprises until they are stabilized.

Borrowing

If the fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If the fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage. Under the 1940 Act, the fund is required to maintain continuous asset coverage of 300% with respect to such borrowings and to sell (within three days) sufficient portfolio holdings to restore such coverage if it should decline to less than 300% due to market fluctuations or otherwise, even if such liquidations of the fund’s holdings may be disadvantageous from an investment standpoint. Leveraging by means of borrowing may exaggerate the effect of any increase or decrease in the value of portfolio securities or the fund’s NAV, and money borrowed will be subject to interest and other costs (which may include commitment fees and/or the cost of maintaining minimum average balances) which may or may not exceed the income received from the securities purchased with borrowed funds.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with borrowing include: Inflation Risk.

Statement of Additional Information – March 7, 2011

Page 22

Cash/Money Market Instruments

Cash-equivalent investments include short-term U.S. and Canadian government securities and negotiable certificates of deposit, non-negotiable fixed-time deposits, bankers’ acceptances, and letters of credit of banks or savings and loan associations having capital, surplus, and undivided profits (as of the date of its most recently published annual financial statements) in excess of $100 million (or the equivalent in the instance of a foreign branch of a U.S. bank) at the date of investment. A fund also may purchase short-term notes and obligations of U.S. and foreign banks and corporations and may use repurchase agreements with broker-dealers registered under the Securities Exchange Act of 1934 and with commercial banks. (See also Commercial Paper, Debt Obligations, Repurchase Agreements, and Variable- or Floating-Rate Securities.) These types of instruments generally offer low rates of return and subject a fund to certain costs and expenses. See Appendix A for a discussion of securities ratings.

Bankers’ acceptances are marketable short-term credit instruments used to finance the import, export, transfer or storage of goods. They are termed “accepted” when a bank guarantees their payment at maturity.

Bank certificates of deposit are certificates issued against funds deposited in a bank (including eligible foreign branches of U.S. banks), are for a definite period of time, earn a specified rate of return and are normally negotiable.

A 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, Seligman and Threadneedle funds and other institutional clients of Columbia Management.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with cash/money market instruments include: Credit Risk and Inflation Risk.

Collateralized Bond Obligations

Collateralized bond obligations (CBOs) are investment grade bonds backed by a pool of bonds, which may include junk bonds. CBOs are similar in concept to collateralized mortgage obligations (CMOs), but differ in that CBOs represent different degrees of credit quality rather than different maturities. (See also Mortgage- and Asset-Backed Securities.) Underwriters of CBOs package a large and diversified pool of high-risk, high-yield junk bonds, which is then separated into “tiers.” Typically, the first tier represents the higher quality collateral and pays the lowest interest rate; the second tier is backed by riskier bonds and pays a higher rate; the third tier represents the lowest credit quality and instead of receiving a fixed interest rate receives the residual interest payments — money that is left over after the higher tiers have been paid. CBOs, like CMOs, are substantially overcollateralized and this, plus the diversification of the pool backing them, may earn certain of the tiers investment-grade bond ratings. Holders of third-tier CBOs stand to earn high yields or less money depending on the rate of defaults in the collateral pool. (See also High-Yield Debt Securities (Junk Bonds).)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with CBOs include: Credit Risk, Interest Rate Risk and Prepayment and Extension Risk.

Commercial Paper

Commercial paper is a short-term debt obligation with a maturity ranging from 2 to 270 days issued by banks, corporations, and other borrowers. It is sold to investors with temporary idle cash as a way to increase returns on a short-term basis. These instruments are generally unsecured, which increases the credit risk associated with this type of investment. (See also Debt Obligations and Illiquid and Restricted Securities.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with commercial paper include: Credit Risk and Liquidity Risk.

Common Stock

Common stock represents units of ownership in a corporation. Owners typically are entitled to vote on the selection of directors and other important matters as well as to receive dividends on their holdings. In the event that a corporation is liquidated, the claims of secured and unsecured creditors and owners of bonds and preferred stock take precedence over the claims of those who own common stock.

The price of common stock is generally determined by corporate earnings, type of products or services offered, projected growth rates, experience of management, liquidity, and general market conditions for the markets on which the stock trades.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with common stock include: Issuer Risk, Market Risk, and Small and Mid-Sized Company Risk.

Convertible Securities

Convertible securities are bonds, debentures, notes, preferred stocks, or other securities that may be converted into common, preferred or other securities of the same or a different issuer within a particular period of time at a specified price. Some

Statement of Additional Information – March 7, 2011

Page 23

convertible securities, such as preferred equity-redemption cumulative stock (PERCs), have mandatory conversion features. Others are voluntary. A convertible security entitles the holder to receive interest normally paid or accrued on debt or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted, or exchanged. Convertible securities have unique investment characteristics in that they generally (i) have higher yields than common stocks but lower yields than comparable non-convertible securities, (ii) are less subject to fluctuation in value than the underlying stock since they have fixed income characteristics, and (iii) provide the potential for capital appreciation if the market price of the underlying common stock increases.

The value of a convertible security is a function of its “investment value” (determined by its yield in comparison with the yields of other securities of comparable maturity and quality that do not have a conversion privilege) and its “conversion value” (the security’s worth, at market value, if converted into the underlying common stock). The investment value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors also may have an effect on the convertible security’s investment value. The conversion value of a convertible security is determined by the market price of the underlying common stock. If the conversion value is low relative to the investment value, the price of the convertible security is governed principally by its investment value. Generally, the conversion value decreases as the convertible security approaches maturity. To the extent the market price of the underlying common stock approaches or exceeds the conversion price, the price of the convertible security will be increasingly influenced by its conversion value. A convertible security generally will sell at a premium over its conversion value by the extent to which investors place value on the right to acquire the underlying common stock while holding a fixed income security.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with convertible securities include: Interest Rate Risk, Issuer Risk, Market Risk, Prepayment and Extension Risk, and Reinvestment Risk.

Corporate Bonds

Corporate bonds are debt obligations issued by private corporations, as distinct from bonds issued by a government or its agencies or a municipality. Corporate bonds typically have four distinguishing features: (1) they are taxable; (2) they have a par value of $1,000; (3) they have a term maturity, which means they come due all at once; and (4) many are traded on major exchanges. Corporate bonds are subject to the same concerns as other debt obligations. (See also Debt Obligations and High-Yield Debt Securities (Junk Bonds).) Corporate bonds may be either secured or unsecured. Unsecured corporate bonds are generally referred to as “debentures.” See Appendix A for a discussion of securities ratings.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with corporate bonds include: Credit Risk, Interest Rate Risk, Issuer Risk, Prepayment and Extension Risk, and Reinvestment Risk.

Debt Obligations

Many different types of debt obligations exist (for example, bills, bonds, or notes). Issuers of debt obligations have a contractual obligation to pay interest at a fixed, variable or floating rate on specified dates and to repay principal on a specified maturity date. Certain debt obligations (usually intermediate- and long-term bonds) have provisions that allow the issuer to redeem or “call” a bond before its maturity. Issuers are most likely to call these securities during periods of falling interest rates. When this happens, an investor may have to replace these securities with lower yielding securities, which could result in a lower return.

The market value of debt obligations is affected primarily by changes in prevailing interest rates and the issuers perceived ability to repay the debt. The market value of a debt obligation generally reacts inversely to interest rate changes. When prevailing interest rates decline, the price usually rises, and when prevailing interest rates rise, the price usually declines.

In general, the longer the maturity of a debt obligation, the higher its yield and the greater the sensitivity to changes in interest rates. Conversely, the shorter the maturity, the lower the yield but the greater the price stability.

As noted, the values of debt obligations also may be affected by changes in the credit rating or financial condition of their issuers. Generally, the lower the quality rating of a security, the higher the degree of risk as to the payment of interest and return of principal. To compensate investors for taking on such increased risk, those issuers deemed to be less creditworthy generally must offer their investors higher interest rates than do issuers with better credit ratings. (See also Agency and Government Securities, Corporate Bonds, and High-Yield Debt Securities (Junk Bonds).)

Generally, debt obligations that are investment grade are those that have been rated in one of the top four credit quality categories by two out of the three independent rating agencies. In the event that a debt obligation has been rated by only two agencies, the most conservative, or lower, rating must be in one of the top four credit quality categories in order for the security to be considered investment grade. If only one agency has rated the debt obligation, that rating must be in one of the

Statement of Additional Information – March 7, 2011

Page 24

top four credit quality categories for the security to be considered investment grade. See Appendix A for a discussion of securities ratings.

All ratings limitations are applied at the time of purchase. Subsequent to purchase, a debt security may cease to be rated or its rating may be reduced below the minimum required for purchase by a fund. Neither event will require the sale of such a security, but it will be a factor in considering whether to continue to hold the security. To the extent that ratings change as a result of changes in a rating agency or its rating system, a fund will attempt to use comparable ratings as standards for selecting investments.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with debt obligations include: Credit Risk, Interest Rate Risk, Issuer Risk, Prepayment and Extension Risk, and Reinvestment Risk.

Depositary Receipts

Some foreign securities are traded in the form of American Depositary Receipts (ADRs). ADRs are receipts typically issued by a U.S. bank or trust company evidencing ownership of the underlying securities of foreign issuers. European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs) are receipts typically issued by foreign banks or trust companies, evidencing ownership of underlying securities issued by either a foreign or U.S. issuer. Generally, depositary receipts in registered form are designed for use in the U.S. and depositary receipts in bearer form are designed for use in securities markets outside the U.S. Depositary receipts may not necessarily be denominated in the same currency as the underlying securities into which they may be converted. Depositary receipts involve the risks of other investments in foreign securities. In addition, ADR holders may not have all the legal rights of shareholders and may experience difficulty in receiving shareholder communications. (See also Common Stock and Foreign Securities.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with depositary receipts include: Foreign/Emerging Markets Risk, Issuer Risk, and Market Risk.

Derivative Instruments

Derivative instruments are commonly defined to include securities or contracts whose values depend, in whole or in part, on (or “derive” from) the value of one or more other assets, such as securities, currencies, or commodities.

A derivative instrument generally consists of, is based upon, or exhibits characteristics similar to options or forward contracts. Such instruments may be used to maintain cash reserves while remaining fully invested, to offset anticipated declines in values of investments, to facilitate trading, to reduce transaction costs, or to pursue higher investment returns. Derivative instruments are characterized by requiring little or no initial payment. Their value changes daily based on a security, a currency, a group of securities or currencies, or an index. A small change in the value of the underlying security, currency, or index can cause a sizable percentage gain or loss in the price of the derivative instrument.

Options and forward contracts are considered to be the basic “building blocks” of derivatives. For example, forward- based derivatives include forward contracts, swap contracts, and exchange-traded futures. Forward-based derivatives are sometimes referred to generically as “futures contracts.” Option-based derivatives include privately negotiated, over-the-counter (OTC) options (including caps, floors, collars, and options on futures) and exchange-traded options on futures. Diverse types of derivatives may be created by combining options or futures in different ways, and by applying these structures to a wide range of underlying assets.

Options. An option is a contract. A person who buys a call option for a security has the right to buy the security at a set price for the length of the contract. A person who sells a call option is called a writer. The writer of a call option agrees for the length of the contract to sell the security at the set price when the buyer wants to exercise the option, no matter what the market price of the security is at that time. A person who buys a put option has the right to sell a security at a set price for the length of the contract. A person who writes a put option agrees to buy the security at the set price if the purchaser wants to exercise the option during the length of the contract, no matter what the market price of the security is at that time. An option is covered if the writer owns the security (in the case of a call) or sets aside the cash or securities of equivalent value (in the case of a put) that would be required upon exercise.

The price paid by the buyer for an option is called a premium. In addition to the premium, the buyer generally pays a broker a commission. The writer receives a premium, less another commission, at the time the option is written. The premium received by the writer is retained whether or not the option is exercised. A writer of a call option may have to sell the security for a below-market price if the market price rises above the exercise price. A writer of a put option may have to pay an above-market price for the security if its market price decreases below the exercise price.

When an option is purchased, the buyer pays a premium and a commission. It then pays a second commission on the purchase or sale of the underlying security if the option is exercised. For record keeping and tax purposes, the price obtained on the sale of the underlying security is the combination of the exercise price, the premium, and both commissions.

Statement of Additional Information – March 7, 2011

Page 25

One of the risks an investor assumes when it buys an option is the loss of the premium. To be beneficial to the investor, the price of the underlying security must change within the time set by the option contract. Furthermore, the change must be sufficient to cover the premium paid, the commissions paid both in the acquisition of the option and in a closing transaction or in the exercise of the option and sale (in the case of a call) or purchase (in the case of a put) of the underlying security. Even then, the price change in the underlying security does not ensure a profit since prices in the option market may not reflect such a change.

Options on many securities are listed on options exchanges. If a fund writes listed options, it will follow the rules of the options exchange. Options are valued at the close of the New York Stock Exchange. An option listed on a national exchange, Chicago Board Options Exchange, or NASDAQ will be valued at the mean of the last bid and ask prices.

Options on certain securities are not actively traded on any exchange, but may be entered into directly with a dealer. These options may be more difficult to close. If an investor is unable to effect a closing purchase transaction, it will not be able to sell the underlying security until the call written by the investor expires or is exercised.

Futures Contracts. A futures contract is a sales contract between a buyer (holding the “long” position) and a seller (holding the “short” position) for an asset with delivery deferred until a future date. The buyer agrees to pay a fixed price at the agreed future date and the seller agrees to deliver the asset. The seller hopes that the market price on the delivery date is less than the agreed upon price, while the buyer hopes for the contrary. Many futures contracts trade in a manner similar to the way a stock trades on a stock exchange and the commodity exchanges.

Generally, a futures contract is terminated by entering into an offsetting transaction. An offsetting transaction is effected by an investor taking an opposite position. At the time a futures contract is made, a good faith deposit called initial margin is set up. Daily thereafter, the futures contract is valued and the payment of variation margin is required so that each day a buyer would pay out cash in an amount equal to any decline in the contract’s value or receive cash equal to any increase. At the time a futures contract is closed out, a nominal commission is paid, which is generally lower than the commission on a comparable transaction in the cash market.

Futures contracts may be based on various securities, securities indexes (such as the S&P 500 Index), foreign currencies and other financial instruments and indexes.

A fund may engage in futures and related options transactions to produce incremental earnings, to hedge existing positions, and to increase flexibility. The fund intends to comply with Rule 4.5 of the Commodity Futures Trading Commission (CFTC), under which a mutual fund is exempt from the definition of a “commodity pool operator.” The fund, therefore, is not subject to registration or regulation as a commodity pool operator, meaning that the fund may invest in futures contracts without registering with the CFTC.

Options on Futures Contracts. Options on futures contracts give the holder a right to buy or sell futures contracts in the future. Unlike a futures contract, which requires the parties to the contract to buy and sell a security on a set date (some futures are settled in cash), an option on a futures contract merely entitles its holder to decide on or before a future date (within nine months of the date of issue) whether to enter into a contract. If the holder decides not to enter into the contract, all that is lost is the amount (premium) paid for the option. Further, because the value of the option is fixed at the point of sale, there are no daily payments of cash to reflect the change in the value of the underlying contract. However, since an option gives the buyer the right to enter into a contract at a set price for a fixed period of time, its value does change daily.

One of the risks in buying an option on a futures contract is the loss of the premium paid for the option. The risk involved in writing options on futures contracts an investor owns, or on securities held in its portfolio, is that there could be an increase in the market value of these contracts or securities. If that occurred, the option would be exercised and the asset sold at a lower price than the cash market price. To some extent, the risk of not realizing a gain could be reduced by entering into a closing transaction. An investor could enter into a closing transaction by purchasing an option with the same terms as the one previously sold. The cost to close the option and terminate the investor’s obligation, however, might still result in a loss. Further, the investor might not be able to close the option because of insufficient activity in the options market. Purchasing options also limits the use of monies that might otherwise be available for long-term investments.

Options on Indexes. Options on indexes are securities traded on national securities exchanges. An option on an index is similar to an option on a futures contract except all settlements are in cash. A fund exercising a put, for example, would receive the difference between the exercise price and the current index level. Options may also be traded with respect to other types of indexes, such as options on indexes of commodities futures.

Currency Options. Options on currencies are contracts that give the buyer the right, but not the obligation, to buy (call options) or sell (put options) a specified amount of a currency at a predetermined price (strike price) on or before the option matures (expiry date). Conversely, the seller has the obligation to buy or sell a currency option upon exercise of the option by the purchaser. Currency options are traded either on a national securities exchange or over-the-counter.

Statement of Additional Information – March 7, 2011

Page 26

Tax and Accounting Treatment. As permitted under federal income tax laws and to the extent a fund is allowed to invest in futures contracts, a fund would intend to identify futures contracts as part of a mixed straddle and not mark them to market, that is, not treat them as having been sold at the end of the year at market value. If a fund is using short futures contracts for hedging purposes, the fund may be required to defer recognizing losses incurred on short futures contracts and on underlying securities. Any losses incurred on securities that are part of a straddle may be deferred to the extent there is unrealized appreciation on the offsetting position until the offsetting position is sold. Federal income tax treatment of gains or losses from transactions in options, options on futures contracts and indexes will depend on whether the option is a section 1256 contract. If the option is a non-equity option, a fund would either make a 1256(d) election and treat the option as a mixed straddle or mark to market the option at fiscal year end and treat the gain/loss as 40% short-term and 60% long-term.

The Internal Revenue Service (IRS) has ruled publicly that an exchange-traded call option is a security for purposes of the 50%-of-assets test and that its issuer is the issuer of the underlying security, not the writer of the option, for purposes of the diversification requirements.

Accounting for futures contracts will be according to generally accepted accounting principles. Initial margin deposits will be recognized as assets due from a broker (a fund’s agent in acquiring the futures position). During the period the futures contract is open, changes in value of the contract will be recognized as unrealized gains or losses by marking to market on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments will be made or received depending upon whether gains or losses are incurred. All contracts and options will be valued at the last-quoted sales price on their primary exchange.

Other Risks of Derivatives. The primary risk of derivatives is the same as the risk of the underlying asset, namely that the value of the underlying asset may go up or down. Adverse movements in the value of an underlying asset can expose an investor to losses. Derivative instruments may include elements of leverage and, accordingly, the fluctuation of the value of the derivative instrument in relation to the underlying asset may be magnified. The successful use of derivative instruments depends upon a variety of factors, particularly the investment manager’s ability to predict movements of the securities, currencies, and commodity markets, which requires different skills than predicting changes in the prices of individual securities. There can be no assurance that any particular strategy will succeed.

Another risk is the risk that a loss may be sustained as a result of the failure of a counterparty to comply with the terms of a derivative instrument. The counterparty risk for exchange-traded derivative instruments is generally less than for privately-negotiated or OTC derivative instruments, since generally a clearing agency, which is the issuer or counterparty to each exchange-traded instrument, provides a guarantee of performance. For privately-negotiated instruments, there is no similar clearing agency guarantee. In all transactions, an investor will bear the risk that the counterparty will default, and this could result in a loss of the expected benefit of the derivative transaction and possibly other losses.

When a derivative transaction is used to completely hedge another position, changes in the market value of the combined position (the derivative instrument plus the position being hedged) result from an imperfect correlation between the price movements of the two instruments. With a perfect hedge, the value of the combined position remains unchanged for any change in the price of the underlying asset. With an imperfect hedge, the values of the derivative instrument and its hedge are not perfectly correlated. For example, if the value of a derivative instrument used in a short hedge (such as writing a call option, buying a put option, or selling a futures contract) increased by less than the decline in value of the hedged investment, the hedge would not be perfectly correlated. Such a lack of correlation might occur due to factors unrelated to the value of the investments being hedged, such as speculative or other pressures on the markets in which these instruments are traded.

Derivatives also are subject to the risk that they cannot be sold, closed out, or replaced quickly at or very close to their fundamental value. Generally, exchange contracts are very liquid because the exchange clearinghouse is the counterparty of every contract. OTC transactions are less liquid than exchange-traded derivatives since they often can only be closed out with the other party to the transaction.

Another risk is caused by the legal unenforcibility of a party’s obligations under the derivative. A counterparty that has lost money in a derivative transaction may try to avoid payment by exploiting various legal uncertainties about certain derivative products.

(See also Foreign Currency Transactions.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with derivative instruments include: Derivatives Risk and Liquidity Risk.

Exchange-Traded Funds

Exchange-traded funds (ETFs) represent shares of ownership in funds, unit investment trusts or depositary receipts. ETFs hold portfolios of securities that are designed to replicate, as closely as possible before expenses, the price and yield of a

Statement of Additional Information – March 7, 2011

Page 27

specified market index. The performance results of ETFs will not replicate exactly the performance of the pertinent index due to transaction and other expenses, including fees to service providers, borne by ETFs. ETF shares are sold and redeemed at net asset value only in large blocks called creation units and redemption units, respectively. The funds’ ability to redeem redemption units may be limited by the 1940 Act, which provides that ETFs will not be obligated to redeem shares held by the funds in an amount exceeding one percent of their total outstanding securities during any period of less than 30 days. There is a risk that Underlying ETFs in which a fund invests may terminate due to extraordinary events. ETF shares also may be purchased and sold in secondary market trading on national securities exchanges, which allows investors to purchase and sell ETF shares at their market price throughout the day.

Although one or more of the other risks described in this SAI may apply, investments in ETFs involve the same risks associated with a direct investment in the types of securities included in the indices the ETFs are designed to replicate, including Market Risk. ETFs generally use a “passive” investment strategy and will not attempt to take defensive positions in volatile or declining markets. Shares of an ETF may trade at a market price that is less than their net asset value and an active trading market in such shares may not develop or continue and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. For example, any of the service providers to ETFs, such as the trustee or sponsor, may close or otherwise fail to perform their obligations to the ETF, and the ETF may not be able to find a substitute service provider. Also, ETFs may be dependent upon licenses to use the various indices as a basis for determining their compositions and/or otherwise to use certain trade names. If these licenses are terminated, the ETFs may also terminate. In addition, an ETF may terminate if its net assets fall below a certain amount. Although the funds believe that, in the event of the termination of an ETF, they will be able to invest instead in shares of an alternate ETF tracking the same market index or another index covering the same general market, there can be no assurance that shares of an alternate ETF would be available for investment at that time. There can be no assurance an ETF’s shares will continue to be listed on an active exchange. Finally, there can be no assurance that the portfolio of securities purchased by an ETF to replicate a particular index will replicate such index.

Generally, under the 1940 Act, a fund may not acquire shares of another investment company (including ETFs) if, immediately after such acquisition, (i) such fund would hold more than 3% of the other investment company’s total outstanding shares, (ii) if such fund’s investment in securities of the other investment company would be more than 5% of the value of the total assets of the Fund, or (iii) if more than 10% of such fund’s total assets would be invested in investment companies. The SEC has granted orders for exemptive relief to certain ETFs that permit investments in those ETFs by other investment companies in excess of these limits.

ETFs, because they invest in other securities (e.g., common stocks of small-, mid- and large capitalization companies (U.S. and foreign, including, for example, real estate investment trusts and emerging markets securities) and fixed income securities), are subject to the risks of investment associated with these and other types of investments, as described in this SAI.

Floating Rate Loans

Most floating rate loans are acquired directly from the agent bank or from another holder of the loan by assignment. Most such loans are secured, and most impose restrictive covenants which must be met by the borrower. These loans are typically made by a syndicate of banks and institutional investors, represented by an agent bank which has negotiated and structured the loan and which is responsible generally for collecting interest, principal, and other amounts from the borrower on its own behalf and on behalf of the other lending institutions in the syndicate, and for enforcing its and their other rights against the borrower. Each of the lending institutions, including the agent bank, lends to the borrower a portion of the total amount of the loan, and retains the corresponding interest in the loan. Floating rate loans may include delayed draw term loans and prefunded or synthetic letters of credit.

A fund’s ability to receive payments of principal and interest and other amounts in connection with loans held by it will depend primarily on the financial condition of the borrower. The failure by the fund to receive scheduled interest or principal payments on a loan would adversely affect the income of the fund and would likely reduce the value of its assets, which would be reflected in a reduction in the fund’s net asset value. Banks and other lending institutions generally perform a credit analysis of the borrower before originating a loan or purchasing an assignment in a loan. In selecting the loans in which the fund will invest, however, the investment manager will not rely on that credit analysis of the agent bank, but will perform its own investment analysis of the borrowers. The investment manager’s analysis may include consideration of the borrower’s financial strength and managerial experience, debt coverage, additional borrowing requirements or debt maturity schedules, changing financial conditions, and responsiveness to changes in business conditions and interest rates. The majority of loans the fund will invest in will be rated by one or more of the nationally recognized rating agencies. Investments in loans may be of any quality, including “distressed” loans, and will be subject to the fund’s credit quality policy.

Statement of Additional Information – March 7, 2011

Page 28

Loans may be structured in different forms, including assignments and participations. In an assignment, a fund purchases an assignment of a portion of a lender’s interest in a loan. In this case, the fund may be required generally to rely upon the assigning bank to demand payment and enforce its rights against the borrower, but would otherwise be entitled to all of such bank’s rights in the loan.

The borrower of a loan may, either at its own election or pursuant to terms of the loan documentation, prepay amounts of the loan from time to time. There is no assurance that a fund will be able to reinvest the proceeds of any loan prepayment at the same interest rate or on the same terms as those of the original loan.

Corporate loans in which a fund may purchase a loan assignment are made generally to finance internal growth, mergers, acquisitions, recapitalizations, stock repurchases, leveraged buy-outs, dividend payments to sponsors and other corporate activities. The highly leveraged capital structure of certain borrowers may make such loans especially vulnerable to adverse changes in economic or market conditions. The fund may hold investments in loans for a very short period of time when opportunities to resell the investments that the investment manager believes are attractive arise.

Certain of the loans acquired by a fund may involve revolving credit facilities under which a borrower may from time to time borrow and repay amounts up to the maximum amount of the facility. In such cases, the fund would have an obligation to advance its portion of such additional borrowings upon the terms specified in the loan assignment. To the extent that the fund is committed to make additional loans under such an assignment, it will at all times designate cash or securities in an amount sufficient to meet such commitments.

Notwithstanding its intention in certain situations to not receive material, non-public information with respect to its management of investments in floating rate loans, the investment manager may from time to time come into possession of material, non-public information about the issuers of loans that may be held in a fund’s portfolio. Possession of such information may in some instances occur despite the investment manager’s efforts to avoid such possession, but in other instances the investment manager may choose to receive such information (for example, in connection with participation in a creditors’ committee with respect to a financially distressed issuer). As, and to the extent, required by applicable law, the investment manager’s ability to trade in these loans for the account of the fund could potentially be limited by its possession of such information. Such limitations on the investment manager’s ability to trade could have an adverse effect on the fund by, for example, preventing the fund from selling a loan that is experiencing a material decline in value. In some instances, these trading restrictions could continue in effect for a substantial period of time.

In some instances, other accounts managed by the investment manager may hold other securities issued by borrowers whose floating rate loans may be held in a fund’s portfolio. These other securities may include, for example, debt securities that are subordinate to the floating rate loans held in the fund’s portfolio, convertible debt or common or preferred equity securities. In certain circumstances, such as if the credit quality of the issuer deteriorates, the interests of holders of these other securities may conflict with the interests of the holders of the issuer’s floating rate loans. In such cases, the investment manager may owe conflicting fiduciary duties to the fund and other client accounts. The investment manager will endeavor to carry out its obligations to all of its clients to the fullest extent possible, recognizing that in some cases certain clients may achieve a lower economic return, as a result of these conflicting client interests, than if the investment manager’s client accounts collectively held only a single category of the issuer’s securities.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with floating rate loans include: Credit Risk and Prepayment and Extension Risk.

Foreign Currency Transactions

Investments in foreign securities usually involve currencies of foreign countries. In addition, a fund may hold cash and cash equivalent investments in foreign currencies. As a result, the value of a fund’s assets as measured in U.S. dollars may be affected favorably or unfavorably by changes in currency exchange rates and exchange control regulations. Also, a fund may incur costs in connection with conversions between various currencies. Currency exchange rates may fluctuate significantly over short periods of time causing a fund’s NAV (Net Asset Value) to fluctuate. Currency exchange rates are generally determined by the forces of supply and demand in the foreign exchange markets, actual or anticipated changes in interest rates, and other complex factors. Currency exchange rates also can be affected by the intervention of U.S. or foreign governments or central banks, or the failure to intervene, or by currency controls or political developments.

Spot Rates and Derivative Instruments. A fund may conduct its foreign currency exchange transactions either at the spot (cash) rate prevailing in the foreign currency exchange market or by entering into forward currency exchange contracts (forward contracts). (See also Derivative Instruments.) These contracts are traded in the interbank market conducted directly between currency traders (usually large commercial banks) and their customers. Because foreign currency transactions occurring in the interbank market might involve substantially larger amounts than those involved in the use of such derivative

Statement of Additional Information – March 7, 2011

Page 29

instruments, a fund could be disadvantaged by having to deal in the odd lot market for the underlying foreign currencies at prices that are less favorable than for round lots.

A fund may enter into forward contracts for a variety of reasons, but primarily it will enter into such contracts for risk management (hedging) or for investment purposes.

A fund may enter into forward contracts to settle a security transaction or handle dividend and interest collection. When a fund enters into a contract for the purchase or sale of a security denominated in a foreign currency or has been notified of a dividend or interest payment, it may desire to lock in the price of the security or the amount of the payment, usually in U.S. dollars, although it could desire to lock in the price of the security in another currency. By entering into a forward contract, a fund would be able to protect itself against a possible loss resulting from an adverse change in the relationship between different currencies from the date the security is purchased or sold to the date on which payment is made or received or when the dividend or interest is actually received.

A fund may enter into forward contracts when management of the fund believes the currency of a particular foreign country may decline in value relative to another currency. When selling currencies forward in this fashion, a fund may seek to hedge the value of foreign securities it holds against an adverse move in exchange rates. The precise matching of forward contract amounts and the value of securities involved generally will not be possible since the future value of securities in foreign currencies more than likely will change between the date the forward contract is entered into and the date it matures. The projection of short-term currency market movements is extremely difficult and successful execution of a short-term hedging strategy is highly uncertain. Unless specifically permitted, a fund would not enter into such forward contracts or maintain a net exposure to such contracts when consummating the contracts would obligate it to deliver an amount of foreign currency in excess of the value of its securities or other assets denominated in that currency.

This method of protecting the value of the fund’s securities against a decline in the value of a currency does not eliminate fluctuations in the underlying prices of the securities. It simply establishes a rate of exchange that can be achieved at some point in time. Although forward contracts tend to minimize the risk of loss due to a decline in value of hedged currency, they tend to limit any potential gain that might result should the value of such currency increase.

A fund may also enter into forward contracts when its management believes the currency of a particular country will increase in value relative to another currency. A fund may buy currencies forward to gain exposure to a currency without incurring the additional costs of purchasing securities denominated in that currency.

Absolute Return Currency and Income Fund is designed to invest in a combination of forward currency contracts and U.S. dollar-denominated market instruments in an attempt to obtain an investment result that is substantially the same as a direct investment in a foreign currency-denominated instrument. For example, the combination of U.S. dollar-denominated instruments with long forward currency exchange contracts creates a position economically equivalent to a position in the foreign currency, in anticipation of an increase in the value of the foreign currency against the U.S. dollar. Conversely, the combination of U.S. dollar-denominated instruments with short forward currency exchange contracts is economically equivalent to borrowing the foreign currency for delivery at a specified date in the future, in anticipation of a decrease in the value of the foreign currency against the U.S. dollar. This strategy may also be employed by other funds. Unanticipated changes in the currency exchange results could result in poorer performance for funds that enter into these types of transactions.

A fund may designate cash or securities in an amount equal to the value of the fund’s total assets committed to consummating forward contracts entered into under the circumstance set forth above. If the value of the securities declines, additional cash or securities will be designated on a daily basis so that the value of the cash or securities will equal the amount of the fund’s commitments on such contracts.

At maturity of a forward contract, a fund may either deliver (if a contract to sell) or take delivery of (if a contract to buy) the foreign currency or terminate its contractual obligation by entering into an offsetting contract with the same currency trader, the same maturity date, and covering the same amount of foreign currency.

If a fund engages in an offsetting transaction, it would incur a gain or loss to the extent there has been movement in forward contract prices. If a fund engages in an offsetting transaction, it may subsequently enter into a new forward contract to buy or sell the foreign currency.

Although a fund values its assets each business day in terms of U.S. dollars, it may not intend to convert its foreign currencies into U.S. dollars on a daily basis. It would do so from time to time, and shareholders should be aware of currency conversion costs. Although foreign exchange dealers do not charge a fee for conversion, they do realize a profit based on the difference (spread) between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency to a fund at one rate, while offering a lesser rate of exchange should a fund desire to resell that currency to the dealer.

Statement of Additional Information – March 7, 2011

Page 30

For Absolute Return Currency and Income Fund, it is possible, under certain circumstances, including entering into forward currency contracts for investment purposes, that the fund may have to limit or restructure its forward contract currency transactions to qualify as a “regulated investment company” under the Internal Revenue Code.

Options on Foreign Currencies. A fund may buy put and call options and write covered call and cash-secured put options on foreign currencies for hedging purposes and to gain exposure to foreign currencies. For example, a decline in the dollar value of a foreign currency in which securities are denominated will reduce the dollar value of such securities, even if their value in the foreign currency remains constant. In order to protect against the diminutions in the value of securities, a fund may buy put options on the foreign currency. If the value of the currency does decline, a fund would have the right to sell the currency for a fixed amount in dollars and would offset, in whole or in part, the adverse effect on its portfolio that otherwise would have resulted.

Conversely, where a change in the dollar value of a currency would increase the cost of securities a fund plans to buy, or where a fund would benefit from increased exposure to the currency, a fund may buy call options on the foreign currency. The purchase of the options could offset, at least partially, the changes in exchange rates.

As in the case of other types of options, however, the benefit to a fund derived from purchases of foreign currency options would be reduced by the amount of the premium and related transaction costs. In addition, where currency exchange rates do not move in the direction or to the extent anticipated, a fund could sustain losses on transactions in foreign currency options that would require it to forego a portion or all of the benefits of advantageous changes in rates.

A fund may write options on foreign currencies for the same types of purposes. For example, when a fund anticipates a decline in the dollar value of foreign-denominated securities due to adverse fluctuations in exchange rates it could, instead of purchasing a put option, write a call option on the relevant currency. If the expected decline occurs, the option would most likely not be exercised and the diminution in value of securities would be fully or partially offset by the amount of the premium received.

Similarly, instead of purchasing a call option when a foreign currency is expected to appreciate, a fund could write a put option on the relevant currency. If rates move in the manner projected, the put option would expire unexercised and allow the fund to hedge increased cost up to the amount of the premium.

As in the case of other types of options, however, the writing of a foreign currency option will constitute only a partial hedge up to the amount of the premium, and only if rates move in the expected direction. If this does not occur, the option may be exercised and the fund would be required to buy or sell the underlying currency at a loss that may not be offset by the amount of the premium. Through the writing of options on foreign currencies, the fund also may be required to forego all or a portion of the benefits that might otherwise have been obtained from favorable movements on exchange rates.

All options written on foreign currencies will be covered. An option written on foreign currencies is covered if a fund holds currency sufficient to cover the option or has an absolute and immediate right to acquire that currency without additional cash consideration upon conversion of assets denominated in that currency or exchange of other currency held in its portfolio. An option writer could lose amounts substantially in excess of its initial investments, due to the margin and collateral requirements associated with such positions.

Options on foreign currencies are traded through financial institutions acting as market-makers, although foreign currency options also are traded on certain national securities exchanges, such as the Philadelphia Stock Exchange and the Chicago Board Options Exchange, subject to SEC regulation. In an over-the-counter trading environment, many of the protections afforded to exchange participants will not be available. For example, there are no daily price fluctuation limits, and adverse market movements could therefore continue to an unlimited extent over a period of time. Although the purchaser of an option cannot lose more than the amount of the premium plus related transaction costs, this entire amount could be lost.

Foreign currency option positions entered into on a national securities exchange are cleared and guaranteed by the Options Clearing Corporation (OCC), thereby reducing the risk of counterparty default. Further, a liquid secondary market in options traded on a national securities exchange may be more readily available than in the over-the-counter market, potentially permitting a fund to liquidate open positions at a profit prior to exercise or expiration, or to limit losses in the event of adverse market movements.

The purchase and sale of exchange-traded foreign currency options, however, is subject to the risks of availability of a liquid secondary market described above, as well as the risks regarding adverse market movements, margining of options written, the nature of the foreign currency market, possible intervention by governmental authorities and the effects of other political and economic events. In addition, exchange-traded options on foreign currencies involve certain risks not presented by the over-the-counter market. For example, exercise and settlement of such options must be made exclusively through the OCC, which has established banking relationships in certain foreign countries for that purpose. As a result, the OCC may, if it determines that foreign governmental restrictions or taxes would prevent the orderly settlement of foreign currency option

Statement of Additional Information – March 7, 2011

Page 31

exercises, or would result in undue burdens on OCC or its clearing member, impose special procedures on exercise and settlement, such as technical changes in the mechanics of delivery of currency, the fixing of dollar settlement prices or prohibitions on exercise.

Foreign Currency Futures and Related Options. A fund may enter into currency futures contracts to buy or sell currencies. It also may buy put and call options and write covered call and cash-secured put options on currency futures. Currency futures contracts are similar to currency forward contracts, except that they are traded on exchanges (and have margin requirements) and are standardized as to contract size and delivery date. Most currency futures call for payment of delivery in U.S. dollars. A fund may use currency futures for the same purposes as currency forward contracts, subject to CFTC limitations.

Currency futures and options on futures values can be expected to correlate with exchange rates, but will not reflect other factors that may affect the value of the fund’s investments. A currency hedge, for example, should protect a Yen-denominated bond against a decline in the Yen, but will not protect a fund against price decline if the issuer’s creditworthiness deteriorates. Because the value of a fund’s investments denominated in foreign currency will change in response to many factors other than exchange rates, it may not be possible to match the amount of a forward contract to the value of a fund’s investments denominated in that currency over time.

A fund will hold securities or other options or futures positions whose values are expected to offset its obligations. The fund would not enter into an option or futures position that exposes the fund to an obligation to another party unless it owns either (i) an offsetting position in securities or (ii) cash, receivables and short-term debt securities with a value sufficient to cover its potential obligations. (See also Derivative Instruments and Foreign Securities.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with foreign currency transactions include: Derivatives Risk, Interest Rate Risk, and Liquidity Risk.

Foreign Securities

Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations involve special risks, including those set forth below, which are not typically associated with investing in U.S. securities. Foreign companies are not generally subject to uniform accounting, auditing, and financial reporting standards comparable to those applicable to domestic companies. Additionally, many foreign stock markets, while growing in volume of trading activity, have substantially less volume than the New York Stock Exchange, and securities of some foreign companies are less liquid and more volatile than securities of domestic companies. Similarly, volume and liquidity in most foreign bond markets are less than the volume and liquidity in the U.S. and, at times, volatility of price can be greater than in the U.S. Further, foreign markets have different clearance, settlement, registration, and communication procedures and in certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions making it difficult to conduct such transactions. Delays in such procedures could result in temporary periods when assets are uninvested and no return is earned on them. The inability of an investor to make intended security purchases due to such problems could cause the investor to miss attractive investment opportunities.

Payment for securities without delivery may be required in certain foreign markets and, when participating in new issues, some foreign countries require payment to be made in advance of issuance (at the time of issuance, the market value of the security may be more or less than the purchase price). Some foreign markets also have compulsory depositories (i.e., an investor does not have a choice as to where the securities are held). Fixed commissions on some foreign stock exchanges are generally higher than negotiated commissions on U.S. exchanges. Further, an investor may encounter difficulties or be unable to pursue legal remedies and obtain judgments in foreign courts. There is generally less government supervision and regulation of business and industry practices, stock exchanges, brokers, and listed companies than in the U.S. It may be more difficult for an investor’s agents to keep currently informed about corporate actions such as stock dividends or other matters that may affect the prices of portfolio securities. Communications between the U.S. and foreign countries may be less reliable than within the U.S., thus increasing the risk of delays or loss of certificates for portfolio securities. In addition, with respect to certain foreign countries, there is the possibility of nationalization, expropriation, the imposition of additional withholding or confiscatory taxes, political, social, or economic instability, diplomatic developments that could affect investments in those countries, or other unforeseen actions by regulatory bodies (such as changes to settlement or custody procedures).

The risks of foreign investing may be magnified for investments in emerging markets, which may have relatively unstable governments, economies based on only a few industries, and securities markets that trade a small number of securities.

The introduction of a single currency, the euro, on Jan. 1, 1999 for participating European nations in the Economic and Monetary Union (EU) presents unique uncertainties, including the legal treatment of certain outstanding financial contracts after Jan. 1, 1999 that refer to existing currencies rather than the euro; the establishment and maintenance of exchange rates; the fluctuation of the euro relative to non-euro currencies; whether the interest rate, tax or labor regimes of European

Statement of Additional Information – March 7, 2011

Page 32

countries participating in the euro will converge over time; and whether the admission of other countries such as Poland, Latvia, and Lithuania as members of the EU may have an impact on the euro.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with foreign securities include: Foreign/Emerging Markets Risk and Issuer Risk.

Funding Agreements

A fund may invest in funding agreements issued by domestic insurance companies. Funding agreements are short-term, privately placed, debt obligations of insurance companies that offer a fixed- or floating-rate of interest. These investments are not readily marketable and therefore are considered to be illiquid securities. (See also Illiquid and Restricted Securities.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with funding agreements include: Credit Risk and Liquidity Risk.

High-Yield Debt Securities (Junk Bonds)

High yield (high-risk) debt securities are sometimes referred to as junk bonds. They are non-investment grade (lower quality) securities that have speculative characteristics. Lower quality securities, while generally offering higher yields than investment grade securities with similar maturities, involve greater risks, including the possibility of default or bankruptcy. They are regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. The special risk considerations in connection with investments in these securities are discussed below.

See Appendix A for a discussion of securities ratings. (See also Debt Obligations.)

All fixed rate interest-bearing securities typically experience appreciation when interest rates decline and depreciation when interest rates rise. The market values of lower-quality and comparable unrated securities tend to reflect individual corporate developments to a greater extent than do higher rated securities, which react primarily to fluctuations in the general level of interest rates. Lower-quality and comparable unrated securities also tend to be more sensitive to economic conditions than are higher-rated securities. As a result, they generally involve more credit risks than securities in the higher-rated categories. During an economic downturn or a sustained period of rising interest rates, highly leveraged issuers of lower-quality securities may experience financial stress and may not have sufficient revenues to meet their payment obligations. The issuer’s ability to service its debt obligations also may be adversely affected by specific corporate developments, the issuer’s inability to meet specific projected business forecasts, or the unavailability of additional financing. The risk of loss due to default by an issuer of these securities is significantly greater than a default by issuers of higher-rated securities because such securities are generally unsecured and are often subordinated to other creditors. Further, if the issuer of a lower quality security defaulted, an investor might incur additional expenses to seek recovery.

Credit ratings issued by credit rating agencies are designed to evaluate the safety of principal and interest payments of rated securities. They do not, however, evaluate the market value risk of lower-quality securities and, therefore, may not fully reflect the true risks of an investment. In addition, credit rating agencies may or may not make timely changes in a rating to reflect changes in the economy or in the condition of the issuer that affect the market value of the securities. Consequently, credit ratings are used only as a preliminary indicator of investment quality.

An investor may have difficulty disposing of certain lower-quality and comparable unrated securities because there may be a thin trading market for such securities. Because not all dealers maintain markets in all lower quality and comparable unrated securities, there is no established retail secondary market for many of these securities. To the extent a secondary trading market does exist, it is generally not as liquid as the secondary market for higher-rated securities. The lack of a liquid secondary market may have an adverse impact on the market price of the security. The lack of a liquid secondary market for certain securities also may make it more difficult for an investor to obtain accurate market quotations. Market quotations are generally available on many lower-quality and comparable unrated issues only from a limited number of dealers and may not necessarily represent firm bids of such dealers or prices for actual sales.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with high-yield debt securities include: Credit Risk, Interest Rate Risk, and Prepayment and Extension Risk.

Illiquid and Restricted Securities

Illiquid securities are securities that are not readily marketable. These securities may include, but are not limited to, certain securities that are subject to legal or contractual restrictions on resale, certain repurchase agreements, and derivative instruments. To the extent a fund invests in illiquid or restricted securities, it may encounter difficulty in determining a market value for the securities. Disposing of illiquid or restricted securities may involve time-consuming negotiations and legal expense, and it may be difficult or impossible for a fund to sell the investment promptly and at an acceptable price.

Statement of Additional Information – March 7, 2011

Page 33

In determining the liquidity of all securities and derivatives, such as Rule 144A securities, which are unregistered securities offered to qualified institutional buyers, and interest-only and principal-only fixed mortgage-backed securities (IOs and POs) issued by the U.S. government or its agencies and instrumentalities the investment manager, under guidelines established by the Board, will consider any relevant factors including the frequency of trades, the number of dealers willing to purchase or sell the security and the nature of marketplace trades.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with illiquid and restricted securities include: Liquidity Risk.

Indexed Securities

The value of indexed securities is linked to currencies, interest rates, commodities, indexes, or other financial indicators. Most indexed securities are short- to intermediate-term fixed income securities whose values at maturity or interest rates rise or fall according to the change in one or more specified underlying instruments. Indexed securities may be more volatile than the underlying instrument itself and they may be less liquid than the securities represented by the index. (See also Derivative Instruments.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with indexed securities include: Liquidity Risk and Market Risk.

Inflation Protected Securities

Inflation is a general rise in prices of goods and services. Inflation erodes the purchasing power of an investor’s assets. For example, if an investment provides a total return of 7% in a given year and inflation is 3% during that period, the inflation-adjusted, or real, return is 4%. Inflation-protected securities are debt securities whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. One type of inflation-protected debt security is issued by the U.S. Treasury. The principal of these securities is adjusted for inflation as indicated by the Consumer Price Index for Urban Consumers (CPI) and interest is paid on the adjusted amount. The CPI is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy.

If the CPI falls, the principal value of inflation-protected securities will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Conversely, if the CPI rises, the principal value of inflation-protected securities will be adjusted upward, and consequently the interest payable on these securities will be increased. Repayment of the original bond principal upon maturity is guaranteed in the case of U.S. Treasury inflation-protected securities, even during a period of deflation. However, the current market value of the inflation-protected securities is not guaranteed and will fluctuate. Other inflation-indexed securities include inflation-related bonds, which may or may not provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Other issuers of inflation-protected debt securities include other U.S. government agencies or instrumentalities, corporations and foreign governments. There can be no assurance that the CPI or any foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover, there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the United States.

If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond’s inflation measure.

Any increase in principal for an inflation-protected security resulting from inflation adjustments is considered by IRS regulations to be taxable income in the year it occurs. For direct holders of an inflation-protected security, this means that taxes must be paid on principal adjustments even though these amounts are not received until the bond matures. By contrast, a fund holding these securities distributes both interest income and the income attributable to principal adjustments in the form of cash or reinvested shares, which are taxable to shareholders.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with inflation-protected securities include: Interest Rate Risk and Market Risk.

Initial Public Offerings (IPOs)

Companies issuing IPOs generally have limited operating histories, and their prospects for future profitability are uncertain. These companies often are engaged in new and evolving businesses and are particularly vulnerable to competition and to changes in technology, markets and economic conditions. They may be dependent on certain key managers and third parties, need more personnel and other resources to manage growth and require significant additional capital. They may also be dependent on limited product lines and uncertain property rights and need regulatory approvals. Funds that invest in IPOs can be affected by sales of additional shares and by concentration of control in existing management and principal

Statement of Additional Information – March 7, 2011

Page 34

shareholders. Stock prices of IPOs can also be highly unstable, due to the absence of a prior public market, the small number of shares available for trading and limited investor information. Most IPOs involve a high degree of risk not normally associated with offerings of more seasoned companies.

Although one or more risks described in this SAI may apply, the largest risks associated with IPOs include: Small and Mid-Sized Company Risk and Initial Public Offering (IPO) Risk.

Inverse Floaters

Inverse floaters or inverse floating rate securities are a type of derivative long-term fixed income obligation with a floating or variable interest rate that moves in the opposite direction of short-term interest rates. As short-term interest rates go down, the holders of the inverse floaters receive more income and, as short-term interest rates go up, the holders of the inverse floaters receive less income. As with all long-term fixed income securities, the price of the inverse floater moves inversely with long-term interest rates; as long-term interest rates go down, the price of the inverse floater moves up and, when long-term interest rates go up, the price of the inverse floater moves down. While inverse floater securities tend to provide more income than similar term and credit quality fixed-rate bonds, they also exhibit greater volatility in price movement (both up and down).

In the municipal market an inverse floater is typically created when the owner of a municipal fixed rate bond transfers that bond to a trust in exchange for cash and a residual interest in the trust’s assets and cash flows (inverse floater certificates). The trust funds the purchase of the bond by issuing two classes of certificates: short-term floating rate notes (typically sold to third parties) and the inverse floaters (also known as residual certificates). No additional income beyond that provided by the trust’s underlying bond is created; rather, that income is merely divided-up between the two classes of certificates. The holder of the inverse floating rate securities typically has the right to (1) cause the holders of the short-term floating rate notes to tender their notes at par ($100) and (2) to return the inverse floaters and withdraw the underlying bonds, thereby collapsing the trust. (See also Derivative Instruments.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with transactions in inverse floaters include: Interest Rate Risk, Credit Risk, Liquidity Risk and Market Risk.

Investment Companies

Investing in securities issued by registered and unregistered investment companies may involve the duplication of advisory fees and certain other expenses.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with the securities of other investment companies include: Market Risk.

Lending of Portfolio Securities

To generate additional income, a fund may lend up to one-third of the value of its total assets to broker-dealers, banks or other institutional borrowers of securities. JPMorgan Chase Bank, N.A. serves as lending agent (the Lending Agent) to the funds pursuant to a securities lending agreement (the Securities Lending Agreement) approved by the Board.

Under the Securities Lending Agreement, the Lending Agent loans securities to approved borrowers pursuant to borrower agreements in exchange for collateral equal to at least 100% of the market value of the loaned securities. Collateral may consist of cash, securities issued by the U.S. government or its agencies or instrumentalities (collectively, “U.S. government securities”) or such other collateral as may be approved by the Board. For loans secured by cash, the fund retains the interest earned on cash collateral investments, but is required to pay the borrower a rebate for the use of the cash collateral. For loans secured by U.S. government securities, the borrower pays a borrower fee to the Lending Agent on behalf of the fund. If the market value of the loaned securities goes up, the Lending Agent will request additional collateral from the borrower. If the market value of the loaned securities goes down, the borrower may request that some collateral be returned. During the existence of the loan, the lender will receive from the borrower amounts equivalent to any dividends, interest or other distributions on the loaned securities, as well as interest on such amounts.

Loans are subject to termination by a fund or a borrower at any time. A fund may choose to terminate a loan in order to vote in a proxy solicitation if the fund has knowledge of a material event to be voted on that would affect the fund’s investment in the loaned security.

Securities lending involves counterparty risk, including the risk that a borrower may not provide additional collateral when required or return the loaned securities in a timely manner. Counterparty risk also includes a potential loss of rights in the collateral if the borrower or the Lending Agent defaults or fails financially. This risk is increased if a fund’s loans are concentrated with a single or limited number of borrowers. There are no limits on the number of borrowers a fund may use and a fund may lend securities to only one or a small group of borrowers. Funds participating in securities lending also bear

Statement of Additional Information – March 7, 2011

Page 35

the risk of loss in connection with investments of cash collateral received from the borrowers. Cash collateral is invested in accordance with investment guidelines contained in the Securities Lending Agreement and approved by the Board. To the extent that the value or return of a fund’s investments of the cash collateral declines below the amount owed to a borrower, a fund may incur losses that exceed the amount it earned on lending the security. The Lending Agent will indemnify a fund from losses resulting from a borrower’s failure to return a loaned security when due, but such indemnification does not extend to losses associated with declines in the value of cash collateral investments. The investment manager is not responsible for any loss incurred by the funds in connection with the securities lending program.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with the lending of portfolio securities include: Credit Risk.

Loan Participations

Loans, loan participations, and interests in securitized loan pools are interests in amounts owed by a corporate, governmental, or other borrower to a lender or consortium of lenders (typically banks, insurance companies, investment banks, government agencies, or international agencies). Loans involve a risk of loss in case of default or insolvency of the borrower and may offer less legal protection to an investor in the event of fraud or misrepresentation.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with loan participations include: Credit Risk.

Mortgage- and Asset-Backed Securities

Mortgage-backed securities represent direct or indirect participations in, or are secured by and payable from, mortgage loans secured by real property, and include single- and multi-class pass-through securities and Collateralized Mortgage Obligations (CMOs). These securities may be issued or guaranteed by U.S. government agencies or instrumentalities (see also Agency and Government Securities), or by private issuers, generally originators and investors in mortgage loans, including savings associations, mortgage bankers, commercial banks, investment bankers, and special purpose entities. Mortgage-backed securities issued by private lenders may be supported by pools of mortgage loans or other mortgage-backed securities that are guaranteed, directly or indirectly, by the U.S. government or one of its agencies or instrumentalities, or they may be issued without any governmental guarantee of the underlying mortgage assets but with some form of non-governmental credit enhancement. Commercial mortgage-backed securities (CMBS) are a specific type of mortgage-backed security collateralized by a pool of mortgages on commercial real estate.

Stripped mortgage-backed securities are a type of mortgage-backed security that receive differing proportions of the interest and principal payments from the underlying assets. Generally, there are two classes of stripped mortgage-backed securities: Interest Only (IO) and Principal Only (PO). IOs entitle the holder to receive distributions consisting of all or a portion of the interest on the underlying pool of mortgage loans or mortgage-backed securities. POs entitle the holder to receive distributions consisting of all or a portion of the principal of the underlying pool of mortgage loans or mortgage-backed securities. The cash flows and yields on IOs and POs are extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage loans or mortgage-backed securities. A rapid rate of principal payments may adversely affect the yield to maturity of IOs. A slow rate of principal payments may adversely affect the yield to maturity of POs. If prepayments of principal are greater than anticipated, an investor in IOs may incur substantial losses. If prepayments of principal are slower than anticipated, the yield on a PO will be affected more severely than would be the case with a traditional mortgage-backed security.

CMOs are hybrid mortgage-related instruments secured by pools of mortgage loans or other mortgage-related securities, such as mortgage pass through securities or stripped mortgage-backed securities. CMOs may be structured into multiple classes, often referred to as “tranches,” with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. Principal prepayments on collateral underlying a CMO may cause it to be retired substantially earlier than its stated maturity. The yield characteristics of mortgage-backed securities differ from those of other debt securities. Among the differences are that interest and principal payments are made more frequently on mortgage-backed securities, usually monthly, and principal may be repaid at any time. These factors may reduce the expected yield.

Asset-backed securities have structural characteristics similar to mortgage-backed securities. Asset-backed debt obligations represent direct or indirect participation in, or secured by and payable from, assets such as motor vehicle installment sales contracts, other installment loan contracts, home equity loans, leases of various types of property, and receivables from credit card or other revolving credit arrangements. The credit quality of most asset-backed securities depends primarily on the credit quality of the assets underlying such securities, how well the entity issuing the security is insulated from the credit risk of the originator or any other affiliated entities, and the amount and quality of any credit enhancement of the securities. Payments or distributions of principal and interest on asset- backed debt obligations may be supported by non-governmental credit enhancements including letters of credit, reserve funds, overcollateralization, and guarantees by third parties. The

Statement of Additional Information – March 7, 2011

Page 36

market for privately issued asset-backed debt obligations is smaller and less liquid than the market for government sponsored mortgage-backed securities. (See also Derivative Instruments.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with mortgage and asset-backed securities include: Credit Risk, Interest Rate Risk, Liquidity Risk, and Prepayment and Extension Risk.

Mortgage Dollar Rolls

Mortgage dollar rolls are investments in which an investor sells mortgage-backed securities for delivery in the current month and simultaneously contracts to purchase substantially similar securities on a specified future date. While an investor foregoes principal and interest paid on the mortgage-backed securities during the roll period, the investor is compensated by the difference between the current sales price and the lower price for the future purchase as well as by any interest earned on the proceeds of the initial sale. The investor also could be compensated through the receipt of fee income equivalent to a lower forward price.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with mortgage dollar rolls include: Credit Risk and Interest Rate Risk.

Municipal Obligations

Municipal obligations include debt obligations issued by or on behalf of states, territories, possessions, or sovereign nations within the territorial boundaries of the United States (including the District of Columbia, Guam and Puerto Rico). The interest on these obligations is generally exempt from federal income tax. Municipal obligations are generally classified as either “general obligations” or “revenue obligations.”

General obligation bonds are secured by the issuer’s pledge of its full faith, credit, and taxing power for the payment of interest and principal. Revenue bonds are payable only from the revenues derived from a project or facility or from the proceeds of a specified revenue source. Industrial development bonds are generally revenue bonds secured by payments from and the credit of private users. Municipal notes are issued to meet the short-term funding requirements of state, regional, and local governments. Municipal notes include tax anticipation notes, bond anticipation notes, revenue anticipation notes, tax and revenue anticipation notes, construction loan notes, short-term discount notes, tax-exempt commercial paper, demand notes, and similar instruments.

Municipal lease obligations may take the form of a lease, an installment purchase, or a conditional sales contract. They are issued by state and local governments and authorities to acquire land, equipment, and facilities. An investor may purchase these obligations directly, or it may purchase participation interests in such obligations. Municipal leases may be subject to greater risks than general obligation or revenue bonds. State constitutions and statutes set forth requirements that states or municipalities must meet in order to issue municipal obligations. Municipal leases may contain a covenant by the state or municipality to budget for and make payments due under the obligation. Certain municipal leases may, however, provide that the issuer is not obligated to make payments on the obligation in future years unless funds have been appropriated for this purpose each year.

Yields on municipal bonds and notes depend on a variety of factors, including money market conditions, municipal bond market conditions, the size of a particular offering, the maturity of the obligation, and the rating of the issue. The municipal bond market has a large number of different issuers, many having smaller sized bond issues, and a wide choice of different maturities within each issue. For these reasons, most municipal bonds do not trade on a daily basis and many trade only rarely. Because many of these bonds trade infrequently, the spread between the bid and offer may be wider and the time needed to develop a bid or an offer may be longer than other security markets. See Appendix A for a discussion of securities ratings. (See also Debt Obligations.)

Taxable Municipal Obligations. There is another type of municipal obligation that is subject to federal income tax for a variety of reasons. These municipal obligations do not qualify for the federal income exemption because (a) they did not receive necessary authorization for tax-exempt treatment from state or local government authorities, (b) they exceed certain regulatory limitations on the cost of issuance for tax-exempt financing or (c) they finance public or private activities that do not qualify for the federal income tax exemption. These non-qualifying activities might include, for example, certain types of multi-family housing, certain professional and local sports facilities, refinancing of certain municipal debt, and borrowing to replenish a municipality’s underfunded pension plan.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with municipal obligations include: Credit Risk, Inflation Risk, Interest Rate Risk, and Market Risk.

Statement of Additional Information – March 7, 2011

Page 37

Preferred Stock

Preferred stock is a type of stock that pays dividends at a specified rate and that has preference over common stock in the payment of dividends and the liquidation of assets. Preferred stock does not ordinarily carry voting rights.

The price of a preferred stock is generally determined by earnings, type of products or services, projected growth rates, experience of management, liquidity, and general market conditions of the markets on which the stock trades.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with preferred stock include: Issuer Risk and Market Risk.

Real Estate Investment Trusts

Real estate investment trusts (REITs) are pooled investment vehicles that manage a portfolio of real estate or real estate related loans to earn profits for their shareholders. REITs are generally classified as equity REITs, mortgage REITs or a combination of equity and mortgage REITs. Equity REITs invest the majority of their assets directly in real property, such as shopping centers, nursing homes, office buildings, apartment complexes, and hotels, and derive income primarily from the collection of rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest payments. REITs can be subject to extreme volatility due to fluctuations in the demand for real estate, changes in interest rates, and adverse economic conditions. Similar to investment companies, REITs are not taxed on income distributed to shareholders provided they comply with certain requirements under the tax law. The failure of a REIT to continue to qualify as a REIT for tax purposes can materially affect its value. A fund will indirectly bear its proportionate share of any expenses paid by a REIT in which it invests.

REITs often do not provide complete tax information until after the calendar year-end. Consequently, because of the delay, it may be necessary for a fund investing in REITs to request permission to extend the deadline for issuance of Forms 1099-DIV beyond January 31. In the alternative, amended Forms 1099-DIV may be sent.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with REITs include: Interest Rate Risk, Issuer Risk and Market Risk.

Repurchase Agreements

Repurchase agreements may be entered into with certain banks or non-bank dealers. In a repurchase agreement, the purchaser buys a security at one price, and at the time of sale, the seller agrees to repurchase the obligation at a mutually agreed upon time and price (usually within seven days). The repurchase agreement determines the yield during the purchaser’s holding period, while the seller’s obligation to repurchase is secured by the value of the underlying security. Repurchase agreements could involve certain risks in the event of a default or insolvency of the other party to the agreement, including possible delays or restrictions upon the purchaser’s ability to dispose of the underlying securities.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with repurchase agreements include: Credit Risk.

Reverse Repurchase Agreements

In a reverse repurchase agreement, an investor sells a security and enters into an agreement to repurchase the security at a specified future date and price. The investor generally retains the right to interest and principal payments on the security. Since the investor receives cash upon entering into a reverse repurchase agreement, it may be considered a borrowing. (See also Derivative Instruments.)

Although one or more of the other risks described in this SAI may apply, the largest risks associated with reverse repurchase agreements include: Credit Risk and Interest Rate Risk.

Short Sales

In short-selling transactions, a fund sells a security it does not own in anticipation of a decline in the market value of the security. To complete the transaction, a fund must borrow the security to make delivery to the buyer. A fund is obligated to replace the security borrowed by purchasing it at the market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by a fund, which may result in a loss or gain, respectively. Unlike taking a long position in a security by purchasing the security, where potential losses are limited to the purchase price, short sales have no cap on maximum losses, and gains are limited to the price of the security at the time of the short sale.

Short sales of forward commitments and derivatives do not involve borrowing a security. These types of short sales may include futures, options, contracts for differences, forward contracts on financial instruments and options such as contracts, credit-linked instruments, and swap contracts.

Statement of Additional Information – March 7, 2011

Page 38

A fund may not always be able to borrow a security it wants to sell short. A fund also may be unable to close out an established short position at an acceptable price and may have to sell long positions at disadvantageous times to cover its short positions. The value of your investment in a fund will fluctuate in response to the movements in the market. Fund performance also will depend on the effectiveness of the investment manager’s research and the management team’s investment decisions.

Short sales also involve other costs. A fund must repay to the lender an amount equal to any dividends or interest that accrues while the loan is outstanding. To borrow the security, a fund may be required to pay a premium. A fund also will incur truncation costs in effecting short sales. The amount of any ultimate gain for a fund resulting from a short sale will be decreased and the amount of any ultimate loss will be increased, by the amount of premiums, interest or expenses a fund may be required to pay in connection with the short sale. Until a fund closes the short position, it will earmark and reserve fund assets, in cash or liquid securities to offset a portion of the leverage risk. Realized gains from short sales are typically treated as short-term gains/losses.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with short sales include: Market Risk and Short Sales Risk.

Sovereign Debt

A sovereign debtor’s willingness or ability to repay principal and pay interest in a timely manner may be affected by a variety of factors, including its cash flow situation, the extent of its reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the sovereign debtor’s policy toward international lenders, and the political constraints to which a sovereign debtor may be subject. (See also Foreign Securities.)

With respect to sovereign debt of emerging market issuers, investors should be aware that certain emerging market countries are among the largest debtors to commercial banks and foreign governments. At times, certain emerging market countries have declared moratoria on the payment of principal and interest on external debt.

Certain emerging market countries have experienced difficulty in servicing their sovereign debt on a timely basis that led to defaults and the restructuring of certain indebtedness.

Sovereign debt includes Brady Bonds, which are securities issued under the framework of the Brady Plan, an initiative announced by former U.S. Treasury Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to restructure their outstanding external commercial bank indebtedness.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with sovereign debt include: Credit Risk and Foreign/Emerging Markets Risk.

Structured Investments

A structured investment is a security whose return is tied to an underlying index or to some other security or pool of assets. Structured investments generally are individually negotiated agreements and may be traded over-the-counter. Structured investments are created and operated to restructure the investment characteristics of the underlying security. This restructuring involves the deposit with or purchase by an entity, such as a corporation or trust, of specified instruments, such as commercial bank loans, and the issuance by that entity of one or more classes of debt obligations (“structured securities”) backed by, or representing interests in, the underlying instruments. The cash flow on the underlying instruments may be apportioned among the newly issued structured securities to create securities with different investment characteristics, such as varying maturities, payment priorities, and interest rate provisions. The extent of the payments made with respect to structured securities is dependent on the extent of the cash flow on the underlying instruments. Because structured securities typically involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments. Structured securities are often offered in different classes. As a result a given class of a structured security may be either subordinated or unsubordinated to the right of payment of another class. Subordinated structured securities typically have higher yields and present greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement transactions, and at any given time there may be no active trading market for a particular structured security.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with structured investments include: Credit Risk and Liquidity Risk.

Swap Agreements

Swap agreements are typically individually negotiated agreements that obligate two parties to exchange payments based on a reference to a specified asset, reference rate or index. Swap agreements will tend to shift a party’s investment exposure from

Statement of Additional Information – March 7, 2011

Page 39

one type of investment to another. A swap agreement can increase or decrease the volatility of a fund’s investments and its net asset value.

Swap agreements are traded in the over-the-counter market and may be considered to be illiquid. Swap agreements entail the risk that a party will default on its payment obligations. A fund will enter into a swap agreement only if the claims-paying ability of the other party or its guarantor is considered to be investment grade by the investment manager. Generally, the unsecured senior debt or the claims-paying ability of the other party or its guarantor must be rated in one of the three highest rating categories of at least one Nationally Recognized Statistical Rating Organization (NRSRO) at the time of entering into the transaction. If there is a default by the other party to such a transaction, a fund will have to rely on its contractual remedies (which may be limited by bankruptcy, insolvency or similar laws) pursuant to the agreements related to the transaction. In certain circumstances, a fund may seek to minimize counterparty risk by requiring the counterparty to post collateral.

Swap agreements are usually entered into without an upfront payment because the value of each party’s position is the same. The market values of the underlying commitments will change over time resulting in one of the commitments being worth more than the other and the net market value creating a risk exposure for one counterparty or the other.

Interest Rate Swaps. Interest rate swap agreements are often used to obtain or preserve a desired return or spread at a lower cost than through a direct investment in an instrument that yields the desired return or spread. They are financial instruments that involve the exchange of one type of interest rate cash flow for another type of interest rate cash flow on specified dates in the future. In a standard interest rate swap transaction, two parties agree to exchange their respective commitments to pay fixed or floating rates on a predetermined specified (notional) amount. The swap agreement notional amount is the predetermined basis for calculating the obligations that the swap counterparties have agreed to exchange. Under most swap agreements, the obligations of the parties are exchanged on a net basis. The two payment streams are netted out, with each party receiving or paying, as the case may be, only the net amount of the two payments. Interest rate swaps can be based on various measures of interest rates, including LIBOR, swap rates, treasury rates and other foreign interest rates.

Cross Currency Swaps. Cross currency swaps are similar to interest rate swaps, except that they involve multiple currencies. A fund may enter into a currency swap when it has exposure to one currency and desires exposure to a different currency. Typically the interest rates that determine the currency swap payments are fixed, although occasionally one or both parties may pay a floating rate of interest. Unlike an interest rate swap, however, the principal amounts are exchanged at the beginning of the contract and returned at the end of the contract. In addition to paying and receiving amounts at the beginning and termination of the agreements, both sides will also have to pay in full periodically based upon the currency they have borrowed. Change in foreign exchange rates and changes in interest rates, as described above, may negatively affect currency swaps.

Total Return Swaps. Total return swaps are contracts in which one party agrees to make periodic payments based on the change in market value of the underlying assets, which may include a specified security, basket of securities or security indexes during the specified period, in return for periodic payments based on a fixed or variable interest rate of the total return from other underlying assets. Total return swap agreements may be used to obtain exposure to a security or market without owning or taking physical custody of such security or market. For example, CMBS total return swaps are bilateral financial contracts designed to replicate synthetically the total returns of commercial mortgage-backed securities. In a typical total return equity swap, payments made by the fund or the counterparty are based on the total return of a particular reference asset or assets (such as an equity security, a combination of such securities, or an index). That is, one party agrees to pay another party the return on a stock, basket of stocks, or stock index in return for a specified interest rate. By entering into an equity index swap, for example, the index receiver can gain exposure to stocks making up the index of securities without actually purchasing those stocks. Total return swaps involve not only the risk associated with the investment in the underlying securities, but also the risk of the counterparty not fulfilling its obligations under the agreement.

Swaption Transaction. A swaption is an option on a swap agreement and a contract that gives a counterparty the right (but not the obligation) to enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at some designated future time on specified terms, in return for payment of the purchase price (the “premium”) of the option. The fund may write (sell) and purchase put and call swaptions to the same extent it may make use of standard options on securities or other instruments. The writer of the contract receives the premium and bears the risk of unfavorable changes in the market value on the underlying swap agreement.

Swaptions can be bundled and sold as a package. These are commonly called interest rate caps, floors and collars. In interest rate cap transactions, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or cap. Interest rate floor transactions require one party, in exchange for a premium to agree to make payments to the other to the extent that interest rates fall below a specified level, or floor. In interest rate collar transactions,

Statement of Additional Information – March 7, 2011

Page 40

one party sells a cap and purchases a floor, or vice versa, in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels or collar amounts.

Credit Default Swaps. Credit default swaps are contracts in which third party credit risk is transferred from one party to another party by one party, the protection buyer, making payments to the other party, the protection seller, in return for the ability of the protection buyer to deliver a reference obligation, or portfolio of reference obligations, to the protection seller upon the occurrence of certain credit events relating to the issuer of the reference obligation and receive the notional amount of the reference obligation from the protection seller. A fund may use credit default swaps for various purposes including to increase or decrease its credit exposure to various issuers. For example, as a seller in a transaction, a fund could use credit default swaps as a way of increasing investment exposure to a particular issuer’s bonds in lieu of purchasing such bonds directly. Similarly, as a buyer in a transaction, a fund may use credit default swaps to hedge its exposure on bonds that it owns or in lieu of selling such bonds. A credit default swap agreement may have as reference obligations one or more securities that are not currently held by the fund. The fund may be either the buyer or seller in the transaction. Credit default swaps may also be structured based on the debt of a basket of issuers, rather than a single issuer, and may be customized with respect to the default event that triggers purchase or other factors. As a seller, the fund generally receives an up front payment or a fixed rate of income throughout the term of the swap, which typically is between six months and three years, provided that there is no credit event. If a credit event occurs, generally the seller must pay the buyer the full face amount of deliverable obligations of the reference obligations that may have little or no value. If the fund is a buyer and no credit event occurs, the fund recovers nothing if the swap is held through its termination date. However, if a credit event occurs, the buyer may elect to receive the full notional value of the swap in exchange for an equal face amount of deliverable obligations of the reference obligation that may have little or no value.

Credit default swap agreements can involve greater risks than if a fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to counterparty credit risk, leverage risk, hedging risk, correlation risk and liquidity risk. A fund will enter into credit default swap agreements only with counterparties that meet certain standards of creditworthiness. A buyer generally also will lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller, coupled with the upfront or periodic payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value to the seller. A fund’s obligations under a credit default swap agreement will be accrued daily (offset against any amounts owing to the fund). In connection with credit default swaps in which a fund is the buyer, the fund will segregate or “earmark” cash or other liquid assets, or enter into certain offsetting positions, with a value at least equal to the fund’s exposure (any accrued but unpaid net amounts owed by the fund to any counterparty), on a marked-to-market basis. In connection with credit default swaps in which a fund is the seller, the fund will segregate or “earmark” cash or other liquid assets, or enter into offsetting positions, with a value at least equal to the full notional amount of the swap (minus any amounts owed to the fund). Such segregation or “earmarking” will ensure that the fund has assets available to satisfy its obligations with respect to the transaction. Such segregation or “earmarking” will not limit the fund’s exposure to loss.

The use of swap agreements by a fund entails certain risks, which may be different from, or possibly greater than, the risks associated with investing directly in the securities and other investments that are the referenced asset for the swap agreement. Swaps are highly specialized instruments that require investment techniques, risk analyses, and tax planning different from those associated with stocks, bonds, and other traditional investments. The use of a swap requires an understanding not only of the referenced asset, reference rate, or index, but also of the swap itself, without the benefit of observing the performance of the swap under all the possible market conditions. Because some swap agreements have a leverage component, adverse changes in the value or level of the underlying asset, reference rate, or index can result in a loss substantially greater than the amount invested in the swap itself. Certain swaps have the potential for unlimited loss, regardless of the size of the initial investment.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with swaps include: Credit Risk, Liquidity Risk and Market Risk.

Variable- or Floating-Rate Securities

Variable-rate securities provide for automatic establishment of a new interest rate at fixed intervals (daily, monthly, semiannually, etc.). Floating-rate securities generally provide for automatic adjustment of the interest rate whenever some specified interest rate index changes. Variable- or floating-rate securities frequently include a demand feature enabling the holder to sell the securities to the issuer at par. In many cases, the demand feature can be exercised at any time. Some securities that do not have variable or floating interest rates may be accompanied by puts producing similar results and price characteristics. Variable-rate demand notes include master demand notes that are obligations that permit the investor to invest fluctuating amounts, which may change daily without penalty, pursuant to direct arrangements between the investor as lender, and the borrower. The interest rates on these notes fluctuate from time to time. The issuer of such obligations

Statement of Additional Information – March 7, 2011

Page 41

normally has a corresponding right, after a given period, to prepay in its discretion the outstanding principal amount of the obligations plus accrued interest upon a specified number of days’ notice to the holders of such obligations. Because these obligations are direct lending arrangements between the lender and borrower, it is not contemplated that such instruments generally will be traded. There generally is not an established secondary market for these obligations. Accordingly, where these obligations are not secured by letters of credit or other credit support arrangements, the lender’s right to redeem is dependent on the ability of the borrower to pay principal and interest on demand. Such obligations frequently are not rated by credit rating agencies and may involve heightened risk of default by the issuer.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with variable- or floating-rate securities include: Credit Risk.

Warrants

Warrants are securities giving the holder the right, but not the obligation, to buy the stock of an issuer at a given price (generally higher than the value of the stock at the time of issuance) during a specified period or perpetually. Warrants may be acquired separately or in connection with the acquisition of securities. Warrants do not carry with them the right to dividends or voting rights and they do not represent any rights in the assets of the issuer. Warrants may be considered to have more speculative characteristics than certain other types of investments. In addition, the value of a warrant does not necessarily change with the value of the underlying securities, and a warrant ceases to have value if it is not exercised prior to its expiration date.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with warrants include: Market Risk.

When-Issued Securities and Forward Commitments

When-issued securities and forward commitments involve a commitment to purchase or sell specific securities at a predetermined price or yield in which payment and delivery take place after the customary settlement period for that type of security. Normally, the settlement date occurs within 45 days of the purchase although in some cases settlement may take longer. The investor does not pay for the securities or receive dividends or interest on them until the contractual settlement date. Such instruments involve the risk of loss if the value of the security to be purchased declines prior to the settlement date and the risk that the security will not be issued as anticipated. If the security is not issued as anticipated, a fund may lose the opportunity to obtain a price and yield considered to be advantageous.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with when-issued securities and forward commitments include: Credit Risk.

Zero-Coupon, Step-Coupon, and Pay-in-Kind Securities

These securities are debt obligations that do not make regular cash interest payments (see also Debt Obligations). Zero-coupon and step-coupon securities are sold at a deep discount to their face value because they do not pay interest until maturity. Pay-in-kind securities pay interest through the issuance of additional securities. Because these securities do not pay current cash income, the price of these securities can be extremely volatile when interest rates fluctuate. See Appendix A for a discussion of securities ratings.

Although one or more of the other risks described in this SAI may apply, the largest risks associated with zero- coupon, step-coupon, and pay-in-kind securities include: Credit Risk and Interest Rate Risk.

A fund cannot issue senior securities but this does not prohibit certain investment activities for which assets of the fund are set aside, or margin, collateral or escrow arrangements are established, to cover the related obligations. Examples of those activities include borrowing money, delayed-delivery and when-issued securities transactions, and contracts to buy or sell options, derivatives, and hedging instruments.

Securities Transactions

Except as otherwise noted, the description of policies and procedures in this section also applies to any fund subadviser. Subject to policies set by the Board, as well as the terms of the investment management services agreements, and subadviser agreements, as applicable, the investment manager or subadviser is authorized to determine, consistent with a fund’s investment objective and policies, which securities will be purchased, held, or sold. In determining where the buy and sell orders are to be placed, the investment manager has been directed to use its best efforts to obtain the best available price and the most favorable execution except where otherwise authorized by the Board.

Statement of Additional Information – March 7, 2011

Page 42

Each fund, the investment manager, any subadviser and Columbia Management Investment Distributors, Inc. (principal underwriter and distributor of the funds) (formerly RiverSource Fund Distributors, Inc.) has a strict Code of Ethics that prohibits affiliated personnel from engaging in personal investment activities that compete with or attempt to take advantage of planned portfolio transactions for the fund.

A fund’s securities may be traded on an agency basis with brokers or dealers or on a principal basis with dealers. In an agency trade, the broker-dealer generally is paid a commission. In a principal trade, the investment manager will trade directly with the issuer or with a dealer who buys or sells for its own account, rather than acting on behalf of another client. The investment manager may pay the dealer a commission or instead, the dealer’s profit, if any, is the difference, or spread, between the dealer’s purchase and sale price for the security.

Broker-Dealer Selection

In selecting broker-dealers to execute transactions, the investment manager and each subadviser will consider from among such factors as the ability to minimize trading costs, trading expertise, infrastructure, ability to provide information or services, financial condition, confidentiality, competitiveness of commission rates, evaluations of execution quality, promptness of execution, past history, ability to prospect for and find liquidity, difficulty of trade, security’s trading characteristics, size of order, liquidity of market, block trading capabilities, quality of settlement, specialized expertise, overall responsiveness, willingness to commit capital and research services provided.

The Board has adopted a policy prohibiting the investment manager, or any subadviser, from considering sales of shares of the funds as a factor in the selection of broker-dealers through which to execute securities transactions.

On a periodic basis, the investment manager makes a comprehensive review of the broker-dealers and the overall reasonableness of their commissions, including review by an independent third-party evaluator. The review evaluates execution, operational efficiency, and research services.

Commission Dollars

Broker-dealers typically provide a bundle of services including research and execution of transactions. The research provided can be either proprietary (created and provided by the broker-dealer) or third party (created by a third party but provided by the broker-dealer). Consistent with the interests of the fund, the investment manager and each subadviser may use broker-dealers who provide both types of research products and services in exchange for commissions, known as “soft dollars,” generated by transactions in fund accounts.

The receipt of research and brokerage products and services is used by the investment manager, and by each subadviser, to the extent it engages in such transactions, to supplement its own research and analysis activities, by receiving the views and information of individuals and research staffs of other securities firms, and by gaining access to specialized expertise on individual companies, industries, areas of the economy and market factors. Research and brokerage products and services may include reports on the economy, industries, sectors and individual companies or issuers; statistical information; accounting and tax law interpretations; political analyses; reports on legal developments affecting portfolio securities; information on technical market actions; credit analyses; on-line quotation systems; risk measurement; analyses of corporate responsibility issues; on-line news services; and financial and market database services. Research services may be used by the investment manager in providing advice to multiple accounts, including the funds (or by any subadviser to any other client of the subadviser) even though it is not possible to relate the benefits to any particular account or fund.

On occasion, it may be desirable to compensate a broker for research services or for brokerage services by paying a commission that might not otherwise be charged or a commission in excess of the amount another broker might charge. The Board has adopted a policy authorizing the investment manager to do so, to the extent authorized by law, if the investment manager or subadviser determines, in good faith, that such commission is reasonable in relation to the value of the brokerage or research services provided by a broker or dealer, viewed either in the light of that transaction or the investment manager’s or subadviser’s overall responsibilities with respect to a fund and the other funds or accounts for which it acts as investment manager (or by any subadviser to any other client of that subadviser).

As a result of these arrangements, some portfolio transactions may not be effected at the lowest commission, but overall execution may be better. The investment manager and each subadviser have represented that under its procedures the amount of commission paid will be reasonable and competitive in relation to the value of the brokerage services and research products and services provided.

The investment manager or a subadviser may use step-out transactions. A “step-out” is an arrangement in which the investment manager or subadviser executes a trade through one broker-dealer but instructs that broker-dealer to step-out all or a part of the trade to another broker-dealer. The second broker-dealer will clear and settle, and receive commissions for,

Statement of Additional Information – March 7, 2011

Page 43

the stepped-out portion. The investment manager or subadviser may receive research products and services in connection with step-out transactions.

Use of fund commissions may create potential conflicts of interest between the investment manager or subadviser and a fund. However, the investment manager and each subadviser has policies and procedures in place intended to mitigate these conflicts and ensure that the use of fund commissions falls within the “safe harbor” of Section 28(e) of the Securities Exchange Act of 1934. Some products and services may be used for both investment decision-making and non-investment decision-making purposes (“mixed use” items). The investment manager and each subadviser, to the extent it has mixed use items, has procedures in place to assure that fund commissions pay only for the investment decision-making portion of a mixed-use item.

Affiliate Transactions

Subject to applicable legal and regulatory requirements, the fund may enter into transactions in which Ameriprise Financial and/or its affiliates, or companies that are deemed to be affiliates of the fund (e.g., due to, among other factors, their or their affiliates’ ownership or control of shares of the fund) may have an interest that potentially conflicts with the interests of the fund. For example, an affiliate of Ameriprise Financial may sell securities to the fund from an offering in which it is an underwriter or from securities that it owns as a dealer, subject to applicable legal and regulatory requirements. Applicable legal and regulatory requirements also may prevent the fund from engaging in transactions with an affiliate of the fund, which may include Ameriprise Financial and its affiliates, or from participating in an investment opportunity in which an affiliate of the fund participates.

Trade Aggregation and Allocation

Generally, orders are processed and executed in the order received. When a fund buys or sells the same security as another portfolio, fund, or account, the investment manager or subadviser carries out the purchase or sale pursuant to policies and procedures designed in such a way believed to be fair to the fund. Purchase and sale orders may be combined or aggregated for more than one account if it is believed it would be consistent with best execution. Aggregation may reduce commission costs or market impact on a per-share and per-dollar basis, although aggregation may have the opposite effect. There may be times when not enough securities are received to fill an aggregated order, including in an initial public offering, involving multiple accounts. In that event, the investment manager and each subadviser has policies and procedures designed in such a way believed to result in a fair allocation among accounts, including the fund.

From time to time, different portfolio managers with the investment manager may make differing investment decisions related to the same security. However, with certain exceptions for funds managed using strictly quantitative methods, a portfolio manager or portfolio management team may not sell a security short if the security is owned in another portfolio managed by that portfolio manager or portfolio management team. On occasion, a fund may purchase and sell a security simultaneously in order to profit from short-term price disparities.

Certain Investment Limitations

From time to time, the investment manager or subadviser for a fund and their respective affiliates (“adviser group”) will be trading in the same securities or be deemed to beneficially hold the same securities. Due to regulatory and other restrictions or limits in various countries or industry- or issuer-specific restrictions or limitations (e.g., poison pills) that restrict the amount of securities or other investments of an issuer that may be held on an aggregate basis by an adviser group, a fund may be limited or prevented from acquiring securities of an issuer that the fund’s adviser may otherwise prefer to purchase. For example, many countries limit the amount of outstanding shares that may be held in a local bank by an adviser group. In these circumstances, a fund may be limited or prevented from purchasing additional shares of a bank if the purchase would put the adviser group over the regulatory limit when the adviser group’s holdings are combined together or with the holdings of the funds’ affiliates, even if the purchases alone on behalf of a specific fund would not be in excess of such limit. Additionally, regulatory and other applicable limits are complex and vary significantly, including, among others, from country to country, industry to industry and issuer to issuer. However, given the complexity of these limits, a fund’s adviser may inadvertently breach these limits, and a fund may be required to sell securities of an issuer in order to be in compliance with such limits even if the fund’s adviser may otherwise prefer to continue to hold such securities. At certain times, the funds may be restricted in their investment activities because of relationships an affiliate of the fund’s, which may include Ameriprise Financial and its affiliates, may have with the issuers of securities.

The investment manager has portfolio management teams in its multiple geographic locations that may share research information regarding leveraged loans. The investment manager operates separate and independent trading desks in these locations for the purpose of purchasing and selling leveraged loans. As a result, the investment manager does not aggregate orders in leveraged loans across portfolio management teams. For example, funds and other client accounts being managed by these portfolio management teams may purchase and sell the same leveraged loan in the secondary market on the same

Statement of Additional Information – March 7, 2011

Page 44

day at different times and at different prices. There is also the potential for a particular account or group of accounts, including a fund, to forego an opportunity or to receive a different allocation (either larger or smaller) than might otherwise be obtained if the investment manager were to aggregate trades in leveraged loans across the portfolio management teams. Although the investment manager does not aggregate orders in leveraged loans across its portfolio management teams in the multiple geographic locations, it operates in this structure subject to its duty to seek best execution.

The following table shows total brokerage commissions paid in the last three fiscal periods. Substantially all firms through whom transactions were executed provide research services. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 4. Total Brokerage Commissions


Total Brokerage Commissions
Fund	2010		2009			2008
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	$	0	$	0		$	0	^(a)

Columbia Income Builder Fund II		0		0			0	^(a)

Columbia Income Builder Fund III		0		0			0	^(a)

Columbia Portfolio Builder Aggressive		0		0			0

Columbia Portfolio Builder Conservative		0		0			0

Columbia Portfolio Builder Moderate		0		0			0

Columbia Portfolio Builder Moderate Aggressive		0		0			0

Columbia Portfolio Builder Moderate Conservative		0		0			0

Columbia Portfolio Builder Total Equity		0		0			0

RiverSource S&P 500 Index		97,970		16,486			40,706

RiverSource Small Company Index		517,354		123,243			108,360

*For funds with fiscal period ending March 31*

Columbia Equity Value		357,285		525,309			591,525

RiverSource Precious Metals and Mining		288,177		1,067,960			960,159

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity		26,985		38,789			38,557	^(b)

Columbia Recovery and Infrastructure		527,728		128,097	^(c)		N/A

Columbia Retirement Plus 2010		0		0			0

Columbia Retirement Plus 2015		0		0			0

Columbia Retirement Plus 2020		0		0			0

Columbia Retirement Plus 2025		0		0			0

Columbia Retirement Plus 2030		0		0			0

Columbia Retirement Plus 2035		0		0			0

Columbia Retirement Plus 2040		0		0			0

Columbia Retirement Plus 2045		0		0			0

*For funds with fiscal period ending May 31*

Columbia High Yield Bond		0		0			0

Columbia Multi-Advisor Small Cap Value		749,980		1,484,768			1,179,158

Columbia U.S. Government Mortgage		9,489		14,329			17,640

RiverSource Partners Fundamental Value		146,283		298,507			292,900

RiverSource Short Duration U.S. Government		21,796		35,642			43,210

Statement of Additional Information – March 7, 2011

Page 45


Total Brokerage Commissions
Fund	2010		2009			2008
*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income	$	0	$	0		$	0

Columbia Asia Pacific ex-Japan		677,863		41,731	^(e)		N/A

Columbia Emerging Markets Bond		0		0			0

Columbia Emerging Markets Opportunity		2,031,496		2,108,103			3,346,690

Columbia European Equity		189,148		189,286			396,474

Columbia Frontier		469,635		157,476			250,561

Columbia Global Bond		3,201		7,292			18,925

Columbia Global Equity		556,835		581,962			1,185,084

Columbia Global Extended Alpha		20,490		11,397			6,647	^(f)

Columbia Multi-Advisor International Value		722,370		959,077			1,558,333

Columbia Seligman Global Technology		1,556,216		1,319,806			1,747,855

RiverSource Disciplined International Equity		1,350,664		500,331			514,960

RiverSource Partners International Select Growth		1,115,321		901,265			1,690,066

RiverSource Partners International Small Cap		409,847		265,317			270,663

Threadneedle Global Equity Income		31,018		18,370			5,030	^(f)

Threadneedle International Opportunity		771,810		793,899			1,020,584

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond		3,261		315			6,431

Columbia Mid Cap Growth Opportunity		2,758,365		2,752,727			2,165,273

RiverSource Intermediate Tax-Exempt		451		42			684

RiverSource Tax-Exempt High Income		10,757		1,080			24,531

*For funds with fiscal period ending December 31*

Columbia Government Money Market		0		0			0

Columbia Seligman Communications and Information		9,167,229		12,482,079			11,241,475

Columbia Select Large-Cap Value		180,393		206,322			236,168

Columbia Select Smaller-Cap Value		163,708		123,904			240,154

RiverSource LaSalle Global Real Estate		21,149		20,434			32,671

RiverSource LaSalle Monthly Dividend Real Estate		35,406		40,941			82,218

Seligman Capital		704,219		927,607			1,815,753

Seligman Growth		4,547,802		2,228,705			1,627,919


(a)		The fund changed its fiscal year end effective Jan. 31, 2008 from May 31 to Jan. 31. For 2008, the information shown is for the period from June 1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period ended on May 31.

(b)		For the period from Oct. 18, 2007 (when shares became publicly available) to April 30, 2008.

(c)		For the period from Feb. 19, 2009 (when shares become publicly available) to April 30, 2009.

(d)		For the period from Aug. 1, 2008 (when shares became publicly available) to Sept. 30, 2008.

(e)		For the period from July 15, 2009 (when shares became publicly available) to Oct. 31, 2009.

(f)		For the period from Aug. 1, 2008 (when shares became publicly available) to Oct. 31, 2008.

For the last fiscal period, transactions were specifically directed to firms in exchange for research services as shown in the following table. The table also shows portfolio turnover rates for the last two fiscal periods. Higher

Statement of Additional Information – March 7, 2011

Page 47

turnover rates may result in higher brokerage expenses and taxes. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 5. Brokerage Directed for Research and Turnover Rates


	Brokerage directed for research*
				Amount of			Turnover rates
	Amount of			commissions
Fund	transactions			imputed or paid			2010			2009
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	$	0	^(a)	$	0	^(a)		41	%		39	%

Columbia Income Builder Fund II		0	^(a)		0	^(a)		39			40

Columbia Income Builder Fund III		0	^(a)		0	^(a)		46			36

Columbia Portfolio Builder Aggressive		0	^(a)		0	^(a)		28			35

Columbia Portfolio Builder Conservative		0	^(a)		0	^(a)		26			27

Columbia Portfolio Builder Moderate		0	^(a)		0	^(a)		26			34

Columbia Portfolio Builder Moderate Aggressive		0	^(a)		0	^(a)		28			33

Columbia Portfolio Builder Moderate Conservative		0	^(a)		0	^(a)		30			29

Columbia Portfolio Builder Total Equity		0	^(a)		0	^(a)		25			28

RiverSource S&P 500 Index		0			0			41			5

RiverSource Small Company Index		0			0			41			23

*For funds with fiscal period ending March 31*

Columbia Equity Value		95,868,655			111,080			30			21

RiverSource Precious Metals and Mining		42,266,048			35,270			72			340	^(b)

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity		10,891,991			10,904			31			36

Columbia Recovery and Infrastructure		243,972,941			295,680			11			4	^(c)

Columbia Retirement Plus 2010		0	^(a)		0	^(a)		53			55

Columbia Retirement Plus 2015		0	^(a)		0	^(a)		126			53

Columbia Retirement Plus 2020		0	^(a)		0	^(a)		53			52

Columbia Retirement Plus 2025		0	^(a)		0	^(a)		52			47

Columbia Retirement Plus 2030		0	^(a)		0	^(a)		57			47

Columbia Retirement Plus 2035		0	^(a)		0	^(a)		54			48

Columbia Retirement Plus 2040		0	^(a)		0	^(a)		55			50

Columbia Retirement Plus 2045		0	^(a)		0	^(a)		64			51

*For funds with fiscal period ending May 31*

Columbia High Yield Bond		0			0			94			83

Columbia Multi-Advisor Small Cap Value		25,296,772			30,410			80			120

Columbia U.S. Government Mortgage		0			0			519	^(d)		431	^(d)

RiverSource Partners Fundamental Value		0			0			9			19

RiverSource Short Duration U.S. Government		0			0			329	^(d)		217	^(d)

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity		66,349,011			55,087			23			21

RiverSource Real Estate		6,919,253			9,212			93			51

Statement of Additional Information – March 7, 2011

Page 48


	Brokerage directed for research*
			Amount of		Turnover rates
	Amount of		commissions
Fund	transactions		imputed or paid		2010			2009
*For funds with fiscal period ending July 31*

Columbia Floating Rate	$	0	$	0		68	%		84	%

Columbia Income Opportunities		0		0		86			81

Columbia Inflation Protected Securities		0		0		177	^(f)		160	^(f)

Columbia Large Core Quantitative		302,209,602		175,221		75			61

Columbia Limited Duration Credit		0		0		101			335	^(d),(g)

Columbia Money Market		0		0		N/A			N/A

RiverSource Disciplined Small and Mid Cap Equity		21,380,485		24,466		107			104

RiverSource Disciplined Small Cap Value		6,706,217		7,860		114			98

*For funds with fiscal period ending August 31*

Columbia Diversified Bond		0		0		420	^(d)		371	^(d)

Columbia Minnesota Tax-Exempt		0		0		21			33

RiverSource California Tax-Exempt		0		0		19			49

RiverSource New York Tax-Exempt		0		0		12			34

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income		715,949,314		378,675		34			38

Columbia Large Growth Quantitative		17,600,018		4,548		98			58

Columbia Large Value Quantitative		4,349,506		1,271		99			63

Columbia Mid Cap Value Opportunity		490,003,447		491,867		50			42

Columbia Strategic Allocation		1,141,601		1,293		114			136	^(d)

RiverSource Balanced		58,500,411		32,333		160			189	^(d)

RiverSource Strategic Income Allocation		0		0		100			143	^(d)

Seligman California Municipal High-Yield		0		0		18			63	^(h)

Seligman California Municipal Quality		0		0		21			46	^(h)

Seligman Minnesota Municipal		0		0		31			29	^(h)

Seligman National Municipal		0		0		20			107	^(h)

Seligman New York Municipal		0		0		18			53	^(h)

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income		0		0		0			16

Columbia Asia Pacific ex-Japan		216,699,313		557,010		21			4	⁽ⁱ⁾

Columbia Emerging Markets Bond		0		0		38			62

Columbia Emerging Markets Opportunity		790,802,436		1,790,999		96			149

Columbia European Equity		133,688,585		174,225		115			154

Columbia Frontier		62,648,376		77,789		160			162

Columbia Global Bond		0		0		62			69

Columbia Global Equity		280,057,610		455,880		54			81

Columbia Global Extended Alpha		9,351,743		15,992		128			133

Statement of Additional Information – March 7, 2011

Page 49


	Brokerage directed for research*
			Amount of		Turnover rates
	Amount of		commissions
Fund	transactions		imputed or paid		2010			2009
Columbia Multi-Advisor International Value	$	185,780,737	$	120,229		34	%		63	%

Columbia Seligman Global Technology		48,298		91,337		111			150

RiverSource Disciplined International Equity		0		0		137			85

RiverSource Partners International Select Growth		43,225,040		52,296		101			90

RiverSource Partners International Small Cap		736,118		367		77			174

Threadneedle Global Equity Income		14,640,902		27,893		35			45

Threadneedle International Opportunity		558,502,248		740,302		80			97

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond		0		0		23			29

Columbia Mid Cap Growth Opportunity		562,623,170		720,519		96			126

RiverSource Intermediate Tax-Exempt		0		0		9			26

RiverSource Tax-Exempt High Income		0		0		13			30

*For funds with fiscal period ending December 31*

Columbia Government Money Market		N/A		N/A		N/A			N/A

Columbia Select Large-Cap Value		27,222,062		31,000		12			24

Columbia Select Smaller-Cap Value		1,854,489		3,350		5			7

Columbia Seligman Communications and Information		1,435,031,366		2,108,407		105			150

RiverSource LaSalle Global Real Estate		0		0		59			83

RiverSource LaSalle Monthly Dividend Real Estate		0		0		53			87

Seligman Capital		4,231,471		4,109		155			139

Seligman Growth		318,239,627		335,732		153			142


*		Reported numbers include third party soft dollar commissions and portfolio manager directed commissions directed for research. Columbia Management also receives proprietary research from brokers, but these amounts have not been included in the table.


(a)		The underlying funds may have directed transactions to firms in exchange for research services.


(b)		Higher turnover rates may result in higher brokerage expenses and taxes. The higher turnover rate can be primarily attributed to repositioning the fund to a smaller number of holdings as it worked through risk management and secondarily, market volatility made up the balance of the turnover rate.


(c)		For the period from Feb. 19, 2009 (when shares became publicly available) to April 30, 2009.


(d)		Includes mortgage dollar rolls. If mortgage dollar roll transactions were excluded, the portfolio turnover would have been: 286% and 199% for RiverSource Short Duration U.S. Government Fund and 246% and 162% for Columbia U.S. Government Mortgage Fund for the fiscal periods ended May 31, 2010 and 2009, respectively; 229% and 184% for Columbia Diversified Bond for the fiscal periods ended Aug. 31, 2010 and 2009, respectively; 220% for Columbia Limited Duration Credit Fund for the fiscal period ended July 31, 2009; 93% and 110% for RiverSource Balanced Fund, 113% and 116% for Columbia Strategic Allocation Fund and 97% and 112% for RiverSource Strategic Income Allocation Fund for the fiscal periods ended Sept. 30, 2010 and 2009, respectively.


(e)		A significant portion of the turnover was the result of “roll” transactions in liquid derivatives and Treasury securities. In the derivative transactions, positions in expiring contracts are liquidated and simultaneously replaced with positions in new contracts with equivalent characteristics. In the Treasury transactions, existing holdings are sold to purchase newly issued securities with slightly longer maturity dates. Although these transactions affect the turnover rate of the portfolio, they do not change the risk exposure or result in material transaction costs. The remaining turnover resulted from strategic reallocations and relative value trading. After transaction costs, this activity is expected to enhance the returns on the fund.


(f)		The fund’s turnover rate has historically been low. The increase in turnover rate is primarily a result of repositioning holdings after management changes in the first quarter of 2009 and following a more active management style.


(g)		The turnover was a result of a combination of a change in the investment strategy and the growth of the fund. The fund experienced high net inflows in the second quarter of 2009, increasing the NAV.


(h)		The fund’s turnover rate has historically been low. The increase in turnover rate is primarily a result of repositioning holdings after management changes in the second quarter of 2009, and additionally for Seligman National Municipal, mergers of 14 state-specific Seligman Municipal Funds during the period into the Fund.


(i)		For the period from July 15, 2009 (when the Fund became publicly available) to Oct. 31, 2009.

Statement of Additional Information – March 7, 2011

Page 50

As of the end of the most recent fiscal period, the fund held securities of its regular brokers or dealers or of the parent of those brokers or dealers that derived more than 15% of gross revenue from securities-related activities as presented below. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 6. Securities of Regular Brokers or Dealers


		Value of securities owned at
Fund	Issuer	end of fiscal period
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	None		N/A

Columbia Income Builder Fund II	None		N/A

Columbia Income Builder Fund III	None		N/A

Columbia Portfolio Builder Aggressive	None		N/A

Columbia Portfolio Builder Conservative	None		N/A

Columbia Portfolio Builder Moderate	None		N/A

Columbia Portfolio Builder Moderate Aggressive	None		N/A

Columbia Portfolio Builder Moderate Conservative	None		N/A

Columbia Portfolio Builder Total Equity	None		N/A

RiverSource S&P 500 Index	Ameriprise Financial	$	147,339

	Charles Schwab		199,837

	Citigroup		825,442

	E*Trade Financial		48,192

	Franklin Resources		216,282

	Goldman Sachs Group		983,038

	JPMorgan Chase & Co.		1,947,078

	Legg Mason		41,068

	Morgan Stanley		489,323

	PNC Financial Services Group		347,103

RiverSource Small Company Index	Investment Technology Group		932,730

	LaBranche & Co.		159,627

	optionsXpress		645,578

	Piper Jaffray Companies		677,351

	Stifel Financial		1,463,301

*For funds with fiscal period ending March 31*

Columbia Equity Value	Goldman Sachs Group		11,067,062

	JPMorgan Chase & Co.		13,784,298

	Morgan Stanley		7,911,083

RiverSource Precious Metals and Mining	None		N/A

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity	None		N/A

Columbia Recovery and Infrastructure	None		N/A

Columbia Retirement Plus 2010	None		N/A

Columbia Retirement Plus 2015	None		N/A

Columbia Retirement Plus 2020	None		N/A

Columbia Retirement Plus 2025	None		N/A

Columbia Retirement Plus 2030	None		N/A

Columbia Retirement Plus 2035	None		N/A

Columbia Retirement Plus 2040	None		N/A

Columbia Retirement Plus 2045	None		N/A

Statement of Additional Information – March 7, 2011

Page 51


		Value of securities owned at
Fund	Issuer	end of fiscal period
*For funds with fiscal period ending May 31*

Columbia High Yield Bond	Lehman Brothers Holdings*	$	1,322,250

Columbia Multi-Advisor Small Cap Value	Raymond James Financial		1,696,199

Columbia U.S. Government Mortgage	Bear Stearns Asset Backed Securities Trust		339,729

	Bear Stearns Commercial Mtge Securities		3,164,927

	ChaseFlex Trust		398,308

	Citigroup Mortgage Loan Trust, Inc.		1,106,996

	Credit Suisse Mortgage Capital Ctfs		7,823,287

	GS Mortgage Securities Corp.		6,427,923

	Jefferies & Co.		2,284,896

	JPMorgan Chase Commercial Mtge Securities		990,893

	JPMorgan Mtge Trust		667,343

	JPMorgan Reremic		534,987

RiverSource Partners Fundamental Value	Goldman Sachs Group, Inc.		3,039,588

	JPMorgan Chase & Co.		2,342,740

RiverSource Short Duration U.S. Government	Bear Stearns Asset Backed Securities Trust		782,912

	Bear Stearns Commercial Mtge Securities		1,607,987

	Citigroup Funding		18,414,224

	Citigroup Mortgage Loan Trust, Inc.		3,441,463

	Credit Suisse Mortgage Capital Ctfs		7,919,291

	CS First Boston Mtge Securities		968,402

	Goldman Sachs Group		7,829,724

	Jefferies & Co.		1,062,793

	JPMorgan Chase Commercial Mtge Securities		3,998,961

	JPMorgan Chase & Co.		2,966,688

	JPMorgan Mtge Trust		2,196,977

	Morgan Stanley		8,350,389

	Morgan Stanley Capital I		4,934,943

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity	Goldman Sachs Group		8,911,501

	JPMorgan Chase & Co.		5,407,407

	Morgan Stanley		10,581,853

RiverSource Real Estate	None		N/A

*For funds with fiscal period ending July 31*

Columbia Floating Rate	Nuveen Investments		887,000

Columbia Income Opportunities	E*TRADE Financial		4,180,938

Columbia Inflation Protected Securities	Jefferies & Co.		925,026

	LB-UBS Commercial Mortgage Trust		2,711,440

Columbia Large Core Quantitative	Citigroup		89,448,117

	Franklin Resources		10,199,918

	Goldman Sachs Group		18,407,431

	PNC Financial Services Group		55,870,310

Columbia Limited Duration Credit	Citigroup		4,988,135

	Goldman Sachs Group		5,629,686

	JPMorgan Chase & Co.		4,363,771

	Lehman Brothers Holdings*		95,700

	Merrill Lynch & Co.		856,523

	Morgan Stanley		5,284,355

Columbia Money Market	Citigroup Funding		100,983,942

	JPMorgan Chase & Co.		87,793,771

Statement of Additional Information – March 7, 2011

Page 52


		Value of securities owned at
Fund	Issuer	end of fiscal period
RiverSource Disciplined Small and Mid Cap Equity	Investment Technology Group	$	93,176

	Jefferies Group, Inc.		76,613

	Knight Capital Group Cl A		342,359

	optionsXpress Holdings		113,864

	Raymond James Financial		1,524,868

RiverSource Disciplined Small Cap Value	Knight Capital Group Cl A		251,175

	Westwood Holdings Group		104,596

*For funds with fiscal period ending August 31*

Columbia Diversified Bond	Bear Stearns Adjustable Rate Mortgage Trust		5,214,463

	Bear Stearns Alt-A Trust		22,769

	Bear Stearns Asset-Backed Securities Trust		3,855,171

	Bear Stearns Commercial Mortgage Securities		2,278,870

	Bear Stearns Mortgage Funding Trust		680,868

	ChaseFlex Trust		1,470,112

	Citigroup, Inc.		44,244,737

	Citigroup Commercial Mortgage Trust		3,387,078

	Citigroup/Deutsche Bank Commercial Mortgage Trust		25,824,909

	Citigroup Mortgage Loan Trust, Inc.		37,740,867

	Credit Suisse Mortgage Capital Certificates		59,851,574

	Credit Suisse First Boston Mortgage Securities Corp.		15,808,795

	GS Mortgage Securities Corp. II		46,506,875

	The Goldman Sachs Group, Inc.		37,320,156

	Jefferies & Co., Inc.		6,723,914

	JPMorgan Chase & Co.		41,539,862

	JPMorgan Chase Commercial Mortgage Securities Corp.		104,835,640

	JPMorgan Mortgage Trust		3,844,284

	JPMorgan Remeric		4,562,368

	LB-UBS Commercial Mortgage Trust		35,858,704

	Lehman Brothers Holdings, Inc.*		2,204,363

	Merrill Lynch Mortgage Trust		1,656,762

	Morgan Stanley		36,602,643

	Morgan Stanley Capital I		16,918,724

	Morgan Stanley Reremic Trust		50,927,555

Columbia Minnesota Tax-Exempt	None		N/A

RiverSource California Tax-Exempt	None		N/A

RiverSource New York Tax-Exempt	None		N/A

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income	The Goldman Sachs Group, Inc.		89,866,879

	JPMorgan Chase & Co.		108,516,784

	Morgan Stanley		58,963,161

Columbia Large Growth Quantitative	Franklin Resources, Inc.		2,794,152

	The Goldman Sachs Group, Inc.		12,973,453

Columbia Large Value Quantitative	Citigroup, Inc.		1,992,549

	Franklin Resources, Inc.		1,624,238

	JPMorgan Chase & Co.		10,305,549

	Morgan Stanley		1,373,146

	PNC Financial Services Group, Inc.		4,267,366

Columbia Mid Cap Value Opportunity	None		N/A

Statement of Additional Information – March 7, 2011

Page 53


		Value of securities owned at
Fund	Issuer	end of fiscal period
RiverSource Strategic Income Allocation	Bear Stearns Commercial Mortgage Securities	$	688,490

	Citigroup, Inc.		780,000

	Citigroup/Deutsche Bank Commercial Mortgage Trust		1,037,930

	Credit Suisse First Boston Mortgage Securities Corp.		818,019

	E*TRADE Financial Corp.		1,101,888

	The Goldman Sachs Group, Inc.		790,509

	JPMorgan Chase & Co.		510,692

	JPMorgan Chase Commercial Mortgage Securities		611,116

	Lehman Brothers Holdings, Inc.*		21,150

	Morgan Stanley		1,776,142

	Nuveen Investments, Inc.		101,120

Seligman California Municipal High-Yield	None		N/A

Seligman California Municipal Quality	None		N/A

Seligman Minnesota Municipal	None		N/A

Seligman National Municipal	None		N/A

Seligman New York Municipal	None		N/A

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income	GS Mortgage Securities II		2,818,152

	Lehman Brothers Holdings, Inc.*		136,000

Columbia Asia Pacific ex-Japan	None		N/A

Columbia Emerging Markets Bond	Morgan Stanley		1,195,868

Columbia Emerging Markets Opportunity	None		N/A

Columbia European Equity	Credit Suisse Group AG		946,036

Columbia Frontier	E*Trade Financial Corp.		1,124,109

Columbia Global Bond	Citigroup		1,643,537

	Citigroup Commercial Mortgage Trust		1,822,872

	Credit Suisse First Boston Mortgage Securities Corp.		464,637

	GS Mortgage Securities Corp. II		1,167,396

	The Goldman Sachs Group, Inc.		1,445,779

	JPMorgan Chase & Co.		2,170,720

	JPMorgan Chase Commercial Mortgage Securities Corp		2,723,990

	LB-UBS Commercial Mortgage Trust		3,368,905

	Morgan Stanley		3,127,492

	Morgan Stanley Capital 1		1,388,870

Columbia Global Equity	Citigroup, Inc.		4,727,308

	Credit Suisse Group AG		3,581,884

	JPMorgan Chase & Co.		5,390,197

Columbia Global Extended Alpha	None		N/A

Columbia Multi-Advisor International Value	None		N/A

Columbia Seligman Global Technology	None		N/A

RiverSource Disciplined International Equity	Credit Suisse Group SA		2,437,141

RiverSource Partners International Select Growth	None		N/A

RiverSource Partners International Small Cap	None		N/A

Threadneedle Global Equity Income	None		N/A

Threadneedle International Opportunity	None		N/A

Statement of Additional Information – March 7, 2011

Page 55

Brokerage Commissions Paid to Brokers Affiliated with the Investment Manager

Affiliates of the investment manager may engage in brokerage and other securities transactions on behalf of a fund according to procedures adopted by the Board and to the extent consistent with applicable provisions of the federal securities laws. Subject to approval by the Board, the same conditions apply to transactions with broker-dealer affiliates of any subadviser. The investment manager will use an affiliate only if (i) the investment manager determines that the fund will receive prices and executions at least as favorable as those offered by qualified independent brokers performing similar brokerage and other services for the fund and (ii) the affiliate charges the fund commission rates consistent with those the affiliate charges comparable unaffiliated customers in similar transactions and if such use is consistent with terms of the Investment Management Services Agreement.

Information about any brokerage commissions paid by a fund in the last three fiscal periods to brokers affiliated with the fund’s investment manager is contained in the following table. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 7. Brokerage Commissions Paid to Investment Manager or Affiliates


								Percent of
								aggregate
				Aggregate				dollar		Aggregate		Aggregate
				dollar				amount of		dollar		dollar
				amount of		Percent of		transactions		amount of		amount of
				commissions		aggregate		involving		commissions		commissions
		Nature of		paid to		brokerage		payment of		paid to		paid to
	Broker	affiliation		broker		commissions		commissions		broker		broker

Fund				2010						2009		2008

*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	None		—		—		—		—	$	0	$	0	^(a)

Columbia Income Builder Fund II	None		—		—		—		—		0		0	^(a)

Columbia Income Builder Fund III	None		—		—		—		—		0		0	^(a)

Columbia Portfolio Builder Aggressive	None		—		—		—		—		0		0

Columbia Portfolio Builder Conservative	None		—		—		—		—		0		0

Columbia Portfolio Builder Moderate	None		—		—		—		—		0		0

Columbia Portfolio Builder Moderate Aggressive	None		—		—		—		—		0		0

Columbia Portfolio Builder Moderate Conservative	None		—		—		—		—		0		0

Columbia Portfolio Builder Total Equity	None		—		—		—		—		0		0

RiverSource S&P 500 Index	None		—		—		—		—		0		0

RiverSource Small Company Index	None		—		—		—		—		0		0

*For funds with fiscal period ending March 31*

Columbia Equity Value	None		—		—		—		—		0		0

RiverSource Precious Metals and Mining	None		—		—		—		—		0		0

Statement of Additional Information – March 7, 2011

Page 57


								Percent of
								aggregate
				Aggregate				dollar		Aggregate			Aggregate
				dollar				amount of		dollar			dollar
				amount of		Percent of		transactions		amount of			amount of
				commissions		aggregate		involving		commissions			commissions
		Nature of		paid to		brokerage		payment of		paid to			paid to
	Broker	affiliation		broker		commissions		commissions		broker			broker

Fund				2010						2009			2008
*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity	None		—		—		—		—	$	0		$	0	^(b)

Columbia Recovery and Infrastructure	None		—		—		—		—		0	^(c)		N/A

Columbia Retirement Plus 2010	None		—		—		—		—		0			0

Columbia Retirement Plus 2015	None		—		—		—		—		0			0

Columbia Retirement Plus 2020	None		—		—		—		—		0			0

Columbia Retirement Plus 2025	None		—		—		—		—		0			0

Columbia Retirement Plus 2030	None		—		—		—		—		0			0

Columbia Retirement Plus 2035	None		—		—		—		—		0			0

Columbia Retirement Plus 2040	None		—		—		—		—		0			0

Columbia Retirement Plus 2045	None		—		—		—		—		0			0

*For funds with fiscal period ending May 31*

Columbia High Yield Bond	None		—		—		—		—		0			0

Columbia Multi-Advisor Small Cap Value	None		—		—		—		—		0			0

Columbia U.S. Government Mortgage	None		—		—		—		—		0			0

RiverSource Partners Fundamental Value	None		—		—		—		—		0			0

RiverSource Short Duration U.S. Government	None		—		—		—		—		0			0

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity	None		—		—		—		—		0			0

RiverSource Real Estate	None		—		—		—		—		0			0

Statement of Additional Information – March 7, 2011

Page 58


								Percent of
								aggregate
				Aggregate				dollar		Aggregate		Aggregate
				dollar				amount of		dollar		dollar
				amount of		Percent of		transactions		amount of		amount of
				commissions		aggregate		involving		commissions		commissions
		Nature of		paid to		brokerage		payment of		paid to		paid to
	Broker	affiliation		broker		commissions		commissions		broker		broker

Fund				2010						2009		2008
*For funds with fiscal period ending July 31*

Columbia Floating Rate	None		—		—		—		—	$	0	$	0

Columbia Income Opportunities	None		—		—		—		—		0		0

Columbia Inflation Protected Securities	None		—		—		—		—		0		0

Columbia Large Core Quantitative	None										0		0

Columbia Limited Duration Credit	None		—		—		—		—		0		0

Columbia Money Market	None		—		—		—		—		0		0

RiverSource Disciplined Small and Mid Cap Equity	None		—		—		—		—		0		0

RiverSource Disciplined Small Cap Value	None		—		—		—		—		0		0

*For funds with fiscal period ending August 31*

Columbia Diversified Bond	None		—		—		—		—		0		0

Columbia Minnesota Tax-Exempt	None		—		—		—		—		0		0

RiverSource California Tax-Exempt	None		—		—		—		—		0		0

RiverSource New York Tax-Exempt	None		—		—		—		—		0		0

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income	None		—		—		—		—		0		0

Columbia Large Growth Quantitative	None		—		—		—		—		0		0

Columbia Large Value Quantitative	None		—		—		—		—		0		0	^(d)

Columbia Mid Cap Value Opportunity	None		—		—		—		—		0		0

Columbia Strategic Allocation	None		—		—		—		—		0		0

RiverSource Balanced	None		—		—		—		—		0		0

RiverSource Strategic Income Allocation	None		—		—		—		—		0		0

Statement of Additional Information – March 7, 2011

Page 59


									Percent of
									aggregate
					Aggregate				dollar		Aggregate			Aggregate
					dollar				amount of		dollar			dollar
					amount of		Percent of		transactions		amount of			amount of
					commissions		aggregate		involving		commissions			commissions
		Nature of			paid to		brokerage		payment of		paid to			paid to
	Broker	affiliation			broker		commissions		commissions		broker			broker

Fund					2010						2009			2008

Seligman California Municipal High-Yield	None		—			—		—		—	$	0		$	0

Seligman California Municipal Quality	None		—			—		—		—		0			0

Seligman Minnesota Municipal	None		—			—		—		—		0			0

Seligman National Municipal	None		—			—		—		—		0			0

Seligman New York Municipal	None		—			—		—		—		0			0

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income	None		—			—		—		—		0			0

Columbia Asia Pacific ex-Japan	None		—			—		—		—		0	^(e)		N/A

Columbia Emerging Markets Bond	None		—			—		—		—		0			0

Columbia Emerging Markets Opportunity	None		—			—		—		—		0			0

Columbia European Equity	None		—			—		—		—		0			0

Columbia Frontier	None		—			—		—		—		0			0

Columbia Global Bond	None		—			—		—		—		0			0

Columbia Global Equity	None		—			—		—		—		0			0

Columbia Global Extended Alpha	None		—			—		—		—		0			0	^(f)

Columbia Multi-Advisor International Value	Sanford Bernstein		(1	)	$	0		—		—		0			1,677

Columbia Seligman Global Technology	None		—			—		—		—		0			0

RiverSource Disciplined International Equity	None		—			—		—		—		0			0

RiverSource Partners International Select Growth	Merrill Lynch Capital Markets		(2	)								585			0

RiverSource Partners International Small Cap	None		—			—		—		—		0			0

Threadneedle Global Equity Income	None		—			—		—		—		0			0	^(f)

Threadneedle International Opportunity	None		—			—		—		—		0			0

Statement of Additional Information – March 7, 2011

Page 60


								Percent of
								aggregate
				Aggregate				dollar		Aggregate		Aggregate
				dollar				amount of		dollar		dollar
				amount of		Percent of		transactions		amount of		amount of
				commissions		aggregate		involving		commissions		commissions
		Nature of		paid to		brokerage		payment of		paid to		paid to
	Broker	affiliation		broker		commissions		commissions		broker		broker

Fund				2010						2009		2008

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond	None		—		—		—		—	$	0	$	0

Columbia Mid Cap Growth Opportunity	None		—		—		—		—		0		0


RiverSource Intermediate Tax-Exempt	None		—		—		—		—		0		0

RiverSource Tax-Exempt High Income	None		—		—		—		—		0		0

*For funds with fiscal period ending December 31*

Columbia Government Money Market	None		—		—		—		—		0		0

Columbia Select Large-Cap Value	None		—		—		—		—		0		0

Columbia Select Smaller-Cap Value	None		—		—		—		—		0		0

Columbia Seligman Communications and Information	None		—		—		—		—		0		0

RiverSource LaSalle Global Real Estate	None		—		—		—		—		0		0

RiverSource LaSalle Monthly Dividend Real Estate	None		—		—		—		—		0		0

Seligman Capital	None		—		—		—		—		0		0

Seligman Growth	None		—		—		—		—		0		0


(1)		Affiliate of AllianceBernstein L.P., a subadviser.


(2)		Affiliate of Columbia Wanger Asset Management, L.P., a subadviser.


(a)		The fund changed its fiscal year end effective Jan. 31, 2008 from May 31 to Jan. 31. For 2008, the information shown is for the period from June 1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period ended on May 31.


(b)		For the period from Oct. 18, 2007 (when shares became publicly available) to April 30, 2008.


(c)		For the period from Feb. 19, 2009 (when shares became publicly available) to April 30, 2009.


(d)		For the period from Aug. 1, 2008 (when shares became publicly available) to Sept. 30, 2008.

(e)		For the period from July 15, 2009 (when shares became publicly available) to Oct. 31, 2009.

(f)		For the period from Aug. 1, 2008 (when shares became publicly available) to Oct. 31, 2008.

Statement of Additional Information – March 7, 2011

Page 61

Valuing Fund Shares

As of the end of the most recent fiscal period, the computation of net asset value per share of a class of a fund was based on net assets of that class divided by the number of class shares outstanding as shown in the following table. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1. All expenses of a fund, including the management fee and administrative services fee and, as applicable, distribution and plan administration fees, are accrued daily and taken into account for the purpose of determining NAV.

Table 8. Valuing Fund Shares


Fund*	Net assets		Shares outstanding		Net asset value of one Share
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund
Class A	$	191,609,144		19,630,870	$	9.76
Class B		24,940,436		2,547,850		9.79
Class C		12,407,352		1,267,551		9.79
Class R4		9,771		1,000		9.774

Columbia Income Builder Fund II
Class A		336,673,414		35,567,971		9.47
Class B		35,116,660		3,701,134		9.49
Class C		15,534,369		1,636,863		9.49
Class R4		18,248		1,926		9.47

Columbia Income Builder Fund III
Class A		169,340,312		17,933,995		9.44
Class B		17,093,815		1,803,903		9.48
Class C		8,762,187		925,152		9.47
Class R4		36,268		3,844		9.43

Columbia Portfolio Builder Aggressive
Class A		411,905,718		47,812,554		8.62
Class B		69,631,727		8,121,597		8.57
Class C		26,852,423		3,157,443		8.50
Class R4		391,084		45,318		8.63

Columbia Portfolio Builder Conservative
Class A		188,324,159		19,284,494		9.77
Class B		38,996,195		4,007,171		9.73
Class C		18,361,827		1,886,873		9.73
Class R4		68,268		7,043		9.69

Columbia Portfolio Builder Moderate
Class A		936,670,111		99,022,922		9.46
Class B		163,374,895		17,355,229		9.41
Class C		60,532,854		6,431,212		9.41
Class R4		221,015		23,381		9.45

Columbia Portfolio Builder Moderate Aggressive
Class A		848,711,038		93,990,508		9.03
Class B		143,830,084		16,003,632		8.99
Class C		44,907,699		5,004,198		8.97
Class R4		842,067		93,149		9.04

Columbia Portfolio Builder Moderate Conservative
Class A		335,708,725		34,921,226		9.61
Class B		60,124,214		6,274,529		9.58
Class C		26,207,827		2,735,790		9.58
Class R4		28,861		3,017		9.57

Columbia Portfolio Builder Total Equity
Class A		348,269,405		42,472,580		8.20
Class B		56,041,391		6,869,051		8.16
Class C		25,712,743		3,180,656		8.08
Class R4		227,529		27,657		8.23

Statement of Additional Information – March 7, 2011

Page 62


Fund*	Net assets		Shares outstanding		Net asset value of one Share
RiverSource S&P 500 Index
Class A**	$	21,534,109		6,062,565	$	3.55
Class Z**		100,496,276		28,199,115		3.56

RiverSource Small Company Index
Class A		328,913,706		84,403,946		3.90
Class B		43,947,939		14,032,865		3.13
Class R4		6,632,993		1,640,892		4.04

*For funds with fiscal period ending March 31*

Columbia Equity Value
Class A		681,073,286		70,741,844		9.63
Class B		50,132,060		5,184,913		9.67
Class C		4,895,038		512,462		9.55
Class I		18,363,036		1,905,271		9.64
Class R		30,124		3,129		9.63
Class R3		183,254		19,014		9.64
Class R4		10,092,743		1,046,026		9.65
Class R5		6,508		676		9.63
Class W		3,658		380		9.63

RiverSource Precious Metals and Mining
Class A		133,459,266		10,925,790		12.22
Class B		13,809,631		1,240,361		11.13
Class C		4,233,101		389,141		10.88
Class I		12,268		989		12.40
Class R4		177,328		14,319		12.38

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity
Class A		33,365,848		2,185,314	$	15.27
Class B		1,401,883		92,764		15.11
Class C		2,405,895		159,728		15.06
Class I		4,324,899		281,691		15.35
Class R5		7,670		500		15.34

Columbia Recovery and Infrastructure
Class A		438,673,229		22,317,277		19.66
Class B		21,596,850		1,108,701		19.48
Class C		27,986,758		1,436,501		19.48
Class I		117,332,774		5,939,737		19.75
Class R		80,728		4,127		19.56
Class R3		19,621		1,000		19.62
Class R4		623,844		31,702		19.68
Class R5		59,600		3,020		19.74

Columbia Retirement Plus 2010
Class A		3,004,756		352,192		8.53
Class R		3,994		468		8.53
Class R3		3,994		468		8.53
Class R4		3,996		468		8.54
Class R5		3,998		468		8.54
Class Y		5,248,330		614,374		8.54

Columbia Retirement Plus 2015
Class A		5,097,950		597,650		8.53
Class R		3,973		465		8.54
Class R3		3,973		465		8.54
Class R4		3,975		465		8.55
Class R5		3,981		465		8.56
Class Y		16,572,401		1,937,035		8.56

Statement of Additional Information – March 7, 2011

Page 63


Fund*	Net assets		Shares outstanding		Net asset value of one Share
Columbia Retirement Plus 2020
Class A	$	5,667,643		702,748	$	8.06
Class R		78,158		9,696		8.06
Class R3		3,759		464		8.10
Class R4		3,760		464		8.10
Class R5		3,765		464		8.11
Class Y		17,797,248		2,195,426		8.11

Columbia Retirement Plus 2025
Class A		3,282,520		407,390		8.06
Class R		22,706		2,823		8.04
Class R3		3,768		466		8.09
Class R4		3,778		465		8.12
Class R5		3,778		465		8.12
Class Y		23,159,563		2,856,811		8.11

Columbia Retirement Plus 2030
Class A		3,128,008		387,287		8.08
Class R		11,770		1,457		8.08
Class R3		3,744		464		8.07
Class R4		3,752		464		8.09
Class R5		3,757		464		8.10
Class Y		22,379,892		2,763,842		8.10

Columbia Retirement Plus 2035
Class A		1,956,294		244,856		7.99
Class R		3,735		467		8.00
Class R3		3,739		467		8.01
Class R4		3,740		467		8.01
Class R5		3,746		467		8.02
Class Y		17,305,186		2,157,431		8.02

Columbia Retirement Plus 2040
Class A		1,741,154		224,227		7.77
Class R		11,120		1,430		7.78
Class R3		35,194		4,525		7.78
Class R4		3,616		464		7.79
Class R5		3,621		464		7.80
Class Y		12,213,457		1,565,039		7.80

Columbia Retirement Plus 2045
Class A		1,471,608		185,478		7.93
Class R		4,460		562		7.94
Class R3		3,702		466		7.94
Class R4		13,137		1,653		7.95
Class R5		3,708		466		7.96
Class Y		11,614,891		1,459,211		7.96

*For funds with fiscal period ending May 31*

Columbia High Yield Bond
Class A		1,192,635,686		457,046,893		2.61
Class B		91,104,344		34,942,309		2.61
Class C		70,488,596		27,193,543		2.59
Class I		144,202,631		55,371,206		2.60
Class R		5,689,581		2,174,204		2.62
Class R3		4,003,157		1,526,132		2.62
Class R4		43,405,874		16,621,906		2.61
Class R5		7,957,720		3,054,300		2.61
Class W		100,226,537		38,706,595		2.59

Statement of Additional Information – March 7, 2011

Page 64


Fund*	Net assets		Shares outstanding		Net asset value of one Share
Columbia Multi-Advisor Small Cap Value
Class A	$	277,383,581		56,445,589	$	4.91
Class B		62,403,783		13,736,068		4.54
Class C		7,765,256		1,704,900		4.55
Class I		43,814,661		8,585,111		5.10
Class R		679,273		138,536		4.90
Class R3		439,854		88,320		4.98
Class R4		370,250		73,789		5.02
Class R5		11,078,515		2,197,207		5.04

Columbia U.S. Government Mortgage
Class A		80,371,258		15,588,925		5.16
Class B		17,619,412		3,416,007		5.16
Class C		5,217,051		1,011,314		5.16
Class I		132,494,594		25,723,583		5.15
Class R4		85,125		16,536		5.15

RiverSource Partners Fundamental Value
Class A		307,057,850		70,426,307		4.36
Class B		51,870,545		12,425,795		4.17
Class C		8,227,996		1,965,058		4.19
Class I		174,554,927		39,571,435		4.41
Class R4		153,322		34,916		4.39

RiverSource Short Duration U.S. Government
Class A		488,090,547		102,802,359		4.75
Class B		66,777,148		14,065,529		4.75
Class C		27,832,188		5,862,287		4.75
Class I		67,563,272		14,218,020		4.75
Class R		2,999,953		631,892		4.75
Class R4		4,709,513		991,519		4.75
Class W		4,996		1,053		4.74

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity
Class A		883,208,464		139,966,191		6.31
Class B		68,144,709		10,871,463		6.27
Class C		21,354,419		3,418,234		6.25
Class I		165,701,325		26,198,041		6.32
Class R		196,428		31,069		6.32
Class R3		4,127		653		6.32
Class R4		1,455,755		230,050		6.33
Class R5		968,152		152,954		6.33
Class W		3,592		568		6.32

RiverSource Real Estate
Class A		52,648,116		5,701,458		9.23
Class B		6,533,282		713,272		9.16
Class C		1,396,367		152,727		9.14
Class I		131,165,236		14,173,209		9.25
Class R4		60,555		6,587		9.19
Class W		2,528		275		9.19

*For funds with fiscal period ending July 31*

Columbia Floating Rate
Class A		226,172,173		26,483,112		8.54
Class B		9,928,119		1,161,939		8.54
Class C		21,210,203		2,483,252		8.54
Class I		101,982,065		11,945,601		8.54
Class R4		178,181		20,812		8.56
Class R5		4,760		556		8.56
Class W		4,246		497		8.54

Statement of Additional Information – March 7, 2011

Page 65


Fund*	Net assets		Shares outstanding		Net asset value of one Share
Columbia Income Opportunities
Class A	$	498,802,615		51,300,169	$	9.72
Class B		29,050,926		2,989,075		9.72
Class C		60,481,511		6,224,222		9.72
Class I		182,941,408		18,794,063		9.73
Class R4		403,599		41,375		9.75
Class R5		5,068		521		9.73

Columbia Inflation Protected Securities
Class A		297,826,817		28,749,837		10.36
Class B		14,961,461		1,445,877		10.35
Class C		17,160,807		1,658,844		10.35
Class I		184,100,334		17,768,869		10.36
Class R		1,474,003		142,411		10.35
Class R4		79,085		7,639		10.35
Class R5		5,139		496		10.36
Class W		100,345,459		9,690,622		10.35

Columbia Large Core Quantitative
Class A		2,688,843,397		567,423,999		4.74
Class B		153,325,657		32,554,969		4.71
Class C		21,982,264		4,714,140		4.66
Class I		314,250,741		65,856,337		4.77
Class R		2,193,578		463,276		4.73
Class R3		6,033		1,273		4.74
Class R4		162,518,882		34,154,804		4.76
Class R5		24,848,139		5,229,982		4.75
Class W		373,927,157		79,042,111		4.73

Columbia Limited Duration Credit
Class A		392,689,453		39,500,738		9.94
Class B		11,562,307		1,163,439		9.94
Class C		49,324,257		4,964,675		9.94
Class I		126,851,810		12,755,538		9.94
Class R4		540,555		54,240		9.97
Class W		5,096		512		9.95

Columbia Money Market
Class A		2,528,588,079		2,528,587,497		1.00
Class B		33,926,741		33,926,744		1.00
Class C		7,909,529		7,909,540		1.00
Class I		27,174,833		27,174,915		1.00
Class R		2,500		2,500		1.00
Class R5		725,626		725,628		1.00
Class W		34,576,967		34,577,375		1.00
Class Y		26,190,282		26,190,329		1.00
Class Z		19,816,215		19,816,218		1.00

RiverSource Disciplined Small and Mid Cap Equity
Class A		9,570,996		1,291,322		7.41
Class B		586,284		81,313		7.21
Class C		205,141		28,435		7.21
Class I		27,121,153		3,643,387		7.44
Class R4		8,952		1,206		7.42
Class W		104,872,014		14,205,922		7.38

Statement of Additional Information – March 7, 2011

Page 66


Fund*	Net assets		Shares outstanding		Net asset value of one Share
RiverSource Disciplined Small Cap Value
Class A	$	3,483,311		441,264	$	7.89
Class B		141,730		18,276		7.75
Class C		120,243		15,510		7.75
Class I		47,679,790		6,023,250		7.92
Class R		3,587		455		7.88
Class R3		5,300		672		7.89
Class R4		7,899		1,000		7.90
Class R5		3,599		455		7.91

*For funds with fiscal period ending August 31*

Columbia Diversified Bond
Class A		3,258,076,487		642,678,449		5.07
Class B		116,363,532		22,963,835		5.07
Class C		61,700,918		12,168,343		5.07
Class I		1,021,032,051		201,137,653		5.08
Class R2		1,040,372		204,835		5.08
Class R3		11,200		2,207		5.07
Class R4		74,983,846		14,807,342		5.06
Class R5		237,004		46,821		5.06
Class W		525,188,670		103,547,472		5.07

Columbia Minnesota Tax-Exempt
Class A		329,334,780		60,200,883		5.47
Class B		5,767,557		1,053,321		5.48
Class C		20,225,454		3,696,926		5.47

RiverSource California Tax-Exempt
Class A		150,279,608		29,127,363		5.16
Class B		1,787,095		346,584		5.16
Class C		3,499,880		677,462		5.17

RiverSource New York Tax-Exempt
Class A		52,428,136		10,220,753		5.13
Class B		1,330,181		259,423		5.13
Class C		1,038,696		202,525		5.13

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income
Class A		3,516,017,269		389,395,539		9.03
Class B		246,456,142		27,221,768		9.05
Class C		66,504,755		7,373,898		9.02
Class I		213,082,965		23,613,488		9.02
Class R		10,506,228		1,168,068		8.99
Class R3		103,577,188		11,487,624		9.02
Class R4		217,778,940		24,100,425		9.04
Class R5		60,155,529		6,658,624		9.03
Class W		3,262		361		9.04
Class Z		2,502		277		9.03

Columbia Large Growth Quantitative
Class A		343,147,336		41,220,512		8.32
Class B		2,567,787		312,466		8.22
Class C		1,676,234		203,894		8.22
Class I		228,157,694		27,114,466		8.41
Class R		8,367		1,000		8.37
Class R4		8,391		1,000		8.39
Class W		176,537,944		21,144,075		8.35
Class Z		2,500		297		8.42

Statement of Additional Information – March 7, 2011

Page 67


Fund*	Net assets		Shares outstanding		Net asset value of one Share
Columbia Large Value Quantitative
Class A	$	3,009,345		367,645	$	8.19
Class B		225,501		27,754		8.12
Class C		93,969		11,609		8.09
Class I		69,800,213		8,484,965		8.23
Class R		8,174		1,000		8.17
Class R4		14,880		1,814		8.20
Class W		173,685,076		21,218,876		8.19
Class Z		2,501		304		8.23

Columbia Mid Cap Value Opportunity
Class A		1,324,861,234		190,828,987		6.94
Class B		92,369,516		13,858,019		6.67
Class C		45,316,976		6,804,993		6.66
Class I		117,621,210		16,645,131		7.07
Class R		16,531,042		2,401,189		6.88
Class R3		67,911,361		9,816,068		6.92
Class R4		389,349,450		55,711,660		6.99
Class R5		139,751,259		19,946,983		7.01
Class W		3,543		506		7.00
Class Z		2,524		357		7.07

Columbia Strategic Allocation
Class A		945,595,394		104,846,576		9.02
Class B		74,220,445		8,307,991		8.93
Class C		36,613,825		4,121,060		8.88
Class I		3,911		434		9.01
Class R		3,911		434		9.01
Class R4		415,695		46,005		9.04
Class Z		2,506		278		9.01

RiverSource Balanced
Class A		533,192,271		56,904,635		9.37
Class B		12,294,194		1,318,973		9.32
Class C		9,020,576		970,289		9.30
Class R		41,338		4,407		9.38
Class R4		49,539,635		5,286,958		9.37
Class R5		9,921		1,059		9.37

RiverSource Strategic Income Allocation
Class A		315,223,826		30,771,380		10.24
Class B		22,688,163		2,214,163		10.25
Class C		20,022,743		1,955,754		10.24
Class R		5,501		537		10.24
Class R4		245,350		23,962		10.24
Class R5		274,390		26,779		10.25

Seligman California Municipal High-Yield
Class A		28,747,011		4,322,399		6.65
Class C		5,744,151		862,661		6.66

Seligman California Municipal Quality
Class A		35,845,008		5,416,521		6.62
Class C		3,245,882		492,661		6.59

Seligman Minnesota Municipal
Class A		66,906,242		8,577,335		7.80
Class C		1,610,476		205,970		7.82

Seligman National Municipal
Class A		612,804,736		76,266,935		8.03
Class C		33,499,183		4,149,355		8.07

Statement of Additional Information – March 7, 2011

Page 68


Fund*	Net assets		Shares outstanding		Net asset value of one Share
Seligman New York Municipal
Class A	$	76,164,778		9,168,458	$	8.31
Class C		8,519,499		1,023,526		8.32

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income
Class A		62,208,913		6,219,687		10.00
Class B		1,006,359		102,217		9.85
Class C		4,702,587		478,184		9.83
Class I		38,718,422		3,837,044		10.09
Class W		63,368,675		6,341,968		9.99
Class Z		14,183		1,405		10.09

Columbia Asia Pacific ex-Japan
Class A		77,994		5,656		13.79
Class C		2,590		188		13.78
Class I		2,592		188		13.79
Class R		2,592		188		13.79
Class R5		512,721,223		37,182,125		13.79
Class Z		2,592		188		13.79

Columbia Emerging Markets Bond
Class A		76,725,071		6,563,738		11.69
Class B		3,568,837		305,715		11.67
Class C		3,622,183		310,872		11.65
Class I		78,153,644		6,684,022		11.69
Class R4		124,205		10,632		11.68
Class W		74,066,903		6,343,020		11.68
Class Z		122,842		10,506		11.69

Columbia Emerging Markets Opportunity
Class A		523,288,192		53,653,023		9.75
Class B		37,312,287		4,319,656		8.64
Class C		38,770,335		4,501,173		8.61
Class I		84,278,781		8,306,376		10.15
Class R		15,164,872		1,561,399		9.71
Class R4		1,402,320		138,188		10.15
Class R5		687,416		67,607		10.17
Class W		2,641		271		9.75
Class Z		21,446		2,114		10.14

Columbia European Equity
Class A		69,831,477		12,044,258		5.80
Class B		4,050,968		701,073		5.78
Class C		1,405,823		245,717		5.72
Class I		7,743		1,336		5.80
Class R4		25,391		4,385		5.79
Class Z		2,626		453		5.80

Columbia Frontier
Class A		70,460,355		7,258,658		9.71
Class B		6,999,653		904,213		7.74
Class C		10,982,957		1,411,669		7.78
Class I		47,858,645		4,624,901		10.35
Class R		106,641		11,220		9.50
Class R4		59,375		5,759		10.31
Class R5		816,227		78,922		10.34
Class Z		2,629		254		10.35

Statement of Additional Information – March 7, 2011

Page 69


Fund*	Net assets		Shares outstanding		Net asset value of one Share
Columbia Global Bond
Class A	$	246,929,356		33,048,004	$	7.47
Class B		18,512,676		2,460,622		7.52
Class C		6,162,276		827,014		7.45
Class I		195,612,882		26,157,651		7.48
Class R		5,341		716		7.46
Class R4		407,251		54,466		7.48
Class W		69,842,043		9,357,911		7.46
Class Z		7,523		1,006		7.48

Columbia Global Equity
Class A		375,168,966		53,042,442		7.07
Class B		23,894,493		3,605,201		6.63
Class C		10,146,647		1,548,238		6.55
Class I		31,014,538		4,359,437		7.11
Class R		41,009		5,746		7.14
Class R4		7,015,836		983,963		7.13
Class R5		19,408		2,727		7.12
Class W		4,534		639		7.10
Class Z		2,598		365		7.12

Columbia Global Extended Alpha
Class A		4,320,527		207,166		20.86
Class B		303,638		14,721		20.63
Class C		181,374		8,801		20.61
Class I		5,163,998		246,500		20.95
Class R		10,370		500		20.74
Class R4		90,339		4,331		20.86
Class Z		28,234		1,348		20.95

Columbia Multi-Advisor International Value
Class A		427,389,225		69,673,191		6.13
Class B		48,327,297		8,399,429		5.75
Class C		9,217,955		1,609,913		5.73
Class I		185,979,047		29,479,532		6.31
Class R4		384,783		61,460		6.26
Class Z		2,592		411		6.31

Columbia Seligman Global Technology
Class A		418,600,331		20,680,059		20.24
Class B		19,558,319		1,127,143		17.35
Class C		80,127,979		4,614,233		17.37
Class I		28,563,422		1,402,504		20.37
Class R		9,157,934		460,773		19.88
Class R4		533,526		26,294		20.29
Class R5		25,931,713		1,274,128		20.35
Class Z		2,647		130		20.36

RiverSource Disciplined International Equity
Class A		38,153,014		5,195,522		7.34
Class B		4,503,501		621,082		7.25
Class C		991,847		137,200		7.23
Class I		146,207,418		19,793,638		7.39
Class R		3,705		509		7.28
Class R4		41,994		5,722		7.34
Class W		233,514,415		31,833,978		7.34

Statement of Additional Information – March 7, 2011

Page 70


Fund*	Net assets		Shares outstanding		Net asset value of one Share
RiverSource Partners International Select Growth
Class A	$	171,468,665		25,040,565	$	6.85
Class B		15,773,648		2,408,409		6.55
Class C		8,328,966		1,273,890		6.54
Class I		201,118,144		29,022,441		6.93
Class R		256,011		37,627		6.80
Class R4		472,964		68,779		6.88
Class R5		1,168,237		168,408		6.94

RiverSource Partners International Small Cap
Class A		74,193,979		12,132,556		6.12
Class B		4,602,545		790,626		5.82
Class C		22,904,177		3,937,917		5.82
Class I		38,219,477		6,128,848		6.24
Class R		1,902,958		311,833		6.10
Class R4		501,710		80,956		6.20
Class R5		949,405		152,401		6.23

Threadneedle Global Equity Income
Class A		29,056,833		2,907,285		9.99
Class B		1,875,577		188,131		9.97
Class C		844,357		84,741		9.96
Class I		4,935,451		493,000		10.01
Class R		10,502		1,050		10.00
Class R4		30,463		3,046		10.00

Threadneedle International Opportunity
Class A		255,611,550		29,053,332		8.80
Class B		14,408,870		1,670,230		8.63
Class C		8,100,660		962,688		8.41
Class I		123,175,619		13,857,362		8.89
Class R		1,733,789		195,101		8.89
Class R4		153,243		17,066		8.98

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond
Class A		616,281,418		164,962,006		3.74
Class B		7,434,588		1,989,243		3.74
Class C		10,334,749		2,765,304		3.74
Class Z		2,405		644		3.73

Columbia Mid Cap Growth Opportunity
Class A		857,025,529		81,329,035		10.54
Class B		55,302,929		6,362,252		8.69
Class C		12,340,058		1,418,427		8.70
Class I		176,386,121		15,822,311		11.15
Class R		67,417		6,411		10.52
Class R3		27,331		2,595		10.53
Class R4		5,232,199		480,899		10.88
Class Z		2,686		241		11.15

RiverSource Intermediate Tax-Exempt
Class A		87,955,400		16,668,088	$	5.28
Class B		1,977,524		375,326	$	5.27
Class C		6,811,217		1,291,810	$	5.27

Statement of Additional Information – March 7, 2011

Page 71


Fund*	Net assets		Shares outstanding		Net asset value of one Share
RiverSource Tax-Exempt High Income
Class A	$	2,141,685,204		507,836,426	$	4.22
Class B		19,907,549		4,724,722	$	4.21
Class C		18,186,215		4,310,562	$	4.22

*For funds with fiscal period ending December 31*

Columbia Government Money Market
Class A		115,614,024		115,623,598		1.00
Class B		3,482,518		3,481,496		1.00
Class C		13,509,335		13,489,555		1.00
Class R		3,440,176		3,440,734		1.00
Class R5		440,330		440,327		1.00
Class Z		1,171,182		1,171,180		1.00

Columbia Select Large-Cap Value
Class A		271,885,499		18,489,466		14.70
Class B		5,137,640		371,975		13.81
Class C		48,210,278		3,486,175		13.83
Class I		72,970,868		4,841,229		15.07
Class R		11,593,849		796,565		14.55
Class R4		22,794		1,514		15.06
Class R5		1,606,478		106,463		15.09
Class W		11,832,803		806,994		14.66
Class Z		7,776		516		15.07

Columbia Select Smaller-Cap Value
Class A		380,847,868		23,841,335		15.97
Class B		27,171,959		1,935,309		14.04
Class C		51,712,432		3,678,639		14.06
Class I		10,145,122		596,227		17.02
Class R		15,733,006		1,007,228		15.62
Class R4		3,600,908		212,534		16.94
Class R5		2,288,845		134,582		17.01
Class Z		133,063		7,823		17.01

Columbia Seligman Communications and Information
Class A		3,066,070,816		68,583,469		44.71
Class B		85,897,298		2,315,630		37.09
Class C		767,799,553		20,684,543		37.12
Class I		55,589,782		1,192,278		46.62
Class R		47,553,655		1,086,855		43.75
Class R3		96,339		2,195		43.89
Class R4		506,749		10,916		46.42
Class R5		18,414,461		395,196		46.60
Class Z		679,496		14,576		46.62

RiverSource LaSalle Global Real Estate
Class A		3,833,998		947,822		4.05
Class C		1,972,405		489,140		4.03
Class I		7,210,708		1,778,442		4.05
Class R		101,551		25,119		4.04
Class R4		10,311		2,546		4.05
Class R5		1,553,777		383,043		4.06

RiverSource LaSalle Monthly Dividend Real Estate
Class A		9,546,758		2,100,383		4.55
Class B		2,190,756		482,042		4.54
Class C		10,720,882		2,360,002		4.54
Class I		2,191,158		481,680		4.55
Class R		5,434,255		1,199,177		4.53
Class R4		23,705		5,204		4.56
Class R5		1,714,175		377,302		4.54

Statement of Additional Information – March 7, 2011

Page 72


Fund*	Net assets		Shares outstanding		Net asset value of one Share
Seligman Capital
Class A	$	178,719,563		6,953,797	$	25.70
Class B		3,668,210		177,447		20.67
Class C		46,783,870		2,257,346		20.73
Class I		11,808,687		438,060		26.96
Class R		13,432,221		530,749		25.31
Class R5		2,251,916		83,599		26.94

Seligman Growth
Class A		1,276,953,102		268,089,845		4.76
Class B		73,018,552		19,666,156		3.71
Class C		28,030,382		7,547,813		3.71
Class I		261,729,893		52,969,014		4.94
Class R		2,112,882		452,526		4.67
Class R4		48,574,571		9,843,670		4.93
Class R5		490,901		99,424		4.94


*		Prior to Sept. 7, 2010, Class R was known as Class R2.


**		Prior to Sept. 7, 2010, Class A was known as Class D and Class Z was known as Class E.

For Funds other than Money Market Funds. A fund’s securities are valued as follows as of the close of business of the New York Stock Exchange (the Exchange):


	•	Securities traded on a securities exchange for which a last-quoted sales price is readily available are valued at the last-quoted sales price on the exchange where such security is primarily traded.

	•	Securities traded on a securities exchange for which a last-quoted sales price is not readily available are valued at the mean of the closing bid and asked prices, looking first to the bid and asked prices on the exchange where the security is primarily traded and, if none exist, to the over-the-counter market.

	•	Securities included in the NASDAQ National Market System are valued at the last-quoted sales price in this market.

	•	Securities included in the NASDAQ National Market System for which a last-quoted sales price is not readily available, and other securities traded over-the-counter but not included in the NASDAQ National Market System are valued at the mean of the closing bid and asked prices.

	•	Futures and options traded on major exchanges are valued at the last-quoted sales price on their primary exchange.

	•	Foreign securities traded outside the United States are generally valued as of the time their trading is complete, which is usually different from the close of the Exchange. Foreign securities quoted in foreign currencies are translated into U.S. dollars utilizing spot exchange rates at the close of regular trading on the Exchange.

	•	Occasionally, events affecting the value of securities occur between the time the primary market on which the securities are traded closes and the close of the Exchange. If events materially affect the value of securities, the securities will be valued at their fair value according to procedures decided upon in good faith by the Board. This occurs most commonly with foreign securities, but may occur in other cases. The fair value of a security is likely to be different from the quoted or published price.

	•	Short-term securities maturing more than 60 days from the valuation date are valued at the readily available market price or approximate market value based on current interest rates. Typically, short-term securities maturing in 60 days or less that originally had maturities of more than 60 days at acquisition date are valued at amortized cost using the market value on the 61st day before maturity. Short-term securities maturing in 60 days or less at acquisition date are valued at amortized cost. Amortized cost is an approximation of market value determined by systematically increasing the carrying value of a security if acquired at a discount, or reducing the carrying value if acquired at a premium, so that the carrying value is equal to maturity value on the maturity date.

	•	Securities without a readily available market price and securities for which the price quotations or valuations received from other sources are deemed unreliable or not reflective of market value are valued at fair value as determined in good faith by the Board. The Board is responsible for selecting methods it believes provide fair value.

	•	When possible, bonds are valued at an evaluated bid by a pricing service independent from the funds. If a valuation of a bond is not available from a pricing service, the bond will be valued by a dealer knowledgeable about the bond if such a dealer is available.

Statement of Additional Information – March 7, 2011

Page 73

The assets of funds-of-funds consist primarily of shares of the underlying funds, which are valued at their NAVs. Other securities held by funds-of-funds are valued as described above.

For Money Market Funds. In accordance with Rule 2a-7 of the 1940 Act, all of the securities in the fund’s portfolio are valued at amortized cost. The amortized cost method of valuation is an approximation of market value determined by systematically increasing the carrying value of a security if acquired at a discount, or reducing the carrying value if acquired at a premium, so that the carrying value is equal to maturity value on the maturity date. Amortized cost does not take into consideration unrealized capital gains or losses.

The Board has established procedures designed to stabilize the fund’s price per share for purposes of sales and redemptions at $1, to the extent that it is reasonably possible to do so. These procedures include review of the fund’s securities by the Board, at intervals deemed appropriate by it, to determine whether the fund’s net asset value per share computed by using available market quotations deviates from a share value of $1 as computed using the amortized cost method. The Board must consider any deviation that appears and, if it exceeds 0.5%, it must determine what action, if any, needs to be taken. If the Board determines a deviation exists that may result in a material dilution of the holdings of current shareholders or investors, or in any other unfair consequences for shareholders, it must undertake remedial action that it deems necessary and appropriate. Such action may include withholding dividends, calculating net asset value per share for purposes of sales and redemptions using available market quotations, making redemptions in kind, and selling securities before maturity in order to realize capital gains or losses or to shorten average portfolio maturity.

While the amortized cost method provides certainty and consistency in portfolio valuation, it may result in valuations of securities that are either somewhat higher or lower than the prices at which the securities could be sold. This means that during times of declining interest rates the yield on the fund’s shares may be higher than if valuations of securities were made based on actual market prices and estimates of market prices. Accordingly, if using the amortized cost method were to result in a lower portfolio value, a prospective investor in the fund would be able to obtain a somewhat higher yield than the investor would get if portfolio valuations were based on actual market values. Existing shareholders, on the other hand, would receive a somewhat lower yield than they would otherwise receive. The opposite would happen during a period of rising interest rates.

Portfolio Holdings Disclosure

Each fund’s Board and the investment manager believe that the investment ideas of the investment manager and any subadviser with respect to portfolio management of a fund should benefit the fund and its shareholders, and do not want to afford speculators an opportunity to profit by anticipating fund trading strategies or by using fund portfolio holdings information for stock picking. However, each fund’s Board also believes that knowledge of the fund’s portfolio holdings can assist shareholders in monitoring their investments, making asset allocation decisions, and evaluating portfolio management techniques.

Each fund’s Board has therefore adopted policies and procedures relating to disclosure of the fund’s portfolio securities. These policies and procedures are intended to protect the confidentiality of fund portfolio holdings information and generally prohibit the release of such information until such information is made public, unless such persons have been authorized to receive such information on a selective basis, as described below. It is the policy of the fund not to provide or permit others to provide portfolio holdings on a selective basis, and the investment manager does not intend to selectively disclose portfolio holdings or expect that such holdings information will be selectively disclosed, except where necessary for the fund’s operation or where there are legitimate business purposes for doing so and, in any case, where conditions are met that are designed to protect the interests of the fund and its shareholders.

Although the investment manager seeks to limit the selective disclosure of portfolio holdings information and such selective disclosure is monitored under the fund’s compliance program for conformity with the policies and procedures, there can be no assurance that these policies will protect the fund from the potential misuse of holdings information by individuals or firms in possession of that information. Under no circumstances may the investment manager, its affiliates or any employee thereof receive any consideration or compensation for disclosing such holdings information.

Public Disclosures

The funds’ portfolio holdings are currently disclosed to the public through filings with the SEC and postings on the funds’ website. The information is available on the funds’ website as described below.


•	For Equity and Balanced funds, a complete list of fund portfolio holdings as of month-end are posted on the website on a monthly basis approximately, but no earlier than, 15 calendar days after each month-end. The four most recent consecutive monthly disclosures remain posted for each fund. Such portfolio holdings information posted on the website includes the

Statement of Additional Information – March 7, 2011

Page 74


	name of each portfolio security, number of shares held by the fund, value of the security and the security’s percentage of the market value of the fund’s portfolio as of month-end.


•	For Fixed Income funds, a complete list of fund portfolio holdings as of calendar quarter-end are posted on the website on a quarterly basis approximately, but no earlier than, 30 calendar days after such quarter-end, and remain posted at least until the date on which the fund files its Form N-CSR or Form N-Q with the SEC for the subsequent fiscal period. Fixed income fund portfolio holdings information posted on the website shall include the name of each portfolio security, maturity/rate, par value and the security’s percentage of the market value of the fund’s portfolio as of calendar quarter-end.

•	For Money Market funds, a complete list of fund portfolio holdings as of month-end are posted on the website on a monthly basis, approximately five business days after such month-end. Commencing with the month-end holdings as of September 2010 and thereafter, such month-end holdings will be continuously available on the website for at least six months, together with a link to an SEC webpage where a user of the website may obtain access to the fund’s most recent 12 months of publicly available filings on Form N-MFP. Additionally, as of September 2010 and thereafter, Money Market fund portfolio holdings information posted on the website will, at minimum, include with respect to each holding, the name of the issuer, the category of investment (e.g., Treasury debt, government agency debt, asset backed commercial paper, structured investment vehicle note), the CUSIP number (if any), the principal amount, the maturity date (as determined under Rule 2a-7 for purposes of calculating weighted average maturity), the final maturity date (if different from the maturity date previously described), coupon or yield and the amortized cost value. The Money Market funds will also disclose on the website the overall weighted average maturity and weighted average life maturity of a holding and any other information that may be required by the SEC.

Portfolio holdings of funds owned solely by affiliates of the investment manager may not be disclosed on the website. A complete schedule of each fund’s portfolio holdings is available semi-annually and annually in shareholder reports filed on Form N-CSR and, after the first and third fiscal quarters, in regulatory filings on Form N-Q. These shareholder reports and regulatory filings are filed with the SEC in accordance with federal securities laws and are generally available on the SEC’s website within sixty (60) days of the end of a fund’s fiscal quarter.

In addition, the investment manager makes publicly available information regarding certain fund’s largest five to fifteen holdings, as a percent of the market value of the funds’ portfolios as of a month-end. This holdings information is made publicly available through the website columbiamanagement.com, approximately fifteen (15) days following the month-end. The scope of the information that is made available on the funds’ websites pursuant to the funds’ policies may change from time to time without prior notice.

Other Disclosures

The funds’ policies and procedures provide that no disclosures of the funds’ portfolio holdings may be made prior to the portfolio holdings information being made public unless (i) the funds have a legitimate business purpose for making such disclosure, (ii) the funds or their authorized agents authorize such non-public disclosure of information, and (iii) the party receiving the non-public information enters into an appropriate confidentiality agreement or is otherwise subject to a confidentiality obligation.

In determining the existence of a legitimate business purpose for making portfolio disclosures, the following factors, among others, are considered: (i) any prior disclosure must be consistent with the anti-fraud provisions of the federal securities laws and the fiduciary duties of the investment manager; (ii) any conflicts of interest between the interests of fund shareholders, on the one hand, and those of the investment manager, the funds’ distributor or any affiliated person of a fund, the investment manager or distributor on the other; and (iii) any prior disclosure to a third party, although subject to a confidentiality agreement, would not make conduct lawful that is otherwise unlawful.

In addition, the funds periodically disclose their portfolio information on a confidential basis to various service providers that require such information to assist the funds with their day-to-day business affairs. These service providers include each fund’s sub-advisor(s) (if any), affiliates of the investment manager, the funds’ custodian, sub-custodians, the funds’ independent registered public accounting firm, legal counsel, financial printers, proxy solicitor and proxy voting service provider, as well as ratings agencies that maintain ratings on certain funds. These service providers are required to keep such information confidential, and are prohibited from trading based on the information or otherwise using the information except as necessary in providing services to the funds. The funds also may disclose portfolio holdings information to broker/dealers and certain other entities in connection with potential transactions and management of the funds, provided that reasonable precautions, including limitations on the scope of the portfolio holdings information disclosed, are taken to avoid any potential misuse of the disclosed information.

The fund also discloses holdings information as required by federal, state or international securities laws, and may disclose holdings information in response to requests by governmental authorities, or in connection with litigation or potential

Statement of Additional Information – March 7, 2011

Page 75

litigation, a restructuring of a holding, where such disclosure is necessary to participate or explore participation in a restructuring of the holding (e.g., as part of a bondholder group), or to the issuer of a holding, pursuant to a request of the issuer or any other party who is duly authorized by the issuer.

Each fund’s Board has adopted policies to ensure that the fund’s holdings information is only disclosed in accordance with these policies. Before any selective disclosure of holdings information is permitted, the person seeking to disclose such holdings information must submit a written request to the Portfolio Holdings Committee (“PHC”). The PHC is comprised of members from the investment manager’s legal department, Compliance, and the funds’ President. The PHC has been authorized by each fund’s Board to perform an initial review of requests for disclosure of holdings information to evaluate whether there is a legitimate business purpose for selective disclosure, whether selective disclosure is in the best interests of a fund and its shareholders, to consider any potential conflicts of interest between the fund, the investment manager, and its affiliates, and to safeguard against improper use of holdings information. Factors considered in this analysis are whether the recipient has agreed to or has a duty to keep the holdings information confidential and whether risks have been mitigated such that the recipient has agreed or has a duty to use the holdings information only as necessary to effectuate the purpose for which selective disclosure was authorized, including a duty not to trade on such information. Before portfolio holdings may be selectively disclosed, requests approved by the PHC must also be authorized by either the fund’s President, Chief Compliance Officer or General Counsel or their respective designees. On at least an annual basis, the PHC reviews the approved recipients of selective disclosure and may require a resubmission of the request, in order to re-authorize certain ongoing arrangements. These procedures are intended to be reasonably designed to protect the confidentiality of fund holdings information and to prohibit their release to individual investors, institutional investors, intermediaries that distribute the fund’s shares, and other parties, until such holdings information is made public or unless such persons have been authorized to receive such holdings information on a selective basis, as set forth above.

Although the investment manager has set up these procedures to monitor and control selective disclosure of holdings information, there can be no assurance that these procedures will protect a fund from the potential misuse of holdings information by individuals or firms in possession of that information.

The funds currently have ongoing arrangements with certain approved recipients with respect to the disclosure of portfolio holdings information prior to such information being made public. Portfolio holdings information disclosed to such recipients is current as of the time of its disclosure, is disclosed to each recipient solely for purposes consistent with the services described below and has been authorized in accordance with the policy. These special arrangements are described in the table below.

Ongoing Portfolio Holdings Disclosure Arrangements:

In addition to the daily information provided to the fund’s custodians, subcustodians, administrator and investment advisers, the following disclosure arrangements are in place:


		Frequency of
Identity of recipient	Conditions/Restrictions on use of information	disclosure


Bitlathe	Website support for fund performance disclosure	Monthly
BlackRock, Inc.	For providing trading operations and portfolio management support.	Daily
Bloomberg, L.P.	For independent research of funds. Sent monthly, approximately 30 days after month end.	Monthly
R.R. Donnelley & Sons Company	For printing of proxies and annual updates to prospectuses and SAIs.	As needed
Cenveo, Inc.	For printing of prospectuses, supplements, SAIs and shareholder reports.	As needed
Factset Research Systems	For provision of quantitative analytics, charting and fundamental data to the investment manager.	Daily
Investment Technology Group, Inc. (ITG, formerly known as Plexus Group)	For evaluation and assessment of trading activity, execution and practices by the investment manager.	Daily
InvestorTools, Inc.	Provide descriptive data for municipal securities	Daily
Morningstar, Inc.	For independent research and ranking of funds. Sent monthly, approximately 25 days after month end.	Monthly
RiskMetrics Group (formerly Institutional Shareholder Services)	Proxy voting administration and research on proxy matters.	Daily
Thomson Reuters Corp. (Lipper)	Information provided monthly with a 30 day lag to assure accuracy of Lipper Fact Sheets.	Monthly

Statement of Additional Information – March 7, 2011

Page 76

Proxy Voting

GENERAL GUIDELINES, POLICIES AND PROCEDURES

These Proxy Voting Policies and Procedures apply only to the funds and portfolios (the “Funds”) that historically bore the RiverSource or Seligman brands, including those renamed to bear the “Columbia” brand effective Sept. 27, 2010 (see Appendix F).

The Funds uphold a long tradition of supporting sound and principled corporate governance. For more than 30 years, the Funds’ Boards of Trustees/Directors (“Board”), which consist of a majority of independent Board members, has determined policies and voted proxies. The Funds’ investment manager and administrator, Columbia Management Investment Advisers, LLC (“Columbia Management”), provide support to the Board in connection with the proxy voting process.

GENERAL GUIDELINES

The Board supports proxy proposals that it believes are tied to the interests of shareholders and votes against proxy proposals that appear to entrench management. For example:

Election of Directors


•	The Board generally votes in favor of proposals for an independent chairman or, if the chairman is not independent, in favor of a lead independent director.

•	The Board supports annual election of all directors and proposals to eliminate classes of directors.

•	In a routine election of directors, the Board will generally vote with the recommendations of the company’s nominating committee because the Board believes that nominating committees of independent directors are in the best position to know what qualifications are required of directors to form an effective board. However, the Board will generally vote against a nominee who has been assigned to the audit, compensation, or nominating committee if the nominee is not independent of management based on established criteria. The Board will generally also withhold support for any director who fails to attend 75% of meetings or has other activities that appear to interfere with his or her ability to commit sufficient attention to the company and, in general, will vote against nominees who are determined to have exhibited poor governance such as involvement in options backdating, financial restatements or material weaknesses in control, approving egregious compensation or have consistently disregarded the interests of shareholders.

•	The Board generally supports proposals requiring director nominees to receive a majority of affirmative votes cast in order to be elected to the board, and in the absence of majority voting, generally will support cumulative voting.

•	Votes in a contested election of directors are evaluated on a case-by-case basis.

Defense Mechanisms

The Board generally supports proposals eliminating provisions requiring supermajority approval of certain actions. The Board generally supports proposals to opt out of control share acquisition statutes and proposals restricting a company’s ability to make greenmail payments. The Board reviews management proposals submitting shareholder rights plans (poison pills) to shareholders on a case-by-case basis.

Auditors

The Board values the independence of auditors based on established criteria. The Board supports a reasonable review of matters that may raise concerns regarding an auditor’s service that may cause the Board to vote against a company’s recommendation for auditor, including, for example, auditor involvement in significant financial restatements, options backdating, conflicts of interest, material weaknesses in control, attempts to limit auditor liability or situations where independence has been compromised.

Management Compensation Issues

The Board expects company management to give thoughtful consideration to providing competitive long-term employee incentives directly tied to the interest of shareholders. The Board generally votes for plans if they are reasonable and consistent with industry and country standards and against plans that it believes dilute shareholder value substantially.

The Board generally favors minimum holding periods of stock obtained by senior management pursuant to equity compensation plans and will vote against compensation plans for executives that it deems excessive.

Statement of Additional Information – March 7, 2011

Page 77

Social and Corporate Policy Issues

The Board believes proxy proposals should address the business interests of the corporation. Shareholder proposals sometime seek to have the company disclose or amend certain business practices based purely on social or environmental issues rather than compelling business arguments. In general, the Board recognizes our Fund shareholders are likely to have differing views of social and environmental issues and believes that these matters are primarily the responsibility of a company’s management and its board of directors. The Board generally abstains or votes against these proposals.

POLICY AND PROCEDURES

The policy of the Board is to vote all proxies of the companies in which a Fund holds investments. Because of the volume and complexity of the proxy voting process, including inherent inefficiencies in the process that are outside the control of the Board or the Proxy Team (defined below), not all proxies may be voted. The Board has implemented policies and procedures that have been reasonably designed to vote proxies and to address any conflicts between interests of a Fund’s shareholders and those of Columbia Management or other affiliated persons. In exercising its proxy voting responsibilities, the Board may rely upon the research or recommendations of one or more third party service providers.

The administration of the proxy voting process is handled by the Columbia Management Proxy Administration Team (“Proxy Team”). In exercising its responsibilities, the Proxy Team may rely upon one or more third party service providers. The Proxy Team assists the Board in identifying situations where its guidelines do not clearly require a vote in a particular manner and assists in researching matters and making voting recommendations. The Proxy Team may recommend that a proxy be voted in a manner contrary to the Board’s guidelines. In making recommendations to the Board about voting on a proposal, the Proxy Team relies on Columbia Management investment personnel (or the investment personnel of a Fund’s subadviser(s)) and information obtained from an independent research firm. The Proxy Team makes the recommendation in writing. The Board Chair or other Board members who are independent from the investment manager will consider the recommendation and decide how to vote the proxy proposal or establish a protocol for voting the proposal.

On an annual basis, or more frequently as determined necessary, the Board reviews recommendations to revise the existing guidelines or add new guidelines. Recommendations are based on, among other things, industry trends and the frequency that similar proposals appear on company ballots.

The Board considers management’s recommendations as set out in the company’s proxy statement. In each instance in which a Fund votes against management’s recommendation (except when withholding votes from a nominated director), the Board generally sends a letter to senior management of the company explaining the basis for its vote. This permits both the company’s management and the Board to have an opportunity to gain better insight into issues presented by the proxy proposal(s).

Voting in Countries Outside The United States (Non-U.S. Countries)

Voting proxies for companies not domiciled in the United States may involve greater effort and cost due to the variety of regulatory schemes and corporate practices. For example, certain non-U.S. countries require securities to be blocked prior to a vote, which means that the securities to be voted may not be traded within a specified number of days before the shareholder meeting. The Board typically will not vote securities in non-U.S. countries that require securities to be blocked as the need for liquidity of the securities in the Funds will typically outweigh the benefit of voting. There may be additional costs associated with voting in non-U.S. countries such that the Board may determine that the cost of voting outweighs the potential benefit.

Securities on Loan

The Board will generally refrain from recalling securities on loan based upon its determination that the costs and lost revenue to the Funds, combined with the administrative effects of recalling the securities, generally outweigh the benefit of voting the proxy. While neither the Board nor Columbia Management assesses the economic impact and benefits of voting loaned securities on a case-by-case basis, situations may arise where the Board requests that loaned securities be recalled in order to vote a proxy. In this regard, if a proxy relates to matters that may impact the nature of a company, such as a proposed merger or acquisition, and the Funds’ ownership position is more significant, the Board has established a guideline to direct Columbia Management to use its best efforts to recall such securities based upon its determination that, in these situations, the benefits of voting such proxies generally outweigh the costs or lost revenue to the Funds, or any potential adverse administrative effects to the Funds, of not recalling such securities.

Statement of Additional Information – March 7, 2011

Page 78

Investment in Affiliated Funds

Certain Funds may invest in shares of other funds managed by Columbia Management (referred to in this context as “underlying funds”) and may own substantial portions of these underlying funds. In general, the proxy policy of the Funds is to ensure that direct public shareholders of underlying funds control the outcome of any shareholder vote. To help manage this potential conflict of interest, the policy of the Funds is to vote proxies of the underlying funds in the same proportion as the vote of the direct public shareholders; provided, however, that if there are no direct public shareholders of an underlying fund or if direct public shareholders represent only a minority interest in an underlying fund, the Fund may cast votes in accordance with instructions from the independent members of the Board.

OBTAIN A PROXY VOTING RECORD

Each year the funds file their proxy voting records with the SEC and make them available by August 31 for the 12-month period ending June 30 of that year. The records can be obtained without charge through columbiamanagement.com or searching the website of the SEC at www.sec.gov.

Investing in a Fund

The Columbia funds and Columbia Acorn funds and portfolios are collectively referred to as the Legacy Columbia funds (see Appendix E). The RiverSource funds (including the Seligman and Threadneedle branded funds) are collectively referred to as the Legacy RiverSource funds (see Appendix F).

SALES CHARGE

Investors should understand that the purpose and function of the initial sales charge and distribution fee for Class A shares is the same as the purpose and function of the contingent deferred sales charge (“CDSC”) and distribution fee for Class B and Class C shares. The sales charges and distribution fees applicable to each class pay for the distribution of shares of a fund.

Shares of a fund are sold at the class’ public offering price. For funds other than money market funds and, as noted below in Table 9, certain other funds, the public offering price for Class A shares is the NAV of one share adjusted for the sales charge applicable to the class. For money market funds and, as noted below in Table 9, certain other funds, the public offering price is the NAV. For all funds, for Class B, Class C, Class I, Class R, Class R3, Class R4, Class R5, Class W and Class Z there is no initial sales charge so the public offering price is the same as the NAV.

Class A – Calculation of the Sales Charge

Sales charges are determined as shown in the following tables. The table is organized by investment category. You can find your fund’s investment category in Table 1.

Table 9. Class A Initial Sales Charge


	Sales charge ^(a) as a percentage of:
				Public offering	Net amount
Fund category	Total market value			price ^(b)	invested
		$0 – $49,999		5.75%	6.10%

		$50,000 – $99,999		4.50%	4.71%

		$100,000 – $249,999		3.50%	3.63%

Balanced, Equity, Fund-of-funds – equity*		$250,000 – $499,999		2.50%	2.56%

		$500,000 – $999,999		2.00%	2.04%

		$1,000,000 or more	^(c),(d)	0.00%	0.00%

		$0 – $49,999		4.75%	4.99%

		$50,000 – $99,999		4.25%	4.44%

Fund-of-funds – fixed income, State tax-exempt fixed income, Taxable fixed income, Tax-exempt fixed income		$100,000 – $249,999		3.50%	3.63%

		$250,000 – $499,999		2.50%	2.56%

		$500,000 – $999,999		2.00%	2.04%

		$1,000,000 or more	^(c),(d)	0.00%	0.00%

Statement of Additional Information – March 7, 2011

Page 79


	Sales charge ^(a) as a percentage of:
				Public offering	Net amount
Fund category	Total market value			price ^(b)	invested
For Columbia Absolute Return Currency and Income Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund, Columbia Limited Duration Credit Fund, RiverSource Intermediate Tax-Exempt Fund and RiverSource Short Duration U.S. Government Fund		$0 – $99,999		3.00%	3.09%

		$100,000 – $249,999		2.50%	2.56%

		$250,000 – $499,999		2.00%	2.04%

		$500,000 – $999,999		1.50%	1.52%

		$1,000,000 or more	^(c),(d)	0.00%	0.00%


*		RiverSource S&P 500 Index Fund is not subject to a front-end sales change on Class A shares.


(a)		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.

(b)		Purchase price includes the sales charge.


(c)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the distributor may pay a selling and/or servicing agent the following out of its own resources: 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The distributor may be reimbursed if a CDSC is deducted when the shares are redeemed.


(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the distributor the following sales commissions on purchases that are coded as commission eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Using the sales charge schedule in the table above, for Class A, the public offering price for an investment of less than $50,000, made on the last day of the most recent fiscal period, was determined as shown in the following table. The sales charge is paid to the distributor by the person buying the shares. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 10. Public Offering Price


	Net asset
Fund	value		1.0 minus maximum sales charge	Public offering price
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	$	9.76	0.9525	$	10.25

Columbia Income Builder Fund II		9.47	0.9525		9.94

Columbia Income Builder Fund III		9.44	0.9525		9.91

Columbia Portfolio Builder Aggressive		8.62	0.9425		9.15

Columbia Portfolio Builder Conservative		9.77	0.9525		10.26

Columbia Portfolio Builder Moderate		9.46	0.9425		10.04

Columbia Portfolio Builder Moderate Aggressive		9.03	0.9425		9.58

Columbia Portfolio Builder Moderate Conservative		9.61	0.9525		10.09

Columbia Portfolio Builder Total Equity		8.20	0.9425		8.70

RiverSource S&P 500 Index (for Class D, now known as Class A)		3.55	No sales charge		3.55

RiverSource Small Company Index		3.90	0.9425		4.14

*For funds with fiscal period ending March 31*

Columbia Equity Value		9.63	0.9425		10.22

RiverSource Precious Metals and Mining		12.22	0.9425		12.97

Statement of Additional Information – March 7, 2011

Page 80


	Net asset
Fund	value		1.0 minus maximum sales charge	Public offering price
*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity	$	15.27	0.9425	$	16.20

Columbia Recovery and Infrastructure		19.66	0.9425		20.86

Columbia Retirement Plus 2010		8.53	0.9425		9.05

Columbia Retirement Plus 2015		8.53	0.9425		9.05

Columbia Retirement Plus 2020		8.06	0.9425		8.55

Columbia Retirement Plus 2025		8.06	0.9425		8.55

Columbia Retirement Plus 2030		8.08	0.9425		8.57

Columbia Retirement Plus 2035		7.99	0.9425		8.48

Columbia Retirement Plus 2040		7.77	0.9425		8.24

Columbia Retirement Plus 2045		7.93	0.9425		8.41

*For funds with fiscal period ending May 31*

Columbia High Yield Bond		2.61	0.9525		2.74

Columbia Multi-Advisor Small Cap Value		4.91	0.9425		5.21

Columbia U.S. Government Mortgage		5.16	0.9525		5.42

RiverSource Partners Fundamental Value		4.36	0.9425		4.63

RiverSource Short Duration U.S. Government		4.75	0.9700		4.90

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity		6.31	0.9425		6.69

RiverSource Real Estate		9.23	0.9425		9.79

*For funds with fiscal period ending July 31*

Columbia Floating Rate		8.54	0.9700		8.80

Columbia Income Opportunities		9.72	0.9525		10.20

Columbia Inflation Protected Securities		10.36	0.9700		10.68

Columbia Large Core Quantitative		4.74	0.9425		5.03

Columbia Limited Duration Credit		9.94	0.9700		10.25

Columbia Money Market		1.00	No sales charge		1.00

RiverSource Disciplined Small and Mid Cap Equity		7.41	0.9425		7.86

RiverSource Disciplined Small Cap Value		7.89	0.9425		8.37

*For funds with fiscal period ending August 31*

Columbia Diversified Bond		5.07	0.9525		5.32

Columbia Minnesota Tax-Exempt		5.47	0.9525		5.74

RiverSource California Tax-Exempt		5.16	0.9525		5.42

RiverSource New York Tax-Exempt		5.13	0.9525		5.39

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income		9.03	0.9425		9.58

Columbia Large Growth Quantitative		8.32	0.9425		8.83

Columbia Large Value Quantitative		8.19	0.9425		8.69

Columbia Mid Cap Value Opportunity		6.94	0.9425		7.36

Columbia Strategic Allocation		9.02	0.9425		9.57

RiverSource Balanced		9.37	0.9425		9.94

RiverSource Strategic Income Allocation		10.24	0.9525		10.75

Seligman California Municipal High-Yield		6.65	0.9525		6.98

Seligman California Municipal Quality		6.62	0.9525		6.95

Seligman Minnesota Municipal		7.80	0.9525		8.19

Seligman National Municipal		8.03	0.9525		8.43

Seligman New York Municipal		8.31	0.9525		8.72

Statement of Additional Information – March 7, 2011

Page 81


	Net asset
Fund	value		1.0 minus maximum sales charge	Public offering price
*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income	$	10.00	0.9700	$	10.31

Columbia Asia Pacific ex-Japan		13.79	0.9425		14.63

Columbia Emerging Markets Bond		11.69	0.9525		12.27

Columbia Emerging Markets Opportunity		9.75	0.9425		10.34

Columbia European Equity		5.80	0.9425		6.15

Columbia Frontier		9.71	0.9425		10.30

Columbia Global Bond		7.47	0.9525		7.84

Columbia Global Equity		7.07	0.9425		7.50

Columbia Global Extended Alpha		20.86	0.9425		22.13

Columbia Multi-Advisor International Value		6.13	0.9425		6.50

Columbia Seligman Global Technology		20.24	0.9425		21.47

RiverSource Disciplined International Equity		7.34	0.9425		7.79

RiverSource Partners International Select Growth		6.85	0.9425		7.27

RiverSource Partners International Small Cap		6.12	0.9425		6.49

Threadneedle Global Equity Income		9.99	0.9425		10.60

Threadneedle International Opportunity		8.80	0.9425		9.34

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond		3.74	0.9525		3.93

Columbia Mid Cap Growth Opportunity		10.54	0.9425		11.18

RiverSource Intermediate Tax-Exempt		5.28	0.9700		5.44

RiverSource Tax-Exempt High Income		4.22	0.9525		4.43

*For funds with fiscal period ending December 31*

Columbia Government Money Market		1.00	No sales charge		1.00

Columbia Select Large-Cap Value		14.70	0.9425		15.60

Columbia Select Smaller-Cap Value		15.97	0.9425		16.94

Columbia Seligman Communications and Information		44.71	0.9425		47.44

RiverSource LaSalle Global Real Estate		4.05	0.9425		4.30

RiverSource LaSalle Monthly Dividend Real Estate		4.55	0.9425		4.83

Seligman Capital		25.70	0.9425		27.27

Seligman Growth		4.76	0.9425		5.05

Class A — Statement or Letter of Intent (LOI)

If you intend to invest $50,000 or more over a period of time, you may be able to reduce the sales charge you pay on investments in Class A, Class E or Class T shares by completing a LOI form and committing to invest a certain amount. The LOI must be filed with and accepted in good order by the distributor of the funds. You will have up to 13 months from the date of your LOI to fulfill your commitment. Existing Rights of Accumulation (ROA) can be included for purposes of meeting your commitment under the LOI. For example, a shareholder currently has $60,000 ROA in the funds. Shareholder completes an LOI to invest $100,000 in the funds (ROA eligible accounts). Shareholder only needs to invest an additional $40,000 in the funds’ Class A shares over the next 13 months in order to fulfill the LOI commitment, during which time the shareholder receives reduced front-end sales charge(s) on investments. Your investments during this 13-month period will be charged the sales charge that applies to the amount you have committed to invest under the LOI. A portion of your commitment will be invested in Class A, Class E or Class T shares, as the case may be, and placed in escrow. At the end of the 13-month period, the LOI will end and the shares will be released from escrow (less any amount necessary to pay sales charges to the extent the LOI commitment was not met, as described below). Once the LOI has ended or your investments entitle you to a lower sale charge than would otherwise be available to you under the LOI, future sales charges will be determined by Rights of Accumulation (ROA) as described in the prospectus. If you do not invest the commitment amount by the end of the 13-month period, the remaining unpaid sales charge will be redeemed from the escrowed shares and the remaining balance released from escrow. For purposes of making an LOI to purchase additional shares, you may aggregate your ownership of different classes of shares, except Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares. For

Statement of Additional Information – March 7, 2011

Page 82

example, if your LOI commits you to purchases Class A shares, the commitment amount does not include purchases in these classes of shares; does not include any new reinvested dividends and directed dividends earned in any funds during the 13-month period; and purchases of money market funds unless they are subsequently exchanged for shares of a non-money market fund (other than Class I, Class R, Class R3, Class R4, Class R5 and Class Y shares of such non-money market fund) within the 13-month period. A LOI is not an option (absolute right) to buy shares. If you purchase shares through different channels, for example, in a brokerage account or through a third party, you must inform your financial intermediary in writing about the LOI when placing any purchase orders during the period of the LOI. If you do not complete and file the LOI form, or do not request the reduced sales charge at the time of purchase, you will not be eligible for the reduced sales charge.

Class A Shares

Class A shares may be sold at net asset value to certain persons since such sales require less sales effort and lower sales-related expenses as compared with sales to the general public. If you are eligible to purchase Class A shares without a sales charge, you should inform your financial advisor, selling and/or servicing agent or the fund’s transfer agent of such eligibility and be prepared to provide proof thereof. For Class A shares purchased without a sales charge where a commission was separately paid by the distributor to a selling and/or servicing agent effecting the purchase, a CDSC may be charged if you sell your shares within, except as provided below, 18 months after purchase, charged as follows: a 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. A CDSC is based on the original purchase cost or the current market value of the shares being sold, whichever is less.

Initial Sales Charge — Waivers of the sales charge for Class A shares. Sales charges do not apply to:


	•	shareholders whose original purchase was in a Strategist fund merged into a RiverSource fund in 2000.

	•	participants of “eligible employee benefit plans” including 403(b) plans for which Ameriprise Financial Services, Inc. (Ameriprise Financial Services) serves as broker-dealer, and the school district or group received a written proposal from Ameriprise Financial Services between November 1, 2007 and Dec. 31, 2008 (each a Qualifying 403(b) Plan). In order for participants in one of these 403(b) plans to receive this waiver, at least one participant account of the 403(b) plan must have been funded at Ameriprise Financial Services prior to Dec. 31, 2009. This waiver may be discontinued for any Qualifying 403(b) Plan, in the sole discretion of the distributor, after Dec. 31, 2009.

	•	to separate accounts established and maintained by an insurance company which are exempt from registration under Section 3(c)(11) of the 1940 Act.

	•	plans that (i) own Class B shares of any Seligman fund and (ii) participate in Seligman Growth 401(k) through Ascensus’s (formerly BISYS) third party administration platform may, with new contributions, purchase Class A shares at net asset value. Class A shares purchased at net asset value on or prior to Sept. 3, 2010 are subject to a CDSC on shares purchased within 18 months prior to plan termination, 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.

	•	to participants in retirement and deferred compensation plans and trusts used to fund those plans, including but not limited to, those defined in Sections 401(a), 401(k), 403(b) or 457 of the Internal Revenue Code and “rabbi trusts” for which Charles Schwab & Co., Inc. acts as broker dealer.

	•	to participants in plans established at the transfer agent (Seligman funds only) prior to January 7, 2008, the plan had $500,000 or 50 participants when the shares were initially purchased.

	•	to participants in retirement and benefit plans made through financial intermediaries that perform participant recordkeeping or other administrative services for the plans and that have entered into special arrangements as alliance program partners with the funds and/or the distributor specifically for such purchases.

	•	to other funds pursuant to a “fund-of-funds” arrangement provided that the fund is distributed by the distributor.

	•	any shareholder who owned shares of any fund of Columbia Acorn Trust (formerly named Liberty Acorn Trust) on September 29, 2000 (when all of the then outstanding shares of Columbia Acorn Trust were re-designated Class Z shares) and who since that time remained a shareholder of any Fund, may buy Class A shares of any Fund without paying a front-end sales charge in those cases when Class Z shares is not available.

	•	Galaxy Fund shareholders prior to December 1, 1995; and shareholders who (i) bought Galaxy Fund Prime A shares without paying a front-end sales charge and received Class A shares in exchange for those shares during the Galaxy/Liberty Fund reorganization; and (ii) continue to maintain the account in which the Prime A shares were originally bought.

Statement of Additional Information – March 7, 2011

Page 83

Initial Sales Charge — Waivers of the sales charge for Class T shares.


	•	(For Class T shares only) Shareholders who (i) bought Galaxy Fund Retail A shares at net asset value and received Class T shares in exchanges for those shares during the Galaxy/Liberty Fund reorganization; and (ii) continue to maintain the account in which the Retail A shares were originally bought; and Boston 1784 Fund shareholders on the date those funds were reorganized into Galaxy Funds.

CDSC — Waivers of the CDSC for Class A, Class C, Class E, and Class T shares. The CDSC will be waived on sales of Class A, Class C, Class E, and Class T shares:


	•	in connection with participation in the Merrill Lynch Small Market 401(k) Program, retirement programs administered or serviced by the Princeton Retirement Group, Paychex, ADP Retirement Services, Hartford Securities Distribution Company, Inc. or NYLIM Service Company LLC, retirement programs or accounts administered or serviced by Mercer HR Services, LLC or its affiliates, or retirement programs or accounts administered or serviced by firms that have a written agreement with the distributor that contemplates a waiver of CDSCs, provided that no sales commission or transaction fee was paid to such authorized financial institution at the time of purchase.

The CDSC will be waived on sales of Class A, Class B and Class C shares of a Legacy Columbia fund purchased prior to September 7, 2010:


	•	after the sole shareholder on an individual account or a joint tenant on a joint tenant account becomes disabled (as defined by Section 72(m)(7) of the Internal Revenue Code). To be eligible for such a waiver: (i) the disability must arise after the account is opened and (ii) a letter from a physician must be signed under penalty of perjury stating the nature of the disability. If the account is transferred to a new registration and then shares are sold, the applicable CDSC will be charged.*

	•	by health savings accounts sponsored by third party platforms, including those sponsored by affiliates of Bank of America.*

	•	for the following purposes (i) to make medical payments that exceed 7.5% of income and (ii) to pay for insurance by an individual who has separated from employment and who has received unemployment compensation under a federal or state program for at least twelve weeks.*

	•	pursuant to the Fund’s Systematic Withdrawal Plan established with the Transfer Agent, to the extent that the sales do not exceed, on an annual basis, 12% of the account’s value as long as distributions are reinvested. Otherwise, a CDSC will be charged on sales through the Fund’s Systematic Withdrawal Plan until this requirement is met.

	•	in connection with distributions from qualified retirement plans, government (Section 457) plans, individual retirement accounts or custodial accounts under Section 403(b)(7) of the Internal Revenue Code following normal retirement or the attainment of age 59 ¹ / ₂ .**

	•	in connection with loans from qualified retirement plans to shareholders.*


	*	Fund investors and selling and/or servicing agents must inform the fund or the transfer agent in writing that the fund investor qualifies for the particular sales charge waiver and provide proof thereof.
	**	For direct trades on non-prototype retirement accounts where the date of birth of the fund shareholder is not maintained, the shareholder or selling and/or servicing agent must inform the fund or the transfer agent in writing that the Fund investor qualifies for the particular sales charge waiver and provide proof thereof.

Class B Shares — Closed

The funds no longer accept investments from new or existing investors in Class B shares, except for certain limited transactions involving existing investors in Class B shares as described in more detail in the fund’s prospectus.

Class B shares have a CDSC. For purposes of calculating the CDSC on shares of a fund purchased after the close of business on Sept. 3, 2010, the start of the holding period is the first day of the month in which your purchase was made. For purposes of calculating the CDSC on shares of a Legacy RiverSource fund purchased on or before the close of business on Sept. 3, 2010, the start of the holding period is the date your purchase was made. When you place an order to sell your Class B shares, the fund will first redeem any shares that aren’t subject to a CDSC, followed by those you have held the longest. This means that if a CDSC is imposed, you cannot designate the individual shares being redeemed for federal income tax purposes. You should consult your tax advisor about the tax consequences of investing in the funds.

CDSC — Waivers of the CDSC for Class B shares. The CDSC will be waived on sales of shares:


	•	in connection with participation in the Merrill Lynch Small Market 401(k) Program, retirement programs administered or serviced by the Princeton Retirement Group, Paychex, ADP Retirement Services, Hartford Securities

Statement of Additional Information – March 7, 2011

Page 84


		Distribution Company, Inc. or NYLIM Service Company LLC, retirement programs or accounts administered or serviced by Mercer HR Services, LLC or its affiliates, or retirement programs or accounts administered or serviced by firms that have a written agreement with the distributor that contemplates a waiver of CDSCs, provided that no sales commission or transaction fee was paid to such authorized financial institution at the time of purchase.


	•	of Legacy RiverSource funds held in investment-only accounts (i.e. accounts where Ameriprise Trust Company does not act as the custodian) at Ameriprise Financial Services on behalf of a trust for an employee benefit plan.

	•	of Legacy RiverSource funds held in IRAs or certain qualified plans, on or prior to June 12, 2009, such as Keogh plans, tax-sheltered custodial accounts or corporate pension plans where Ameriprise Trust Company is acting as custodian, provided that the shareholder is:


	—	at least 59 1 / 2 years old and taking a retirement distribution (if the sale is part of a transfer to an IRA or qualified plan, or a custodian-to-custodian transfer, the CDSC will not be waived)*, or

	—	selling under an approved substantially equal periodic payment arrangement.


	•	of sales of Class B shares of Legacy RiverSource funds purchased prior to Sept. 7, 2010 sold under an approved substantially equal periodic payment arrangement (applies to retirement accounts when a shareholder sets up an arrangement with the Internal Revenue Service).**


	*	You must notify the fund or the transfer agent prior to redeeming shares of the applicability of the CDSC waiver, but final decision of the applicability of the CDSC waiver is contingent on approval of the fund or the transfer agent.

	**	Fund investors and selling and/or servicing agents must inform the fund or the transfer agent in writing that the fund investor qualifies for the particular sales charge waiver and provide proof thereof.

Class C Shares

Class C shares are available to all investors. Class C shares are sold without a front-end sales charge. For Class C shares, a 1% CDSC may apply if shares are sold within one year after purchase. Class C shares are subject to a distribution fee.

Class I Shares

Class I shares are only available to the funds. Class I shares are sold without a front-end sales charge or CDSC.

Class R, Class R3, Class R4 and Class R5 Shares

Class R, Class R3, Class R4 and Class R5 shares are offered to certain institutional investors identified in the fund’s prospectus. Class R, Class R3, Class R4 and Class R5 shares are sold without a front-end sales charge or a CDSC. Class R and Class R3 shares are subject to a distribution fee (for Class R shares of a Legacy RiverSource fund, a portion of such fee may be paid for shareholder services). Class R3 and R4 shares are subject to a plan administration fee (which is not a 12b-1 related fee). The following investors are eligible to purchase Class R, Class R3, Class R4 and Class R5 shares:

Class R Shares (formerly Class R2 shares)

Class R shares are available to eligible health savings accounts sponsored by third party platforms, including those sponsored by affiliates of Ameriprise Financial, and the following eligible retirement plans:


	•	401(k) plans; 457 plans;

	•	employer-sponsored 403(b) plans;

	•	profit sharing and money purchase pension plans;

	•	defined benefit plans; and

	•	non-qualified deferred compensation plans.

Class R shares are not available for investment through retail nonretirement accounts, traditional and Roth IRAs, Coverdell Education Savings Accounts, SEPs, SAR-SEPs, Simple IRAs, individual 403(b) plans or 529 tuition programs. Contact the funds or your retirement plan or health savings account administrator for more information about investing in Class R shares.

Statement of Additional Information – March 7, 2011

Page 85

Class R3, Class R4 and Class R5 Shares

Class R3, Class R4 and Class R5 shares were closed to new investors as of the close of business on Dec. 31, 2010. Class R3 shares for RiverSource Disciplined Small Cap Value Fund were closed to new investors effective Dec. 13, 2010. Class R4 shares for RiverSource Partners International Select Growth Fund and RiverSource Partners International Small Cap Fund were closed to new investors and to accounts with zero balances effective Dec. 13, 2010.

Class R3, Class R4 and Class R5 are available to:


	•	Qualified employee benefit plans;

	•	Trust companies or similar institutions, and charitable organizations that meet the definition in Section 501(c)(3) of the Internal Revenue Code;

	•	Nonqualified deferred compensation plans;

	•	State sponsored college savings plans established under Section 529 of the Internal Revenue Code; and

	•	Health Savings Accounts (HSAs) created pursuant to public law 108-173.

Additionally, the following eligible investors may purchase Class R5 shares:


	•	Institutional or corporate accounts above a threshold established by the distributor (currently $1 million per fund or $10 million in all funds); and

	•	Bank Trusts.

Class W Shares

Class W shares are offered to qualifying discretionary accounts. Class W shares are sold without a front-end sales charge or CDSC. Class W shares are subject to a distribution fee.

Class Z Shares

Class Z shares are sold without a front-end sales charge or a CDSC.

Class Z shares are available only to certain eligible investors, which are subject to different minimum initial investment requirements described in the prospectus and the SAI. In addition to the categories of Class Z investors described in the prospectus, the minimum initial investment in Class Z shares is as follows:

There is no minimum initial investment in Class Z shares for the following categories of eligible investors:


	•	Any health savings account sponsored by a third party platform, including those sponsored by affiliates of Bank of America

The minimum initial investment in Class Z shares for the following categories of eligible investors is $2,000:


	•	Any client of Bank of America or one of its subsidiaries buying shares through an asset management company, trust, fiduciary, retirement plan administration or similar arrangement with Bank of America or the subsidiary.

	•	Any employee (or family member of an employee) of Bank of America or one of its subsidiaries.

In addition, for Class I, Class R, Class R5, Class W and Class Z shares, the distributor, in its sole discretion, may accept investments from other purchasers not listed above.

FUND REORGANIZATIONS

Class A shares may be issued without an initial sales charge in connection with the acquisition of cash and securities owned by other investment companies. Any CDSC will be waived in connection with the redemption of shares of the fund if the fund is combined with another fund or in connection with a similar reorganization transaction.

REJECTION OF BUSINESS

Each fund and the distributor of the funds reserve the right to reject any business, in their sole discretion.

Statement of Additional Information – March 7, 2011

Page 86

Selling Shares

You have a right to sell your shares at any time. For an explanation of sales procedures, please see the applicable prospectus.

During an emergency, the Board can suspend the computation of NAV, stop accepting payments for purchase of shares, or suspend the duty of a fund to redeem shares for more than seven days. Such emergency situations would occur if:


	•	The Exchange closes for reasons other than the usual weekend and holiday closings or trading on the Exchange is restricted, or

	•	Disposal of a fund’s securities is not reasonably practicable or it is not reasonably practicable for the fund to determine the fair value of its net assets, or,

	•	The SEC, under the provisions of the 1940 Act, declares a period of emergency to exist.

Should a fund stop selling shares, the Board may make a deduction from the value of the assets held by the fund to cover the cost of future liquidations of the assets so as to distribute these costs fairly among all shareholders.

Each fund has elected to be governed by Rule 18f-1 under the 1940 Act, which obligates the fund to redeem shares in cash, with respect to any one shareholder during any 90-day period, up to the lesser of $250,000 or 1% of the net assets of the fund at the beginning of the period. Although redemptions in excess of this limitation would normally be paid in cash, the fund reserves the right to make these payments in whole or in part in securities or other assets in case of an emergency, or if the payment of a redemption in cash would be detrimental to the existing shareholders of the fund as determined by the Board. In these circumstances, the securities distributed would be valued as set forth in this SAI. Should a fund distribute securities, a shareholder may incur brokerage fees or other transaction costs in converting the securities to cash.

Pay-out Plans

You can use any of several pay-out plans to redeem your investment in regular installments. If you redeem shares, you may be subject to a contingent deferred sales charge as discussed in the prospectus. While the plans differ on how the pay-out is figured, they all are based on the redemption of your investment. Net investment income dividends and any capital gain distributions will automatically be reinvested, unless you elect to receive them in cash. If you redeem an IRA or a qualified retirement account, certain restrictions, federal tax penalties, and special federal income tax reporting requirements may apply. You should consult your tax advisor about this complex area of the tax law.

Applications for a systematic investment in a class of a fund subject to a sales charge normally will not be accepted while a pay-out plan for any of those funds is in effect. Occasional investments, however, may be accepted.

To start any of these plans, please consult your financial intermediary. Your authorization must be received at least five days before the date you want your payments to begin. Payments will be made on a monthly, bimonthly, quarterly, semiannual, or annual basis. Your choice is effective until you change or cancel it.

Statement of Additional Information – March 7, 2011

Page 87

Capital Loss Carryover

For federal income tax purposes, certain funds had total capital loss carryovers at the end of the most recent fiscal period that, if not offset by subsequent capital gains, will expire as provided in the table below. Because the measurement periods for a regulated investment company’s income are different for excise tax purposes verses income tax purposes, special rules are in place to protect the amount of earnings and profits needed to support excise tax distributions. As a result, the funds are permitted to treat net capital losses realized between November 1 and its fiscal year end (“post-October loss”) as occurring on the first day of the following tax year. The total capital loss carryovers below include post-October losses, if applicable. It is unlikely that the Board will authorize a distribution of any net realized capital gains until the available capital loss carryover has been offset or has expired except as required by Internal Revenue Service rules. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 11. Capital Loss Carryover


	Total		Amount Expiring in
Fund	Capital Loss Carryovers		2011		2012		2013		2014		2015		2016		2017		2018		2019
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	$	19,447,298		$0		$0		$0		$0		$0		$0		$2,942,103		$15,861,057		$644,138

Columbia Income Builder Fund II	$	59,928,714		$0		$0		$0		$0		$0		$0		$7,376,558		$51,037,474		$1,514,682

Columbia Income Builder Fund III	$	37,439,030		$0		$0		$0		$0		$0		$0		$5,920,892		$31,518,138		$0

Columbia Portfolio Builder Aggressive	$	37,879,654		$0		$0		$0		$0		$0		$0		$6,629,032		$28,221,611		$3,029,011

Columbia Portfolio Builder Conservative	$	4,428,658		$0		$0		$0		$0		$0		$0		$0		$4,265,389		$163,269

Columbia Portfolio Builder Moderate	$	48,604,696		$0		$0		$0		$0		$0		$0		$7,597,638		$37,758,600		$3,248,458

Columbia Portfolio Builder Moderate Aggressive	$	68,142,574		$0		$0		$0		$0		$0		$0		$4,898,399		$57,879,727		$5,364,448

Columbia Portfolio Builder Moderate Conservative	$	17,455,318		$0		$0		$0		$0		$0		$0		$1,062,939		$15,811,121		$581,258

Columbia Portfolio Builder Total Equity	$	42,147,214		$0		$0		$0		$0		$0		$0		$7,784,164		$30,165,767		$4,197,283

RiverSource S&P 500 Index	$	4,733,437		$0		$0		$1,980,165		$235,890		$66,065		$0		$0		$2,105,466		$345,851

RiverSource Small Company Index	$	43,209,451		$0		$0		$0		$0		$0		$0		$0		$41,195,692		$2,013,759

*For funds with fiscal period ending March 31*

Columbia Equity Value	$	133,819,916		$0		$0		$0		$0		$0		$96,368		$40,190,239		$93,533,309		$0

RiverSource Precious Metals and Mining	$	14,911,599		$0		$0		$0		$0		$0		$0		$14,911,599		$0		$0

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity	$	11,229,719		$0		$0		$0		$0		$0		$0		$3,090,734		$8,138,985		$0

Columbia Recovery and Infrastructure	$	0		—		—		—		—		—		—		—		—		—

Columbia Retirement Plus 2010	$	3,454,336		$0		$0		$0		$0		$0		$0		$428,181		$2,827,856		$198,299

Columbia Retirement Plus 2015	$	4,269,531		$0		$0		$0		$0		$0		$0		$704,342		$3,055,770		$509,419

Columbia Retirement Plus 2020	$	5,656,636		$0		$0		$0		$0		$0		$0		$502,050		$4,705,880		$448,706

Columbia Retirement Plus 2025	$	4,543,260		$0		$0		$0		$0		$0		$0		$662,473		$3,488,786		$392,001

Columbia Retirement Plus 2030	$	4,050,556		$0		$0		$0		$0		$0		$0		$623,603		$2,895,797		$531,156

Columbia Retirement Plus 2035	$	1,679,848		$0		$0		$0		$0		$0		$0		$312,553		$1,217,126		$150,169

Columbia Retirement Plus 2040	$	955,784		$0		$0		$0		$0		$0		$0		$370,260		$565,348		$20,176

Columbia Retirement Plus 2045	$	468,723		$0		$0		$0		$0		$0		$0		$84,212		$248,395		$136,116

Statement of Additional Information – March 7, 2011

Page 88


	Total		Amount Expiring in
Fund	Capital Loss Carryovers		2011		2012		2013		2014		2015		2016		2017		2018		2019
*For funds with fiscal period ending May 31*

Columbia High Yield Bond	$	815,795,304		$552,664,309		$0		$0		$19,078,058		$0		$9,388,877		$179,604,128		$55,059,932		$0

Columbia Multi-Advisor Small Cap Value	$	66,320,839		$0		$0		$0		$0		$0		$0		$20,926,946		$45,393,893		$0

Columbia U.S. Government Mortgage	$	12,077,144		$0		$0		$0		$0		$0		$0		$410,120		$11,667,024		$0

RiverSource Partners Fundamental Value	$	113,804,431		$0		$0		$0		$0		$0		$0		$26,053,833		$82,755,092		$4,995,506

RiverSource Short Duration U.S. Government	$	93,995,687		$0		$1,261,719		$38,180,597		$22,499,962		$9,579,187		$0		$3,846,817		$18,627,405		$0

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity	$	573,711,900		$343,927,468		$0		$0		$0		$0		$0		$36,972,874		$165,774,622		$27,036,936

RiverSource Real Estate	$	45,007,629		$0		$0		$0		$0		$0		$0		$1,114,883		$43,892,746		$0

*For funds with fiscal period ending July 31*

Columbia Floating Rate	$	69,735,278		$0		$0		$0		$0		$33,562		$3,488,601		$29,093,899		$35,393,394		$1,725,822

Columbia Income Opportunities	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Columbia Inflation Protected Securities	$	17,202,378		$0		$0		$0		$0		$0		$0		$8,424,851		$8,777,527		$0

Columbia Large Core Quantitative	$	2,641,007,182		$0		$0		$0		$0		$0		$420,044,596		$1,377,208,066		$628,476,902		$215,277,618

Columbia Limited Duration Credit	$	9,271,761		$0		$0		$0		$0		$2,206,552		$0		$825,807		$4,896,866		$1,342,536

Columbia Money Market	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

RiverSource Disciplined Small and Mid Cap Equity	$	7,615,730		$0		$0		$0		$0		$0		$0		$7,615,730		$0		$0

RiverSource Disciplined Small Cap Value	$	6,228,634		$0		$0		$0		$0		$0		$0		$6,228,634		$0		$0

*For funds with fiscal period ending August 31*

Columbia Diversified Bond	$	22,648,830		$0		$5,227,159		$3,354,885		$10,357,129		$0		$0		$3,709,657		$0		$0

Columbia Minnesota Tax-Exempt	$	173,241		$0		$0		$0		$0		$0		$0		$173,241		$0		$0

RiverSource California Tax-Exempt	$	2,029,072		$0		$0		$0		$0		$0		$359,905		$1,247,347		$421,820		$0

RiverSource New York Tax-Exempt	$	643,568		$0		$0		$0		$0		$0		$3,664		$341,015		$298,889		$0

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income	$	1,201,620,786		$0		$0		$0		$0		$0		$247,351		$47,002,150		$1,154,371,285		$0

Columbia Large Growth Quantitative	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Columbia Large Value Quantitative	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Columbia Mid Cap Value Opportunity	$	627,066,547		$0		$0		$0		$0		$0		$34,137,314		$96,087,907		$488,027,261		$8,814,065

Columbia Strategic Allocation	$	417,943,061		$0		$0		$0		$0		$0		$0		$21,514,298		$320,258,879		$76,169,884

RiverSource Balanced	$	551,180,261		$368,676,980		$24,886,878		$0		$0		$0		$8,353,706		$38,698,637		$110,564,060		$0

RiverSource Strategic Income Allocation	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Seligman California Municipal High-Yield	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Seligman California Municipal Quality	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Seligman Minnesota Municipal	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Seligman National Municipal	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Seligman New York Municipal	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Statement of Additional Information – March 7, 2011

Page 89


	Total		Amount Expiring in
Fund	Capital Loss Carryovers		2011		2012		2013		2014		2015		2016		2017		2018		2019
*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income	$	1,692,023		$0		$0		$0		$0		$0		$0		$0		$1,692,023		$0

Columbia Asia Pacific ex-Japan	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Columbia Emerging Markets Bond	$	5,545,654		$0		$0		$0		$0		$0		$0		$0		$5,545,654		$0

Columbia Emerging Markets Opportunity	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Columbia European Equity	$	28,018,651		$0		$5,021,215		$0		$0		$0		$0		$4,272,956		$18,724,480		$0

Columbia Frontier	$	38,601,353		$0		$0		$0		0		0		0		0		14,104,490		24,496,863

Columbia Global Bond	$	11,380,428		$0		$0		$0		$0		$498,771		$0		$2,328,738		$8,552,919		$0

Columbia Global Equity	$	194,881,637		$0		$30,509,951		$0		$0		$0		$1,766,232		$62,625,028		$99,980,426		$0

Columbia Global Extended Alpha	$	415,463		$0		$0		$0		$0		$0		$0		$0		$415,463		$0

Columbia Multi-Advisor International Value	$	343,027,537		$0		$0		$0		$0		$0		$0		$0		$340,858,587		$2,168,950

Columbia Seligman Global Technology	$	83,037,245		$0		$17,073,210		$0		$0		$0		$1,968,461		$37,526,708		$26,468,866		$0

RiverSource Disciplined International Equity	$	390,115,334		$0		$0		$0		$0		$0		$0		$24,531,187		$262,961,946		$102,622,201

RiverSource Partners International Select Growth	$	149,891,453		$0		$0		$0		$0		$0		$0		$33,693,010		$116,198,443		$0

RiverSource Partners International Small Cap	$	83,153,018		$0		$0		$0		$0		$0		$0		$18,328,621		$64,824,397		$0

Threadneedle Global Equity Income	$	429,635		$0		$0		$0		$0		$0		$0		$0		$429,635		$0

Threadneedle International Opportunity	$	145,483,337		$0		$38,262,972		$0		$0		$0		$0		$12,069,463		$95,150,902		$0

*For funds with fiscal period ending November 30*

Columbia Mid Cap Growth Opportunity	$	112,027,415		$26,407,071		$0		$0		$0		$0		$54,181,922		$31,438,422		$0		$0

Columbia AMT-Free Tax-Exempt Bond	$	10,227,823		$0		$0		$0		$0		$0		$1,847,874		$8,379,949		$0		$0

RiverSource Intermediate Tax-Exempt	$	795,140		$0		$0		$0		$177,579		$0		$361,418		$165,166		$90,977		$0

RiverSource Tax-Exempt High Income	$	71,108,443		$0		$0		$0		$0		$0		$13,239,272		$57,869,171		$0		$0

*For funds with fiscal period ending December 31*

Columbia Government Money Market	$	66		$0		$0		$66		$0		$0		$0		$0		$0		$0

Columbia Select Large-Cap Value	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

Columbia Select Smaller-Cap Value	$	178,764,371		$0		$0		$0		$0		$16,240,577		$119,073,494		$43,450,300		$0		$0

Columbia Seligman Communications and Information	$	0		$0		$0		$0		$0		$0		$0		$0		$0		$0

RiverSource LaSalle Global Real Estate	$	18,263,773		$0		$0		$0		$0		$585,168		$5,289,122		$9,443,735		$2,931,454		$14,294

RiverSource LaSalle Monthly Dividend Real Estate	$	39,897,335		$0		$0		$0		$0		$0		$13,539,836		$26,357,499		$0		$0

Seligman Capital	$	124,124,638		$0		$0		$0		$0		$0		$63,824,881		$60,299,757		$0		$0

Seligman Growth	$	959,448,439		$0		$0		$0		$0		$0		$933,955,524		$25,492,915		$0		$0

Statement of Additional Information – March 7, 2011

Page 90

Taxes

Subchapter M Compliance

Each fund has elected to be taxed under Subchapter M of the Internal Revenue Code as a regulated investment company. Each fund intends to maintain its qualification as a regulated investment company by meeting certain requirements relating to distributions, source of income, and asset diversification. Distribution requirements include distributing at least 90% of the fund’s investment company taxable income (which includes net short-term capital gains) and tax-exempt ordinary income to fund shareholders each taxable year. The source of income rules require that at least 90% of the fund’s gross income be derived from dividends, interest, certain payments with respect to securities loans, gain from the sale or other disposition of stock, securities or foreign currencies (subject to certain limitations), and certain other income derived with respect to its business of investing in stock, securities or currencies, and net income from certain interests in qualified publicly traded partnerships. Asset diversification requirements are met when the fund owns, at the end of each quarter of its taxable year, a portfolio, 50% of which includes cash and cash items, U.S. government securities, securities of other regulated investment companies and, securities of other issuers in which the fund has not invested more than 5% of the value of the fund’s assets (or 10% of the value of the outstanding voting securities of any one issuer). Also, no more than 25% of the fund’s assets may be invested in the securities of any one issuer or two or more issuers which the fund controls and which are engaged in the same or similar trades or businesses (excepting U.S. government securities and securities of other regulated investment companies) or the securities of one or more qualified publicly traded partnerships. This is a simplified description of the relevant laws.

If the fund fails to qualify as a regulated investment company under Subchapter M, the fund would be taxed as a corporation on the entire amount of its taxable income (including its capital gain) without a dividends paid deduction. Also, “all of” a shareholder’s distributions would generally be taxable to shareholders as qualified dividend income (QDI) (or could be treated as a return of capital, if there weren’t sufficient earnings and profits) and generally would be eligible for the dividends received deduction in the case of corporate shareholders.

Under federal tax law, by the end of a calendar year a fund must declare and pay dividends representing 98% of ordinary income for that calendar year and 98% of net capital gains (both long-term and short-term) for the 12-month period ending Oct. 31 of that calendar year. The fund is subject to an excise tax equal to 4% of the excess, if any, of the amount required to be distributed over the amount actually distributed. Each fund intends to comply with federal tax law and avoid any excise tax. For purposes of the excise tax distributions, section 988 ordinary gains and losses are distributable based on an Oct. 31 year end. This is an exception to the general rule that ordinary income is paid based on a calendar year end.

The fund intends to distribute sufficient dividends within each calendar year, as well as on a fiscal year basis, to avoid income and excise taxes.

A fund may be subject to U.S. taxes resulting from holdings in passive foreign investment companies (PFIC). To avoid unfavorable tax consequences, a fund may make an election to mark to market its PFIC investments. A foreign corporation is a PFIC when 75% or more of its gross income for the taxable year is passive income or 50% or more of the average value of its assets consists of assets that produce or could produce passive income.

Income earned by a fund may have had foreign taxes imposed and withheld on it in foreign countries. Tax conventions between certain countries and the U.S. may reduce or eliminate such taxes. If more than 50% of a fund’s total assets at the close of its fiscal year consists of securities of foreign corporations, the fund will be eligible to file an election with the Internal Revenue Service (IRS) under which shareholders of the fund would be required to include their pro rata portions of foreign taxes withheld by foreign countries as gross income in their federal income tax returns. These pro rata portions of foreign taxes withheld may be taken as a credit or deduction in computing the shareholders’ federal income taxes. If the election is filed, the fund will report to its shareholders the per share amount of such foreign taxes withheld and the amount of foreign tax credit or deduction available for federal income tax purposes.

A fund may use equalization payments to satisfy its requirement to make distributions of net investment income and capital gain net income. Equalization payments occur when a fund allocates a portion of its net investment income and realized capital gain net income to redemptions of fund shares. These payments reduce the amount of taxable distributions paid to shareholders. The IRS has not issued any guidance concerning the methods used to allocate investment income and capital gain to redemptions of shares. If the IRS determines that a fund is using an improper method of allocation for these purposes, the fund may be liable for additional federal income tax.

This is a brief summary that relates to federal income taxation only. Shareholders should consult their tax advisor as to the application of federal, state, and local income tax laws to fund distributions.

See Appendix B for more information regarding state tax-exempt funds.

Statement of Additional Information – March 7, 2011

Page 91

Exchanges, Purchases and Sales

For tax purposes, an exchange is considered a sale and purchase, and may result in a gain or loss. A sale is a taxable transaction. If you sell shares for less than their cost, the difference is a capital loss. If you sell shares for more than their cost, the difference is a capital gain. Your gain may be short term (for shares held for one year or less) or long term (for shares held more than one year).

Capital gain of a non-corporate U.S. shareholder that is recognized in a taxable year beginning before January 1, 2011 is generally taxed at a maximum rate of 15% in respect of shares held for more than one year. Net capital gain of a corporate shareholder is taxed at the same rate as ordinary income. However, if shares on which a long-term capital gain distribution has been received are subsequently sold or redeemed and such shares have been held for six months or less (after taking into account certain hedging transactions), any loss realized will be treated as long-term capital loss to the extent that it does not exceed the long-term capital gain distribution.

A capital loss on a sale or redemption of a security in a nonqualified account may be disallowed for tax purposes if the same or a substantially identical security is purchased or acquired (including shares acquired through dividend reinvestment) within 30 days before or after the date of the loss transaction. This is called a wash sale. When a wash sale occurs, the loss is disallowed to the extent of shares repurchased, and the cost basis on the security acquired is increased by the amount of the loss that is disallowed. The loss is disallowed in a nonqualified account whether the purchase is in a nonqualified account or in an IRA or Roth IRA, however, an individual’s cost basis in an IRA or Roth IRA is not increased due to the wash sale rules. The wash sale rules apply only to capital losses. Sales of securities that result in capital gains are generally recognized when incurred.

If you buy Class A shares and within 91 days exchange into another fund, you may not include the sales charge in your calculation of tax gain or loss on the sale of the first fund you purchased. The sales charge may be included in the calculation of your tax gain or loss on a subsequent sale of the second fund you purchased.

For example

You purchase 100 shares of an equity fund having a public offering price of $10.00 per share. With a sales load of 5.75%, you pay $57.50 in sales load. With a NAV of $9.425 per share, the value of your investment is $942.50. Within 91 days of purchasing that fund, you decide to exchange out of that fund, now at a NAV of $11.00 per share, up from the original NAV of $9.425, and purchase a second fund, at a NAV of $15.00 per share. The value of your investment is now $1,100.00 ($11.00 x 100 shares). You cannot use the $57.50 paid as a sales load when calculating your tax gain or loss in the sale of the first fund shares. So instead of having a $100.00 gain ($1,100.00 – $1,000.00), you have a $157.50 gain ($1,100.00 – $942.50). You can include the $57.50 sales load in the calculation of your tax gain or loss when you sell shares in the second fund.

The following paragraphs provide information based on a fund’s investment category. You can find your fund’s investment category in Table 1.

For State Tax-Exempt Fixed Income and Tax-Exempt Fixed Income Funds, all distributions of net investment income during the fund’s fiscal year will have the same percentage designated as tax-exempt. This percentage is expected to be substantially the same as the percentage of tax-exempt income actually earned during any particular distribution period.

For Balanced, Equity, Funds-of-Funds, Taxable Money Market and Taxable Fixed Income Funds, if you have a nonqualified investment in a fund and you wish to move part or all of those shares to an IRA or qualified retirement account in the fund, you can do so without paying a sales charge. However, this type of exchange is considered a redemption of shares and may result in a gain or loss for tax purposes. See wash sale discussion above. In addition, this type of exchange may result in an excess contribution under IRA or qualified plan regulations if the amount exchanged exceeds annual contribution limitations. You should consult your tax advisor for further details about this complex subject.

Distributions

Dividends

Net investment income dividends (other than qualified dividend income) received and distributions from the excess of net short-term capital gains over net long-term capital losses should be treated as ordinary income for federal income tax purposes. Corporate shareholders are generally entitled to a deduction equal to 70% of that portion of a fund’s dividend that is attributable to dividends the fund received from domestic (U.S.) securities. If there is debt-financed portfolio stock, that is, bank financing is used to purchase long securities, the 70% dividends received deduction would be reduced by the average amount of portfolio indebtedness divided by the average adjusted basis in the stock. This does not impact the qualified dividend income available to individual shareholders. For the most recent fiscal period, net investment income dividends qualified for the corporate deduction are shown in the following table.

Statement of Additional Information – March 7, 2011

Page 92

Only certain QDI will be subject to the 15% and 0% (for lower-bracket taxpayers) tax rates for 2008-2010. QDI is dividends earned from domestic corporations and qualified foreign corporations. Qualified foreign corporations are corporations incorporated in a U.S. possession, corporations whose stock is readily tradable on an established U.S. securities market (ADRs), and certain other corporations eligible for relief under an income tax treaty with the U.S. that includes an exchange of information agreement. PFICs are excluded from this treatment. Holding periods for shares must also be met to be eligible for QDI treatment (more than 60 days for common stock and more than 90 days for certain preferred’s dividends).

Dividends declared in October, November or December, payable to shareholders of record on a specified date in such a month and paid in the following January will be treated as having been paid by a fund and received by each shareholder in December. Under this rule, therefore, shareholders may be taxed in one year on dividends or distributions actually received in January of the following year.

The QDI for individuals for the most recent fiscal period is shown in the table below. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 12. Corporate Deduction and Qualified Dividend Income


	Percent of dividends qualifying	Qualified dividend income
Fund	for corporate deduction	for individuals
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	20.79%	23.21%

Columbia Income Builder Fund II	19.04	22.16

Columbia Income Builder Fund III	13.81	17.15

Columbia Portfolio Builder Aggressive	60.55	90.45

Columbia Portfolio Builder Conservative	100.00	100.00

Columbia Portfolio Builder Moderate	27.70	41.29

Columbia Portfolio Builder Moderate Aggressive	43.07	64.31

Columbia Portfolio Builder Moderate Conservative	18.56	27.43

Columbia Portfolio Builder Total Equity	91.77	100.00

RiverSource S&P 500 Index	100.00	100.00

RiverSource Small Company Index	100.00	100.00

*For funds with fiscal period ending March 31*

Columbia Equity Value	100.00	100.00

RiverSource Precious Metals and Mining	5.22	20.29

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity	100.00	100.00

Columbia Recovery and Infrastructure	35.61	42.61

Columbia Retirement Plus 2010	45.41	50.54

Columbia Retirement Plus 2015	47.80	54.77

Columbia Retirement Plus 2020	53.80	62.70

Columbia Retirement Plus 2025	60.75	70.54

Columbia Retirement Plus 2030	61.11	70.71

Columbia Retirement Plus 2035	60.82	70.52

Columbia Retirement Plus 2040	61.81	71.38

Columbia Retirement Plus 2045	67.54	77.42

Statement of Additional Information – March 7, 2011

Page 93


	Percent of dividends qualifying	Qualified dividend income
Fund	for corporate deduction	for individuals
*For funds with fiscal period ending May 31*

Columbia High Yield Bond	0%	0%

Columbia Multi-Advisor Small Cap Value	0	0

Columbia U.S. Government Mortgage	0	0

RiverSource Partners Fundamental Value	100.00	100.00

RiverSource Short Duration U.S. Government	0	0

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity	91.83	100.00

RiverSource Real Estate	0.35	7.02

*For funds with fiscal period ending July 31*

Columbia Floating Rate	0.06	0.06

Columbia Income Opportunities	0	0

Columbia Inflation Protected Securities	0	0

Columbia Limited Duration Credit	0	0

Columbia Large Core Quantitative	100.00	100.00

Columbia Money Market	0	0

RiverSource Disciplined Small and Mid Cap Equity	100.00	100.00

RiverSource Disciplined Small Cap Value	100.00	100.00

*For funds with fiscal period ending August 31*

Columbia Diversified Bond	0	0

Columbia Minnesota Tax-Exempt	0	0

RiverSource California Tax-Exempt	0	0

RiverSource New York Tax-Exempt	0	0

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income	100.00	100.00

Columbia Large Growth Quantitative	85.76	86.24

Columbia Large Value Quantitative	28.01	28.85

Columbia Mid Cap Value Opportunity	100.00	100.00

Columbia Strategic Allocation	65.79	81.93

RiverSource Balanced	66.79	77.86

RiverSource Strategic Income Allocation	0.01	0.06

Seligman California Municipal High-Yield	0	0

Seligman California Municipal Quality	0	0

Seligman Minnesota Municipal	0	0

Seligman National Municipal	0	0

Seligman New York Municipal	0	0

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income	0	0

Statement of Additional Information – March 7, 2011

Page 94


	Percent of dividends qualifying	Qualified dividend income
Fund	for corporate deduction	for individuals
Columbia Asia Pacific ex-Japan	0.07%	75.55%

Columbia Emerging Markets Bond	0	0

Columbia Emerging Markets Opportunity	4.66	100.00

Columbia European Equity	0	100.00

Columbia Frontier	0	0

Columbia Global Bond	0	0

Columbia Global Equity	90.45	100.00

Columbia Global Extended Alpha	24.76	100.00

Columbia Multi-Advisor International Value	1.87	89.22

Columbia Seligman Global Technology	0	0

RiverSource Disciplined International Equity	0.42	100.00

RiverSource Partners International Select Growth	0.67	85.47

RiverSource Partners International Small Cap	1.49	58.03

Threadneedle Global Equity Income	25.41	52.34

Threadneedle International Opportunity	0	100.00

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond	0	0

Columbia Mid Cap Growth Opportunity	0	0

RiverSource Intermediate Tax-Exempt	0	0

RiverSource Tax-Exempt High Income	0	0

*For funds with fiscal period ending December 31*

Columbia Government Money Market	0	0

Columbia Select Large-Cap Value	100.00	100.00

Columbia Select Smaller-Cap Value	0	0

Columbia Seligman Communications and Information	0	0

RiverSource LaSalle Global Real Estate	0	28.65

RiverSource LaSalle Monthly Dividend Real Estate	0	1.38

Seligman Capital	0	0

Seligman Growth	100.00	100.00

Capital Gains Distributions

Capital gain distributions, if any, received by shareholders (in cash or invested in additional shares) should be treated as long-term capital gains regardless of how long shareholders owned their shares. Short-term capital gains earned by a fund are paid to shareholders as part of their ordinary income dividend and are taxable as ordinary income. Special rates on capital gains may apply to sales of precious metals, if any, owned directly by a fund and to investments in REITs.

Individual shareholders will be subject to federal income tax on distributions of net capital gains generally at a maximum rate of 15% if designated as derived from a fund’s capital gains from property held for more than one year and recognized in the taxable years beginning before January 1, 2011. Net capital gain of a corporate shareholder is taxed at the same rate as ordinary income. Such distributions are not eligible for the dividends received deduction allowed to corporate shareholders. Shareholders receiving distributions in the form of additional shares issued by a fund will generally be treated for federal income tax purposes as having received a distribution in an amount equal to the cash that could have been elected to be received instead of the additional shares.

Under the Internal Revenue Code of 1986 (the Code), gains or losses attributable to fluctuations in exchange rates that occur between the time a fund accrues interest or other receivables, or accrues expenses or other liabilities denominated in a foreign currency and the time the fund actually collects such receivables or pays such liabilities generally are treated as

Statement of Additional Information – March 7, 2011

Page 95

ordinary income or ordinary loss. Similarly, gains or losses on disposition of debt securities denominated in a foreign currency attributable to fluctuations in the value of the foreign currency between the date of acquisition of the security and the date of disposition may be treated as ordinary or capital gains or losses. These gains or losses, referred to under the Code as “section 988” gains or losses, may increase or decrease the amount of a fund’s investment company taxable income to be distributed to its shareholders as ordinary income.

Return of Capital

If a mutual fund is the holder of record of any share of stock on the record date for any dividend payable with respect to the stock, the dividend will be included in gross income by the fund as of the later of (1) the date the share became ex-dividend or (2) the date the fund acquired the share. Because the dividends on some foreign equity investments may be received some time after the stock goes ex-dividend, and in certain rare cases may never be received by the fund, this rule may cause a fund to pay income to its shareholders that it has not actually received. To the extent that the dividend is never received, the fund will take a loss at the time that a determination is made that the dividend will not be received.

If a fund’s distributions exceed its current and accumulated earnings and profits, that portion of the fund’s distributions will be treated as a return of capital to its shareholders. A return of capital is a return of a portion of the shareholder’s original investment. A return of capital will generally not be taxable, however, any amounts received in excess of a shareholder’s tax basis are treated as capital gain. Forms 1099 will be sent to shareholders to report any return of capital.

Withholding

Unless a shareholder provides a certified taxpayer identification number (social security number for individuals) on the account application or other document and certifies that the shareholder is not subject to backup withholding, the fund is required to withhold and remit to the IRS 28% backup withholding on taxable and exempt-interest dividends and redemptions. Shareholders should be aware that, under regulations promulgated by the IRS, a fund may be fined for each account for which a certified taxpayer identification number (social security number for individuals) is not provided.

Taxation of a shareholder who, as to the United States, is a nonresident alien individual, foreign trust or estate, foreign corporation, or foreign partnership (“foreign shareholder”) depends on whether the income from the fund is “effectively connected” with a U.S. trade or business carried on by such shareholder. If the income from the fund is not effectively connected with a U.S. trade or business carried on by a foreign shareholder, ordinary income and qualified dividends paid to such foreign shareholders generally will be subject to a 30% U.S. withholding tax under existing provisions of the Internal Revenue Code applicable to foreign individuals and entities unless a reduced rate of withholding or a withholding exemption is provided under applicable treaty or law. Nonresident shareholders are urged to consult their own tax advisers concerning the applicability of the U.S. withholding tax.

If the income from the fund is effectively connected with a U.S. trade or business carried on by a foreign shareholder, then ordinary income dividends, qualified dividends, capital gain dividends, undistributed capital gains credited to such shareholder and any gains realized upon the sale of shares of the fund will be subject to U.S. federal income tax at the graduated rates applicable to U.S. citizens or domestic corporations. In the case of foreign non-corporate shareholders, the fund may be required to backup withhold U.S. federal income tax on distributions that are otherwise exempt from withholding tax (or taxable at a reduced treaty rate) unless such shareholders furnish the fund with proper documentation related to their foreign status.

The tax consequences to a foreign shareholder entitled to claim the benefits of an applicable tax treaty may be different from those described herein. Foreign shareholders are urged to consult their own tax advisers with respect to the particular tax consequences to them of an investment in the fund, the procedure for claiming the benefit of a lower treaty rate and the applicability of foreign taxes.

Service Providers

INVESTMENT MANAGEMENT SERVICES

Columbia Management Investment Advisers, LLC (formerly RiverSource Investments, LLC) is the investment manager for each fund. Under the Investment Management Services Agreements, the investment manager, subject to the policies set by the Board, provides investment management services to the funds.

For Seligman funds, Columbia Management serves as the investment manager effective Nov. 7, 2008, with the completion of the acquisition of J. & W. Seligman & Co. Incorporated by the investment manager and with shareholders having previously approved a new investment management services agreement between the funds and the investment manager.

Statement of Additional Information – March 7, 2011

Page 96

For its services, the investment manager is paid a monthly fee based on the following schedule. Each class of a fund pays its proportionate share of the fee. The fee is calculated for each calendar day on the basis of net assets as of the close of the preceding day.

Table 13. Investment Management Services Agreement Fee Schedule


					Daily rate on
	Assets	Annual rate at			last day of most
Fund	(billions)	each asset level			recent fiscal period
Columbia 120/20 Contrarian Equity	First $0.25		0.950	%	0.950%
	Next $0.25		0.930	%
	Next $0.50		0.910	%
	Over $1.0		0.890	%

Columbia Absolute Return Currency	First $1.0		0.890	%	0.890%
and Income	Next $1.0		0.865	%
	Next $1.0		0.840	%
	Next $3.0		0.815	%
	Next $1.5		0.790	%
	Next $1.5		0.775	%
	Next $1.0		0.770	%
	Next $5.0		0.760	%
	Next $5.0		0.750	%
	Next $4.0		0.740	%
	Next $26.0		0.720	%
	Over $50.0		0.700	%


Columbia AMT-Free Tax-Exempt Bond	First $1.0		0.410	%	0.410%
	Next $1.0		0.385	%
	Next $1.0		0.360	%
	Next $3.0		0.335	%
	Next $1.5		0.310	%
	Next $2.5		0.300	%
	Next $5.0		0.290	%
	Next $9.0		0.280	%
	Next $26.0		0.260	%
	Over $50.0		0.250	%


Columbia Asia Pacific ex-Japan	First $0.25		0.800	%	Columbia Asia Pacific ex-Japan – 0.787%
Columbia European Equity	Next $0.25		0.775	%	Columbia European Equity – 0.800%
RiverSource Disciplined International	Next $0.25		0.750	%	RiverSource Disciplined International Equity – 0.790%
Equity	Next $0.25		0.725	%	Threadneedle Global Equity Income – 0.800%
Threadneedle Global Equity Income	Next $1.0		0.700	%	Threadneedle International Opportunity – 0.791%
Threadneedle International Opportunity	Next $5.5		0.675	%
	Next $2.5		0.660	%
	Next $5.0		0.645	%
	Next $5.0		0.635	%
	Next $4.0		0.610	%
	Next $26.0		0.600	%
	Over $50.0		0.570	%

Statement of Additional Information – March 7, 2011

Page 97


					Daily rate on
	Assets	Annual rate at			last day of most
Fund	(billions)	each asset level			recent fiscal period
Seligman California Municipal	First $0.25		0.410	%	0.410%
High-Yield	Next $0.25		0.385	%
Seligman California Municipal Quality	Next $0.25		0.360	%
Seligman Minnesota Municipal	Next $0.25		0.345	%
Seligman New York Municipal	Next $6.5		0.320	%
	Next $2.5		0.310	%
	Next $5.0		0.300	%
	Next $9.0		0.290	%
	Next $26.0		0.270	%
	Over $50.0		0.250	%


Seligman Capital	First $1.0		0.805	%	0.805%
	Next $1.0		0.765	%
	Over $2.0		0.715	%


Seligman Growth	First $1.0		0.655	%	0.639%
	Next $1.0		0.615	%
	Over $2.0		0.565	%


Seligman National Municipal	First $1.0		0.410	%	0.410%
	Next $1.0		0.385	%
	Next $1.0		0.360	%
	Next $3.0		0.335	%
	Next $1.5		0.310	%
	Next $2.5		0.300	%
	Next $5.0		0.290	%
	Next $9.0		0.280	%
	Next $26.0		0.260	%
	Over $50.0		0.250	%


(a)		The fund is new as of Sept. 28, 2010 and has not passed its fiscal period end; therefore no reporting is available.


(b)		Prior to March 1, 2011, the investment manager received an annual fee ranging from 0.950% to 0.870% as assets increased.


(c)		Prior to March 1, 2011, the investment manager received an annual fee ranging from 0.800% to 0.570% as assets increased.


(d)		Prior to March 1, 2011, the investment manager received an annual fee ranging from 0.610% to 0.380% as assets increased.


(e)		Prior to March 1, 2011, the investment manager received an annual fee ranging from 0.600% to 0.375% as assets increased.


(f)		Prior to March 1, 2011, the investment manager received an annual fee ranging from 0.410% to 0.250% as assets increased.

Under the agreement, a fund also pays taxes, brokerage commissions and nonadvisory expenses, which include custodian fees and charges; fidelity bond premiums; certain legal fees; registration fees for shares; consultants’ fees; compensation of Board members, officers and employees not employed by the investment manager or its affiliates; corporate filing fees; organizational expenses; expenses incurred in connection with lending securities; interest and fee expense related to a fund’s participation in inverse floater structures; and expenses properly payable by a fund, approved by the Board.

For certain Equity and Balanced Funds noted in Table 14, before the fee based on the asset charge is paid, it is adjusted for the fund’s investment performance relative to a Performance Incentive Adjustment Index (PIA Index) as shown in the table below. The adjustment increased or decreased the fee for the last fiscal period as shown in the following table. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 14. PIA Indexes


		Fee Increase or
Fund	PIA Index	(Decrease)

*Fiscal year ending March 31*

Columbia Equity Value	Lipper Large-Cap Value Funds Index	$	(84,713	)

RiverSource Precious Metals and Mining	Lipper Precious Metals Funds Index		5,214

*Fiscal year ending April 30*

Columbia 120/20 Contrarian Equity	Russell 3000 Index		(16,065	)

Statement of Additional Information – March 7, 2011

Page 106


		Fee Increase or
Fund	PIA Index	(Decrease)

Columbia Recovery and Infrastructure	S&P 500 Index		N/A	^(a)

*Fiscal year ending May 31*

Columbia Multi-Advisor Small Cap Value	Lipper Small-Cap Value Funds Index	$	353,598

RiverSource Partners Fundamental Value	Lipper Large-Cap Core Funds Index		135,795

*Fiscal year ending June 30*

Columbia Dividend Opportunity	Lipper Equity Income Funds Index		902,715

RiverSource Real Estate	Lipper Real Estate Funds Index		52,237

*Fiscal year ending July 31*

Columbia Large Core Quantitative	Lipper Large-Cap Core Funds Index		(789,031	)

RiverSource Disciplined Small and Mid Cap Equity	Lipper Mid-Cap Core Funds Index		(126,252	)

RiverSource Disciplined Small Cap Value	Lipper Small-Cap Value Funds Index		(56,412	)

*Fiscal year ending September 30*

Columbia Diversified Equity Income	Lipper Equity Income Funds Index		1,808,565

Columbia Large Growth Quantitative	Lipper Large-Cap Growth Funds Index		88,566

Columbia Large Value Quantitative	Lipper Large-Cap Value Funds Index		102,873

Columbia Mid Cap Value Opportunity	Lipper Mid-Cap Value Funds Index		(606,320	)

Columbia Strategic Allocation	Lipper Flexible Portfolio Funds Index		(920,753	)

RiverSource Balanced	Lipper Balanced Funds Index		8,367

*Fiscal year ending October 31*

Columbia Asia Pacific ex-Japan	MSCI All Country Asia Pacific Ex-Japan Index		(69,322	)

Columbia Emerging Markets Opportunity	Lipper Emerging Markets Funds Index		(66,600	)

Columbia European Equity	Lipper European Funds Index		(15,810	)

Columbia Global Equity	Lipper Global Funds Index		(177,692	)

Columbia Global Extended Alpha	MSCI All Country World Index		5,960

Columbia Multi-Advisor International Value	Lipper International Multi-Cap Value Funds Index		(593,194	)

RiverSource Disciplined International Equity	Lipper International Large-Cap Core Funds Index		(319,765	)

RiverSource Partners International Select Growth	Lipper International Multi-Cap Growth Funds Index		(223,017	)

RiverSource Partners International Small Cap	Lipper International Small-Cap Funds Index		(33,567	)

Threadneedle Global Equity Income	MSCI All Country World Index		(9,164	)

Threadneedle International Opportunity	Lipper International Large-Cap Core Funds Index		(61,165	)

*Fiscal year ending November 30*

Columbia Mid Cap Growth Opportunity	Lipper Mid-Cap Growth Funds Index		(31,091	)


(a)		The first performance incentive adjustment will be made on March 1, 2011. See section titled “Transaction Period” below.

For all funds noted in Table 14 EXCEPT Columbia 120/20 Contrarian Equity, Columbia Recovery and Infrastructure, and Columbia Global Extended Alpha:

The adjustment will be determined monthly by measuring the percentage difference over a rolling 12-month period (subject to earlier determination based on the Transition Period, as set forth below) between the annualized performance of one Class A share of the fund and the annualized performance of the PIA Index (“performance difference”). The performance difference is then used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the following table and is applied against average daily net assets for the applicable rolling 12-month period or Transition Period, and divided by 12 to obtain the fee reflecting the performance fee adjustment for that month. The table is organized by fund category. You can find your fund’s category in Table 1.

Statement of Additional Information – March 7, 2011

Page 107

Table 15A. Performance Incentive Adjustment Calculation


Equity Funds		Balanced Funds
Performance		Performance
Difference	Adjustment Rate	Difference	Adjustment Rate
0.00% – 0.50%	0	0.00% – 0.50%	0

0.50% – 1.00%	6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference)	0.50% – 1.00%	6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference)

1.00% – 2.00%	3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference)	1.00% – 2.00%	3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference)

2.00% – 4.00%	6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 10 basis points if a 4% performance difference)	2.00% – 3.00%	6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 basis points if a 3% performance difference)

4.00% – 6.00%	10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference)	3.00% or more	8 basis points

6.00% or more	12 basis points	N/A

For example, if the performance difference for an Equity Fund is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. The maximum adjustment rate for the fund is 0.0012 per year. Where the fund’s Class A performance exceeds that of the PIA Index, the fee paid to the investment manager will increase. Where the performance of the PIA Index exceeds the performance of the fund’s Class A shares, the fee paid to the investment manager will decrease. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed.

Transition Period

The performance incentive adjustment will not be calculated for the first 6 months from the inception of the fund. After 6 full calendar months, the performance fee adjustment will be determined using the average assets and performance difference over the first 6 full calendar months, and the adjustment rate will be applied in full. Each successive month an additional calendar month will be added to the performance adjustment computation. After 12 full calendar months, the full rolling 12-month period will take affect.

Change in Index

If the PIA Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index; or (2) adoption of a methodology to transition to a substitute index it has approved.

In the case of a change in the PIA Index, a fund’s performance will be compared to a 12-month blended index return that reflects the performance of the current index for the portion of the 12-month performance measurement period beginning the effective date of the current index and the performance of the prior index for the remainder of the measurement period. At the conclusion of the transition period, the performance of the prior index will be eliminated from the performance incentive adjustment calculation, and the calculation will include only the performance of the current index.

Statement of Additional Information – March 7, 2011

Page 108

For Columbia 120/20 Contrarian Equity, Columbia Recovery and Infrastructure, and Columbia Global Extended Alpha:

The adjustment will be determined monthly by measuring the percentage difference over a rolling 36-month period (subject to earlier determination based on the Transition Period, as set forth below) between the annualized performance of one Class A share of the fund and the annualized performance of the PIA Index (“performance difference”). The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the following table and is applied against average daily net assets for the applicable rolling 36-month period or Transition Period, and divided by 12 to obtain the fee reflecting the performance fee adjustment for that month.

Table 15B. Performance Incentive Adjustment Calculation


		Columbia 120/20 Contrarian Equity
Columbia Recovery and Infrastructure		Columbia Global Extended Alpha
Performance		Performance
Difference	Adjustment Rate	Difference	Adjustment Rate
0.00% – 0.50%	0	0.00% – 1.00%	0

0.50% – 1.00%	6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference)	1.00% – 6.00%	10 basis points times the performance difference over 1.00%, times 100 (maximum 50 basis points if a 6% performance difference)

1.00% – 2.00%	3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference)	6.00% or more	50 basis points

2.00% – 4.00%	6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 10 basis points if a 4% performance difference)	N/A

4.00% – 6.00%	10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference)	N/A

6.00% or more	12 basis points	N/A

For example, if the performance difference for Columbia 120/20 Contrarian Equity is 2.38%, the adjustment rate is 0.00138 [the 1.38% performance difference over 1.00%] x 0.0010 [10 basis points] x 100. Rounded to five decimal places, the adjustment rate is 0.00138. This adjustment rate of 0.00138 is then applied against the average daily net assets for the applicable rolling 36-month or Transition Period, and divided by 12, which provides the performance adjustment fee for that month. Where the fund’s Class A performance exceeds that of the PIA Index for the applicable rolling 36-month period or Transition Period, the fee paid to the investment manager will increase by the adjustment rate. Where the performance of the PIA Index exceeds the performance of the fund’s Class A shares for the applicable rolling 36-month period or Transition Period, the fee paid to the Investment Manager will decrease by the adjustment rate.

The 36-month comparison period rolls over with each succeeding month, so that it always equals 36 months, ending with the month for which the performance adjustment is being computed.

Transition Period

The performance incentive adjustment will not be calculated for the first 24 months from the inception of the fund. After 24 full calendar months, the performance fee adjustment will be determined using the average assets and Performance Difference over the first 24 full calendar months, and the Adjustment Rate will be applied in full. Each successive month an additional calendar month will be added to the performance adjustment computation. After 36 full calendar months, the full rolling 36-month period will take affect.

Change in Index

Statement of Additional Information – March 7, 2011

Page 109

(1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

In the case of a change the PIA Index, a fund’s performance will be compared to a 36-month blended index return that reflects the performance of the current index for the portion of the 36-month performance measurement period beginning the effective date of the current index and the performance of the prior index for the remainder of the measurement period. At the conclusion of the transition period, the performance of the prior index will be eliminated from the performance incentive adjustment calculation, and the calculation will include only the performance of the current index.

In September 2010 the Board approved, an amended investment management services agreement (“IMSA”) that would eliminate the PIA. Effective October 1, 2010 for Columbia 120/20 Contrarian Equity Fund, Columbia Asia Pacific ex-Japan Fund, Columbia Mid Cap Growth Opportunity Fund and Columbia Multi-Advisor International Value Fund, the investment manager has agreed that for a transitional period of 6 months, except the transitional period for Columbia 120/20 Contrarian Equity Fund will be 18 months, each fund will compensate the investment manager at the lower of: (i) the fee calculated under the proposed IMSA (i.e., without the PIA), or (ii) the fee calculated under the current IMSA (including any applicable negative PIA).

The IMSA proposal was approved by fund shareholders at a shareholder meeting held Feb. 15, 2011. More information about the IMSA proposal is available in proxy materials distributed to shareholders in early 2011. The IMSA proposal is expected to be effective in the second quarter of 2011.

The table below shows the total management fees paid by each fund for the last three fiscal periods as well as nonadvisory expenses, net of earnings credits, waivers and expenses reimbursed by the investment manager and its affiliates. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 16. Management Fees and Nonadvisory Expenses


	Management Fees						Nonadvisory expenses
Fund	2010		2009		2008		2010			2009			2008
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund		N/A		N/A		N/A	$	101,055		$	139,640		$	103,636	^(a)

Columbia Income Builder Fund II		N/A		N/A		N/A		109,874			175,842			129,062	^(a)

Columbia Income Builder Fund III		N/A		N/A		N/A		112,467			118,255			134,546	^(a)

Columbia Portfolio Builder Aggressive		N/A		N/A		N/A		107,162			199,501			168,942

Columbia Portfolio Builder Conservative		N/A		N/A		N/A		151,416			146,492			96,147

Columbia Portfolio Builder Moderate		N/A		N/A		N/A		272,479			278,861			247,980

Columbia Portfolio Builder Moderate Aggressive		N/A		N/A		N/A		290,338			299,503			247,472

Columbia Portfolio Builder Moderate Conservative		N/A		N/A		N/A		164,289			170,774			117,533

Columbia Portfolio Builder Total Equity		N/A		N/A		N/A		28,299			149,589			173,675

RiverSource S&P 500 Index	$	255,644	$	371,178	$	579,548		(29,594	)		(194,370	)		(254,777	)

RiverSource Small Company Index		1,306,919		1,990,095		3,292,392		(1,051,278	)		(1,171,627	)		(1,007,306	)

*For funds with fiscal period ending March 31*

Columbia Equity Value		3,406,527		4,340,117		6,797,853		309,679			343,552			413,170

RiverSource Precious Metals and Mining		1,112,166		824,176		956,280		144,675			242,615			175,405

Statement of Additional Information – March 7, 2011

Page 110


	Management Fees								Nonadvisory expenses
Fund	2010		2009			2008			2010			2009			2008
*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity	$	360,835	$	368,969		$	159,311	^(b)	$	31,738		$	34,475		$	21,297	^(b)

Columbia Recovery and Infrastructure		2,163,593		45,652	^(c)		N/A			232,888			18,717	^(c)		N/A

Columbia Retirement Plus 2010		N/A		N/A			N/A			(2,671	)		(4,254	)		41

Columbia Retirement Plus 2015		N/A		N/A			N/A			(7,079	)		(7,894	)		310

Columbia Retirement Plus 2020		N/A		N/A			N/A			(7,779	)		(9,956	)		745

Columbia Retirement Plus 2025		N/A		N/A			N/A			(11,346	)		(12,026	)		332

Columbia Retirement Plus 2030		N/A		N/A			N/A			(9,157	)		(9,748	)		431

Columbia Retirement Plus 2035		N/A		N/A			N/A			(8,136	)		(7,948	)		487

Columbia Retirement Plus 2040		N/A		N/A			N/A			(7,439	)		(6,946	)		(796	)

Columbia Retirement Plus 2045		N/A		N/A			N/A			(7,533	)		(6,418	)		(2,131	)

*For funds with fiscal period ending May 31*

Columbia High Yield Bond		9,691,900		6,353,707			9,610,610			(400,525	)		(748,008	)		665,785

Columbia Multi-Advisor Small Cap Value		3,968,159		3,098,591			6,511,571			(684,318	)		(963,886	)		(972,781	)

Columbia U.S. Government Mortgage		1,247,010		1,731,277			1,958,404			(256,078	)		(327,855	)		(389,262	)

RiverSource Partners Fundamental Value		4,305,601		4,416,792			7,668,633			(775,463	)		(939,055	)		(213,716	)

RiverSource Short Duration U.S. Government		3,287,540		3,665,529			3,816,196			(877,297	)		(610,585	)		(771,512	)

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity		8,065,963		6,381,215			12,015,660			(91,086	)		(502,682	)		626,341

RiverSource Real Estate		1,498,361		1,227,857			1,667,040			(83,163	)		(18,514	)		138,649

*For funds with fiscal period ending July 31*

Columbia Floating Rate		2,466,113		2,210,544			3,509,190			226,409			(61,933	)		293,676

Columbia Income Opportunities		4,451,807		1,913,521			1,767,885			313,169			291,601			196,944

Columbia Inflation Protected Securities		2,886,405		3,322,371			2,554,103			(354,181	)		(115,062	)		(238,396	)

Columbia Large Core Quantitative		21,017,705		9,909,438			17,556,244			(4,112,307	)		268,796			726,080

Columbia Limited Duration Credit		2,186,361		844,435			792,200			(272,368	)		(68,816	)		(78,320	)

Columbia Money Market		8,951,478		12,658,313			15,026,220			(13,410,378	)		(1,868,463	)		1,290,897

RiverSource Disciplined Small and Mid Cap Equity		851,036		853,191			365,578			162,170			143,015			125,645

RiverSource Disciplined Small Cap Value		375,114		363,926			286,759			55,844			47,195			33,868

*For funds with fiscal period ending August 31*

Columbia Diversified Bond		19,593,287		15,648,683			14,772,880			(1,381,496	)		(2,314,025	)		(461,298	)

Columbia Marsico Flexible Capital ^(g)		N/A		N/A			N/A			N/A			N/A			N/A

Columbia Minnesota Tax-Exempt		1,360,384		1,230,393			1,246,083			44,953			196,213			506,328

RiverSource California Tax-Exempt		645,263		663,711			715,946			31,789			73,054			44,499

RiverSource New York Tax-Exempt		224,128		220,172			242,807			(994	)		9,792			75,790

Statement of Additional Information – March 7, 2011

Page 111


	Management Fees								Nonadvisory expenses
	2010		2009			2008			2010			2009			2008
*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income	$	27,123,619	$	17,053,076		$	44,177,652		$	942,822		$	1,037,819		$	1,905,627

Columbia Large Growth Quantitative		4,488,490		2,033,555			905,956			239,308			214,462			195,661

Columbia Large Value Quantitative		1,711,964		661,677			6,618	^(d)		175,996			168,055			2,877	^(d)

Columbia Mid Cap Value Opportunity		14,465,693		9,896,881			18,813,340			480,913			776,726			992,201

Columbia Strategic Allocation		5,680,661		6,604,411			10,108,947			541,596			585,299			1,047,907

RiverSource Balanced		3,318,704		2,483,462			3,977,541			304,130			346,693			437,940

RiverSource Strategic Income Allocation		1,810,439		1,081,850			904,660			269,484			246,334			294,099

Seligman California Municipal High-Yield		142,520		164,150			173,288			4,712			32,933			53,665

Seligman California Municipal Quality		164,593		192,624			196,281			5,518			60,833			90,615

Seligman Minnesota Municipal		277,610		324,501			351,237			2,894			68,180			99,131

Seligman National Municipal		2,692,664		1,147,080			304,747			24,719			62,006			106,685

Seligman New York Municipal		341,577		352,211			332,574			16,001			75,556			88,770

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income		1,811,957		4,698,565			4,188,137			198,087			205,127			313,877

Columbia Asia Pacific ex-Japan		1,639,719		78,072	^(e)		N/A			432,652			21,500	^(e)		N/A

Columbia Emerging Markets Bond		1,777,437		1,320,292			1,182,004			274,761			82,201			172,124

Columbia Emerging Markets Opportunity		6,678,651		3,791,476			7,352,591			1,214,163			524,327			1,138,897

Columbia European Equity		552,061		600,499			980,629			5,098			(31,736	)		223,792

Columbia Frontier		884,356		321,582			579,499			(85,171	)		(20,898	)		200,110

Columbia Global Bond		3,543,599		3,551,274			5,074,934			27,675			(33,836	)		165,694

Columbia Global Equity		3,435,736		2,918,784			5,825,153			372,343			350,276			554,139

Columbia Global Extended Alpha		96,692		64,424			16,485	^(f)		5,453			4,234			1,122	^(f)

Columbia Multi-Advisor International Value		5,751,275		5,749,639			13,239,202			566,858			511,602			1,054,830

Columbia Seligman Global Technology		4,825,096		2,551,543			3,571,473			218,202			386,252			680,094

RiverSource Disciplined International Equity		3,607,751		2,174,525			5,209,129			495,117			252,387			512,793

RiverSource Partners International Select Growth		3,647,785		3,240,723			5,965,413			(499,992	)		(660,493	)		334,550

RiverSource Partners International Small Cap		1,149,239		496,177			1,057,146			(190,000	)		(45,193	)		63,912

Threadneedle Global Equity Income		235,459		177,834			15,723	^(f)		42,445			25,200			2,989	^(f)

Threadneedle International Opportunity		3,025,818		3,074,518			4,661,800			334,330			283,182			486,074

Statement of Additional Information – March 7, 2011

Page 112


	Management Fees						Nonadvisory expenses
	2010		2009		2008		2010			2009			2008
*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond	$	2,716,984	$	2,699,258	$	2,764,541	$	108,977		$	48,345		$	506,736

Columbia Mid Cap Growth Opportunity		6,667,459		4,488,355		4,726,590		305,174			281,069			437,496

RiverSource Intermediate Tax-Exempt		375,256		339,947		291,762		8,060			8,313			2,588

RiverSource Tax-Exempt High Income		10,262,645		10,226,940		11,447,732		(1,135,129	)		(1,338,742	)		2,984,232

*For funds with fiscal period ending December 31*

Columbia Government Money Market		462,678		518,174		893,335		(651,865	)		(1,105,030	)		6,551

Columbia Select Large-Cap Value		2,692,204		1,486,938		1,732,331		355,259			292,721			282,371

Columbia Select Smaller-Cap Value		3,887,422		1,687,329		2,048,229		(1,052,710	)		(186,016	)		295,691

Columbia Seligman Communications and Information		31,300,872		25,152,110		28,854,808		1,980,670			1,991,333			2,540,656

RiverSource LaSalle Global Real Estate		129,289		114,310		243,213		15,591			(8,058	)		221,303

RiverSource LaSalle Monthly Dividend Real Estate		248,730		208,539		460,038		22,235			(107,139	)		177,277

Seligman Capital		1,896,811		1,731,065		2,912,130		299,997			370,916			386,885

Seligman Growth		10,292,584		4,254,428		2,534,267		43,368			85,442			387,623


(a)		The fund changed its fiscal year end effective Jan. 31, 2008 from May 31 to Jan. 31. For 2008, the information shown is for the period from June 1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period ended on May 31.
(b)		For the period from Oct. 18, 2007 (when shares became publicly available) to April 30, 2008.
(c)		For the fiscal period from Feb. 19, 2009 (when shares became publicly available) to April 30, 2009.
(d)		For the period from Aug. 1, 2008 (when shares became publicly available) to Sept. 30, 2008.
(e)		For the period from July 15, 2009 (when the Fund became available) to Oct. 31, 2009.
(f)		For the period from Aug. 1, 2008 (when shares became publicly available) to Oct. 31, 2008.


(g)		The fund is new as of Sept. 28, 2010 and has not passed its fiscal period end; therefore no reporting is available.

Manager of Managers Exemption

The funds have received an order from the SEC that permits Columbia Management, subject to the approval of the Board, to appoint a subadviser or change the terms of a subadvisory agreement for a fund without first obtaining shareholder approval. The order permits the fund to add or change unaffiliated subadvisers or the fees paid to subadvisers from time to time without the expense and delays associated with obtaining shareholder approval of the change.

For all Seligman funds and for Columbia Seligman Communications and Information, RiverSource California Tax-Exempt, RiverSource Intermediate Tax-Exempt, RiverSource New York Tax-Exempt, RiverSource Short Duration U.S. Government, and RiverSource Tax-Exempt High Income funds: if the fund were to seek to rely on the order, holders of a majority of the fund’s outstanding voting securities would need to approve operating the fund in this manner. There is no assurance shareholder approval, if sought, will be received, and no changes will be made without shareholder approval until that time.

Subadvisory Agreements

The assets of certain funds are managed by subadvisers that have been selected by the investment manager, subject to the review and approval of the Board. The investment manager has recommended the subadvisers to the Board based upon its assessment of the skills of the subadvisers in managing other assets with objectives and investment strategies substantially similar to those of the applicable fund. Short-term investment performance is not the only factor in selecting or terminating a subadviser, and the investment manager does not expect to make frequent changes of subadvisers. Certain subadvisers, affiliated with the investment manager, have been directly approved by shareholders. These subadvisers are noted in Table 17.

Statement of Additional Information – March 7, 2011

Page 113

The investment manager allocates the assets of a fund with multiple subadvisers among the subadvisers. Each subadviser has discretion, subject to oversight by the Board and the investment manager, to purchase and sell portfolio assets, consistent with the fund’s investment objectives, policies, and restrictions. Generally, the services that a subadviser provides to the fund are limited to asset management and related recordkeeping services.

The investment manager has entered into an advisory agreement with each subadviser under which the subadviser provides investment advisory assistance and day-to-day management of some or all of the fund’s portfolio, as well as investment research and statistical information. A subadviser may also serve as a discretionary or non-discretionary investment adviser to management or advisory accounts that are unrelated in any manner to the investment manager or its affiliates.

The following table shows the advisory fee schedules for fees paid by the investment manager to subadvisers for funds that have subadvisers. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 17. Subadvisers and Subadvisory Agreement Fee Schedules


		Parent
Fund	Subadviser	Company	Fee Schedule


*For funds with fiscal period ending May 31*


Columbia Multi-Advisor Small Cap Value	Barrow, Hanley, Mewhinney & Strauss (BHMS) ^(a) (effective March 12, 2004)	A	1.00% on the first $10 million, reducing to 0.30% as assets increase


	Donald Smith & Co., Inc.	N/A	0.60% on the first $175 million,
	(Donald Smith) ^(a)		reducing to 0.55% as assets
	(effective March 12, 2004)		increase


	Metropolitan West Capital Management, LLC (MetWest Capital) (effective April 24, 2006)	B	0.50% on all assets


	Turner Investment Partners, Inc. (Turner) (effective Feb. 19, 2010)	N/A	0.50% on the first $50 million, reducing to 0.35% as assets increase. ^(a)


RiverSource Partners Fundamental Value	Davis Selected Advisers, LP (Davis) ^(a), (b) (effective June 18, 2001)	N/A	0.45% on the first $100 million, reducing to 0.25% as assets increase


*For funds with fiscal period ending August 31*


Columbia Marsico Flexible Capital Fund	Marsico Capital Management, LLC (Marsico Capital) (effective Sept. 22, 2010)	C	0.45% on all assets


*For funds with fiscal period ending October 31*


Columbia Asia Pacific ex-Japan	Threadneedle International Limited ^(b) (Threadneedle) (effective July 15, 2009)	D	0.50% on the first $250 million, reducing to 0.40% as assets increase, and subject to a performance incentive adjustment ^(c)


Columbia Emerging Markets Opportunity	Threadneedle ^(b) (effective July 9, 2004)	D	0.45% of the first $150 million, reducing to 0.30% as assets increase, and subject to a performance incentive adjustment ^(c)


Columbia European Equity	Threadneedle ^(b) (effective July 9, 2004)	D	0.35% of the first $150 million, reducing to 0.20% as assets increase, and subject to a performance incentive adjustment ^(c)


Columbia Global Equity	Threadneedle ^(b) (effective July 9, 2004)	D	0.35% of the first $150 million, reducing to 0.20% as assets increase, and subject to a performance incentive adjustment ^(b)

Statement of Additional Information – March 7, 2011

Page 114


		Parent
Fund	Subadviser	Company	Fee Schedule

Columbia Global Extended Alpha	Threadneedle ^(b) (effective Aug. 1, 2008)	D	0.70% of the first $250 million, reducing to 0.60% as assets increase, and subject to a performance incentive adjustment ^(c)


Columbia Multi-Advisor International Value	AllianceBernstein L.P. (AllianceBernstein) (effective Sept. 17, 2001)	N/A	0.65% on the first $75 million, reducing to 0.30% as assets increase


	Mondrian Investment Partners Limited (Mondrian) (effective August 18, 2008)	N/A	0.70% on all assets


	Tradewinds Global Investors, LLC (Tradewinds) (effective August 18, 2008)	N/A	0.50% on the first $250 million, reducing to 0.40 as assets increase


RiverSource Partners International Select Growth	Columbia Wanger Asset Management LLC (Columbia WAM) ^(a),(d) (effective Sept. 5, 2001)	E	0.70% on the first $150 million, reducing to 0.50% as assets increase


RiverSource Partners International Small Cap	Columbia WAM ^(a),(d) (effective Aug. 10, 2009)	E	0.70% on the first $150 million, reducing to 0.50% as assets increase


Threadneedle Global Equity Income	Threadneedle ^(b) (effective Aug. 1, 2008)	D	0.45% of the first $250 million, reducing to 0.35% as assets increase, and subject to a performance incentive adjustment ^(c)


Threadneedle International Opportunity	Threadneedle ^(b) (effective July 9, 2004)	D	0.35% of the first $150 million, reducing to 0.20% as assets increase, and subject to a performance incentive adjustment ^(c)


*For funds with fiscal period ended December 31*


RiverSource LaSalle Global Real Estate	LaSalle Investment Management (Securities), L.P. (LaSalle Securities U.S.) (since inception)	F	0.30% on the first $37 million, 0.65% on the next $43 million, and 0.49% thereafter.


RiverSource LaSalle Monthly Dividend Real Estate	LaSalle Securities U.S. (since inception)	F	0.30% on the first $58 million, 0.65% on the next $42 million, and 0.45% thereafter.


(a)		The fee is calculated based on the combined net assets subject to the subadviser’s investment management.

(b)		Davis is a 1940 Act affiliate of the investment manager because it owns or has owned more than 5% of the publicly issued securities of the investment manager’s parent company, Ameriprise Financial. Threadneedle is an affiliate of the investment manager as an indirect, wholly-owned subsidiary of Ameriprise Financial.

(c)		The adjustment for Threadneedle is based on the performance of one Class A share of the fund and the change in the PIA Index described in Table 14. The performance of the fund and the Index will be calculated using the method described above for the performance incentive adjustment paid to the investment manager under the terms of the Investment Management Services Agreement. The amount of the adjustment to Threadneedle’s fee, whether positive or negative, shall be equal to the following amount of the performance incentive adjustment made to the investment management fee payable to the investment manager under the terms of the Investment Management Services Agreement: 50% for Threadneedle Emerging Markets, Threadneedle European Equity, Threadneedle Global Equity and Threadneedle International Opportunity; 100% for Threadneedle Global Equity Income and Threadneedle Global Extended Alpha. The performance incentive adjustment was effective Dec. 1, 2004.

(d)		On May 1, 2010, Ameriprise Financial announced the closing of its acquisition of the long-term asset management business of Columbia Management Group, LLC, including Columbia WAM, from Bank of America (the “Columbia Transaction”). As a result of the Columbia Transaction, Columbia WAM is an indirect, wholly-owned subsidiary of Ameriprise Financial.

A –		BHMS is an independent-operating subsidiary of Old Mutual Asset Management.

B –		Metropolitan West Capital Management, LLC (MetWest Capital) is a subsidiary of Wells Fargo & Company and operates within the Evergreen Investments unit of its asset management division.


C –		Marsico Capital is an indirect subsidiary of Marsico Management Equity, LLC, a Delaware Limited Liability Company.


D –		Threadneedle is an indirect wholly-owned subsidiary of Ameriprise Financial.


E –		Columbia WAM is an indirect wholly-owned subsidiary of Columbia Management Group, Inc., which in turn is a wholly-owned subsidiary of Bank of America Corporation.


F –		LaSalle Investment Management (Securities), L.P. is an affiliate of Jones Lang LaSalle Incorporated.

Statement of Additional Information – March 7, 2011

Page 115

The following table shows the subadvisory fees paid by the investment manager to subadvisers in the last three fiscal periods. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 18. Subadvisory Fees


		Subadvisory Fees Paid
Fund	Subadviser	2010			2009			2008

*For funds with fiscal period ending May 31*

Columbia Multi-Advisor Small Cap Value	BHMS	$	491,375		$	437,027		$	865,372

	Donald Smith		587,548			497,789			984,692

	MetWest Capital		491,635			466,432			955,503

	Turner		89,142			N/A	^(a)		N/A

	Former subadviser: Franklin Portfolio Associates (from March 2004 to June 6, 2008)		N/A			22,583	^(b)		964,510

	Former subadviser: Federated MDTA, LLC (from June 6, 2008 to Feb. 19, 2010)		325,109	^(c)		443,715			N/A	^(a)

RiverSource Partners Fundamental Value	Davis		1,688,264			2,020,698			3,220,929

*For funds with fiscal period ending August 31*

Columbia Marsico Flexible Capital ^(k)	Marsico Capital		N/A			N/A			N/A

*For funds with fiscal period ending October 31*

Columbia Asia Pacific ex-Japan	Threadneedle		995,409			42,462	^(d)		N/A

Columbia Emerging Markets Opportunity	Threadneedle		2,539,990			1,469,749			2,801,637

Columbia European Equity	Threadneedle		247,803			260,772			443,279

Columbia Global Equity	Threadneedle		1,364,749			1,168,151			2,269,177

Columbia Global Extended Alpha	Threadneedle		69,698			43,117			11,750	^(e)

Columbia Multi-Advisor International Value	AllianceBernstein		1,719,844			2,170,338			6,268,208

	Mondrian		751,416			714,196			77,048	^(f)

	Tradewinds		974,854			1,116,798			129,124	^(f)

RiverSource Partners International Select Growth	Columbia WAM		1,628,321			956,567			1,557,963

	Former subadviser: Principal Global Investors, LLC (from April 24, 2006 to May 6, 2010)		706,892	^(g)		866,239			1,849,485

RiverSource Partners International Small Cap	Columbia WAM		507,839			41,203	^(h)		N/A

	Former subadviser: Batterymarch Financial Management, Inc. (from April 24, 2006 to April 30, 2010)		179,169	⁽ⁱ⁾		188,913			386,194

	Former subadviser: AIG Global Investment Corp. (from April 24, 2006 to Aug. 7, 2009)		N/A			127,498	^(j)		355,245

Threadneedle Global Equity Income	Threadneedle		132,036			104,654			9,057	^(e)

Threadneedle International Opportunity	Threadneedle		1,244,364			1,254,178			1,907,215

Statement of Additional Information – March 7, 2011

Page 116

Portfolio Managers. For funds other than money market funds, the following table provides information about the fund’s portfolio managers as of the end of the most recent fiscal period, unless otherwise noted. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 19. Portfolio Managers

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

For funds with fiscal period ending January 31

Columbia Income Builder Fund

Colin Lundgren

16 RICs
16 other accounts

$1.34 billion
$271.73 million

None

(15)

(18)

Gene R. Tannuzzo ⁽ⁱ⁾

1 RIC
2 other accounts

$341.48 million
$0.08 million

None

Columbia Income Builder Fund II

Colin Lundgren

16 RICs
16 other accounts

$1.18 billion
$271.73 million

None

$100,001 –
$500,000

(15)

(18)

Gene R. Tannuzzo ⁽ⁱ⁾

1 RIC
2 other accounts

$341.48 million
$0.08 million

None

Columbia Income Builder Fund III

Colin Lundgren

16 RICs
16 other accounts

$1.38 billion
$271.73 million

None

(15)

(18)

Gene R. Tannuzzo ⁽ⁱ⁾

1 RIC
2 other accounts

$341.48 million
$0.08 million

None

Columbia Portfolio Builder Aggressive

Kent M. Bergene ^(b)

5 RICs
7 other accounts

$3.30 billion
$1.36 million

None

$50,001 –
$100,000

(1)

(19)

Colin Moore ^(j)

19 RICs
26 PIVs
21 other accounts

$3.62 billion
$2.4 billion
$299.0 million

None

(3)

(19)

David M. Joy

5 RICs
6 other accounts

$3.30 billion
$1.01 million

None

(1)

(20)

Anwiti Bahuguna ^(j)

17 RICs
26 PIVs
22 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

(3)

(20)

Kent Peterson ^(j)

17 RICs
26 PIVs
21 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

Marie M. Schofield ^(j)

17 RICs
26 PIVs
16 other accounts

$2.1 million
$2.4 million
$296.0 million

None

Columbia Portfolio Builder Conservative

Kent M. Bergene ^(b)

5 RICs
7 other accounts

$3.30 billion
$1.36 million

None

$50,001 –
$100,000

(1)

(19)

Colin Moore ^(j)

19 RICs
26 PIVs
21 other accounts

$3.62 billion
$2.4 billion
$299.0 million

None

(3)

(19)

David M. Joy

5 RICs
6 other accounts

$3.30 billion
$1.01 million

None

(1)

(20)

Anwiti Bahuguna ^(j)

17 RICs
26 PIVs
22 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

(3)

(20)

Kent Peterson ^(j)

17 RICs
26 PIVs
21 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

Marie M. Schofield ^(j)

17 RICs
26 PIVs
16 other accounts

$2.1 million
$2.4 million
$296.0 million

None

Statement of Additional Information – March 7, 2011

Page 118

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

Columbia Portfolio Builder Moderate

Kent M. Bergene ^(b)

5 RICs
7 other accounts

$3.30 billion
$1.36 million

None

$50,001 –
$100,000

(1)

(19)

Colin Moore ^(j)

19 RICs
26 PIVs
21 other accounts

$3.62 billion
$2.4 billion
$299.0 million

None

(3)

(19)

David M. Joy

5 RICs
6 other accounts

$3.30 billion
$1.01 million

None

(1)

(20)

Anwiti Bahuguna ^(j)

17 RICs
26 PIVs
22 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

(3)

(20)

Kent Peterson ^(j)

17 RICs
26 PIVs
21 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

Marie M. Schofield ^(j)

17 RICs
26 PIVs
16 other accounts

$2.1 million
$2.4 million
$296.0 million

None

Columbia Portfolio Builder Moderate Aggressive

Kent M. Bergene ^(b)

5 RICs
7 other accounts

$3.30 billion
$1.36 million

None

$50,001 –
$100,000

(1)

(19)

Colin Moore ^(j)

19 RICs
26 PIVs
21 other accounts

$3.62 billion
$2.4 billion
$299.0 million

None

(3)

(19)

David M. Joy

5 RICs
6 other accounts

$3.30 billion
$1.01 million

None

(1)

(20)

Anwiti Bahuguna ^(j)

17 RICs
26 PIVs
22 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

(3)

(20)

Kent Peterson ^(j)

17 RICs
26 PIVs
21 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

Marie M. Schofield ^(j)

17 RICs
26 PIVs
16 other accounts

$2.1 million
$2.4 million
$296.0 million

None

Columbia Portfolio Builder Moderate Conservative

Kent M. Bergene ^(b)

5 RICs
7 other accounts

$3.56 billion
$1.36 million

None

$10,001 –
$50,000

(1)

(19)

Colin Moore ^(j)

19 RICs
26 PIVs
21 other accounts

$3.62 billion
$2.4 billion
$299.0 million

None

(3)

(19)

David M. Joy

5 RICs
6 other accounts

$3.56 billion
$1.01 million

None

(1)

(20)

Anwiti Bahuguna ^(j)

17 RICs
26 PIVs
22 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

(3)

(20)

Kent Peterson ^(j)

17 RICs
26 PIVs
21 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

Marie M. Schofield ^(j)

17 RICs
26 PIVs
16 other accounts

$2.1 million
$2.4 million
$296.0 million

None

Columbia Portfolio Builder Total Equity

Kent M. Bergene ^(b)

5 RICs
7 other accounts

$3.30 billion
$1.36 million

None

$50,001 –
$100,000

(1)

(19)

Colin Moore ^(j)

19 RICs
26 PIVs
21 other accounts

$3.62 billion
$2.4 billion
$299.0 million

None

(3)

(19)

David M. Joy

5 RICs
6 other accounts

$3.30 billion
$1.01 million

None

(1)

(20)

Anwiti Bahuguna ^(j)

17 RICs
26 PIVs
22 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

(3)

(20)

Kent Peterson ^(j)

17 RICs
26 PIVs
21 other accounts

$2.1 billion
$2.4 billion
$296.0 million

None

Marie M. Schofield ^(j)

17 RICs
26 PIVs
16 other accounts

$2.1 million
$2.4 million
$296.0 million

None

Statement of Additional Information – March 7, 2011

Page 119

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

RiverSource S&P 500 Index

Alfred F. Alley III ^(j)

4 RICs
3 PIVs
19 other accounts

$6.5 billion
$175.0 million
$4.0 billion

None

(3)

(31)

RiverSource Small Company Index

Alfred F. Alley III ^(j)

4 RICs
3 PIVs
19 other accounts

$6.5 billion
$175.0 million
$4.0 billion

None

(3)

(31)

For funds with fiscal period ending March 31

Columbia Equity Value

Steve Schroll

12 RICs
2 PIVs
18 other accounts ^(c)

$14.61 billion
$69.61 million
$538.36 million

8 RICs ($14.05 B)

$50,001 –
$100,000

(2)

(18)

Laton Spahr

12 RICs
2 PIVs
17 other accounts ^(c)

$14.61 billion
$69.61 million
$538.66 million

8 RICs ($14.05 B)

$100,001 –
$500,000

Paul Stocking

12 RICs
2 PIVs
21 other accounts ^(c)

$14.61 billion
$69.61 million
$543.80 million

8 RICs ($14.05 B)

$50,001 –
$100,000

RiverSource Precious Metals and Mining

Michael E. Hoover ^(j)

1 RIC
3 PIVs
3 other accounts

$689.7 million
$689.7 million
$0.74 million

None

(3)

(31)

For funds with fiscal period ending April 30

Columbia 120/20 Contrarian Equity

Steve Schroll

12 RICs
2 PIVs
18 other accounts ^(c)

$14.76 billion
$70.44 million
$539.06 million

8 RICs ($14.2 B)

$10,001-
$50,000

(2)

(18)

Laton Spahr

12 RICs
2 PIVs
17 other accounts ^(c)

$14.76 billion
$70.44 million
$539.57 million

8 RICs ($14.2 B)

$500,001-
$1,000,000

Paul Stocking

12 RICs
2 PIVs
21 other accounts ^(c)

$14.76 billion
$70.44 million
$544.59 million

8 RICs ($14.2 B)

$100,001-
$500,000

Columbia Recovery and Infrastructure

Warren Spitz

None

Over
$1,000,000

(2)

(18)

Columbia Retirement Plus 2010

Kent M. Bergene ^(b),(k)

6 RICs
8 other accounts

$4.13 billion
$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

Columbia Retirement Plus 2015

Kent M. Bergene ^(b),(k)

6 RICs
8 other accounts

$4.13 billion
$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

$1- $10,000

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

Statement of Additional Information – March 7, 2011

Page 120

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

Columbia Retirement Plus 2020

Kent M. Bergene ^(b),(k)

8 other accounts

$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

Columbia Retirement Plus 2025

Kent M. Bergene ^(b),(k)

6 RICs
8 other accounts

$4.13 billion
$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

Columbia Retirement Plus 2030

Kent M. Bergene ^(b),(k)

6 RICs
8 other accounts

$4.13 billion
$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

Columbia Retirement Plus 2035

Kent M. Bergene ^(b),(k)

6 RICs
8 other accounts

$4.13 billion
$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

Statement of Additional Information – March 7, 2011

Page 121

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

Columbia Retirement Plus 2040

Kent M. Bergene ^(b),(k)

6 RICs
8 other accounts

$4.13 billion
$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

Columbia Retirement Plus 2045

Kent M. Bergene ^(b),(k)

6 RICs
8 other accounts

$4.13 billion
$1.50 million

None

(1)

(19)

Colin Moore ^(k)

19 RICs

$3.56 billion

None

(3)

(19)

26 PIVs

$2.5 billion

20 other accounts

$246 million

David M. Joy ^(k)

6 RICs
7 other accounts

$4.13 billion
$1.13 million

None

(1)

(20)

Anwiti Bahuguna ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

21 other accounts

$243 million

Kent Peterson ^(k)

17 RICs

$2.1 billion

None

(3)

(20)

26 PIVs

$2.5 billion

20 other accounts

$243 million

Marie M. Schofield ^(k)

17 RICs

$2.1 billion

None

26 PIVs

$2.5 billion

17 other accounts

$243 million

For funds with fiscal period ending May 31

Columbia High Yield Bond

Jennifer Ponce de Leon

6 RICs
1 PIV
27 other accounts

$4.04 billion
$9.33 million
$4.58 billion

2 RICs ($527.4 M)

None

(2)

(18)

Brian Lavin

12 RICs
1 PIV
4 other account

$8.92 billion
$9.33 million
$683.4 million

None

Columbia Multi-Advisor Small Cap Value

Donald Smith:
Donald G. Smith

2 RICs

$832.0 million

1 RIC ($790 M);

Richard L. Greenberg

1 PIV
33 other accounts

$67.0 million
$2.0 billion

1 other account ($68 M)

None

(9)

(25)

BHMS:

James S. McClure

4 RICs

$824.6 million

John P. Harloe

1 PIV
15 other accounts

$5.4 million
$572.3 million

None

(11)

(26)

MetWest:

Samir Sikka

5 RICs
3 PIVs
12 other accounts

$472.7 million
$84.3 million
$193.8 million

1 other account
($53.9 M)

None

(12)

(27)

Turner:

David Kovacs

4 RICs
7 PIVs
6 other accounts

$315.0 million
$46.0 million
$23930 million

1 PIV ($2 M)

None

(4)

(19)

Columbia U.S. Government Mortgage

Jason J. Callan

4 RICs
3 other accounts

$1.84 billion
$0.34 million

None

(2)

(18)

Tom Heuer

4 RICs
2 other accounts

$1.84 billion
$0.40 million

None

Statement of Additional Information – March 7, 2011

Page 122

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

RiverSource Partners Fundamental Value

Davis:
Christopher C. Davis

26 RICs
12 PIVs
117 other accounts ^(d)

$54.0 billion
$1.0 billion
$8.0 billion

None

None ^(f)

(8)

(24)

Kenneth C. Feinberg

24 RICs
11 PIVs
107 other accounts ^(d)

$54.0 billion
$1.0 billion
$7.0 billion

RiverSource Short Duration U.S. Government

Leonard A. Aplet ^(l)

11 RICs
8 PIVs
85 other accounts

$2.90 billion
$3.56 billion
$10.93 billion

None

(3)

(31)

Gregory S. Liechty ^(l)

1 RICs
13 other accounts

$2.48 billion
$71.3 million

None

Ronald B. Stahl ^(l)

11 RICs
6 PIVs
53 other accounts

$2.90 billion
$785.66 million
$3.88 billion

None

For funds with fiscal period ending June 30

Columbia Dividend Opportunity

Steve Schroll

12 RICs
2 PIVs
21 other accounts ^(c)

$12.06 billion
$58.92 million
$467.85 million

8 RICs ($11.57 M)

$100,001-$500,000

Laton Spahr

12 RICs
2 PIVs
17 other accounts ^(c)

$12.06 billion
$58.92 million
$468.59 million

8 RICs ($11.57 M)

$100,001-$500,000

Paul Stocking

12 RICs
2 PIVs
18 other accounts ^(c)

$12.06 billion
$58.92 million
$473.07 million

8 RICs ($11.57 M)

$10,001-
$50,000

(2)

(18)

RiverSource Real Estate

Arthur J. Hurley

1 RIC
7 other accounts

$332.0 million
$0.40 million

None

(3)

(31)

For funds with fiscal period ending July 31

Columbia Floating Rate

Lynn Hopton

11 PIVs
11 other accounts

$4.85 billion
$440.11 million

None

(2)

(28)

Yvonne Stevens

11 PIVs
11 other accounts

$4.85 billion
$436.48 million

None

Steve Staver

5 other accounts

$0.81 million

None

Columbia Income Opportunities

Brian Lavin

12 RICs
1 PIV
3 other account

$8.19 billion
$10.40 million
$684.85 million

None

(2)

(18)

Columbia Inflation Protected Securities

Nicholas Pifer ^(l)

6 RICs
3 PIVs
19 other accounts

$4.67 billion
$21.58 million
$4.99 billion

None

(2)

(22)

VishaI Khanduja

1 RIC
3 other accounts

$2.24 billion
$0.09 million

None

Columbia Large Core Quantitative

Brian M. Condon

12 RICs
8 PIVs
43 other accounts

$4.92 billion
$707 million
$2.63 billion

1 PIV ($23 M)

None

(3)

(31)

Columbia Limited Duration Credit

Tom Murphy

6 RICs
2 PIVs
17 other accounts

$12.38 billion
$715.72 million
$12.88 billion

2 RICs ($1.53 B);
1 other account
($30.68 M)

Over
1,000,000

(2)

(18)

Timothy J. Doubek

1 RIC
5 other account

$2.05 billion
$31.88 million

1 other account
($30.68 M)

$10,001 –
$50,000

RiverSource Disciplined Small and Mid Cap Equity

Brian M. Condon

12 RICs
8 PIVs
43 other accounts

$8.52 billion
$707 million
$2.63 billion

1 PIV ($23 M)

None

(3)

(31)

Alfred F. Alley III

6 RICs
6 PIVs
17 other accounts

$6.81 billion
$846.76 million
$1.28 billion

None

RiverSource Disciplined Small and Mid Cap Value

Brian M. Condon

12 RICs
8 PIVs
43 other accounts

$8.61 billion
$707 million
$2.63 billion

1 PIV ($23 M)

None

(3)

(31)

Alfred F. Alley III

6 RICs
6 PIVs
17 other accounts

$6.90 billion
$846.76 million
$1.28 billion

None

Statement of Additional Information – March 7, 2011

Page 123

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

For funds with fiscal period ending August 31

Columbia Diversified Bond

Tom Murphy

5 RICs
2 PIVs
18 other accounts

$7.96 billion
$709.69 million
$13.30 billion

2 RICs ($1.46 B);
1 other account
($29.94 M)

$10,001 –
$50,000

(2)

(18)

Jennifer Ponce de Leon

6 RICs
27 other accounts

$5.60 billion
$4.68 billion

2 RICs ($1.46 B);
1 other account
($29.94 M)

None

Colin Lundgren

22 RICs
9 other accounts

$38.96 billion
$272.65 million

2 RICs ($1.46 B)

$100,001 –
$500,000

Columbia Marsico Flexible Capital

A. Douglas Rao ⁽ⁿ⁾

23 RICs
9 PIVs
111 other accounts ^(d)

$15.22 billion
$1.14 billion
$11.46 billion

None

(17)

(37)

Columbia Minnesota Tax-Exempt

Catherine Stienstra

10 RICs
12 other accounts

$4.15 billion
$6.80 billion

None

(2)

(18)

Mary Grindland ^(m)

1 RIC
6 other accounts

$67.34 billion
$0.42 million

None

$10,001 –
$50,000

RiverSource California Tax-Exempt

Catherine Stienstra

10 RICs
12 other accounts

$4.35 billion
$6.80 billion

None

(2)

(18)

RiverSource New York Tax-Exempt

Catherine Stienstra

10 RICs
12 other accounts

$4.45 billion
$6.80 billion

None

(2)

(18)

For fund with fiscal period ending September 30

Columbia Diversified Equity Income

Laton Spahr

12 RICs
2 PIVs
16 other accounts

$9.94 billion
$59.51 million $544.22 million

8 RICs ($9.42 B)

$100,001-$500,000

Steve Schroll

12 RICs
2 PIVs
18 other accounts

$9.94 billion
$59.51 million $543.14 million

8 RICs ($9.42 B)

$50,001-$100,000

(2)

(18)

Paul Stocking

12 RICs
2 PIVs
20 other accounts

$9.94 billion
$59.51 million $549.37 million

8 RICs ($9.42 B)

Over $1,000,000

Columbia Large Growth Quantitative

Brian M. Condon

11 RICs
9 PIVs
40 other accounts

$7.92 billion
$757 million $2.798 billion

1 PIV ($22 M)

None

(3)

(31)

Columbia Large Value Quantitative

Brian M. Condon

11 RICs
9 PIVs
40 other accounts

$8.429 billion
$757 million
$2.798 billion

1 PIV ($22 M)

None

(3)

(31)

Columbia Mid Cap Value Opportunity

Laton Spahr

12 RICs
2 PIVs
16 other accounts

$12.18 billion $59.51 million $544.22 million

8 RICs ($9.42 B)

$50,001-$100,000

Steve Schroll

12 RICs
2 PIVs
18 other accounts

$12.18 billion $59.51 million $543.14 million

8 RICs ($9.42 B)

$50,001-$100,000

(2)

(18)

Paul Stocking

12 RICs
2 PIVs
20 other accounts

$12.18 billion $59.51 million $549.37 million

8 RICs ($9.42 B)

$50,001-$100,000

Columbia Strategic Allocation

Anwiti Bahuguna

36 RICs
35 PIVs
21 other accounts

$6.558 billion
$4.45 billion
$252 million

None

Kent Peterson

36 RICs
35 PIVs
16 other accounts

$6.558 billion
$4.45 billion
$252 million

None

(3)

(31)

Marie M. Schofield

36 RICs
35 PIVs
17 other accounts

$6.558 billion
$4.45 billion
$253 million

None

Colin Moore

38 RICs
35 PIVs
20 other accounts

$7.93 billion
$4.45 billion
$255 million

None

(3)

(19)

David M. Joy

31 RICs
6 other accounts

$6.27 billion
$1.14 million

None

(2)

(20)

Statement of Additional Information – March 7, 2011

Page 124

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

RiverSource Balanced

Steve Schroll

12 RICs
2 PIVs
18 other accounts

$13.77 billion $59.51 million $543.14 million

8 RICs ($9.42 B)

None

(2)

(18)

Laton Spahr

12 RICs
2 PIVs
16 other accounts

$13.77 billion $59.51 million $544.22 million

8 RICs ($9.42 B)

None

Paul Stocking

12 RICs
2 PIVs
20 other accounts

$13.77 billion $59.51 million $549.37 million

8 RICs ($9.42 B)

None

Tom Murphy

5 RICs
2 PIVs
17 other accounts

$12.73 billion $716.23 million $13.57 billion

1 RIC ($933.4 M);
1 other account
($23.54 M)

None

Jennifer Ponce de Leon

6 RICs
1 PIV
25 other accounts

$3.34 billion
$10.56 million $4.88 billion

1 RIC ($933.4 M);
1 other account
($6.21 M)

None

Colin Lundgren

14 RICs
9 other accounts

$48.53 billion $277.27 million

1 RIC ($933.4 M)

None

RiverSource Strategic Income Allocation

Colin Lundgren

14 RICs
9 other accounts

$48.78 billion $277.27 million

2 RICs ($1.54 B)

None

Gene R. Tannuzzo

11 RICs
2 other accounts

$43.37 billion
$0.09 million

None

$1-$10,000

(2)

(18)

Brian Lavin

12 RICs
1 PIV
3 other account

$9.49 billion
$10.56 million $695.44 million

None

Seligman California Municipal High-Yield

Catherine Stienstra

11 RICs
12 other accounts

$4.07 billion
$6.70 billion

None

(2)

(18)

Seligman California Municipal Quality

Catherine Stienstra

11 RICs
12 other accounts

$4.07 billion
$6.70 billion

None

(2)

(18)

Seligman Minnesota Municipal

Catherine Stienstra

11 RICs
12 other accounts

$4.04 billion
$6.70 billion

None

(2)

(18)

Mary Grindland

1 RIC
6 other accounts

$355.48 million
$0.3 million

None

Seligman National Municipal

Kimberly Campbell

7 RICs
18 other accounts

$3.45 billion
$960,000

None

(3)

(31)

Seligman New York Municipal

Catherine Stienstra

11 RICs
12 other accounts

$4.02 billion
$6.70 billion

None

(2)

(18)

For funds with fiscal period ending October 31

Columbia Absolute Return Currency and Income

Nicholas Pifer

6 RICs
1 PIV
18 other accounts

$5.38 billion
$7.44 million
$4.99 billion

2 other accounts ($92.12 M)

$50,001-$100,000

(2)

(18)

Columbia Asia Pacific ex-Japan

Threadneedle:

Vanessa Donegan

5 RICs
9 other accounts

$3.86 billion
$4.62 billion

2 RICs

None ^(f)

(13)

(35)

Rafael Polatinsky

2 RICs
3 other accounts

$1.66 billion
$840.0 million

2 RICs

Columbia Emerging Markets Bond

Nicholas Pifer

6 RICs
1 PIV
18 other accounts

$5.02 billion
$7.44 million
$4.99 billion

2 other accounts ($92.12 M)

$10,001-$50,000

(2)

(18)

Jim Carlene

6 PIVs
5 other accounts

$63.99 million
$1.32 million

None

$10,001-$50,000

Columbia Emerging

Threadneedle:

Markets Opportunity

Vanessa Donegan

5 RICs
9 other accounts

$4.64 billion
$4.62 billion

2 RICs

None ^(f)

(13)

(35)

Rafael Polatinsky

2 RICs
3 other accounts

$1.66 billion
$840.0 million

2 RICs

Columbia European

Threadneedle:

Equity

Dan Ison

4 RICs

$1.07 billion

1 RIC ($95 M)

None ^(f)

(13)

(35)

Columbia Frontier

John K. Schonberg

8 RICs
2 PIVs
6 other accounts

$1.85 billion
$29.31 million
$1.58 million

2 RICs ($1.46 B)

None

(2)

(18)

Sam Murphy

2 RICs
3 other accounts

$1.46 billion
$0.14 million

None

Mike Marzolf

2 RICs
3 other accounts

$1.46 billion
$0.08 million

None

Statement of Additional Information – March 7, 2011

Page 125

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

Columbia Global Bond

Nicholas Pifer

6 RICs
1 PIV
18 other accounts

$5.02 billion
$7.44 million
$4.99 billion

2 other accounts ($92.12 M)

$50,001-$100,000

(2)

(18)

Columbia Global

Threadneedle:

Equity

Stephen Thornber

3 RICs
1 other account

$114.0 million
$455.0 million

2 RICs ($79 M)

None ^(f)

(13)

(36)

Andrew Holliman

3 RICs
1 other account

$164.0 million
$253.0 million

1 RIC ($10 M)

Columbia Global Extended Alpha

Threadneedle:

Andrew Holliman

3 RICs
1 other account

$154.0 million
$253.0 million

1 RIC ($10 M)

None ^(f)

(13)

(36)

Jeremy Podger

4 RICs
2 other accounts

$2.92 billion
$64.0 million

1 RIC ($2 M)

Columbia Multi-

AllianceBernstein:

Advisor
International Value

Kevin F. Simms

210 RICs
339 PIVs
33,200 other accounts

$35.55 billion
$20.71 billion
$83.31 billion

3 RICs ($6.74 B);
13 PIVs ($1.26 B);
66 other accounts ($8.53 B)

None

(15)

(33)

Henry S. D’Auria

165 RICs
247 PIVs
33,196 other accounts

$33.38 billion
$18.70 billion
$82.94 billion

3 RICs ($6.74 B);
10 PIVs ($1.21 B);
66 other accounts ($8.53 B)

Sharon E. Fay

212 RICs
363 PIVs
33,374 other accounts

$36.11 billion
$24.01 billion
$92.72 billion

3 RICs ($6.74 B); 15 PIVs ($1.53 B); 87 other accounts ($9.38 B)

Eric J. Franco

74 RICs
122 PIVs
142 other accounts

$16.54 billion
$6.40 billion
$17.14 billion

1 RIC ($2.12 B);
1 PIV ($0); 8 other accounts ($1.16 B)

Mondrian:

Ormala Krishnan

1 RIC
1 PIV
9 other accounts

$456.0 million
$1.54 billion
$1.19 million

None

(7)

(34)

Tradewinds:

Peter Boardman

6 RICs
11 PIVs
40,383 other accounts

$2.17 billion
$984.8 million
$13.31 billion

None

(10)

(35)

Alberto Jimenez Crespo

6 RICs
11 PIVs
40,380 other accounts

$2.19 billion
$985.0 million
$13.11 billion

Columbia Seligman Global Technology

Richard M. Parower

3 RICs
5 PIVs
9 other accounts

$3.97 billion
$1.96 billion
$416.27 million

None

(2)

(30)

Paul H. Wick

4 RICs
5 PIVs
6 other accounts

$4.27 billion
$1.96 billion
$411.85 million

None

Reema D. Shah

3 RICs
5 PIVs
10 other accounts

$3.97 billion
$1.96 billion
$412.34 million

None

Ajay Diwan

4 RICs
5 PIVs
10 other accounts

$4.27 billion
$1.96 billion
$410.98 million

None

Benjamin Lu

1 RIC
2 PIVs
1 other account

$5.58 million
$26.89 million
$0.001 million

None

RiverSource Disciplined International Equity

Fred Copper

8 RICs
2 PIVs
22 other accounts

$1.5 billion
$569.2 million
$69.9 million

None

(3)

(32)

RiverSource

Columbia WAM:

Partners

P. Zachary Egan

3 RICs

$6.3 billion

None

(14)

(31)

International Select

Growth

Louis J. Mendes III

4 RICs

$7.1 billion

RiverSource

Columbia WAM:

Partners

P. Zachary Egan

3 RICs

$6.5 billion

None

(14)

(31)

International Small

Cap

Louis Mendes III

4 RICs

$7.4 billion

Threadneedle

Threadneedle:

Global

Stephen Thornber

3 RICs
1 other account

$486.0 million
$455.0 million

2 RICs ($79 M)

None ^(f)

(13)

(36)

Equity Income

Jeremy Podger

4 RICs
2 other accounts

$2.92 billion
$64.0 million

1 RIC ($2 M)

Statement of Additional Information – March 7, 2011

Page 126

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

Threadneedle

Threadneedle:

International

Alex Lyle

16 PIVs
33 other accounts

$1.88 billion
$2.37 billion

None

None ^(f)

(13)

(36)

Opportunity

Esther Perkins

4 other accounts

$986.0 million

For funds with fiscal period ending November 30

Columbia AMT-Free Tax-Exempt Bond

Catherine Stienstra

13 RICs
12 other accounts

$4.24 billion
$39.69 billion

None

(2)

(18)

Columbia Mid Cap Growth Opportunity

John K. Schonberg

8 RICs
2 PIVs
7 other accounts

$859.83 million
$29.81 million
$1.57 million

None

Sam Murphy

2 RICs
3 other accounts

$138.59 million
$0.14 million

1 RIC ($384.03 M)

$10,001-$50,000

(2)

(18)

Mike Marzolf

2 RICs
4 other accounts

$138.59 million
$0.08 million

None

RiverSource Intermediate Tax-Exempt

Brian M. McGreevy

7 RICs
6 other accounts

$3.99 billion
$553.36 million

None

(3)

(31)

RiverSource Tax-Exempt High Income

Kimberly Campbell

5 RICs
1 PIV
6 other accounts

$2.77 billion
$152.36 million $0.11 million

None

(3)

(31)

For funds with fiscal period ending December 31

Columbia Select Large-Cap Value

Neil Eigen

5 RICs
1 PIV
70 other accounts ^(d)

$700.17 million
$165.58 million
$3.02 billion

None

(2)

(18)

Richard Rosen

5 RICs
1 PIV
46 other accounts ^(d)

$700.17 million
$165.58 million
$2.97 billion

None

Columbia Select Smaller-Cap Value

Neil Eigen

5 RICs
1 PIV
70 other accounts ^(d)

$638.76 million
$165.58 million
$3.02 billion

None

$10,001-$50,000

(2)

(18)

Richard Rosen

5 RICs
1 PIV
46 other accounts ^(d)

$638.76 million
$165.58 million
$2.97 billion

None

Columbia Seligman Communications and Information

Paul Wick

6 RICs
5 PIVs
5 other accounts

$1.12 billion
$2.04 billion
$299.97 million

None

Over $1,000,000

(2)

(29)

Richard Parower

5 RICs
5 PIVs
10 other accounts

$807.99 million
$1.82 billion
$347.38 million

None

Sangeeth Peruri

3 RICs
3 PIVs
9 other accounts

$201.24 million
$50.03 million
$22.10 million

None

Vishal Saluja ^(o)

6 PIVs
4 other accounts

$773.62 million
$15.36 million

None

Sushil Wagle ^(o)

None

N/A

None

RiverSource

LaSalle Securities:

LaSalle Global

Stan J. Kraska

2 RICs

$0.13 billion

4 other accounts

$10,001-$50,000

(16)

(36)

Real Estate

George J. Noon

16 PIVs

$6.89 billion

($0.46 B)

None

Keith R. Pauley

24 other accounts

$2.41 billion

None

Ernst Jan de Leeuw

1 RIC
16 PIV
12 other accounts

$0.10 billion
$6.97 billion
$1.18 billion

2 other accounts
($0.30 B)

None

Statement of Additional Information – March 7, 2011

Page 127

Other Accounts Managed (excluding the fund)

Ownership

Potential

Number and Type

Approximate

Performance Based

of Fund

Conflicts

Structure of

Fund

Portfolio Manager

of Account*

Total Net Assets

Accounts ^(a)

Shares

of Interest

Compensation

RiverSource

LaSalle Securities:

LaSalle Monthly

Stan J. Kraska

2 RICs

$0.11 billion

4 other accounts

$10,001-$50,000

Dividend

George J. Noon

16 PIVs

$6.89 billion

($0.46 B)

None

Real Estate

Keith R. Pauley

24 other accounts

$2.41 billion

None

(16)

(36)

Seligman Capital

Wayne Collette

7 RICs
1 PIV
12 other accounts

$3.33 billion
$124.83 million
$106.08 million

None

(3)

(31)

George Myers

6 RICs
4 other accounts

$3.04 billion
$111.61 million

None

Lawrence W. Lin

6 RICs
5 other accounts

$3.04 billion
$0.56 million

None

Brian D. Neigut

6 RICs
6 other accounts

$3.04 billion
$0.42 million

None

Seligman Growth

John Wilson

3 RICs
1 PIV
13 other accounts

$1.51 billion
$286.18 million
$525.86 million

None

(3)

(31)

Peter Deininger

3 RICs
1 other account

$1.51 billion
$0.007 million

None


*		RIC refers to a Registered Investment Company; PIV refers to a Pooled Investment Vehicle.

(a)		Number of accounts for which the advisory fee paid is based in part or wholly on performance and the aggregate net assets in those accounts.

(b)		Mr. Bergene has overall accountability for the group that monitors the subadvisers for the funds and for making recommendations to the Boards of Directors on changes to those subadvisers.

(c)		Reflects each wrap program strategy as a single client, rather than counting each participant in the program as a separate client.

(d)		Wrap accounts have been counted at the sponsor level.

(e)		Neither Christopher Davis nor Kenneth Feinberg own any shares of RiverSource Partners Fundamental Value Fund. However, both portfolio managers have over $1 million invested in the Davis Funds, which are managed in a similar style.

(f)		The fund is available for sale only in the U.S. The portfolio managers do not reside in the U.S. and therefore do not hold any shares of the fund.

(g)		The portfolio manager began managing the fund after its last fiscal year end; reporting information is as of Oct. 31, 2008.

(h)		The portfolio manager began managing the fund after its last fiscal year end; reporting information is provided as of Jan. 31, 2009.

(i)		The portfolio manager began managing the fund after its last fiscal year end; reporting information is provided as of Dec. 31, 2009.

(j)		The portfolio manager began managing the fund after its last fiscal year end; reporting information is provided as of March 31, 2010.

(k)		The portfolio manager began managing the fund after its last fiscal year end; reporting information is provided as of April 30, 2010.

(l)		The portfolio manager began managing the fund effective Oct. 1, 2010; reporting is provided as of Aug. 31, 2010.

(m)		The portfolio manager began managing the fund effective Oct. 1, 2010; reporting is provided as of July 31, 2010.

(n)		The portfolio manager reporting is provided as of July 31, 2010.


(o)		The portfolio manager began managing the fund effective Feb. 28, 2011; reporting is provided as of Dec. 31, 2010.

Potential Conflicts of Interest


(1)		Columbia Management: Management of funds-of-funds differs from that of the other funds. The portfolio management process is set forth generally below and in more detail in the funds’ prospectus.

		Portfolio managers of the fund-of-funds may be involved in determining each funds-of-fund’s allocation among the three main asset classes (equity, fixed income and cash) and the allocation among investment categories within each asset class, as well as each funds-of-fund’s allocation among the underlying funds.

		• Because of the structure of the funds-of-funds, the potential conflicts of interest for the portfolio managers may be different than the potential conflicts of interest for portfolio managers who manage other funds.

		In addition to the accounts above, portfolio managers may manage accounts in a personal capacity that may include holdings that are similar to, or the same as, those of the fund. The investment manager has in place a Code of Ethics that is designed to address conflicts and that, among other things, imposes restrictions on the ability of the portfolio managers and other “investment access persons” to invest in securities that may be recommended or traded in the fund and other client accounts.

(2)		Columbia Management: Portfolio managers may manage one or more mutual funds as well as other types of accounts, including hedge funds, proprietary accounts, separate accounts for institutions and individuals, and other pooled investment vehicles. Portfolio managers make investment decisions for an account or portfolio based on its investment objectives and policies, and other relevant investment considerations. A portfolio manager may manage another account whose fees may be materially greater than the management fees paid by the fund and may include a performance-based fee. Management of multiple funds and accounts may create potential conflicts of interest relating to the allocation of investment opportunities, competing investment decisions made for different accounts and the aggregation and

Statement of Additional Information – March 7, 2011

Page 128


		allocation of trades. In addition, the investment manager monitors a variety of areas (e.g., allocation of investment opportunities) and compliance with the firm’s Code of Ethics, and places additional investment restrictions on portfolio managers who manage hedge funds and certain other accounts.

		The investment manager has a fiduciary responsibility to all of the clients for which it manages accounts. The investment manager seeks to provide best execution of all securities transactions and to aggregate securities transactions and then allocate securities to client accounts in a fair and equitable basis over time. The investment manager has developed policies and procedures, including brokerage and trade allocation policies and procedures, designed to mitigate and manage the potential conflicts of interest that may arise from the management of multiple types of accounts for multiple clients.

		In addition to the accounts above, portfolio managers may manage accounts in a personal capacity that may include holdings that are similar to, or the same as, those of the fund. The investment manager’s Code of Ethics is designed to address conflicts and, among other things, imposes restrictions on the ability of the portfolio managers and other “investment access persons” to invest in securities that may be recommended or traded in the fund and other client accounts.

		For portfolio managers Marzolf and Murphy, their responsibilities also include working as a securities analyst. This dual role may give rise to conflicts with respect to making investment decisions for accounts that the portfolio manager manages versus communicating his or her analyses to other portfolio managers concerning securities that he or she follows as an analyst.

(3)		Columbia Management: Like other investment professionals with multiple clients, a fund’s portfolio manager(s) may face certain potential conflicts of interest in connection with managing both the fund and other accounts at the same time. The investment manager and the funds have adopted compliance policies and procedures that attempt to address certain of the potential conflicts that portfolio managers face in this regard. Certain of these conflicts of interest are summarized below.

		The management of accounts with different advisory fee rates and/or fee structures, including accounts that pay advisory fees based on account performance (performance fee accounts), may raise potential conflicts of interest for a portfolio manager by creating an incentive to favor higher fee accounts.

		Potential conflicts of interest also may arise when a portfolio manager has personal investments in other accounts that may create an incentive to favor those accounts. As a general matter and subject to the investment manager’s Code of Ethics and certain limited exceptions, the investment manager’s investment professionals do not have the opportunity to invest in client accounts, other than the funds.

		A portfolio manager who is responsible for managing multiple funds and/or accounts may devote unequal time and attention to the management of those funds and/or accounts. The effects of this potential conflict may be more pronounced where funds and/or accounts managed by a particular portfolio manager have different investment strategies.

		A portfolio manager may be able to select or influence the selection of the broker/dealers that are used to execute securities transactions for the funds. A portfolio manager’s decision as to the selection of broker/dealers could produce disproportionate costs and benefits among the funds and the other accounts the portfolio manager manages.

		A potential conflict of interest may arise when a portfolio manager buys or sells the same securities for a fund and other accounts. On occasions when a portfolio manager considers the purchase or sale of a security to be in the best interests of a fund as well as other accounts, the investment manager’s trading desk may, to the extent consistent with applicable laws and regulations, aggregate the securities to be sold or bought in order to obtain the best execution and lower brokerage commissions, if any. Aggregation of trades may create the potential for unfairness to a fund or another account if a portfolio manager favors one account over another in allocating the securities bought or sold.

		“Cross trades,” in which a portfolio manager sells a particular security held by a fund to another account (potentially saving transaction costs for both accounts), could involve a potential conflict of interest if, for example, a portfolio manager is permitted to sell a security from one account to another account at a higher price than an independent third party would pay. The investment manager and the funds have adopted compliance procedures that provide that any transactions between a fund and another account managed by the investment manager are to be made at a current market price, consistent with applicable laws and regulations.

		Another potential conflict of interest may arise based on the different investment objectives and strategies of a fund and other accounts managed by its portfolio manager(s). Depending on another account’s objectives and other factors, a portfolio manager may give advice to and make decisions for a fund that may differ from advice given, or the timing or nature of decisions made, with respect to another account. A portfolio manager’s investment decisions are the product of many factors in addition to basic suitability for the particular account involved. Thus, a portfolio manager may buy or sell a particular security for certain accounts, and not for a fund, even though it could have been bought or sold for

Statement of Additional Information – March 7, 2011

Page 129


		the fund at the same time. A portfolio manager also may buy a particular security for one or more accounts when one or more other accounts are selling the security (including short sales). There may be circumstances when a portfolio manager’s purchases or sales of portfolio securities for one or more accounts may have an adverse effect on other accounts, including the funds.

		A fund’s portfolio manager(s) also may have other potential conflicts of interest in managing the fund, and the description above is not a complete description of every conflict that could exist in managing the fund and other accounts. Many of the potential conflicts of interest to which the investment manager’s portfolio managers are subject are essentially the same or similar to the potential conflicts of interest related to the investment management activities of the investment manager and its affiliates.

(4)		Turner: As is typical for many money managers, potential conflicts of interest may arise related to Turner’s management of accounts including the fund where not all accounts are able to participate in a desired IPO, or other limited opportunity, relating to use of soft dollars and other brokerage practices, related to the voting of proxies, employee personal securities trading, and relating to a variety of other circumstances. In all cases, however, Turner believes it has written policies and procedures in place reasonably designed to prevent violations of the federal securities laws and to prevent material conflicts of interest from arising. Please also see Turner’s Form ADV, Part II for a description of some of its policies and procedures in this regard.

(5)		Columbia Management: Management of the Income Builder Funds-of-Funds differs from that of the other funds. The portfolio management process is set forth generally below and in more detail in the funds’ prospectus.

		The investment manager uses quantitative models combined with qualitative factors to determine the funds allocations to the underlying funds. Using these methodologies, a group of the investment manager’s investment professionals allocates each fund’s assets within and across different asset classes in an effort to achieve the fund’s objective of providing a high level of current income and growth of capital. The fund will typically be rebalanced monthly in an effort to maximize the level of income and capital growth, incorporating various measures of relative value subject to constraints that set minimum or maximum exposure within asset classes, as set forth in the prospectus. Within the equity and fixed income asset classes, the investment manager establishes allocations for the funds, seeking to achieve each fund’s objective by investing in defined investment categories. The target allocation range constraints are intended, in part, to promote diversification within the asset classes.

		Because of the structure of the funds-of-funds, the potential conflicts of interest for the portfolio managers may be different than the potential conflicts of interest for portfolio managers who manage other funds. These potential conflicts of interest include:

		• In certain cases, the portfolio managers of the underlying funds are the same as the portfolio managers of the Income Builder Funds-of-Funds, and could influence the allocation of funds-of-funds assets to or away from the underlying funds that they manage.

		• The investment manager and its affiliates may receive higher compensation as a result of allocations to underlying funds with higher fees.

		The investment manager monitors the performance of the underlying funds and may, from time to time, recommend to the Board of Directors of the funds a change in portfolio management or fund strategy or the closure or merger of an underlying fund. In addition, the investment manager may believe that certain funds may benefit from additional assets or could be harmed by redemptions. All of these factors may also influence decisions in connection with the allocation of funds-of-funds assets to or away from certain underlying funds.

		In addition to the accounts above, portfolio managers may manage accounts in a personal capacity that may include holdings that are similar to, or the same as, those of the fund. The investment manager has in place a Code of Ethics that is designed to address conflicts and that, among other things, imposes restrictions on the ability of the portfolio managers and other “investment access persons” to invest in securities that may be recommended or traded in the fund and other client accounts.

(6)		American Century: Certain conflicts of interest may arise in connection with the management of multiple portfolios. Potential conflicts include, for example, conflicts among investment strategies and conflicts in the allocation of investment opportunities. American Century has adopted policies and procedures that are designed to minimize the effects of these conflicts.

		Responsibility for managing American Century client portfolios is organized according to investment discipline. Investment disciplines include, for example, quantitative equity, small- and mid-cap growth, large-cap growth, value, international, fixed income, asset allocation, and sector funds. Within each discipline are one or more portfolio teams responsible for managing specific client portfolios. Generally, client portfolios with similar strategies are managed by

Statement of Additional Information – March 7, 2011

Page 130


		the same team using the same objective, approach, and philosophy. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar portfolios, which minimizes the potential for conflicts of interest.

		For each investment strategy, one portfolio is generally designated as the “policy portfolio.” Other portfolios with similar investment objectives, guidelines and restrictions are referred to as “tracking portfolios.” When managing policy and tracking portfolios, a portfolio team typically purchases and sells securities across all portfolios that the team manages. American Century’s trading systems include various order entry programs that assist in the management of multiple portfolios, such as the ability to purchase or sell the same relative amount of one security across several funds. In some cases a tracking portfolio may have additional restrictions or limitations that cause it to be managed separately from the policy portfolio. Portfolio managers make purchase and sale decisions for such portfolios alongside the policy portfolio to the extent the overlap is appropriate, and separately, if the overlap is not.

		American Century may aggregate orders to purchase or sell the same security for multiple portfolios when it believes such aggregation is consistent with its duty to seek best execution on behalf of its clients. Orders of certain client portfolios may, by investment restriction or otherwise, be determined not available for aggregation. American Century has adopted policies and procedures to minimize the risk that a client portfolio could be systematically advantaged or disadvantaged in connection with the aggregation of orders. To the extent equity trades are aggregated, shares purchased or sold are generally allocated to the participating portfolios pro rata based on order size. Because initial public offerings (IPOs) are usually available in limited supply and in amounts too small to permit across-the-board pro rata allocations, American Century has adopted special procedures designed to promote a fair and equitable allocation of IPO securities among clients over time. Fixed income securities transactions are not executed through a centralized trading desk. Instead, portfolio teams are responsible for executing trades with broker/dealers in a predominantly dealer marketplace. Trade allocation decisions are made by the portfolio manager at the time of trade execution and orders entered on the fixed income order management system.

		Finally, investment of American Century’s corporate assets in proprietary accounts may raise additional conflicts of interest. To mitigate these potential conflicts of interest, American Century has adopted policies and procedures intended to provide that trading in proprietary accounts is performed in a manner that does not give improper advantage to American Century to the detriment of client portfolios.

(7)		Mondrian: Mondrian does not foresee any material conflicts of interest that may arise in the management of the funds and any other accounts managed with similar investment guidelines. Mondrian acts solely as an investment manager and does not engage in any other business activities. The following is a list of some potential conflicts of interest that can arise in the course of normal investment management business activities. Mondrian maintains and operates various policies and procedures which are designed to prevent or manage any of the conflicts identified below so that the interests of its clients are always put ahead of Mondrian’s own interests or those of its employees and directors:

		Access to non-public information
		As an Investment Manager Mondrian may come in to contact with information about a company that is not generally available to the investing public. Mondrian’s policy and procedures for handling any conflicts of interest arising from access to nonpublic information are set out in the Mondrian Investment Partners Limited Code of Ethics under “Policy Statement on Insider Trading and Securities Fraud”. If an employee is uncertain as to whether an interest or relationship is material or adverse, they should consult the Chief Compliance Officer for guidance.

		Allocation of aggregated trades
		Mondrian may from time to time aggregate trades for a number of its clients.

		Mondrian’s policy requires that all allocations of aggregated trades must be fair between clients. Transactions involving commingled orders are allocated in a manner deemed equitable to each account. When a combined order is executed in a series of transactions, at different prices, each account participating in the order may be allocated an average price obtained from the broker/dealer. When a trade can be allocated in a cost efficient manner to our clients, it will be prorated across all participating accounts. Mondrian may randomly allocate purchases or sales among participating accounts when the amounts involved are too small to be evenly proportioned in a cost efficient manner. In performing random allocations, Mondrian will consider consistency of strategy implementation among participating accounts.

		Allocation of investment opportunities
		Mondrian is an investment manager of multiple client portfolios. As such, it has to ensure that investment opportunities are allocated fairly between clients. There is a potential risk that Mondrian may favor one client over another client in making allocations of investment opportunities.

		Mondrian makes security selection decisions at committee level. Those securities identified as investment opportunities are added to a list of approved securities; portfolios will hold only such approved securities.

Statement of Additional Information – March 7, 2011

Page 131


		All portfolios governed by the same or a similar mandate will be structured similarly (that is, will hold the same or comparable stocks), and will exhibit similar characteristics. Sale and purchase opportunities identified at regular investment meetings will be applied to portfolios across the board, subject to the requirements of individual client mandates. See also “Side-by-side management of hedge funds” below.

		Cherry picking
		Cherry picking is an abusive practice whereby an investment firm misrepresents its stock selecting skills by only showing top performing securities in promoting its investment services. Mondrian’s production of marketing materials is centrally controlled and independently reviewed to ensure that all materials are fair and not misleading.

		Dealing in investments as agent for more than one party
		Conflicts of interest exist when a portfolio management firm manages multiple client portfolios. Mondrian addresses these potential conflicts through the operation of dealing policies designed to ensure the fair and equal treatment of all clients e.g. the allocation of aggregated trades among clients.

		Allocation of IPO opportunities
		Initial Public Offerings (“IPO’s”) present a potential conflict of interest when they are priced at a discount to the anticipated secondary market price and the issuer has restricted or scaled back its allocation due to market demand. In such instances, the IPO allocation could be divided among a small select group of clients with others not receiving the allocation they would otherwise be entitled to. Mondrian clients with relevant mandates are given an equal opportunity, proportionate to the size of their portfolio, to participate in IPO trades. All IPO purchases are allocated on a strict pro-rata basis.

		Dealing in investments as principal in connections with the provision of seed capital
		A conflict of interest exists when a portfolio management firm manages its own money alongside client money.

		Mondrian generally does not trade for its own account. However, Mondrian and its affiliates have provided the seed capital to certain investment vehicles that have been established by Mondrian group entities. Mondrian serves as the investment manager to these investment vehicles.

		Mondrian operates dealing policies designed to ensure the fair and equal treatment of all clients e.g. the allocation of aggregated trades among clients. These policies ensure that any portfolios in which Mondrian has an investment interest do not receive favorable treatment relative to other client portfolios.

		Directorships and external arrangements
		Certain Mondrian staff may hold positions in external organizations. There is a potential risk that Mondrian personnel may place their own interests (resulting from outside employment/directorships) ahead of the interests of Mondrian clients. Before accepting an executive or non-executive directorship or any other appointment in another company, employees, including executive directors, must obtain the prior approval of the Chief Executive Officer. The Chief Compliance Officer must also be informed of all such appointments and changes. The CEO and CCO will only permit appointments that would not present a conflict of interest with the individual’s responsibilities to Mondrian clients.

		Dual agency
		Dual Agency (also known as Cross Trading) concerns those transactions where Mondrian may act as agent for both the buyer and seller. In such circumstances there is a potential conflict of interest as it may be possible to favor one client over another when establishing the execution price and/or commission rate.

		Although it rarely does so, Mondrian may act as agent for both buying and selling parties with respect to transactions in investments. If Mondrian proposes to act in such capacity, the Portfolio Manager will first obtain approval from the Chief Compliance Officer. The CCO has an obligation to ensure that both parties are treated fairly in any such trade.

		Employee compensation
		There is a potential risk that Mondrian’s compensation structure may incentivize employees to place their interests ahead of client interests, or, place one client’s interests ahead of another. Mondrian’s compensation structure does not provide incentives for any member staff to favor any client (or group of clients). Incentives (Bonus and Equity Programs) focus on the key areas of research quality, long-term and short-term performance, teamwork, client service and marketing. At Mondrian, the investment management of particular portfolios is not “star manager” based but uses a team system. This means that Mondrian’s investment professionals are primarily assessed on their contribution to the team’s effort and results, though with an important element of their assessment being focused on the quality of their individual research contribution.

		Employee personal account dealing
		There are a number of potential conflicts when staff of an investment firm engage in buying and selling securities for their personal account. Mondrian has arrangements in place to ensure that none of its directors, officers or employees

Statement of Additional Information – March 7, 2011

Page 132


		(or persons connected to them by way of a business or domestic relationship) effects any transaction on their own account which conflicts with client interests. Mondrian’s rules which govern personal account dealing and general ethical standards are set out in the Mondrian Investment Partners Code of Ethics.

		Gifts and entertainment (received)
		In the normal course of business Mondrian employees may receive gifts and entertainment from third parties e.g. brokers and other service providers. This results in a potential conflict of interest when selecting third parties to provide services to Mondrian and its clients. Mondrian has a policy which requires that gifts and entertainment received are reported to the Chief Compliance Officer (any items in excess of £100 require pre-approval). All gifts and entertainment are reviewed to ensure that they are not inappropriate and that staff have not been unduly influenced by them.

		Gifts and entertainment (given)
		In the normal course of business, Mondrian employees may provide gifts and entertainment to third parties. Excessively lavish gifts and entertainment would be inappropriate. Mondrian has a policy which requires that any gifts and entertainment provided are reported to the Chief Compliance Officer (any items in excess of £200 require pre-approval). All gifts and entertainment are reviewed to ensure that they are not inappropriate and that staff have not attempted to obtain undue influence from them.

		Investment in shares issued by Companies who are clients of Mondrian
		Mondrian has client relationships with a number of entities which are associated with companies that issue securities in which Mondrian could invest client assets. This results in a potential conflict of interest. Mondrian makes stock selection decisions at a committee level. If a security is identified as offering a good investment opportunity it is added to Mondrian’s list of approved securities. All portfolios governed by the same or a similar mandate are structured similarly, that is, will hold the same or comparable securities. Mondrian would not consider client relationships when analyzing securities and would not add a holding to, or remove one from, the approved list because of a client relationship.

		Management of investment capacity
		Where there is limited capacity in Mondrian’s investment products, there is a potential for a conflict of interest in relation to how that capacity is allocated when there is strong demand. With regard to a closing policy, Mondrian recognizes the importance and the challenge of managing the growth of assets under management without compromising the interests of existing clients. To this end, the company has a track record of closing products early. In recent years Mondrian has soft closed its core EAFE and all-cap Emerging Markets equity products. These closures have been carried out early to give existing clients some further, albeit limited, scope for contribution to funds invested. Also, capacity in these styles has been reserved for Mondrian’s co-mingled vehicles.

		Performance fees
		Where an investment firm has clients with a performance fee arrangement there is a risk that those clients could be favored over clients without performance fees. Mondrian charges fees as a proportion of assets under management. In a very limited number of situations, in addition to this fee basis, certain accounts also include a performance fee basis. The potential conflict of interest arising from these fee arrangements is addressed by Mondrian’s procedures for the allocation of aggregated trades among clients. Investment opportunities are allocated totally independently of fee arrangements.

		Portfolio holdings disclosure
		Detailed portfolio holdings information can potentially be used by one or more clients/shareholders to obtain advantage over others who do not have access to that information. There is a potential risk that Mondrian could make nonpublic portfolio holdings information available to one or more select clients before it is made available to all relevant clients. Conflicts of interest arising from access to nonpublic information are addressed in the Mondrian Investment Partners Limited Code of Ethics under “Policy Statement on Insider Trading and Securities Fraud”. Additionally, Mondrian has procedures in place to ensure that client portfolio holdings information (including co-mingled funds) is kept confidential and is not inappropriately released to one or more clients/shareholders ahead of others.

		Portfolio pumping
		Portfolio pumping is the act of bidding up the value of a client’s holdings immediately before the end of a calendar quarter, or other period when portfolio performance is measured. This is done by using a client’s funds to place an excessive volume of trades in securities held by another client. This may drive up the value of the holdings on a temporary basis. Mondrian does not permit trading for the purpose of temporarily improving the performance of a portfolio. Mondrian’s investment procedures require all changes to portfolio holdings to be approved by the relevant Investment Committee. Although portfolio performance is measured and reported to clients on a monthly basis,

Statement of Additional Information – March 7, 2011

Page 133


		Mondrian’s clients assess portfolio returns and relative performance on a longer term basis, in accordance with Mondrian’s long-term investment approach.

		Pricing and valuation
		There is a potential conflict of interest inherent in every valuation where an investment management firm is compensated on asset size and/or portfolio performance. Mondrian has policies and procedures in place to ensure that an appropriate independent pricing source is used for all security types. Adherence to these policies and procedures is monitored using exception reporting, as well as regular review, testing and evaluation of the adequacy of the procedures.

		Proxy voting
		Mondrian has a potential conflict of interest with its underlying clients when it has discretion to exercise voting authority in respect to client securities. Mondrian has implemented Proxy Voting policies and procedures that are designed to ensure that it votes client securities in the best interest of clients. In order to facilitate the actual process of voting proxies, Mondrian has contracted with an independent company, Institutional Shareholder Services (“ISS”) to analyze proxy statements on behalf of its clients and vote proxies in accordance with its procedures.

		Relationships with consultants
		Investment consultants typically provide advisory services to Mondrian’s clients and Mondrian occasionally purchases services from these consultants. The conflict of interest in these relationships rests mainly with the investment consulting firm itself. However, Mondrian will take care to ensure that any services it purchases from such firms are appropriate and would not reasonably be considered to be an inducement to that firm.

		Side-by-side management of hedge funds (Mondrian Alpha Funds)
		Where an investment manager has responsibility for managing long only portfolios alongside portfolios that can take short positions there is potential for a conflict of interest to arise between the two types of portfolio. Mondrian acts as investment manager for a Fixed Income Alpha and an Equity Alpha fund. The Alpha Funds are permitted to take short positions and are also permitted to invest in some or all of the same securities that Mondrian manages for other clients. Mondrian is satisfied that the investment styles of these different products significantly reduce the likelihood of a conflict of interest arising. However, Mondrian has a number of policies and procedures in place that are designed to ensure that any potential conflicts are correctly managed and monitored so that all clients are treated fairly.

		Soft dollar arrangements
		Where an investment manager has soft dollar arrangements in place with a broker/dealer there is a potential conflict of interest as trading volumes through that broker/dealer are usually important in ensuring that soft dollar targets are met. As is typical in the investment management industry, Mondrian client funds are used to pay brokerage commissions for the execution of transactions in the client’s portfolio. As part of that execution service, brokers generally provide proprietary research to their clients as to the value of securities, the advisability of investing in, purchasing or selling securities, and the availability of securities or purchasers or sellers of securities; furnishing of analyses and reports concerning issuers, securities or industries; and providing information on economic factors and trends. Proprietary research may be used by Mondrian in connection with its investment decision-making process with respect to one or more accounts managed by it, and it may or may not be used, or used exclusively, with respect to the account generating the brokerage. With the exception of the receipt of proprietary research, Mondrian has no other soft dollar or commission sharing arrangements in place with brokers.

		Step-Out Trades
		A step-out trade occurs when a brokerage firm executes an order, but gives other firms credit and some of the commission for the trade. Mondrian has no incentive to use step-out trades.

		Transactions with affiliated brokers
		Mondrian does not currently have any affiliated brokers.

		Window dressing
		Window dressing is a strategy which can be used by portfolio managers near the end of a reporting period to improve the appearance of portfolio performance before presenting it to clients. To window dress, a portfolio manager may sell securities with large losses and purchase stocks that have done well, near the end of the reporting period. The list of holdings sent to clients will thus include the high performing securities, and exclude the poor performing securities. Window dressing can also be used to invest in securities that do not meet the style of an account, without clients being aware. Mondrian does not permit window dressing or other trading for the purpose of improving the appearance of a client’s performance. Mondrian’s investment procedures require all changes to portfolio holdings to be approved by the relevant Investment Committee. Although portfolio holdings are reported to clients on a monthly basis, Mondrian’s

Statement of Additional Information – March 7, 2011

Page 134


		clients assess portfolio returns and relative performance on a longer term basis, in accordance with Mondrian’s long-term investment approach.

(8)		Davis: Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one portfolio or other account. More specifically, portfolio managers who manage multiple portfolios and/or other accounts are presented with the following potential conflicts:

		• The management of multiple portfolios and/or other accounts may result in a portfolio manager devoting unequal time and attention to the management of each portfolio and/or other account. Davis Advisors seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment models that are used in connection with the management of the portfolios.

		• If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one portfolio or other account, a portfolio may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible portfolios and other accounts. To deal with these situations, Davis Advisors has adopted procedures for allocating portfolio transactions across multiple accounts.

		• With respect to securities transactions for the portfolios, Davis Advisors determines which broker to use to execute each order, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts (such as mutual funds, other pooled investment vehicles that are not registered mutual funds, and other accounts managed for organizations and individuals), Davis Advisors may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Davis Advisors may place separate, non-simultaneous, transactions for a portfolio and another account which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the portfolio or the other account.

		• Finally, substantial investment of Davis Advisor or Davis Family assets in certain mutual funds may lead to conflicts of interest. To mitigate these potential conflicts of interest, Davis Advisors has adopted policies and procedures intended to ensure that all clients are treated fairly over time. Davis Advisors does not receive an incentive based fee on any account.

(9)		Donald Smith: Donald Smith & Co., Inc. is very sensitive to conflicts of interest that could possibly arise in its capacity of serving as an investment adviser. It remains committed to resolving any and all conflicts in the best interest of its clients.

		Donald Smith & Co., Inc. is an independent investment advisor with no parent or subsidiary organizations. Additionally, it has no affiliated organizations, brokerage, nor any investment banking activities.

		Clients include mutual funds, public and corporate pension plans, endowments and foundations, and other separate accounts. Donald Smith & Co., Inc. has put in place systems, policies and procedures, which have been designed to maintain fairness in portfolio management across all clients. Potential conflicts between funds or with other types of accounts are managed via allocation policies and procedures, internal review processes, and direct oversight by Donald G. Smith, President.

(10)		Tradewinds: Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented with the following potential conflicts, which is not intended to be an exhaustive list:

		• The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Tradewinds seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.

		• If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Tradewinds has adopted procedures for fairly allocating limited opportunities across multiple accounts.

		• With respect to many of its clients’ accounts, Tradewinds determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, Tradewinds may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Tradewinds may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.

		• Some clients are subject to different regulations. As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques or transactions or to engage in these

Statement of Additional Information – March 7, 2011

Page 135


		transactions to the same extent as the other accounts managed by the portfolio manager. Finally, the appearance of a conflict of interest may arise where Tradewinds has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.

		Tradewinds has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.

(11)		BHMS: Actual or potential conflicts of interest may arise when a portfolio manager has management responsibilities to more than one account (including the Fund). BHMS manages potential conflicts between funds or with other types of accounts through allocation policies and procedures, internal review processes and oversight by directors and independent third parties to ensure that no client, regardless of type or fee structure, is intentionally favored at the expense of another. Allocation policies are designed to address potential conflicts in situations where two or more funds or accounts participate in investment decisions involving the same securities.

(12)		MetWest: MetWest Capital’s portfolio managers generally face two types of conflicts of interest: (1) conflicts between and among the interests of the various accounts they manage, and (2) conflicts between the interests of the accounts they manage and their own personal interests. The policies of MetWest Capital require that portfolio managers treat all accounts they manage equitably and fairly in the face of such real or potential conflicts, The management of multiple funds and other accounts may require the portfolio manager to devote less than all of his or her time to a fund, particularly if the funds and accounts have different objectives, benchmarks and time horizons. The portfolio manager may also be required to allocate his or her investment ideas across multiple funds and accounts. In addition, if a portfolio manager identifies a limited investment opportunity, such as an IPO that may be suitable for more than one fund or other account, a fund may not be able to take full advantage of that opportunity due to an allocation of that investment across all eligible funds and accounts. Further, security purchase and sale orders for multiple accounts often are aggregated for purpose of execution. Although such aggregation generally benefits clients, it may cause the price or brokerage costs to be less favorable to a particular client than if similar transactions were not being executed concurrently for other accounts. It may also happen that a fund’s adviser or sub-adviser will determine that it would be in the best interest, and consistent with the investment policies, of another account to sell a security (including by means of a short sale) that a fund holds long, potentially resulting in a decrease in the market value of the security held by the fund.

		As noted above, portfolio managers may also experience certain conflicts between the interests of the accounts they manage and their own personal interests (which may include interests in advantaging MetWest Capital). The structure of a portfolio manager’s or an investment advisor’s compensation may create an incentive for the manager or advisor to favor accounts whose performance has a greater impact on such compensation. The portfolio manager may, for example, have an incentive to allocate favorable or limited opportunity investments or structure the timing of investments to favor such accounts. Similarly, if a portfolio manager holds a larger personal investment in one fund than he or she does in another, the portfolio manager may have an incentive to favor the fund in which he or she holds a larger stake. In general, MetWest Capital has policies and procedures to address the various potential conflicts of interest described above. It has policies and procedures designed to ensure that portfolio managers have sufficient time and resources to devote to the various accounts they manage. Similarly, it has policies and procedures designed to ensure that investments and investment opportunities are allocated fairly across accounts, and that the interests of client accounts are placed ahead of a portfolio manager’s personal interests. However, there is no guarantee that such procedures will detect or address each and every situation where a conflict arises.

(13)		Threadneedle: Threadneedle Investments portfolio managers may manage one or more mutual funds as well as other types of accounts, including proprietary accounts, separate accounts for institutions, and other pooled investment vehicles. Portfolio managers make investment decisions for an account or portfolio based on its investment objectives and policies, and other relevant investment considerations. A portfolio manager may manage a separate account or other pooled investment vehicle whose fees may be materially greater than the management fees paid by the Fund and may include a performance-based fee. Management of multiple funds and accounts may create potential conflicts of interest relating to the allocation of investment opportunities, and the aggregation and allocation of trades. In addition, the portfolio manager’s responsibilities at Threadneedle Investments include working as a securities analyst. This dual role may give rise to conflicts with respect to making investment decisions for accounts that he/she manages versus communicating his/her analyses to other portfolio managers concerning securities that he/she follows as an analyst.

		Threadneedle Investments has a fiduciary responsibility to all of the clients for which it manages accounts. Threadneedle Investments seeks to provide best execution of all securities transactions and to aggregate securities transactions and then allocate securities to client accounts in a fair and timely manner. Threadneedle Investments has developed policies and procedures, including brokerage and trade allocation policies and procedures, designed to

Statement of Additional Information – March 7, 2011

Page 136


		mitigate and manage the potential conflicts of interest that may arise from the management of multiple types of accounts for multiple clients.

(14)		Columbia WAM: Like other investment professionals with multiple clients, a Fund’s portfolio manager(s) may face certain potential conflicts of interest in connection with managing both the Fund and other accounts at the same time. The Advisor (Columbia Wanger Asset Management) and the Funds have adopted compliance policies and procedures that attempt to address certain of the potential conflicts that portfolio managers face in this regard. Certain of these conflicts of interest are summarized below.

		The management of accounts with different advisory fee rates and/or fee structures, including accounts that pay advisory fees based on account performance (performance fee accounts), if any, may raise potential conflicts of interest for a portfolio manager by creating an incentive to favor higher fee accounts.

		Potential conflicts of interest also may arise when a portfolio manager has personal investments in other accounts that may create an incentive to favor those accounts. As a general matter and subject to the Advisor’s Code of Ethics and certain limited exceptions, the Advisor’s investment professionals do not have the opportunity to invest in client accounts, other than the Funds.

		A portfolio manager who is responsible for managing multiple funds and/or accounts may devote unequal time and attention to the management of those funds and/or accounts. The effects of this potential conflict may be more pronounced where funds and/or accounts managed by a particular portfolio manager have different investment strategies.

		A portfolio manager may be able to select or influence the selection of the broker/dealers that are used to execute securities transactions for the Funds. A portfolio manager’s decision as to the selection of broker/dealers could produce disproportionate costs and benefits among the Funds and the other accounts the portfolio manager manages.

		A potential conflict of interest may arise when a portfolio manager buys or sells the same securities for a Fund and other accounts. On occasions when a portfolio manager considers the purchase or sale of a security to be in the best interests of a Fund as well as other accounts, the Advisor’s trading desk may, to the extent consistent with applicable laws and regulations, aggregate the securities to be sold or bought in order to obtain the best execution and lower brokerage commissions, if any. Aggregation of trades may create the potential for unfairness to a Fund or another account if a portfolio manager favors one account over another in allocating the securities bought or sold.

		“Cross trades,” in which a portfolio manager sells a particular security held by a Fund to another account (potentially saving transaction costs for both accounts), could involve a potential conflict of interest if, for example, a portfolio manager is permitted to sell a security from one account to another account at a higher price than an independent third party would pay. The Advisor and the Funds have adopted compliance procedures that provide that any transactions between the Fund and another account managed by the Advisor are to be made at an independent current market price, consistent with applicable laws and regulation.

		Another potential conflict of interest may arise based on the different investment objectives and strategies of a Fund and other accounts managed by its portfolio manager(s). Depending on another account’s objectives and other factors, a portfolio manager may give advice to and make decisions for a Fund that may differ from advice given, or the timing or nature of decisions made, with respect to another account. A portfolio manager’s investment decisions are the product of many factors in addition to basic suitability for the particular account involved. Thus, a portfolio manager may buy or sell a particular security for certain accounts, and not for a Fund, even though it could have been bought or sold for the Fund at the same time. A portfolio manager also may buy a particular security for one or more accounts when one or more other accounts are selling the security (including short sales). There may be circumstances when a portfolio manager’s purchases or sales of portfolio securities for one or more accounts may have an adverse effect on other accounts, including the Funds.

		A Fund’s portfolio manager(s) also may have other potential conflicts of interest in managing the Fund, and the description above is not a complete description of every conflict that could be deemed to exist in managing both the Fund and other accounts. Many of the potential conflicts of interest to which the Advisor’s portfolio managers are subject are essentially the same as or similar to the potential conflicts of interest related to the investment management activities of the Advisor and its affiliates.

(15)		AllianceBernstein: As an investment adviser and fiduciary, AllianceBernstein owes its clients and shareholders an undivided duty of loyalty. We recognize that conflicts of interest are inherent in our business and accordingly have developed policies and procedures (including oversight monitoring) reasonably designed to detect, manage and mitigate the effects of actual or potential conflicts of interest in the area of employee personal trading, managing multiple accounts for multiple clients, including AllianceBernstein Mutual Funds, and allocating investment opportunities.

Statement of Additional Information – March 7, 2011

Page 137


		Investment professionals, including portfolio managers and research analysts, are subject to the above-mentioned policies and oversight monitoring to ensure that all clients are treated equitably. We place the interests of our clients first and expect all of our employees to meet their fiduciary duties.

		Employee Personal Trading
		AllianceBernstein has adopted a Code of Business Conduct and Ethics that is designed to detect and prevent conflicts of interest when investment professionals and other personnel of AllianceBernstein own, buy or sell securities which may be owned by, or bought or sold for, clients. Personal securities transactions by an employee may raise a potential conflict of interest when an employee owns or trades in a security that is owned or considered for purchase or sale by a client, or recommended for purchase or sale by an employee to a client. Subject to the reporting requirements and other limitations of its Code of Business Conduct and Ethics, AllianceBernstein permits its employees to engage in personal securities transactions. AllianceBernstein’s Code of Ethics and Business Conduct requires disclosure of all personal accounts and maintenance of brokerage accounts with designated broker-dealers approved by AllianceBernstein. The Code also requires preclearance of all securities transactions and imposes a 90 day holding period for securities purchased by employees to discourage short-term trading.

		Managing Multiple Accounts for Multiple Clients
		AllianceBernstein has compliance policies and oversight monitoring in place to address conflicts of interest relating to the management of multiple accounts for multiple clients. Conflicts of interest may arise when an investment professional has responsibilities for the investments of more than one account because the investment professional may be unable to devote equal time and attention to each account. The investment professional or investment professional teams for each client may have responsibilities for managing all or a portion of the investments of multiple accounts with a common investment strategy, including other registered investment companies, unregistered investment vehicles, such as hedge funds, pension plans, separate accounts, collective trusts and charitable foundations. Among other things, AllianceBernstein’s policies and procedures provide for the prompt dissemination to investment professionals of initial or changed investment recommendations by analysts so that investment professionals are better able to develop investment strategies for all accounts they manage. In addition, investment decisions by investment professionals are reviewed for the purpose of maintaining uniformity among similar accounts and ensuring that accounts are treated equitably. No investment professional that manages client accounts carrying performance fees is compensated directly or specifically for the performance of those accounts. Investment professional compensation reflects a broad contribution in multiple dimensions to long-term investment success for our clients and is not tied specifically to the performance of any particular client’s account, nor is it directly tied to the level or change in the level of assets under management.

		Allocating Investment Opportunities
		AllianceBernstein has policies and procedures intended to address conflicts of interest relating to the allocation of investment opportunities. These policies and procedures are designed to ensure that information relevant to investment decisions is disseminated promptly within its portfolio management teams and investment opportunities are allocated equitably among different clients. The investment professionals at AllianceBernstein routinely are required to select and allocate investment opportunities among accounts. Portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar accounts, which minimizes the potential for conflicts of interest relating to the allocation of investment opportunities. Nevertheless, investment opportunities may be allocated differently among accounts due to the particular characteristics of an account, such as size of the account, cash position, tax status, risk tolerance and investment restrictions or for other reasons.

		AllianceBernstein’s procedures are also designed to prevent potential conflicts of interest that may arise when AllianceBernstein has a particular financial incentive, such as a performance-based management fee, relating to an account. An investment professional may perceive that he or she has an incentive to devote more time to developing and analyzing investment strategies and opportunities or allocating securities preferentially to accounts for which AllianceBernstein could share in investment gains.

		To address these conflicts of interest, AllianceBernstein’s policies and procedures require, among other things, the prompt dissemination to investment professionals of any initial or changed investment recommendations by analysts; the aggregation of orders to facilitate best execution for all accounts; price averaging for all aggregated orders; objective allocation for limited investment opportunities (e.g., on a rotational basis) to ensure fair and equitable allocation among accounts; and limitations on short sales of securities. These procedures also require documentation and review of justifications for any decisions to make investments only for select accounts or in a manner disproportionate to the size of the account.

(16)		LaSalle: Since the Investment Team manages other accounts in addition to the Funds, conflicts of interest may arise in connection with the Investment Team’s management of a Fund’s investments on the one hand and the investments of such other accounts on the other hand. Conflicts may arise related to: (1) aggregation and allocation of securities

Statement of Additional Information – March 7, 2011

Page 138


		transactions (including initial public offerings), (2) the timing of purchases and sales of the same security for different accounts and (3) different advice for different accounts, primarily driven by the account’s investment objectives. LaSalle Securities US and LaSalle Securities B.V. believe that conflicts are largely mitigated by their respective Code of Ethics, which prohibits ownership by the Investment Team Members (except through a mutual fund) of securities of the type the Funds invest in, and various policies and procedures it has adopted, including the master trading schedule it maintains to proportionately allocate purchases and sales to each account by tracking the target weight for each holding and establishing the required shares to reach those targets.


(17)		Marsico Capital: As a general matter, Marsico Capital faces the same need to balance the interests of different clients that any investment adviser with multiple clients might experience. Portfolio managers make investment decisions for each portfolio based on the investment objectives, policies, practices and other relevant investment considerations that the managers believe are applicable to that portfolio. Consequently, portfolio managers may purchase (or sell) securities for one portfolio and not another portfolio, or may take similar actions for different portfolios at different times. As a result, the mix of securities purchased in one portfolio may perform better than the mix of securities purchased for another portfolio. Similarly, the sale of securities from one portfolio may cause that portfolio to perform better than others if the value of those securities subsequently declines. The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Although Marsico Capital does not track the time a portfolio manager spends on a single portfolio, it does assess whether a portfolio manager has adequate time and resources to effectively manage all of the accounts for which he is responsible. Marsico Capital seeks to manage competing interests for the time and attention of portfolio managers.


		The need to balance the interests of multiple clients may also arise when allocating and/or aggregating trades. Marsico Capital often aggregates into a single trade order several individual contemporaneous client trade orders in a single security. Under Marsico Capital’s Portfolio Management and Trade Management Policy and Procedures, when trades are aggregated on behalf of more than one account, Marsico Capital seeks to allocate such trades to participating client accounts in a fair and equitable manner. With respect to Initial Public Offerings (IPOs) and other syndicated or limited offerings, it is Marsico Capital’s policy to seek to ensure that over the long term, accounts with the same or similar investment objectives or strategies will receive an equitable opportunity to participate meaningfully and will not be unfairly disadvantaged. To deal with these situations, Marsico Capital has adopted policies and procedures for allocating transactions across multiple accounts. Marsico Capital’s policies also seek to ensure that portfolio managers do not systematically allocate other types of trades in a manner that would be more beneficial to one account than another. Marsico Capital’s compliance department monitors transactions made on behalf of multiple clients to seek to ensure adherence to its policies.


		Marsico Capital has adopted and implemented policies and procedures that seek to minimize potential conflicts of interest that may arise as a result of a portfolio manager advising multiple accounts. In addition, Marsico Capital monitors a variety of areas, including compliance with primary Fund guidelines, the allocation of securities, and compliance with its Code of Ethics.

Structure of Compensation


(18)		Columbia Management: Portfolio managers received all of their compensation in the form of salary, bonus, stock options, restricted stock, and notional investments through an incentive plan, the value of which is measured by reference to the performance of the funds in which the account is invested. A portfolio manager’s bonus is variable and generally is based on (1) an evaluation of the portfolio manager’s investment performance and (2) the results of a peer and/or management review of the portfolio manager, which takes into account skills and attributes such as team participation, investment process, communication and professionalism. In evaluating investment performance, the investment manager generally considers the one, three and five year performance of mutual funds and other accounts managed by the portfolio manager relative to applicable benchmarks and peer groups, emphasizing the portfolio manager’s three and five year performance. The investment manager also may consider a portfolio manager’s performance in managing client assets in sectors and industries assigned to the portfolio manager as part of his/her investment team responsibilities, where applicable. For portfolio managers who also have group management responsibilities, another factor in their evaluation is an assessment of the group’s overall investment performance.


		The size of the overall bonus pool each year depends on, among other factors, the levels of compensation generally in the investment management industry (based on market compensation data) and the investment manager’s profitability for the year, which is largely determined by assets under management.


		Exceptions to this general compensation approach exist for certain teams and individuals.


(19)		Columbia Management: The compensation of specified Portfolio Builder portfolio managers consists of (i) a base salary, (ii) an annual cash bonus, and (iii) equity incentive awards in the form of stock options and/or restricted stock. The annual cash bonus is based on management’s assessment of the employee’s performance relative to individual and

Statement of Additional Information – March 7, 2011

Page 139


		business unit goals and objectives which, for portfolio manager Moore, may be based, in part, on achieving certain investment performance goals and retaining and attracting assets under management, and for portfolio manager Bergene, on developing competitive products, managing existing products, and selecting and monitoring subadvisers for Columbia funds. In addition, subject to certain vesting requirements, the compensation of portfolio manager Moore includes an annual award based on the performance of Ameriprise Financial over rolling three-year periods.


(20)		Columbia Management: Specified Portfolio Builder portfolio managers received all of their compensation in the form of salary, bonus, stock options, restricted stock, and notional investments through an incentive plan, the value of which is measured by reference to the performance of the funds in which the account is invested. A portfolio manager’s bonus is variable and generally is based on (1) an evaluation of the portfolio manager’s investment performance and (2) the results of a peer and/or management review of the portfolio manager, which takes into account skills and attributes such as team participation, investment process, communication and professionalism. In evaluating investment performance, the investment manager generally considers the one, three and five year performance of mutual funds and other accounts managed by the portfolio manager relative to applicable benchmarks and peer groups, emphasizing the portfolio manager’s three and five year performance. The investment manager also may consider a portfolio manager’s performance in managing client assets in sectors and industries assigned to the portfolio manager as part of his/her investment team responsibilities, where applicable. For portfolio managers who also have group management responsibilities, another factor in their evaluation is an assessment of the group’s overall investment performance.


		The size of the overall bonus pool each year depends on, among other factors, the levels of compensation generally in the investment management industry (based on market compensation data) and the investment manager’s profitability for the year, which is largely determined by assets under management.


		Exceptions to this general compensation approach exist for certain teams and individuals.


(21)		Turner: Turner’s investment professionals receive a base salary commensurate with their level of experience. Turner’s goal is to maintain competitive base salaries through review of industry standards, market conditions, and salary surveys. Bonus compensation, which is a multiple of base salary, is based on the performance of each individual’s sector and portfolio assignments relative to appropriate market benchmarks. In addition, each employee is eligible for equity awards. Turner believes this compensation provides incentive to attract and retain highly qualified people.


		The objective performance criteria noted above accounts for 90% of the bonus calculation. The remaining 10% is based upon subjective, “good will” factors including teamwork, interpersonal relations, the individual’s contribution to overall success of the firm, media and client relations, presentation skills, and professional development. Portfolio managers/analysts are reviewed on an annual basis. The Chief Investment Officer, Robert E. Turner, CFA, is responsible for setting base salaries, bonus targets, and making all subjective judgments related to an investment professionals’ compensation.


(22)		Columbia Management: Portfolio manager compensation is typically comprised of (i) a base salary, (ii) an annual cash bonus, and (iii) an equity incentive award in the form of stock options and/or restricted stock. The annual cash bonus and equity incentive awards are paid from a team bonus pool that is based on the performance of the accounts managed by the portfolio management team, which might include mutual funds, wrap accounts, institutional portfolios and hedge funds. The bonus pool is determined by a percentage of the aggregate assets under management in the accounts managed by the portfolio managers, including the fund, plus, where applicable, a percentage of the assets of the funds they support as research analysts, and by the short term (typically one-year) and long-term (typically three-year) performance of those accounts in relation to the relevant peer group universe. Funding for the bonus pool may also include a percentage of any performance fees earned on long/short mutual funds managed by the Team. Senior management of The investment manager has the discretion to increase or decrease the size of the part of the bonus pool and to determine the exact amount of each portfolio manager’s bonus paid from this portion of the bonus pool based on his/her performance as an employee. Portfolio managers are provided with a benefits package, including life insurance, health insurance, and participation in a company 401(k) plan, comparable to that received by other employees of the investment manager. Certain investment personnel are also eligible to defer a portion of their compensation. An individual making this type of election can allocate the deferral to the returns associated with one or more products they manage or support or to certain other products managed by their investment team. Depending upon their job level, portfolio managers may also be eligible for other benefits or perquisites that are available to all employees of the investment manager at the same job level.


(23)		American Century: The compensation of American Century’s portfolio managers is structured to align the interests of portfolio managers with those of the shareholders whose assets they manage. For the fiscal year ended May 31, 2009, it included the components described below, each of which is determined with reference to a number of factors, such as overall performance, market competition, and internal equity. Compensation is not directly tied to the value of assets held in client portfolios.

Statement of Additional Information – March 7, 2011

Page 140


		Base Salary
		Portfolio managers receive base pay in the form of a fixed annual salary.

		Bonus
		A significant portion of portfolio manager compensation takes the form of an annual incentive bonus tied to performance. Bonus payments are determined by a combination of factors. One factor is fund investment performance. For most American Century mutual funds, investment performance is measured by a combination of one- and three- year pre-tax performance relative to various benchmarks and/or internally-customized peer groups. The performance comparison periods may be adjusted based on a fund’s inception date or a portfolio manager’s tenure on the fund. Custom peer groups are constructed using all the funds in appropriate Lipper or Morningstar categories as a starting point. Funds are then eliminated from the peer group that is both more stable over the long-term (i.e., has less peer turnover) and that more closely represents the fund’s true peers based on internal investment mandates. In 2008, American Century Investments began placing increased emphasis on long-term performance and is phasing in five year performance periods.

		Portfolio managers may have responsibility for multiple American Century mutual funds. In such cases, the performance of each is assigned a percentage weight appropriate for the portfolio manager’s relative levels of responsibility.

		Portfolio managers also may have responsibility for portfolios that are managed in a fashion similar to that of other American Century mutual funds. This is the case for the Partners Small Cap Equity and Partners Aggressive Growth Funds. If the performance of a similarly managed account is considered for purposes of compensation, it is either measured in the same way as a comparable American Century mutual fund (i.e., relative to the performance of a benchmark and/or peer group) or relative to the performance of such mutual fund. Performance of Partners Small Cap Equity Fund is measured relative to the performance of a comparable American Century mutual fund. Performance of Partners Aggressive Growth Fund is not separately considered in determining portfolio manager compensation.

		A second factor in the bonus calculation relates to the performance of all American Century funds managed according to a particular investment style, such as U.S. growth, U.S. value, international, quantitative or fixed income. Performance is measured for each product individually as described above and then combined to create an overall composite for the product group. These composites may measure one-year performance (equal weighted) or a combination of one- and three-year performance (asset weighted) depending on the portfolio manager’s responsibilities and products managed. This feature is designed to encourage effective teamwork among portfolio management teams in achieving long-term investment success for similarly styled portfolios.

		A portion of some portfolio managers’ bonuses may be tied to individual performance goals, such as research projects and the development of new products.

		Restricted Stock Plans
		Portfolio managers are eligible for grants of restricted stock of ACC. These grants are discretionary, and eligibility and availability can vary from year to year. The size of an individual’s grant is determined by individual and product performance as well as other product-specific considerations. Grants can appreciate/depreciate in value based on the performance of the ACC stock during the restriction period (generally three to four years).

		Deferred Compensation Plans
		Portfolio managers are eligible for grants of deferred compensation. These grants are used in very limited situations, primarily for retention purposes. Grants are fixed and can appreciate/depreciate in value based on the performance of the American Century mutual funds in which the portfolio manager chooses to invest them.

(24)		Davis: Kenneth Feinberg’s compensation as a Davis Advisors employee consists of (i) a base salary, (ii) an annual bonus equal to a percentage of growth in Davis Advisors’ profits, (iii) awards of equity (“Units”) in Davis Advisors including Units, options on Units, and/or phantom Units, and (iv) an incentive plan whereby Davis Advisors purchases shares in selected funds managed by Davis Advisors. At the end of specified periods, generally five years following the date of purchase, some, all, or none of the fund shares will be registered in the employee’s name based on fund performance after expenses on a pre-tax basis versus the S&P 500 Index and versus peer groups as defined by Morningstar or Lipper. Davis Advisors’ portfolio managers are provided benefits packages including life insurance, health insurance, and participation in company 401(k) plan comparable to that received by other company employees.

		Christopher Davis’s annual compensation as an employee of Davis Advisors consists of a base salary. Davis Advisors’ portfolio managers are provided benefits packages including life insurance, health insurance, and participation in company 401(k) plan comparable to that received by other company employees.

(25)		Donald Smith: All employees at Donald Smith & Co., Inc. are compensated on incentive plans. The compensation for portfolio managers, analysts and traders at Donald Smith consists of a base salary, a partnership interest in the firm’s profits, and possibly an additional, discretionary bonus. This discretionary bonus can exceed 100% of the base salary if

Statement of Additional Information – March 7, 2011

Page 141


		performance for clients exceeds established benchmarks. The current benchmark utilized is the Russell 2000 Value Index. Additional distribution of firm ownership is a strong motivation for continued employment at Donald Smith & Co., Inc. Administrative personnel are also given a bonus as a function of their contribution and the profitability of the firm.

(26)		BHMS: In addition to base salary, all portfolio managers and analysts at BHMS share in a bonus pool that is distributed semi-annually. Analysts and portfolio managers are rated on their value added to the team-oriented investment process. Overall compensation applies with respect to all accounts managed and compensation does not differ with respect to distinct accounts managed by a portfolio manager. Compensation is not tied to a published or private benchmark. It is important to understand that contributions to the overall investment process may include not recommending securities in an analyst’s sector if there are no compelling opportunities in the industries covered by that analyst.

		The compensation of portfolio managers is not directly tied to fund performance or growth in assets for any fund or other account managed by a portfolio manager and portfolio managers are not compensated for bringing in new business. Of course, growth in assets from the appreciation of existing assets and/or growth in new assets will increase revenues and profit. The consistent, long-term growth in assets at any investment firm is to a great extent, dependent upon the success of the portfolio management team. The compensation of the portfolio management team at the Adviser will increase over time, if and when assets continue to grow through competitive performance.

(27)		MetWest: MetWest Capital’s compensation system is designed not only to attract and retain experienced, highly qualified investment personnel, but also to closely align employees’ interests with clients’ interests. Compensation for investment professionals consists of a base salary, bonus, and generous benefits. Benefits include a comprehensive insurance benefits program (medical, vision and dental), 401(k) plan with an employer-matched contribution. A material portion of each such professional’s annual compensation is in the form of a bonus tied to results relative to clients’ benchmarks and overall client satisfaction. Bonuses may range from 20% to over 100% of salary.

		MetWest Capital’s compensation system is not determined on an account-specific basis. Rather, bonuses are tied to overall firm profitability and composite performance relative to the benchmark. The primary benchmark for the Small Cap Intrinsic Value strategy is the Russell 2000 Value Index. To reinforce long-term focus, performance is measured over MetWest Capital’s investment horizon (typically two to four years). Analysts are encouraged to maintain a long-term focus and are not compensated for the number of their recommendations that are purchased in the portfolio. Rather, their bonuses are tied to overall strategy performance.

		Mr. Lisenbee is an owner of MetWest Capital. As such, his compensation consists of a fixed salary and participation in the firm’s profits.


(28)		Columbia Management: Portfolio manager compensation is typically comprised of (i) a base salary, (ii) an annual cash bonus and may include (iii) an equity incentive award in the form of stock options and/or restricted stock. The annual cash bonus is paid from a team bonus pool that is based on the performance of the accounts managed by the portfolio management team, which might include mutual funds, wrap accounts, institutional portfolios and hedge funds. Funding for the bonus pool is based upon a percentage of profits generated by the institutional portfolios they manage. Lynn Hopton and Yvonne Stevens may also be paid from a bonus pool based upon the performance of the mutual fund(s) they manage. Funding for this bonus pool is determined by a percentage of the aggregate assets under management in the mutual fund(s) they manage, and by the short term (typically one-year) and long-term (typically three-year) performance of the mutual fund(s) in relation to the relevant peer group universe. Senior management of Columbia Management has the discretion to increase or decrease the size of the bonus pool related to mutual funds and to determine the exact amount of each portfolio manager’s bonus paid from this portion of the bonus pool based on his/her performance as an employee. Senior management of Columbia Management does not have discretion over the size of the bonus pool related to institutional portfolios. Columbia Management portfolio managers are provided with a benefits package, including life insurance, health insurance, and participation in a company 401(k) plan, comparable to that received by other Columbia Management employees. Certain investment personnel are also eligible to defer a portion of their compensation. An individual making this type of election can allocate the deferral to the returns associated with one or more products they manage or support or to certain other products managed by their investment team. Depending upon their job level, Columbia Management portfolio managers may also be eligible for other benefits or perquisites that are available to all Columbia Management employees at the same job level.


(29)		Columbia Management: Portfolio manager compensation is typically comprised of (i) a base salary, (ii) an annual cash bonus, and may include (iii) an equity incentive award in the form of stock options and/or restricted stock. The annual cash bonus, and in some instances the base salary, are paid from a team bonus pool that is based on the performance of the accounts managed by the portfolio management team, which might include mutual funds, wrap accounts, institutional portfolios and hedge funds. The bonus pool is determined by a percentage of the management fees on the accounts managed by the portfolio managers, including the fund. The percentage of management fees that fund the bonus pool is based on the short term (typically one-year) and long-term (typically three-year and five-year) performance of those accounts in relation to the relevant peer group universe. Funding for the bonus pool may also include a percentage of any performance fees earned on long/short mutual funds managed by the Team. With respect to hedge funds and separately managed accounts that follow a hedge fund mandate, funding for the bonus pool is a percentage of performance fees earned on the hedge funds or accounts managed by the portfolio managers. Columbia

Statement of Additional Information – March 7, 2011

Page 142


		Management portfolio managers are provided with a benefits package, including life insurance, health insurance, and participation in a company 401(k) plan, comparable to that received by other Columbia Management employees. Depending upon their job level, Columbia Management portfolio managers may also be eligible for other benefits or perquisites that are available to all Columbia Management employees at the same job level.


(30)		Columbia WAM: For services performed through Dec. 31, 2009 and paid in Feb. 2010, the portfolio managers received all of their compensation from the Advisor and its then parent company, Columbia Management Group, LLC. P. Zachary Egan and Louis J. Mendes each received compensation in the form of salary and incentive compensation. For the 2009 calendar year, all of a manager’s incentive compensation was paid in cash. The Columbia WAM total incentive compensation pool was based on formulas, with investment performance of individual portfolio managers plus firm-wide investment performance, as primary drivers.

		For services performed for the 2010 calendar year and generally paid in early 2011, the portfolio managers will receive all of their compensation in the form of salary and incentive compensation provided in whole by Ameriprise Financial. Typically, a high proportion of a portfolio manager’s incentive compensation will be paid in cash with a smaller proportion going into two separate incentive plans. The first plan is a notional investment based on the performance of certain Columbia Funds, including the Columbia Acorn Funds. The second plan consists of Ameriprise Financial restricted stock and/or options. Both plans vest over three years from the date of issuance. Also, as part of the overall incentive for 2010, the portfolio managers receive additional compensation — a substantial portion of which will be deferred or paid in shares of funds managed by Columbia WAM — based on performance and continued employment through Dec. 15, 2010.

		Portfolio managers are positioned in a number of compensation tiers based on cumulative performance of the portfolios/stocks that they manage. Portfolio manager performance is measured versus primary portfolio benchmarks. One and three year performance periods primarily drive incentive levels. Incentive compensation varies by tier and can range from between a fraction of base pay to a multiple of base pay, the objective being to provide very competitive total compensation for high performing portfolio managers. Incentives are adjusted up or down up to 15% based on qualitative performance factors, which include investment performance impacts not included in benchmarks such as industry (or country) weighting recommendations, plus adherence to compliance standards, business building, and citizenship.

		In addition, the incentive amounts available for the entire pool for 2011 and 2012 will be adjusted up or down based upon the increase/decrease in Columbia WAM revenues versus an agreed upon based revenue amount. Investment performance, however, impact incentives for more than revenues. Columbia WAM determines incentive compensation, subject to review by Ameriprise Financial.

Statement of Additional Information – March 7, 2011

Page 143


(31)		Columbia Management: As of the funds’ most recent fiscal year end, the portfolio managers received all of their compensation in the form of salary, bonus, stock options, restricted stock, and notional investments through an incentive plan, the value of which is measured by reference to the performance of the funds in which the account is invested. A portfolio manager’s bonus is variable and generally is based on (1) an evaluation of the portfolio manager’s investment performance and (2) the results of a peer and/or management review of the portfolio manager, which takes into account skills and attributes such as team participation, investment process, communication and professionalism. In evaluating investment performance, the investment manager generally considers the one, three and five year performance of mutual funds and other accounts managed by the portfolio manager relative to the benchmarks and peer groups noted below, emphasizing the portfolio manager’s three and five year performance. The investment manager also may consider a portfolio manager’s performance in managing client assets in sectors and industries assigned to the portfolio manager as part of his/her investment team responsibilities, where applicable. For portfolio managers who also have group management responsibilities, another factor in their evaluation is an assessment of the group’s overall investment performance.

Performance Benchmarks:


Portfolio Manager	Fund(s)	Benchmark(s)	Peer Group
Alfred F. Alley III	RiverSource Disciplined Small and Mid Cap Equity	Russell 2500 Index	Lipper Mid-Cap Core Funds Classification
	RiverSource Disciplined Small Cap Value	Russell 200 Value Index	Lipper Small Cap Value Funds Classification
	RiverSource S&P 500 Index	S&P 500 Index	Lipper S&P 500 Index Objective Funds Classification
	RiverSource Small Company Index	S&P Small Cap 600 Index	Lipper Small-Cap Core Funds Classification
Anwiti Bahuguna, Colin Moore, Kent Peterson and Marie M. Schofield	Columbia Portfolio Builder Aggressive, Columbia Portfolio Builder Moderate Aggressive and Columbia Portfolio Builder Total Equity	S&P 500 Index	Lipper Large Cap Core Funds Classification
	Columbia Portfolio Builder Conservative	Barclays Capital U.S. Aggregate 1-3 Years Index and Blended: 80% Barclays Capital U.S. Aggregate 1-3 Years Index, 20% Barclays Capital U.S. Corporate High-Yield Bond Index	Lipper Mixed-Asset Target Allocation Conservative Funds Classification
	Columbia Portfolio Builder Moderate Conservative	S&P 500 Index and Barclays Capital U.S. Aggregate Bond Index	Lipper Mixed-Asset Target Allocation Conservative Funds Classification
	Columbia Portfolio Builder Moderate	S&P 500 Index and Barclays Capital U.S. Aggregate Bond Index	Lipper Mixed-Asset Target Allocation Growth Funds Classification
	Columbia Retirement Plus Funds	S&P 500 Index, Russell 1000 Index, Russell 1000 Value Index, Barclays Capital U.S. Aggregate Bond Index, MSCI The World Index Net, and MSCI EAFE Index Net	N/A
	Columbia Strategic Allocation	S&P 500 Index and Barclays Capital Aggregate Bond Index	Lipper Mixed Asset Target Allocation Moderate Funds Classification
Brian M. Condon	Columbia Large Core Quantitative	S&P 500 Index	Lipper S&P 500 Index Objective Funds Classification
	Columbia Large Growth Quantitative	Russell 1000 Growth Index	Lipper Large Cap Growth Funds Classification
	Columbia Disciplined Large Value Quantitative	Russell 1000 Value Index	Lipper Large Cap Value Funds Classification
	RiverSource Disciplined Small and Mid Cap Equity	Russell 2500 Index	Lipper Mid Cap Core Funds Classification
	RiverSource Disciplined Small Cap Value	Russell 2000 Value Index	Lipper Small Cap Value Funds Classification
Fred Copper	RiverSource Disciplined International Equity	MSCI EAFE Value Index	Lipper International Multi-Cap Value Funds Classification
Wayne M. Collette, Lawrence W. Lin, George Myers and Brian D. Neigut	Seligman Capital	Russell MidCap TR and Russell MidCap Growth TR	Lipper Mid-Cap Growth Funds Classification
	Columbia Frontier	Russell 2000 TR and Russell 2000 Growth TR	Lipper Small Cap Growth Funds Classification

Statement of Additional Information – March 7, 2011

Page 144


Portfolio Manager	Fund(s)	Benchmark(s)	Peer Group
Peter Deininger and John Wilson	Seligman Growth	Russell 1000 Growth Index	Lipper Large-Cap Growth Funds Classification
Michael E. Hoover	RiverSource Precious Metals and Mining	S&P North American Natural Resources Sector Index	Lipper Natural Resources Funds Classification
Arthur J. Hurley	RiverSource Real Estate	FTSE NAREIT Equity REITs Index	Lipper Real Estate Funds Classification


		(1) A custom composite, established by the Advisor, consisting of a 35% weighting of the Barclays Capital U.S. Aggregate Bond Index, a 35% weighting of the JPMorgan Global High Yield Index, a 15% weighting of the Citigroup Non-U.S. World Government Bond Index — Unhedged and a 15% weighting of the JPMorgan EMBI Global Diversified Index.


		The size of the overall bonus pool each year depends on, among other factors, the levels of compensation generally in the investment management industry (based on market compensation data) and the investment manager’s profitability for the year, which is largely determined by assets under management.

(32)		AllianceBernstein: AllianceBernstein’s compensation program for investment professionals is designed to be competitive and effective in order to attract and retain the highest caliber employees. The compensation program for investment professionals is designed to reflect their ability to generate long-term investment success for our clients. Investment professionals do not receive any direct compensation based upon the investment returns of any individual client account, nor is compensation tied directly to the level or change in the level of assets under management. Investment professionals’ annual compensation is comprised of the following:


(i)	Fixed base salary: This is generally the smallest portion of compensation. The base salary is a relatively low, fixed salary within a similar range for all investment professionals. The base salary does not change significantly from year-to-year, and hence, is not particularly sensitive to performance.

(ii)

Discretionary incentive compensation in the form of an annual cash bonus: AllianceBernstein’s overall profitability determines the total amount of incentive compensation available to investment professionals. This portion of compensation is determined subjectively based on qualitative and quantitative factors. In evaluating this component of an investment professional’s compensation, AllianceBernstein considers the contribution to his/her team or discipline as it relates to that team’s overall contribution to the long-term investment success, business results and strategy of AllianceBernstein. Quantitative factors considered include, among other things, relative investment performance (e.g., by comparison to competitor or peer group funds or similar styles of investments, and appropriate, broad-based or specific market indices), and consistency of performance. There are no specific formulas used to determine this part of an investment professional’s compensation and the compensation is not tied to any pre-determined or specified level of performance. AllianceBernstein also considers qualitative factors such as the complexity and risk of investment strategies involved in the style or type of assets managed by the investment professional; success of marketing/business development efforts and client servicing; seniority/length of service with the firm; management and supervisory responsibilities; and fulfillment of AllianceBernstein’s leadership criteria.

(iii)

Discretionary incentive compensation in the form of awards under AllianceBernstein’s Incentive Compensation Award Plan (“deferred awards”): AllianceBernstein’s overall profitability determines the total amount of deferred awards available to investment professionals. The deferred awards are allocated among investment professionals based on criteria similar to those used to determine the annual cash bonus. Deferred awards, which are in the form of AllianceBernstein’s publicly traded units, vest over a four-year period and are generally forfeited if the employee resigns or AllianceBernstein terminates his/her employment.


(iv)	Contributions under AllianceBernstein’s Profit Sharing/401(k) Plan: The contributions are based on AllianceBernstein’s overall profitability. The amount and allocation of the contributions are determined at the sole discretion of AllianceBernstein.


(33)		Mondrian: Mondrian has the following programs in place to retain key investment staff:

		1. Competitive Salary — All investment professionals are remunerated with a competitive base salary.

		2. Profit Sharing Bonus Pool — All Mondrian staff, including portfolio managers and senior officers, qualify for participation in an annual profit sharing pool determined by the company’s profitability (approximately 30% of profits).

		3. Equity Ownership — Mondrian is ultimately controlled by a partnership of senior management and Hellman & Friedman LLC, an independent private equity firm. Mondrian is currently 73% owned by approximately 80 of its senior employees, including the majority of investment professionals, senior client service officers, and senior operations personnel through Atlantic Value Investment Partnership LP, and 27% owned by private equity funds sponsored by Hellman & Friedman LLC. The private equity funds sponsored by Hellman & Friedman LLC are passive, non-controlling minority investors in Mondrian and do not have day-to-day involvement in the management of Mondrian.

		Incentives (Bonus and Equity Programs) focus on the key areas of research quality, long-term and short-term stock performance, teamwork, client service and marketing. As an individual’s ability to influence these factors depends on that individual’s position and seniority within the firm, so the allocation of participation in these programs will reflect this.

Statement of Additional Information – March 7, 2011

Page 145


		At Mondrian, the investment management of particular portfolios is not “star manager” based but uses a team system. This means that Mondrian’s investment professionals are primarily assessed on their contribution to the team’s effort and results, though with an important element of their assessment being focused on the quality of their individual research contribution.

		Compensation Committee
		In determining the amount of bonuses and equity awarded, Mondrian’s Board of Directors consults with the company’s Compensation Committee, who will make recommendations based on a number of factors including investment research, organization management, team work, client servicing and marketing.

		Defined Contribution Pension Plan
		All portfolio managers are members of the Mondrian defined contribution pension plan where Mondrian pays a regular monthly contribution and the member may pay additional voluntary contributions if they wish. The Plan is governed by Trustees who have responsibility for the trust fund and payments of benefits to members. In addition, the Plan provides death benefits for death in service and a spouse’s or dependant’s pension may also be payable.

		Mondrian believes that this compensation structure, coupled with the opportunities that exist within a successful and growing business, are adequate to attract and retain high caliber employees.

(34)		Tradewinds: Tradewinds offers a highly competitive compensation structure with the purpose of attracting and retaining the most talented investment professionals. These professionals are rewarded through a combination of cash and long-term incentive compensation as determined by the firm’s executive committee. Total cash compensation (TCC) consists of both a base salary and an annual bonus that can be a multiple of the base salary. The firm annually benchmarks TCC to prevailing industry norms with the objective of achieving competitive levels for all contributing professionals.

		Available bonus pool compensation is primarily a function of the firm’s overall annual profitability. Individual bonuses are based primarily on the following:

		• Overall performance of client portfolios;

		• Objective review of stock recommendations and the quality of primary research;

		• Subjective review of the professional’s contributions to portfolio strategy, teamwork, collaboration and work ethic.

		To further strengthen our incentive compensation package and to create an even stronger alignment to the long-term success of the firm, Tradewinds has made available to most investment professionals equity participation opportunities, the values of which are determined by the increase in profitability of Tradewinds over time.

		Finally, some of our investment professionals have received additional remuneration as consideration for signing employment agreements. These agreements range from retention agreements to long-term employment contracts with significant non-solicitation and, in some cases, non-compete clauses.

(35)		Threadneedle: To align the interests of our investment staff with those of our clients the remuneration plan for senior individuals comprises basic salary, an annual profit share (linked to individual performance and the profitability of the company) and a Long Term Incentive Plan known as the Equity Incentive Plan (“EIP”) linked to measures of Threadneedle’s corporate success. Threadneedle believes this encourages longevity of service.

		The split between each component varies between investment professionals and will be dependent on performance and the type of funds they manage.

		The split of the profit share focuses on three key areas of success:

		• Performance of own funds and research recommendations,

		• Performance of all portfolios in the individual’s team,

		• Broader contribution to the wider thinking of the investment team, e.g. idea generation, interaction with colleagues and commitment for example to assisting the sales effort.

		Consideration of the individual’s general contribution is designed to encourage fund managers to think beyond personal portfolio performance and considers contributions made in:

		• Inter-team discussions, including asset allocation, global sector themes and weekly investment meetings,

		• Intra-team discussion, stock research and investment insights,

		• Marketing support, including written material and presentations.

		It is important to appreciate that in order to maximize an individual’s rating and hence their profit share, they need to score well in all areas. It is not sufficient to produce good personal fund performance without contributing effectively to the team and wider investment department. This structure is closely aligned with the Threadneedle’s investment principles of sharing ideas and effective communication.


(36)		LaSalle: Compensation for Investment Team Members consists of a base salary and incentive compensation that is based primarily upon performance of the particular Investment Team and that of the subadviser with which an Investment Team Member is employed, and meeting financial objectives for the Investment Team. The annual

Statement of Additional Information – March 7, 2011

Page 146


		performance of clients’ portfolios and/or the performance of stock recommendations against a sector index (generally the NAREIT-Equity REITs Index or the Wilshire REIT Index in respect of the Investment Team Members of LaSalle Securities US, or the EPRA Euro Zone Index and EPRA Europe Index in respect of the Investment Team Member of LaSalle Securities B.V.) is one factor included in professional employee evaluations, but compensation is not directly linked to these performance criteria.

		In addition, equity ownership in Jones Lang LaSalle, the subadvisers’ publicly-traded parent, is available to and expected of senior professionals. The major components of Jones Lang LaSalle’s comprehensive equity ownership program are: (1) Stock Ownership Program — credits employees with a portion of their incentive compensation in the form of restricted stock; (2) Employee Stock Purchase Plan — program through which employees may elect to purchase shares of Jones Land LaSalle through a payroll deduction plan (available to employees of LaSalle Securities US) and; (3) Stock Award Incentive Plan rewards key employees of the firm with stock awards, in the form of restricted stock units, based on the strength of their individual contributions.


(37)		Marsico Capital: The compensation package for portfolio managers of Marsico Capital is structured as a combination of base salary (reevaluated at least annually), and periodic cash bonuses. Bonuses are typically based on two primary factors: (1) Marsico Capital’s overall profitability for the period, and (2) individual achievement and contribution. Portfolio manager compensation takes into account, among other factors, the overall performance of all accounts for which the portfolio manager provides investment advisory services. In receiving compensation such as bonuses, portfolio managers do not receive special consideration based on the performance of particular accounts, and do not receive compensation from accounts charging performance-based fees. Exceptional individual efforts are rewarded through salary readjustments and greater participation in the bonus pool. No other special employee incentive arrangements are currently in place or being planned. In addition to salary and bonus, portfolio managers may participate in other Marsico Capital benefits to the same extent and on the same basis as other Marsico Capital employees. Portfolio manager compensation comes solely from Marsico Capital. In addition, Marsico Capital’s portfolio managers typically are offered equity interests in Marsico Management Equity, LLC, which indirectly owns Marsico Capital, and may receive distributions (such as earnings and losses) on those equity interests.


		As a general matter, Marsico Capital does not tie portfolio manager compensation to specific levels of performance relative to fixed benchmarks. Although performance may be a relevant consideration, comparisons with fixed benchmarks may not always be useful. Relevant benchmarks vary depending on specific investment styles and client guidelines or restrictions, and comparisons to benchmark performance may at times reveal more about market sentiment than about a portfolio manager’s abilities. To encourage a long-term horizon for managing portfolios, Marsico Capital evaluates a portfolio manager’s performance over periods longer than the immediate compensation period, and may consider a variety of measures such as the performance of unaffiliated portfolios with similar strategies and other measurements. Other factors that may also be significant in determining portfolio manager compensation include, without limitation, the effectiveness of the manager’s leadership within Marsico Capital’s investment team, contributions to Marsico Capital’s overall performance, discrete securities analysis, idea generation, ability to support and train other analysts, and other considerations.

Statement of Additional Information – March 7, 2011

Page 147

ADMINISTRATIVE SERVICES

Each fund listed in the table below has an Administrative Services Agreement with Columbia Management. Under this agreement, the fund pays Columbia Management for providing administration and accounting services. The fee is calculated as follows:

Table 20. Administrative Services Agreement Fee Schedule

Asset Levels and Breakpoints in Applicable Fees

$500,000,001 –

$1,000,000,001 –

$3,000,000,001 –

Fund

$0 – 500,000,000

1,000,000,000

3,000,000,000

$12,000,000,000

$12,000,000,001 +

Columbia 120/20 Contrarian Equity

0.080%

0.075%

0.070%

0.060%

0.050%

Columbia Absolute Return Currency and Income

Columbia Asia Pacific ex-Japan

Columbia Emerging Markets Bond

Columbia Emerging Markets Opportunity

Columbia European Equity

Columbia Frontier

Columbia Global Bond

Columbia Global Equity

Columbia Global Extended Alpha

Columbia Multi-Advisor International Value

Columbia Multi-Advisor Small Cap Value

Columbia Select Smaller-Cap Value

Columbia Strategic Allocation

RiverSource Disciplined International Equity

RiverSource Disciplined Small Cap Value

RiverSource LaSalle Global Real Estate

RiverSource Partners International Select Growth

RiverSource Partners International Small Cap

RiverSource Small Company Index

Threadneedle Global Equity Income

Threadneedle International Opportunity

Columbia AMT-Free Tax-Exempt Bond

0.070%

0.065%

0.060%

0.050%

0.040%

Columbia Diversified Bond

Columbia Floating Rate

Columbia High Yield Bond

Columbia Income Opportunities

Columbia Inflation Protected Securities

Columbia Limited Duration Credit

Columbia U.S. Government Mortgage

RiverSource California Tax-Exempt

RiverSource Intermediate Tax-Exempt

RiverSource New York Tax-Exempt

RiverSource Short Duration U.S. Government

RiverSource Strategic Income Allocation

RiverSource Tax-Exempt High Income

Seligman California Municipal High-Yield

Seligman California Municipal Quality

Seligman Minnesota Municipal

Seligman National Municipal

Seligman New York Municipal

Statement of Additional Information – March 7, 2011

Page 148

Asset Levels and Breakpoints in Applicable Fees

$500,000,001 –

$1,000,000,001 –

$3,000,000,001 –

Fund

$0 – 500,000,000

1,000,000,000

3,000,000,000

$12,000,000,000

$12,000,000,001 +

Columbia Diversified Equity Income

0.060%

0.055%

0.050%

0.040%

0.030%

Columbia Dividend Opportunity

Columbia Equity Value

Columbia Government Money Market

Columbia Large Core Quantitative

Columbia Large Growth Quantitative

Columbia Large Value Quantitative

Columbia Marsico Flexible Capital

Columbia Mid Cap Growth Opportunity

Columbia Mid Cap Value Opportunity

Columbia Money Market

Columbia Recovery and Infrastructure

Columbia Select Large-Cap Value

Columbia Seligman Communications and Information

Columbia Seligman Global Technology ^(a)

RiverSource Balanced

RiverSource Disciplined Small and Mid Cap Equity

RiverSource LaSalle Monthly Dividend Real Estate

RiverSource Partners Fundamental Value

RiverSource Precious Metals and Mining

RiverSource Real Estate

RiverSource S&P 500 Index

Seligman Capital

Seligman Growth

Columbia Income Builder Fund

0.020%

Columbia Income Builder Fund II

Columbia Income Builder Fund III

Columbia Portfolio Builder Aggressive

Columbia Portfolio Builder Conservative

Columbia Portfolio Builder Moderate

Columbia Portfolio Builder Moderate Aggressive

Columbia Portfolio Builder Moderate Conservative

Columbia Portfolio Builder Total Equity

Columbia Retirement Plus 2010

Columbia Retirement Plus 2015

Columbia Retirement Plus 2020

Columbia Retirement Plus 2025

Columbia Retirement Plus 2030

Columbia Retirement Plus 2035

Columbia Retirement Plus 2040

Columbia Retirement Plus 2045

$250,000,001 –

$1,000,000,001 –

$3,000,000,001 –

$0 – 250,000,000

$1,000,000,000

3,000,000,000

$12,000,000,000

$12,000,000,001 +

Columbia Minnesota Tax-Exempt

0.070%

0.065%

0.060%

0.050%

0.040%


(a)		Prior to March 1, 2011, the investment manager received an annual fee ranging from 0.080% to 0.050% as asset levels increased.

Statement of Additional Information – March 7, 2011

Page 149

Prior to Jan. 1, 2011, the funds’ Administrative Services Agreement was with Ameriprise Financial. The fee is calculated for each calendar day on the basis of net assets as of the close of the preceding day. Fees paid in each of the last three fiscal periods are shown in the table below. The table also shows the daily rate applied to each fund’s net assets as of the last day of the most recent fiscal period. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 21. Administrative Fees


	Administrative services fees paid in:								Daily rate
									applied to
Fund	2010		2009			2008			fund assets
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	$	45,313	$	56,956		$	38,041	^(a)		0.020	%

Columbia Income Builder Fund II		78,128		108,149			82,229	^(a)		0.020

Columbia Income Builder Fund III		38,950		54,275			45,848	^(a)		0.020

Columbia Portfolio Builder Aggressive		89,504		96,644			110,897			0.020

Columbia Portfolio Builder Conservative		45,451		36,929			26,665			0.020

Columbia Portfolio Builder Moderate		201,685		193,553			183,783			0.020

Columbia Portfolio Builder Moderate Aggressive		186,977		205,250			223,400			0.020

Columbia Portfolio Builder Moderate Conservative		75,988		72,830			62,617			0.020

Columbia Portfolio Builder Total Equity		75,724		84,413			101,924			0.020

RiverSource S&P 500 Index		69,721		101,230			158,059			0.060

RiverSource Small Company Index		293,026		446,427			738,676			0.080

*For funds with fiscal period ending March 31*

Columbia Equity Value		391,620		448,794			680,124			0.058

RiverSource Precious Metals and Mining		83,021		64,531			77,686			0.060

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity		31,739		31,071			13,416	^(b)		0.080

Columbia Recovery and Infrastructure		199,325		4,214	^(c)		N/A			0.059

Columbia Retirement Plus 2010		1,647		2,441			3,623			0.020

Columbia Retirement Plus 2015		4,050		4,449			5,483			0.020

Columbia Retirement Plus 2020		4,355		4,871			7,572			0.020

Columbia Retirement Plus 2025		4,903		5,145			7,280			0.020

Columbia Retirement Plus 2030		4,981		5,001			7,160			0.020

Columbia Retirement Plus 2035		3,476		3,258			4,249			0.020

Columbia Retirement Plus 2040		2,435		2,051			4,915			0.020

Columbia Retirement Plus 2045		2,262		1,726			1,670			0.020

*For funds with fiscal period ending May 31*

Columbia High Yield Bond		1,077,547		722,190			1,069,014			0.065

Columbia Multi-Advisor Small Cap Value		300,718		277,260			565,329			0.080

Columbia U.S. Government Mortgage		181,856		252,478			285,601			0.070

RiverSource Partners Fundamental Value		340,508		374,303			594,407			0.060

RiverSource Short Duration U.S. Government		470,119		521,265			541,748			0.069

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity		681,093		642,082			1,033,158			0.057

RiverSource Real Estate		103,295		91,566			132,646			0.060

Statement of Additional Information – March 7, 2011

Page 150


	Administrative services fees paid in:								Daily rate
									applied to
Fund	2010		2009			2008			fund assets
*For funds with fiscal period ending July 31*

Columbia Floating Rate	$	282,996	$	253,669		$	398,924			0.070	%

Columbia Income Opportunities		499,304		219,083			202,872			0.068

Columbia Inflation Protected Securities		451,332		515,776			399,972			0.069

Columbia Large Core Quantitative		1,911,088		1,094,618			1,701,542			0.050

Columbia Limited Duration Credit		317,896		123,147			115,529			0.069

Columbia Money Market		1,551,462		2,132,989			2,507,729			0.053

RiverSource Disciplined Small and Mid Cap Equity		83,767		77,180			38,114			0.060

RiverSource Disciplined Small Cap Value		40,614		34,017			30,592			0.080

*For funds with fiscal period ending August 31*

Columbia Diversified Bond		2,608,739		2,122,615			2,012,548			0.057

Columbia Marsico Flexible Capital ^(g)		N/A		N/A			N/A			N/A

Columbia Minnesota Tax-Exempt		235,979		212,293			215,249			0.070

RiverSource California Tax-Exempt		110,167		113,317			122,235			0.070

RiverSource New York Tax-Exempt		38,266		37,590			41,455			0.070

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income		2,189,480		1,985,768			3,272,256			0.048

Columbia Large Growth Quantitative		428,326		203,583			101,276			0.058

Columbia Large Value Quantitative		160,909		69,490			662	^(d)		0.060

Columbia Mid Cap Value Opportunity		1,176,703		946,227			1,335,281			0.053

Columbia Strategic Allocation		890,778		962,590			1,505,894			0.077

RiverSource Balanced		368,525		331,811			519,542			0.059

RiverSource Strategic Income Allocation		233,058		137,849			115,139			0.070

Seligman California Municipal High-Yield*		24,333		7,436			N/A			0.070

Seligman California Municipal Quality*		28,101		8,837			N/A			0.070

Seligman Minnesota Municipal*		47,397		14,896			N/A			0.070

Seligman National Municipal*		451,886		42,999			N/A			0.070

Seligman New York Municipal*		58,318		17,197			N/A			0.070

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income		162,872		417,444			373,454			0.080

Columbia Asia Pacific ex-Japan		172,133		7,807	^(e)		N/A			0.079

Columbia Emerging Markets Bond		197,667		146,703			131,334			0.080

Columbia Emerging Markets Opportunity		491,606		280,656			498,019			0.079

Columbia European Equity		56,787		50,304			96,107			0.080

Columbia Frontier*		76,326		10,073			N/A			0.080

Columbia Global Bond		400,481		401,109			572,976			0.080

Columbia Global Equity		366,549		340,869			549,601			0.080

Columbia Global Extended Alpha		6,913		4,908			1,256	^(f)		0.080

Columbia Multi-Advisor International Value		568,821		651,133			1,395,090			0.079

Columbia Seligman Global Technology*		405,545		102,757			N/A			0.079

RiverSource Disciplined International Equity		398,102		282,974			549,173			0.080

RiverSource Partners International Select Growth		312,490		282,773			511,522			0.080

RiverSource Partners International Small Cap		84,486		38,884			79,183			0.080

Threadneedle Global Equity Income		24,462		16,780			1,528	^(f)		0.080

Threadneedle International Opportunity		312,222		281,413			460,205			0.080

Statement of Additional Information – March 7, 2011

Page 151


	Administrative services fees paid in:						Daily rate
							applied to
Fund	$2010		$2009		$2008		fund assets
*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond	$	455,742	$	453,062	$	463,150		0.069	%

Columbia Mid Cap Growth Opportunity		549,847		339,961		471,791		0.057

RiverSource Intermediate Tax-Exempt		67,354		61,016		52,367		0.070

RiverSource Tax-Exempt High Income		1,433,949		1,428,680		1,603,416		0.063

*For funds with fiscal period ending December 31*

Columbia Government Money Market*		84,123		41,094		N/A		0.060

Columbia Select Large-Cap Value*		213,950		76,758		N/A		0.060

Columbia Select Smaller-Cap Value*		332,614		96,841		N/A		0.080

Columbia Seligman Communications and Information*		1,848,982		868,517		N/A		0.049

RiverSource LaSalle Global Real Estate*		11,304		5,942		N/A		0.080

RiverSource LaSalle Monthly Dividend Real Estate*		17,455		7,968		N/A		0.060

Seligman Capital*		141,377		68,772		N/A		0.060

Seligman Growth*		879,275		299,785		N/A		0.054


*		Prior to June 15, 2009 for Seligman California Municipal High-Yield, Seligman California Municipal Quality, Seligman Minnesota Municipal, Seligman New York Municipal, Columbia Seligman Global Technology, Columbia Government Money Market, RiverSource LaSalle Global Real Estate and RiverSource LaSalle Monthly Dividend Real Estate and prior to June 29, 2009 for Seligman Capital, Columbia Frontier, Columbia Seligman Communications and Information, Seligman Growth, Columbia Select Large-Cap Value and Columbia Select Smaller-Cap Value, and for Seligman National, prior to Aug. 31, 2009, the fund did not pay a separate administrative services fee. Fees for administration services were included in the fund’s management fees as charged by the fund’s pervious investment manager.

(a)		The fund changed its fiscal year end effective Jan. 31, 2008 from May 31 to Jan. 31. For 2008, the information shown is for the period from June 1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period ended on May 31.

(b)		For the period from Oct. 18, 2007 (when shares became publicly available) to April 30, 2008.

(c)		For the period from Feb. 19, 2009 (when shares became publicly available) to April 30, 2009.

(d)		For the period from Aug. 1, 2008 (when shares became publicly available) to Sept. 30, 2008.

(e)		For the period from July 15, 2009 (when the Fund became available) to Oct. 31, 2009.

(f)		For the period from Aug. 1, 2008 (when shares became publicly available) to Oct. 31, 2008.


(g)		The fund is new as of Sept. 28, 2010 and has not passed its fiscal period end; therefore no reporting is available.

Statement of Additional Information – March 7, 2011

Page 152

TRANSFER AGENCY SERVICES

The funds have a Transfer Agency Agreement with Columbia Management Investment Services Corp. (the “transfer agent”) (formerly RiverSource Service Corporation) located at 225 Franklin Street, Boston, MA 02110. This agreement governs the transfer agent’s responsibility for administering and/or performing transfer agent functions, for acting as service agent in connection with dividend and distribution functions and for performing shareholder account administration agent functions in connection with the issuance, exchange and redemption or repurchase of the fund’s shares.

For Class A, Class B, Class C, Class R, Class R3, Class R4, Class R5, Class W, Class Y and Class Z, the transfer agent will earn an open account fee determined by multiplying the number of open accounts by the annual rate of $12.08. The annual per account fee is accrued daily and payable monthly. The fund will allocate the fee daily across their share classes based on the relative percentage of net assets of each class of shares.

In addition, for Class A, Class B, Class C, Class R, Class W and Class Z, the fund reimburses the transfer agent for the fees and expenses the transfer agent pays to financial intermediaries that maintain omnibus accounts with the fund subject to an annual limitation of 0.20% of the average aggregate value of the fund’s shares maintained in each such omnibus account (other than omnibus accounts for which American Enterprise Investment Services, Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc., which are reimbursed in an amount equal to $16.00 annually, calculated monthly based on the total number of positions in such account at the end of such month). For Class R3, Class R4 and Class R5, the fees paid to the transfer agent for expenses paid to financial intermediaries to maintain omnibus accounts are subject to an annual limitation of 0.05% of the net assets attributable to such shares. Class I does not pay transfer agency fees.

The fund also pays certain reimbursable out-of-pocket expenses to the transfer agent. The transfer agent also may retain as additional compensation for its services revenues for fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcripts due the transfer agent from fund shareholders and credits (net of bank charges) earned with respect to balances in accounts the transfer agent maintains in connection with its services to the funds. The fees paid to the transfer agent may be changed by the Board without shareholder approval.

PLAN ADMINISTRATION SERVICES

The funds that offer Class R3 and Class R4 shares have a Plan Administration Services Agreement with the transfer agent. Under the agreement the fund pays for plan administration services, including services such as implementation and conversion services, account set-up and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and Health Savings Accounts (HSAs).

The fee for services is equal on an annual basis to 0.25% of the average daily net assets of the fund attributable to each of Class R3 and R4.

The fees paid to the transfer agent may be changed by the Board without shareholder approval.

DISTRIBUTION SERVICES

Columbia Management Investment Distributors, Inc. (the “distributor”) (formerly RiverSource Fund Distributors, Inc.), an indirect wholly-owned subsidiary of Columbia Management, 225 Franklin Street, Boston, MA 02110, serves as the funds’ principal underwriter and distributor. Prior to June 1, 2009, for RiverSource and Threadneedle funds, RiverSource Distributors, Inc. also served as principal underwriter and distributor to the funds. Prior to Oct. 1, 2007, for RiverSource and Threadneedle funds, Ameriprise Financial Services, Inc. also served as principal underwriter and distributor to the funds. Prior to Nov. 7, 2008, for Seligman funds, Seligman Advisors, Inc. also served as principal underwriter and distributor to the funds. The fund’s shares are offered on a continuous basis. Under a Distribution Agreement, sales charges deducted for distributing fund shares are paid to the distributor daily. The following table shows the sales charges paid to the distributor and the amount retained by the distributor after paying commissions and other expenses for each of the last three fiscal periods. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 22. Sales Charges Paid to Distributor


								Amount retained after paying
	Sales charges paid to Distributor							commissions and other expenses
Fund	2010		2009		2008			2010			2009			2008
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund		$245,462		$466,216		$688,587	^(a)		$(86,426	)		$(21,562	)		$(56,086	) ^(a)

Columbia Income Builder Fund II		293,969		654,937		1,279,681	^(a)		(109,209	)		77,641			34,001	^(a)

Statement of Additional Information – March 7, 2011

Page 153


									Amount retained after paying
	Sales charges paid to Distributor								commissions and other expenses
Fund	2010		2009			2008			2010			2009			2008
Columbia Income Builder Fund III		$189,070		$296,977			$831,981	^(a)		$(27,745	)		$(533	)		$176,661	^(a)

Columbia Portfolio Builder Aggressive		1,656,276		2,081,242			2,848,037			417,384			552,795			799,417

Columbia Portfolio Builder Conservative		524,245		528,590			384,348			8,450			16,829			4,989

Columbia Portfolio Builder Moderate		2,911,626		3,277,766			3,944,827			507,020			661,689			702,939

Columbia Portfolio Builder Moderate Aggressive		3,171,640		4,181,445			5,635,597			795,856			1,125,393			1,613,677

Columbia Portfolio Builder Moderate Conservative		885,194		982,012			1,088,559			111,387			153,386			140,630

Columbia Portfolio Builder Total Equity		1,059,706		1,561,130			2,257,735			202,573			319,114			471,536

RiverSource S&P 500 Index		N/A		N/A			N/A			N/A			N/A			N/A

RiverSource Small Company Index		265,422		365,094			563,878			265,422			317,088			117,897

*For funds with fiscal period ending March 31*

Columbia Equity Value		245,798		374,068			496,313			28,520			65,246			16,594

RiverSource Precious Metals and Mining		224,264		159,379			192,503			6,986			55,468			50,572

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity		44,207		57,137			149,480	^(b)		2,401			5,429			46,196	^(b)

Columbia Recovery and Infrastructure		1,817,351		221,190	^(c)		N/A			337,598			(7,085	) ^(c)		N/A

Columbia Retirement Plus 2010		6,098		7,536			32,694			2,480			1,465			11,266

Columbia Retirement Plus 2015		12,014		17,354			70,298			5,364			5,173			50,360

Columbia Retirement Plus 2020		20,614		26,015			41,850			8,068			12,539			21,519

Columbia Retirement Plus 2025		15,117		21,208			49,187			6,222			7,872			25,003

Columbia Retirement Plus 2030		14,540		19,999			51,530			5,797			9,336			28,063

Columbia Retirement Plus 2035		11,125		14,670			31,469			5,669			6,101			19,162

Columbia Retirement Plus 2040		18,304		17,700			39,332			8,927			8,815			21,208

Columbia Retirement Plus 2045		15,018		16,697			23,890			6,063			6,510			12,087

*For funds with fiscal period ending May 31*

Columbia High Yield Bond		1,321,507		974,983			882,107			297,716			108,896			41,174

Columbia Multi-Advisor Small Cap Value		305,205		287,969			607,350			56,453			38,780			117,005

Columbia U.S. Government Mortgage		109,683		101,207			136,891			(17,796	)		(70,344	)		(116,397	)

RiverSource Partners Fundamental Value		340,583		494,967			766,263			14,174			43,220			58,252

RiverSource Short Duration U.S. Government		392,239		530,165			660,354			35,955			107,433			(152,827	)

Statement of Additional Information – March 7, 2011

Page 154


								Amount retained after paying
	Sales charges paid to Distributor							commissions and other expenses
Fund	2010		2009		2008			2010			2009			2008

*For funds with fiscal period ending June 30*


Columbia Dividend Opportunity		$1,058,723		$798,182		$1,648,530			$175,949			$39,934			$206,622

RiverSource Real Estate		80,410		98,301		211,915			15,331			18,158			63,306

*For funds with fiscal period ending July 31*

Columbia Floating Rate		240,774		189,836		380,143			(11,075	)		11,806			(174,369	)

Columbia Income Opportunities		1,196,954		951,690		135,655			271,045			251,745			(11,090	)

Columbia Inflation Protected Securities		236,120		332,292		407,706			15,969			101,013			51,044

Columbia Large Core Quantitative		1,610,548		261,402		412,821			377,765			67,822			85,890

Columbia Limited Duration Credit		1,033,053		145,544		92,255			119,494			17,573			9,475

Columbia Money Market		106,803		367,743		339,219			106,058			367,712			339,111

RiverSource Disciplined Small and Mid Cap Equity		25,721		24,097		26,228			7,017			7,132			7,923

RiverSource Disciplined Small Cap Value		5,507		8,386		6,647			1,133			2,011			1,943

*For funds with fiscal period ending August 31*

Columbia Diversified Bond		1,584,251		1,922,949		1,992,222			77,260			(92,219	)		176,513

Columbia Marsico Flexible Capital ^(g)		N/A		N/A		N/A			N/A			N/A			N/A

Columbia Minnesota Tax-Exempt		551,051		406,782		463,447			2,712			84,001			37,217

RiverSource California Tax-Exempt		96,842		92,347		91,928			13,668			9,806			5,945

RiverSource New York Tax-Exempt		31,250		20,992		29,401			6,331			8,033			8,217

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income		2,471,025		3,383,179		6,331,545			469,210			496,151			1,204,186

Columbia Large Growth Quantitative		66,276		69,425		87,685			20,395			15,099			30,621

Columbia Large Value Quantitative		8,953		2,270		0	^(d)		2,821			566			0	^(d)

Columbia Mid Cap Value Opportunity		740,978		954,172		2,444,490			27,902			207,568			898,395

Columbia Strategic Allocation		1,306,148		2,055,294		5,371,458			98,496			347,495			1,321,113

RiverSource Balanced		203,655		189,413		287,586			44,936			39,038			36,359

RiverSource Strategic Income Allocation		625,249		600,969		400,285			53,616			2,484			28,302

Seligman California Municipal High-Yield		12,156		37,316		98,702			10,444			36,272			13,104

Seligman California Municipal Quality		15,693		60,005		37,798			11,188			56,335			5,413

Seligman Minnesota Municipal		32,282		66,716		49,497			19,746			55,756			6,427

Seligman National Municipal		309,586		222,346		57,892			245,535			199,904			7,651

Seligman New York Municipal		37,587		166,632		48,724			30,238			157,302			7,550

Statement of Additional Information – March 7, 2011

Page 155


								Amount retained after paying
	Sales charges paid to Distributor							commissions and other expenses
Fund	$2010		$2009		$2008			$2010			$2009		$2008
*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income		16,140		118,256		288,047			(14,128	)		40,664		52,383

Columbia Asia Pacific ex-Japan ^(e)		N/A		N/A		N/A			N/A			N/A		N/A

Columbia Emerging Markets Bond		203,192		70,770		41,906			90,529			28,245		10,486

Columbia Emerging Markets Opportunity		724,041		558,505		780,872			173,575			140,308		(4,109,358	)

Columbia European Equity		76,299		68,398		124,828			23,361			19,191		35,391

Columbia Frontier		39,206		1,357		10,431			7,033			735		1,351

Columbia Global Bond		222,999		218,412		391,577			26,401			32,697		118,930

Columbia Global Equity		283,968		361,007		800,774			38,823			60,748		114,011

Columbia Global Extended Alpha		8,879		8,674		1,795	^(f)		2,679			3,445		307	^(f)

Columbia Multi-Advisor International Value		400,262		580,503		1,584,444			47,685			68,413		235,164

Columbia Seligman Global Technology		584,870		221,563		265,528			334,231			184,936		233,685

RiverSource Disciplined International Equity		47,307		61,779		168,692			7,918			8,596		36,899

RiverSource Partners International Select Growth		160,681		213,399		560,302			138,644			43,200		118,125

RiverSource Partners International Small Cap		30,801		53,930		88,479			8,764			26,245		20,053

Threadneedle Global Equity Income		39,321		38,564		18,558	^(f)		5,600			7,576		4,340	^(f)

Threadneedle International Opportunity		160,249		168,431		319,850			33,199			37,276		49,744

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond		572,842		477,836		319,831			126,310			100,280		64,831

Columbia Mid Cap Growth Opportunity		514,901		453,947		360,393			127,719			131,709		59,123

RiverSource Intermediate Tax-Exempt		104,999		75,578		59,348			(495	)		3,223		(792	)

RiverSource Tax-Exempt High Income		1,295,541		1,164,712		1,042,555			210,684			192,881		151,444

*For funds with fiscal period ending December 31*

Columbia Government Money Market		14,410		22,845		N/A			14,356			22,830		N/A

Columbia Select Large-Cap Value		120,615		83,550		112,370			88,311			72,301		14,405

Columbia Select Smaller-Cap Value		183,546		73,571		31,742			33,457			39,883		4,542

Columbia Seligman Communications and Information		3,163,223		3,487,463		1,478,105			2,702,884			3,197,170		187,649

RiverSource LaSalle Global Real Estate		6,503		14,337		4,931			497			13,946		638

RiverSource LaSalle Monthly Dividend Real Estate		13,354		15,219		19,987			8,654			14,907		2,839

Seligman Capital		29,104		30,899		34,577			20,301			27,966		6,030

Seligman Growth		849,762		336,636		43,178			206,238			115,283		11,948


(a)		The fund changed its fiscal year end effective Jan. 31, 2008 from May 31 to Jan. 31. For 2008, the information shown is for the period from June 1, 2007 through Jan. 31, 2008. For years prior to 2008, the fiscal period ended on May 31.

(b)		For the period from Oct. 18, 2007 (when shares became publicly available) to April 30, 2008.

(c)		For the period from Feb. 19, 2009 (when shares became publicly available) to April 30, 2009.

(d)		For the period from Aug. 1, 2008 (when shares became publicly available) to Sept. 30, 2008.

(e)		For the period from July 15, 2009 (when the Fund became available) to Oct. 31, 2009.

(f)		For the period from Aug. 1, 2008 (when shares became publicly available) to Oct. 31, 2008.


(g)		The fund is new as of Sept. 28, 2010 and has not passed its fiscal period end; therefore no reporting is available.

Part of the sales charge may be paid to selling dealers who have agreements with the distributor. The distributor will retain the balance of the sales charge. At times the entire sales charge may be paid to selling dealers.

Statement of Additional Information – March 7, 2011

Page 156

PLAN AND AGREEMENT OF DISTRIBUTION

To help defray the cost of distribution and/or servicing not covered by the sales charges received under the Distribution Agreement, the Legacy RiverSource funds approved a Plan of Distribution (the “Plan”) and entered into an agreement under the Plan pursuant to Rule 12b-1 under the 1940 Act. The Plan is a reimbursement plan whereby the fund pays the distributor a fee up to actual expenses incurred.

The table below shows the maximum annual distribution and/or service fees (as an annual percent of average daily net assets) and the combined amount of such fees (as an annual percent of average daily net assets) applicable to each share class of a Legacy RiverSource fund:


Share Class	Distribution Fee	Service Fee	Combined Total
Class A	up to 0.25%	up to 0.25%	0.25% ^(a)

Class B	0.75%	0.25%	1.00% ^(b)

Class C	0.75%	0.25%	1.00% ^(a)

Class I	None	None	None

Class R (formerly Class R2)	up to 0.50%	up to 0.25%	0.50% ^(a),(c)

Class R3	0.25%	0.25% ^(d)	0.50% ^(d)

Class R4	None	0.25% ^(d)	0.25% ^(d)

Class R5	None	None	None

Class W	up to 0.25%	up to 0.25%	0.25% ^(a)

Class Z	None	None	None


(a)		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 voluntarily agreed, effective April 15, 2010, to waive the 12b-1 fees it receives from Class A, Class C, Class R (formerly Class R2) and Class W shares of Columbia Money Market Fund and from Class A, Class C and Class R (formerly Class R2) shares of Columbia Government Money Market Fund. Compensation paid to broker-dealers and other financial intermediaries may be suspended to the extent of the distributor’s waiver of the 12b-1 fees on these specific share classes of these funds.

(b)		Fee amounts noted apply to all funds other than 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%. Effective after the close of business on Sept. 3, 2010, Class B shares will be closed to new and existing investors.

(c)		The Legacy RiverSource funds have a distribution and shareholder service plan for Class R shares, which, prior to the close of business on Sept. 3, 2010, were known as Class R2 shares. For Class R shares, 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.

(d)		The shareholder service fees for Class R3 and Class R4 shares are not paid pursuant to a 12b-1 plan. Under a Plan Administration Services Agreement, the funds’ Class R3 and Class R4 shares pay for plan administration services, including services such as implementation and conversion services, account set-up and maintenance, reconciliation and account recordkeeping, education services and administration to various plan types, including 529 plans, retirement plans and health savings accounts.

The distribution and/or shareholder service fees for Class A, Class B, Class C, Class R (formerly Class R2), Class R3 and Class W shares, as applicable, are subject to the requirements of Rule 12b-1 under the 1940 Act, and are to reimburse the distributor for certain expenses it incurs in connection with distributing the fund’s shares and directly or indirectly providing services to fund shareholders. These payments or expenses include providing distribution and/or shareholder service fees to selling and/or servicing agents that sell shares of the fund or provide services to fund shareholders. The distributor may retain these fees otherwise payable to selling and/or servicing agents if the amounts due are below an amount determined by the distributor in its discretion.

For the Legacy RiverSource funds, for Class A, Class B and Class W shares, the distributor begins to pay these fees immediately after purchase. For Class C shares, the distributor pays these fees in advance for the first 12 months. Selling and/or servicing agents also receive distribution fees up to 0.75% of the average daily net assets of Class C shares sold and held through them, which the distributor begins to pay 12 months after purchase. For Class B shares, and, for the first 12 months following the sale of Class C shares, the distributor retains the distribution fee of up to 0.75% in order to finance the payment of sales commissions to selling and/or servicing agents, and to pay for other distribution related expenses. Selling and/or servicing agents may compensate their financial advisors with the shareholder service and distribution fees paid to them by the Distributor.

Statement of Additional Information – March 7, 2011

Page 157

If you maintain shares of the fund directly with the fund, without working directly with a financial advisor or selling and/or servicing agent, distribution and service fees are retained by the distributor as payment or reimbursement for incurring certain distribution and shareholder service related expenses.

Over time, these distribution and/or shareholder service fees will reduce the return on your investment and may cost you more than paying other types of sales charges. The fund will pay these fees to the distributor and/or to eligible selling and/or servicing agents for as long as the distribution and/or shareholder servicing plans continue in effect. The fund may reduce or discontinue payments at any time. Your selling and/or servicing agent may also charge you other additional fees for providing services to your account, which may be different from those described here.

For its most recent fiscal period, each fund paid 12b-1 fees as shown in the following table. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 23. 12b-1 Fees


Fund	Class A			Class B		Class C		Class R*		Class R3		Class W
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund	$	471,671		$	273,352	$	105,503		N/A		N/A		N/A

Columbia Income Builder Fund II		843,392			386,458		146,186		N/A		N/A		N/A

Columbia Income Builder Fund III		420,462			181,976		83,149		N/A		N/A		N/A

Columbia Portfolio Builder Aggressive		906,136			651,430		196,648		N/A		N/A		N/A

Columbia Portfolio Builder Conservative		427,544			415,794		145,696		N/A		N/A		N/A

Columbia Portfolio Builder Moderate		2,010,066			1,572,878		469,838		N/A		N/A		N/A

Columbia Portfolio Builder Moderate Aggressive		1,896,292			1,394,436		362,267		N/A		N/A		N/A

Columbia Portfolio Builder Moderate Conservative		744,235			615,354		206,862		N/A		N/A		N/A

Columbia Portfolio Builder Total Equity		769,440			529,603		177,552		N/A		N/A		N/A

RiverSource S&P 500 Index		54,437	^(a)		N/A		N/A		N/A		N/A		N/A

RiverSource Small Company Index		781,451			482,501		N/A		N/A		N/A		N/A

*For funds with fiscal period ending March 31*

Columbia Equity Value		1,484,672			513,603		42,567	$	52	$	369	$	8

RiverSource Precious Metals and Mining		303,284			137,925		31,060		N/A		N/A		N/A

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity		80,959			14,686		19,355		N/A		N/A		N/A

Columbia Recovery and Infrastructure		573,841			125,316		127,106		93		39		N/A

Columbia Retirement Plus 2010		7,863			N/A		N/A		18		10		N/A

Columbia Retirement Plus 2015		12,794			N/A		N/A		18		10		N/A

Columbia Retirement Plus 2020		11,607			N/A		N/A		146		8		N/A

Columbia Retirement Plus 2025		6,809			N/A		N/A		97		8		N/A

Columbia Retirement Plus 2030		10,004			N/A		N/A		45		13		N/A

Columbia Retirement Plus 2035		4,104			N/A		N/A		17		8		N/A

Columbia Retirement Plus 2040		3,831			N/A		N/A		50		70		N/A

Columbia Retirement Plus 2045		3,364			N/A		N/A		18		8		N/A

*For funds with fiscal period ending May 31*

Columbia High Yield Bond		3,126,170			1,016,761		599,062		19,571		5,898		263,891

Columbia Multi-Advisor Small Cap Value		629,566			635,056		71,205		2,666		433		N/A

Columbia U.S. Government Mortgage		195,150			198,412		44,904		N/A		N/A		N/A

RiverSource Partners Fundamental Value		846,835			604,556		88,558		N/A		N/A		N/A

RiverSource Short Duration U.S. Government		1,289,353			810,418		242,435		11,521		N/A		12

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity		2,335,959			777,706		197,105		228		11		10

RiverSource Real Estate		128,018			64,833		11,302		N/A		N/A		6

Statement of Additional Information – March 7, 2011

Page 158


Fund	Class A		Class B		Class C		Class R*		Class R3		Class W
*For funds with fiscal period ending July 31*

Columbia Floating Rate	$	661,379	$	129,749	$	172,291		N/A		N/A	$	11

Columbia Income Opportunities		1,165,157		362,360		508,953		N/A		N/A		N/A

Columbia Inflation Protected Securities		676,148		221,294		156,599	$	5,707		N/A		401,982

Columbia Large Core Quantitative		6,447,567		1,947,821		209,143		9,201	$	14		1,372,152

Columbia Limited Duration Credit		710,400		120,305		341,535		N/A		N/A		12

Columbia Money Market		2,064,367		421,815		29,890		5		N/A		14,212

RiverSource Disciplined Small and Mid Cap Equity		25,573		9,144		2,729		N/A		N/A		265,113

RiverSource Disciplined Small Cap Value		19,337		2,362		1,006		17		12		N/A

*For funds with fiscal period ending August 31*

Columbia Diversified Bond		7,117,570		1,741,108		582,197		2,116		26		1,070,556

Columbia Marsico Flexible Capital ^(b)		N/A		N/A		N/A		N/A		N/A		N/A

Columbia Minnesota Tax-Exempt		779,724		88,473		163,760		N/A		N/A		N/A

RiverSource California Tax-Exempt		379,034		25,963		31,712		N/A		N/A		N/A

RiverSource New York Tax-Exempt		129,187		19,927		9,978		N/A		N/A		N/A

*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income		8,830,653		3,430,897		702,987		44,174		259,312		8

Columbia Large Growth Quantitative		787,103		33,545		16,086		40		18		485,706

Columbia Large Value Quantitative		5,320		1,145		618		40		18		502,813

Columbia Mid Cap Value Opportunity		3,437,402		1,099,576		443,050		82,745		146,000		8

Columbia Strategic Allocation		2,558,223		996,429		415,800		19		9		N/A

RiverSource Balanced		1,378,525		162,057		93,769		233		N/A		N/A

RiverSource Strategic Income Allocation		724,359		255,741		172,238		26		13		N/A

Seligman California Municipal High-Yield		72,075		N/A		59,310		N/A		N/A		N/A

Seligman California Municipal Quality		91,856		N/A		34,022		N/A		N/A		N/A

Seligman Minnesota Municipal		165,688		N/A		14,346		N/A		N/A		N/A

Seligman National Municipal		1,554,737		N/A		348,526		N/A		N/A		N/A

Seligman New York Municipal		187,241		N/A		84,151		N/A		N/A		N/A

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income		209,776		13,998		60,110		N/A		N/A		191,732

Columbia Asia Pacific ex-Japan		7		N/A		2		1		N/A		N/A

Columbia Emerging Markets Bond		120,941		30,560		14,021		N/A		N/A		265,437

Columbia Emerging Markets Opportunity		1,147,121		397,712		344,726		65,971		N/A		1

Columbia European Equity		160,871		53,686		12,402		N/A		N/A		N/A

Columbia Frontier		126,340		60,987		102,844		494		15		N/A

Columbia Global Bond		613,780		256,387		61,070		16		5		136,877

Columbia Global Equity		949,930		300,148		101,910		186		9		11

Columbia Global Extended Alpha		8,488		3,593		1,535		47		19		N/A

Columbia Multi-Advisor International Value		1,167,544		672,894		97,984		N/A		N/A		N/A

Columbia Seligman Global Technology		938,260		225,236		751,268		36,777		12		N/A

RiverSource Disciplined International Equity		104,529		58,603		10,060		17		7		751,071

RiverSource Partners International Select Growth		423,438		211,131		86,673		1,088		N/A		N/A

RiverSource Partners International Small Cap		129,899		46,346		131,749		4,909		N/A		N/A

Threadneedle Global Equity Income		58,854		20,679		5,806		45		18		N/A

Threadneedle International Opportunity		618,574		180,052		74,227		7,013		8		N/A

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond		1,603,257		120,722		93,036		N/A		N/A		N/A

Columbia Mid Cap Growth Opportunity		1,863,136		613,235		111,766		218		47		N/A

RiverSource Intermediate Tax-Exempt		218,162		29,616		59,932		N/A		N/A		N/A

RiverSource Tax-Exempt High Income		5,542,137		312,071		168,534		N/A		N/A		N/A

Statement of Additional Information – March 7, 2011

Page 159

For funds with Class B and Class C shares:

The following table provides the amount of distribution expenses, as a dollar amount and as a percentage of net assets, incurred by the distributor and not yet reimbursed (“unreimbursed expense”) for Class B and Class C shares. These amounts are based on the most recent information available as of October 31, 2010 and may be recovered from future payments under the distribution plan or CDSC. To the extent the unreimbursed expense has been fully recovered, the distribution fee is reduced.

Table 24. Unreimbursed Distribution Expenses


			Percentage of				Percentage of
			Class B				Class C
	Class B		net assets		Class C		net assets
Columbia 120/20 Contrarian Equity Fund	$	82,000		6.50%	$	16,000		0.71%

Columbia Absolute Return Currency and Income Fund		62,000		6.16%		20,000		0.43%

Columbia AMT-Free Tax-Exempt Bond Fund		358,000		4.63%		90,000		0.86%

Columbia Asia Pacific		N/A		0.00%		N/A		N/A

Columbia Diversified Bond Fund		7,238,000		6.40%		842,000		1.35%

Columbia Diversified Equity Income Fund		14,579,000		5.83%		759,000		1.12%

Columbia Dividend Opportunity Fund		3,050,000		5.22%		240,000		0.89%

Columbia Emerging Markets Bond Fund		101,000		2.84%		67,000		1.87%

Columbia Emerging Markets Opportunity Fund		1,019,000		2.73%		1,446,000		3.73%

Columbia Equity Value Fund		1,420,000		4.59%		60,000		1.30%

Columbia European Equity Fund		164,000		4.05%		21,000		1.49%

Columbia Floating Rate Fund		749,000		7.53%		149,000		0.66%

Columbia Frontier Fund		26,000		0.37%		1,287,000		11.72%

Columbia Global Bond Fund		1,081,000		5.84%		80,000		1.30%

Columbia Global Equity Fund		1,263,000		5.28%		1,512,000		14.89%

Columbia Global Extended Alpha Fund		35,000		11.53%		1,000		0.55%

Columbia Government Money Market Fund		100,000		2.59%		2,890,000		19.92%

Columbia High Yield Bond Fund		3,084,000		4.53%		8,899,000		12.02%

Columbia Income Builder Fund		1,692,000		8.86%		93,000		0.59%

Columbia Income Builder Fund II		2,257,000		8.31%		104,000		0.63%

Columbia Income Builder Fund III		1,131,000		8.38%		68,000		0.72%

Columbia Income Opportunities Fund		1,493,000		4.88%		206,000		0.31%

Columbia Inflation Protected Securities Fund		1,041,000		7.13%		184,000		1.06%

Columbia Large Core Quantitative Fund		10,118,000		6.53%		1,330,000		5.79%

Columbia Large Growth Quantitative Fund		150,000		5.69%		15,000		0.89%

Columbia Large Value Quantitative Fund		7,000		3.18%		1,000		0.96%

Columbia Limited Duration Credit Fund		575,000		4.82%		406,000		0.76%

Columbia Marsico Flexible Capital Fund		N/A		N/A		1,000

Columbia Mid Cap Growth Opportunity Fund		1,445,000		2.66%		79,000		0.65%

Columbia Mid Cap Value Opportunity Fund		3,915,000		4.15%		280,000		0.60%

Columbia Minnesota Tax-Exempt fund		179,000		3.18%		172,000		0.81%

Columbia Money Market Fund		5,798,000		22.53%		23,000		0.33%

Columbia Multi-Advisor International Value Fund		3,585,000		7.40%		172,000		1.87%

Columbia Multi-Advisor Small Cap Value Fund		1,743,000		4.95%		111,000		1.38%

Columbia Portfolio Builder Aggressive Fund		2,917,000		4.57%		180,000		0.62%

Columbia Portfolio Builder Conservative Fund		2,074,000		6.40%		181,000		0.73%

Columbia Portfolio Builder Moderate Aggressive Fund		6,366,000		4.84%		1,172,000		2.08%

Columbia Portfolio Builder Moderate Conservative Fund		2,978,000		5.68%		265,000		0.81%

Columbia Portfolio Builder Moderate Fund		7,724,000		5.12%		1,423,000		1.77%

Columbia Portfolio Builder Total Equity Fund		2,468,000		5.06%		1,380,000		4.91%

Statement of Additional Information – March 7, 2011

Page 161


			Percentage of				Percentage of
			Class B				Class C
	Class B		net assets		Class C		net assets
Columbia Recovery and Infrastructure Fund	$	309,000		1.53%	$	101,000		0.32%

Columbia Retirement Plus 2010 Fund		N/A		N/A		3,000		9.21%

Columbia Retirement Plus 2015 Fund		N/A		N/A		17,000		130.71%

Columbia Retirement Plus 2020 Fund		N/A		N/A		3,000		10.42%

Columbia Retirement Plus 2025 Fund		N/A		N/A		73,000		11.33%

Columbia Retirement Plus 2030 Fund		N/A		N/A		3,000		10.42%

Columbia Retirement Plus 2035 Fund		N/A		N/A		16,000		14.03%

Columbia Retirement Plus 2040 Fund		N/A		N/A		—		0.00%

Columbia Retirement Plus 2045 Fund		N/A		N/A		18,000		18.12%

Columbia Select Large-Cap Value Fund		94,000		1.85%		2,991,000		6.58%

Columbia Select Smaller-Cap Value Fund		684,000		2.66%		2,768,000		5.67%

Columbia Seligman Communications and Information Fund		723,000		0.82%		20,474,000		2.76%

Columbia Seligman Global Technology Fund		486,000		2.47%		4,612,000		5.75%

Columbia Strategic Allocation Fund		5,777,000		7.74%		401,000		1.08%

Columbia U.S. Government Mortgage Fund		836,000		7.51%		133,000		2.19%

RiverSource Balanced Fund		678,000		5.47%		1,467,000		15.85%

RiverSource California Tax-Exempt Fund		70,000		3.99%		32,000		0.87%

RiverSource Disciplined International Equity Fund		312,000		6.91%		13,000		1.31%

RiverSource Disciplined Small and Mid Cap Equity Fund		50,000		8.07%		4,000		1.69%

RiverSource Disciplined Small Cap Value Fund		15,000		11.76%		2,000		1.56%

RiverSource Intermediate Tax-Exempt Fund		103,000		5.00%		54,000		0.78%

RiverSource LaSalle Global Real Estate Fund		N/A		N/A		789,000		33.76%

RiverSource LaSalle Monthly Dividend Real Estate Fund		24,000		1.07%		317,000		13.57%

RiverSource New York Tax-Exempt Fund		52,000		3.96%		11,000		0.10%

RiverSource Partners Fundamental Value Fund		2,278,000		6.49%		128,000		12.23%

RiverSource Partners International Select Growth Fund		901,000		5.71%		1,954,000		23.96%

RiverSource Partners International Small Cap Fund		200,000		4.34%		3,000		0.04%

RiverSource Precious Metals and Mining Fund		348,000		2.75%		49,000		0.21%

RiverSource Real Estate Fund		375,000		6.16%		15,000		0.25%

RiverSource Short Duration U.S. Government Fund		3,406,000		8.41%		1,540,000		83.35%

RiverSource Small Company Index Fund		1,279,000		4.55%		N/A		N/A

RiverSource Strategic Income Allocation Fund		1,161,000		5.13%		119,000		0.58%

RiverSource Tax-Exempt High Income Fund		796,000		3.87%		183,000		1.00%

Seligman California Municipal High-Yield Fund		N/A		N/A		202,000		3.50%

Seligman California Municipal Quality Fund		N/A		N/A		240,000		7.81%

Seligman Capital Fund		58,000		1.59%		5,200,000		11.71%

Seligman Growth Fund		3,636,000		5.17%		2,099,000		7.76%

Seligman Minnesota Municipal Fund		N/A		N/A		93,000		5.76%

Seligman National Municipal Fund		N/A		N/A		2,280,000		6.94%

Seligman New York Municipal Fund		N/A		N/A		262,000		3.11%

Threadneedle Global Equity Income Fund		87,000		4.60%		7,000		0.83%

Threadneedle International Opportunity Fund		679,000		4.72%		57,000		0.70%

PAYMENTS TO FINANCIAL INTERMEDIARIES

The distributor and its affiliates make or support additional cash payments out of their own resources (including profits earned from providing services to the funds) to financial intermediaries, including payment to affiliated broker-dealers, in connection with agreements between the distributor and financial intermediaries pursuant to which these financial

Statement of Additional Information – March 7, 2011

Page 162

intermediaries sell fund shares and provide services to their clients who are shareholders of the funds. These payments do not change the price paid by investors and fund shareholders for the purchase or ownership of shares of the funds, and these payments are not reflected in the fees and expenses of the funds, as they are not paid by the funds. These payments are in addition to fees paid by the funds to the distributor under 12b-1 plans, which fees may be used to compensate financial intermediaries for the distribution of fund shares and the servicing of fund shareholders, or paid by the funds to the transfer agent under the transfer agent agreement or plan administration agreement, which fees may be used to support networking or servicing fees to compensate financial intermediaries for supporting shareholder account maintenance, sub-accounting, plan recordkeeping or other services provided directly by the financial intermediary to shareholders or plans and plan participants, including retirement plans, 529 plans, Health Savings Account plans, or other plans, where participants beneficially own shares of the funds.

These payments are typically made pursuant to an agreement between the distributor and the financial intermediary, and are typically made in support of marketing and sales support efforts or program and shareholder servicing, as further described below. These payments are usually calculated based on a percentage of fund assets owned through the financial intermediary and/or as a percentage of fund sales attributable to the financial intermediary. Certain financial intermediaries require flat fees instead of or in addition to these asset-based fees as compensation for including or maintaining funds on their platforms, and, in certain situations, may require the reimbursement of ticket or operational charges — fees that a financial intermediary charges its representatives for effecting transactions in the funds. The amount of payment varies by financial intermediary, and often is significant. In addition, the amount of payments may differ based upon the type of fund sold or maintained; for instance, the amount of payments for an equity fund may differ from payments for a money-market or fixed income fund. Asset-based payments generally will be made in a range of up to 0.25% of assets or 0.25% of sales or some combination thereof. Exceptions to these general ranges will be considered on a case-by-case basis. Flat fees or annual minimum fees required by a financial intermediary in addition to such asset-based fees, are considered on a case-by-case basis.

Marketing and Sales Support

Payments may be paid in support of retail, institutional, plan or other fee-based advisory program distribution efforts. These payments are typically made by the distributor in its efforts to advertise to and/or educate the financial intermediary’s personnel, including its registered representatives, about the fund. As a result of these payments, the distributor may obtain a higher profile and greater visibility for the fund within the financial intermediary’s organization, including placement of the fund on the financial intermediary’s preferred or recommended list. The distributor may also obtain greater access to sales meetings, sales representatives, and management representatives of the financial intermediary, including potentially having increased opportunity for fund representatives to participate in and/or present at conferences or seminars, sales or training programs for invited registered representatives and their clients and other events sponsored by the financial intermediary.

Program and Shareholder Servicing

Payments may be made in support of recordkeeping, reporting, transaction processing, and other plan administration services provided by a financial intermediary to or through retirement plans, 529 plans, Health Savings Account plans, or other plans or fee-based advisory programs but may also be made in support of certain retail advisory programs, including wrap programs. A financial intermediary may perform program services itself or may arrange with a third party to perform program services. These payments may also include services rendered in connection with fund selection and monitoring, employee enrollment and education, plan balance rollover or separation, or other similar services.

Below is a list of firms that the distributor and its affiliates make payments to for the above described services.


•	ACS HR Solutions

•	ADP Broker-Dealer, Inc.

•	American Century Investment Management, Inc. and American Century Investment Services, Inc.

•	Ameriprise Financial Services, Inc./American Enterprise Investment Services, Inc.

•	Associated Securities Corp.

•	Benefit Plans Administrative Services, Inc. and Community Bank System, Inc.

•	Boston Financial Data Services, Inc.

•	Charles Schwab Trust Company

•	Charles Schwab and Company, Inc.

•	Citigroup Global Markets Inc.

•	Columbia Management Advisors, LLC and Columbia Management Distributors, Inc.

•	Digital Retirement Solutions, Inc.

•	Expertplan, Inc.

•	Fidelity Brokerage Services/National Financial Services

•	Fidelity Investments Institutional Operations Company/Fidelity Investments Institutional Service Company

•	FTJ Fund Choice, LLC

•	GWFS Equities, Inc.

•	Hartford Life Insurance Company

•	Hartford Securities Distribution Company, Inc.

•	ICMA-RC Services LLC

•	ING Institutional Plan Services, LLC

Statement of Additional Information – March 7, 2011

Page 163


•	ING Life Insurance and Annuity Company

•	J.P. Morgan Chase Bank, N.A.

•	J.P. Morgan Retirement Plan Services, LLC

•	John Hancock Life Insurance Company

•	John Hancock Life Insurance Company New York

•	Lincoln Retirement Services Company LLC

•	LPL Financial Corporation

•	Massachusetts Mutual Life Insurance Company (Mass Mutual/MML)

•	Mercer HR Services, LLC

•	Merrill Lynch Life Insurance Company

•	Merrill Lynch, Pierce, Fenner & Smith, Inc.

•	Mid Atlantic Capital Corporation

•	Minnesota Life Insurance Company

•	ML Life Insurance Company of New York

•	Morgan Stanley & Co., Inc.

•	MSCS Financial Services, LLC

•	Mutual Service Corporation

•	Nationwide Financial Services, Inc.

•	Newport Retirement Services, Inc.

•	NYLife Distributors LLC

•	Oppenheimer & Co. Inc.

•	Principal Life Insurance Company

•	Prudential Insurance Company of America/Prudential Investments Retirement Services

•	Prudential Investment Management Services LLC/Prudential Investments LLC

•	Raymond James & Associates, Inc. and Raymond James Financial Services, Inc.

•	RBC Capital Markets Corporation

•	Reliance Trust Company

•	The Retirement Plan Company, LLC

•	Securities America, Inc.

•	Standard Retirement Services, Inc.

•	TD Ameritrade Trust Company

•	The Princeton Retirement Group, Inc. and GPC Securities, Inc.

•	UBS Financial Services, Inc.

•	UVest Financial Services Group, Inc.

•	The Vanguard Group, Inc.

•	Vertical Management Systems, Inc.

•	Wachovia Bank NA

•	Waterstone Financial Group, Inc.

•	Wells Fargo Advisors Financial Network, LLC

•	Wells Fargo Bank N.A.

•	Wilmington Trust Company

•	Wilmington Trust Retirement and Institutional Services Company

Other Payments

The distributor and its affiliates may separately pay financial intermediaries in order to participate in and/or present at conferences or seminars, sales or training programs for invited registered representatives and other financial intermediary employees, client and investor events and other financial intermediary-sponsored events, and for travel expenses, including lodging incurred by registered representatives and other employees in connection with prospecting, asset retention and due diligence trips. The amount of these payments varies depending upon the nature of the event. The distributor and its affiliates make payments for such events as they deem appropriate, subject to internal guidelines and applicable law.

From time to time, to the extent permitted by SEC and NASD rules and by other applicable laws and regulations, the distributor and its affiliates may make other reimbursements or payment to financial intermediaries or their registered representatives, including non-cash compensation, in the form of gifts of nominal value, occasional meals, tickets, or other entertainment, support for due diligence trips, training and educational meetings or conference sponsorships, support for recognition programs, and other forms of non-cash compensation permissible under regulations to which these financial intermediaries and their representatives are subject. To the extent these are made as payments instead of reimbursement, they may provide profit to the financial intermediary to the extent the cost of such services was less than the actual expense of the service.

The financial intermediary through which you are purchasing or own shares of funds has been authorized directly or indirectly by the distributor to sell funds and/or to provide services to you as a shareholder of funds. Investors and current shareholders may wish to take such payment arrangements into account when considering and evaluating any recommendations they receive relating to fund shares.

If you have questions regarding the specific details regarding the payments your financial intermediary may receive from the distributor or its affiliates related to your purchase or ownership of funds, please contact your financial intermediary.

Statement of Additional Information – March 7, 2011

Page 164

CUSTODIAN SERVICES

The funds’ securities and cash are held pursuant to a custodian agreement with JPMorgan Chase Bank, N.A. (JPMorgan), 1 Chase Manhattan Plaza, 19th Floor, New York, NY 10005. The custodian is permitted to deposit some or all of their securities in central depository systems as allowed by federal law. For its services, each fund pays its custodian a maintenance charge and a charge per transaction in addition to reimbursing the custodian’s out-of-pocket expenses.

As part of this arrangement, securities purchased outside the United States are maintained in the custody of various foreign branches of JPMorgan or in other financial institutions as permitted by law and by the fund’s custodian agreement.

BOARD SERVICES CORPORATION

The funds have an agreement with Board Services Corporation (Board Services) located at 901 Marquette Avenue South, Suite 2810, Minneapolis, MN 55402. This agreement sets forth the terms of Board Services’ responsibility to serve as an agent of the funds for purposes of administering the payment of compensation to each Independent Director, to provide office space for use by the funds and their boards, and to provide any other services to the boards or the independent members, as may be reasonably requested.

Organizational Information

Each fund is an open-end management investment company. The funds’ headquarters are at 901 S. Marquette Ave., Suite 2810, Minneapolis, MN 55402-3268.

SHARES

The shares of a fund represent an interest in that fund’s net assets only (and profits or losses), and, in the event of liquidation, each share of a fund would have the same rights to dividends and assets as every other share of that fund.

VOTING RIGHTS

As a shareholder in a fund, you have voting rights over the fund’s management and fundamental policies. You are entitled to vote based on your total dollar interest in the fund. Each class, if applicable, has exclusive voting rights with respect to matters for which separate class voting is appropriate under applicable law. Shares of the RiverSource and Threadneedle funds have cumulative voting rights with respect to the election of Board members. This means that you have as many votes as the dollar amount you own, including the fractional amount, multiplied by the number of members to be elected, all of which may, in the shareholder’s discretion, be voted for a single director. The Seligman funds do not provide for cumulative voting rights.

DIVIDEND RIGHTS

Dividends paid by a fund, if any, with respect to each applicable class of shares will be calculated in the same manner, at the same time, on the same day, and will be in the same amount, except for differences resulting from differences in fee structures.

Statement of Additional Information – March 7, 2011

Page 165

SHAREHOLDER LIABILITY

For funds organized as Massachusetts business trusts, under Massachusetts law, shareholders of a Massachusetts business trust may, under certain circumstances, be held personally liable as partners for its obligation. However, the Declaration of Trust that establishes a trust, a copy of which, together with all amendments thereto (the “Declaration of Trust”), is on file with the office of the Secretary of the Commonwealth of Massachusetts for each applicable fund, contains an express disclaimer of shareholder liability for acts or obligations of the Trust, or of any fund in the Trust. The Declaration of Trust provides that, if any shareholder (or former shareholder) of a fund in the Trust is charged or held to be personally liable for any obligation or liability of the Trust, or of any fund in the Trust, solely by reason of being or having been a shareholder and not because of such shareholder’s acts or omissions or for some other reason, the Trust (upon request of the shareholder) shall assume the defense against such charge and satisfy any judgment thereon, and the shareholder or former shareholder (or the heirs, executors, administrators or other legal representatives thereof, or in the case of a corporation or other entity, its corporate or other general successor) shall be entitled (but solely out of the assets of the fund of which such shareholder or former shareholder is or was the holder of shares) to be held harmless from and indemnified against all loss and expense arising from such liability.

The Declaration of Trust also provides that the Trust may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection of the Trust, its shareholders, Trustees, officers, employees and agents covering possible tort and other liabilities. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which both inadequate insurance existed and the Trust itself was unable to meet its obligations.

The Declaration of Trust further provides that obligations of the Trust are not binding upon the Trustees individually, but only upon the assets and property of the Trust, and that the Trustees will not be liable for any action or failure to act, errors of judgment, or mistakes of fact or law, but nothing in the Declaration of Trust or other agreement with a Trustee protects a Trustee against any liability to which he or she would otherwise be subject by reason of his or her willful bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of his or her office. By becoming a shareholder of the fund, each shareholder shall be expressly held to have assented to and agreed to be bound by the provisions of the Declaration of Trust.

Table 25. Fund History Table

Fiscal

Date of

Date Began

Form of

State of

Year

Fund*

Organization

Operations

Organization

End**

Diversified***

Columbia Funds Series Trust II ^(14),(15)

1/27/06

Business Trust

4/30

Columbia 120/20 Contrarian Equity Fund

10/18/07

4/30

Yes

Columbia Absolute Return Currency and Income Fund

6/15/06

10/31

Yes

Columbia AMT-Free Tax-Exempt Bond Fund ⁽¹⁹⁾

11/24/76

11/30

Yes

Columbia Asia Pacific ex-Japan Fund ⁽¹⁹⁾

7/15/09

10/31

Yes

Columbia Diversified Bond Fund ⁽³⁾

10/3/74

8/31

Yes

Columbia Diversified Equity Income Fund

10/15/90

9/30

Yes

Columbia Dividend Opportunity Fund ⁽⁸⁾

8/1/88

6/30

Yes

Columbia Emerging Markets Bond Fund

2/16/06

10/31

Columbia Emerging Markets Opportunity Fund ^{(5),(11),(19)}

11/13/96

10/31

Yes

Columbia Equity Value Fund

5/14/84

3/31

Yes

Columbia European Equity Fund ^(5),(11)

6/26/00

10/31

Yes

Columbia Floating Rate Fund

2/16/06

7/31

Yes

Columbia Frontier Fund

12/10/84

10/31

Yes

Columbia Global Bond Fund

3/20/89

10/31

Columbia Global Equity Fund ^(5),(6),(11)

5/29/90

10/31

Yes

Columbia Global Extended Alpha Fund

8/1/08

10/31

Yes

Columbia Government Money Market Fund ⁽¹⁷⁾

1/31/77

12/31

Yes

Columbia High Yield Bond Fund ⁽³⁾

12/8/83

5/31

Yes

Columbia Income Builder Fund ⁽¹⁹⁾

2/16/06

1/31 ⁽⁷⁾

Yes

Columbia Income Opportunities Fund

6/19/03

7/31

Yes

Columbia Inflation Protected Securities Fund

3/4/04

7/31

Statement of Additional Information – March 7, 2011

Page 166

Fiscal

Date of

Date Began

Form of

State of

Year

Fund*

Organization

Operations

Organization

End**

Diversified***

Columbia Large Core Quantitative Fund ^(4),(19)

4/24/03

7/31

Yes

Columbia Large Growth Quantitative Fund ⁽¹⁹⁾

5/17/07

9/30

Yes

Columbia Large Value Quantitative Fund ⁽¹⁹⁾

8/1/08

9/30

Yes

Columbia Limited Duration Credit Fund ⁽¹⁹⁾

6/19/03

7/31

Yes

Columbia Marsico Flexible Capital Fund

9/28/10

8//31

Columbia Mid Cap Growth Opportunity Fund ^(4),(19)

6/4/57

11/30

Yes

Columbia Mid Cap Value Opportunity Fund ⁽¹⁹⁾

2/14/02

9/30

Yes

Columbia Minnesota Tax-Exempt Fund

8/18/86

8/31 ⁽¹⁰⁾

Columbia Money Market Fund ⁽¹⁹⁾

10/6/75

7/31

Yes

Columbia Multi-Advisor International Value Fund ^(11),(19)

9/28/01

10/31

Yes

Columbia Multi-Advisor Small Cap Value Fund ^(11),(19)

6/18/01

5/31

Yes

Columbia Portfolio Builder Aggressive Fund

3/4/04

1/31

Yes

Columbia Portfolio Builder Conservative Fund

3/4/04

1/31

Yes

Columbia Portfolio Builder Moderate Aggressive Fund

3/4/04

1/31

Yes

Columbia Portfolio Builder Moderate Conservative Fund

3/4/04

1/31

Yes

Columbia Portfolio Builder Moderate Fund

3/4/04

1/31

Yes

Columbia Recovery and Infrastructure Fund

2/19/09

4/30

Columbia Retirement Plus 2010 Fund

5/18/06

4/30

Yes

Columbia Retirement Plus 2015 Fund

5/18/06

4/30

Yes

Columbia Retirement Plus 2020 Fund

5/18/06

4/30

Yes

Columbia Retirement Plus 2025 Fund

5/18/06

4/30

Yes

Columbia Retirement Plus 2030 Fund

5/18/06

4/30

Yes

Columbia Retirement Plus 2035 Fund

5/18/06

4/30

Yes

Columbia Retirement Plus 2040 Fund

5/18/06

4/30

Yes

Columbia Retirement Plus 2045 Fund

5/18/06

4/30

Yes

Columbia Select Large-Cap Value Fund ⁽¹⁹⁾

4/25/97

12/31

Yes

Columbia Select Smaller-Cap Value Fund ⁽¹⁹⁾

4/25/97

12/31

Yes

Columbia Seligman Communications and Information Fund ⁽¹⁹⁾

6/23/83

12/31

Yes

Columbia Seligman Global Technology Fund ⁽¹⁹⁾

5/23/94

10/31

Yes

Columbia Short-Term Cash Fund

9/26/06

7/31

Yes

Columbia Strategic Allocation Fund ⁽⁴⁾

1/23/85

9/30

Yes

Columbia U.S. Government Mortgage Fund

2/14/02

5/31

Yes

RiverSource California Tax-Exempt Trust

4/7/86

Business Trust

8/31 ⁽¹⁰⁾

RiverSource California Tax-Exempt Fund

8/18/86

RiverSource Dimensions Series, Inc.

2/20/68, 4/8/86 ⁽¹⁾

Corporation

NV/MN

7/31

RiverSource Disciplined Small and Mid Cap Equity Fund

5/18/06

Yes

RiverSource Disciplined Small Cap Value Fund

2/16/06

Yes

RiverSource Global Series, Inc.

10/28/88

Corporation

10/31

Threadneedle Global Equity Income Fund

8/1/08

Yes

RiverSource Government Income Series, Inc.

3/12/85

Corporation

5/31

RiverSource Short Duration U.S. Government Fund ⁽³⁾

8/19/85

Yes

RiverSource Income Series, Inc.

2/10/45; 4/8/86 ⁽¹⁾

Corporation

NV/MN

1/31 ⁽⁷⁾

Columbia Income Builder Fund II ⁽¹⁹⁾

2/16/06

Yes

Columbia Income Builder Fund III ⁽¹⁹⁾

2/16/06

Yes

RiverSource International Managers Series, Inc. ⁽²⁾

5/9/01

Corporation

10/31

RiverSource Partners International Select Growth Fund ⁽¹¹⁾

9/28/01

10/31

Yes

RiverSource Partners International Small Cap Fund ⁽¹¹⁾

10/3/02

10/31

Yes

Statement of Additional Information – March 7, 2011

Page 167

Fiscal

Date of

Date Began

Form of

State of

Year

Fund*

Organization

Operations

Organization

End**

Diversified***

RiverSource International Series, Inc. ⁽²⁾

7/18/84

Corporation

10/31

RiverSource Disciplined International Equity Fund

5/18/06

Yes

Threadneedle International Opportunity Fund ^(4),(5),(11)

11/15/84

Yes

RiverSource Investment Series, Inc.

1/18/40; 4/8/86 ⁽¹⁾

Corporation

NV/MN

9/30

RiverSource Balanced Fund ⁽⁴⁾

4/16/40

Yes

RiverSource Managers Series, Inc. ⁽²⁾

3/20/01

Corporation

5/31

RiverSource Partners Fundamental Value Fund ⁽¹¹⁾

6/18/01

Yes

RiverSource Market Advantage Series, Inc.

8/25/89

Corporation

1/31

Columbia Portfolio Builder Total Equity Fund

3/4/04

Yes

RiverSource S&P 500 Index Fund

10/25/99

Yes

RiverSource Small Company Index Fund

8/19/96

Yes

RiverSource Sector Series, Inc.

3/25/88

Corporation

6/30

RiverSource Real Estate Fund

3/4/04

RiverSource Selected Series, Inc.

10/5/84

Corporation

3/31

RiverSource Precious Metals and Mining Fund ⁽⁹⁾

4/22/85

3/31

RiverSource Special Tax-Exempt Series Trust

4/7/86

Business Trust

8/31 ⁽¹⁰⁾

RiverSource New York Tax-Exempt Fund

8/18/86

RiverSource Strategic Allocation Series, Inc. ⁽²⁾

10/9/84

Corporation

9/30

RiverSource Strategic Income Allocation Fund

5/17/07

Yes

RiverSource Tax-Exempt Income Series, Inc. ⁽²⁾

12/21/78; 4/8/86 ⁽¹⁾

Corporation

NV/MN

11/30

RiverSource Tax-Exempt High Income Fund ⁽⁴⁾

5/7/79

Yes

RiverSource Tax-Exempt Series, Inc.

9/30/76, 4/8/86 ⁽¹⁾

Corporation

NV/MN

11/30

RiverSource Intermediate Tax-Exempt Fund

11/13/96

Yes

RiverSource Variable Series Trust ⁽¹²⁾

9/11/07

Business Trust

12/31

Disciplined Asset Allocation Portfolios – Aggressive

5/1/08

Yes

Disciplined Asset Allocation Portfolios – Conservative

5/1/08

Yes

Disciplined Asset Allocation Portfolios – Moderate

5/1/08

Yes

Disciplined Asset Allocation Portfolios – Moderately Aggressive

5/1/08

Yes

Disciplined Asset Allocation Portfolios – Moderately Conservative

5/1/08

Yes

RiverSource Variable Portfolio – Balanced Fund ⁽⁴⁾

4/30/86

Yes

RiverSource Variable Portfolio – Cash Management Fund

10/31/81

Yes

RiverSource Variable Portfolio – Core Equity Fund

9/10/04

Yes

RiverSource Variable Portfolio – Diversified Bond Fund ⁽³⁾

10/13/81

Yes

RiverSource Variable Portfolio – Diversified Equity Income Fund

9/15/99

Yes

RiverSource Variable Portfolio – Dynamic Equity Fund ^(5),(16)

10/13/81

Yes

RiverSource Variable Portfolio – Global Bond Fund

5/1/96

RiverSource Variable Portfolio – Global Inflation Protected Securities Fund ⁽¹³⁾

9/13/04

RiverSource Variable Portfolio – High Yield Bond Fund ⁽³⁾

5/1/96

Yes

RiverSource Variable Portfolio – Income Opportunities Fund

6/1/04

Yes

RiverSource Variable Portfolio – Mid Cap Growth Fund ⁽⁴⁾

5/1/01

Yes

RiverSource Variable Portfolio – Mid Cap Value Fund

5/2/05

Yes

RiverSource Variable Portfolio – S&P 500 Index Fund

5/1/00

Yes

RiverSource Variable Portfolio – Short Duration U.S. Government Fund ⁽³⁾

9/15/99

Yes

Seligman Global Technology Portfolio

5/1/96

Yes

Seligman Variable Portfolio – Growth Fund ⁽¹⁶⁾

9/15/99

Yes

Statement of Additional Information – March 7, 2011

Page 168

Fiscal

Date of

Date Began

Form of

State of

Year

Fund*

Organization

Operations

Organization

End**

Diversified***

Seligman Variable Portfolio – Larger-Cap Value Fund ⁽¹⁶⁾

02/4/04

Yes

Seligman Variable Portfolio – Smaller-Cap Value Fund ⁽¹⁶⁾

9/15/99

Yes

Threadneedle Variable Portfolio – Emerging Markets Fund ^(4),(5),(11)

5/1/00

Yes

Threadneedle Variable Portfolio – International Opportunity Fund ^(4),(5),(11)

1/13/92

Yes

Variable Portfolio – Aggressive Portfolio

4/14/10

Yes

Variable Portfolio – AllianceBernstein International Value Fund

4/14/10

Yes

Variable Portfolio – American Century Diversified Bond Fund

4/14/10

Yes

Variable Portfolio – American Century Growth Fund

4/14/10

Yes

Variable Portfolio – Columbia Wanger International Equities Fund

4/14/10

Yes

Variable Portfolio – Columbia Wanger U.S. Equities Fund

4/14/10

Yes

Variable Portfolio – Conservative Portfolio

4/14/10

Yes

Variable Portfolio – Davis New York Venture Fund ^(11),(18)

5/1/06

Yes

Variable Portfolio – Eaton Vance Floating-Rate Income Fund

4/14/10

Yes

Variable Portfolio – Goldman Sachs Mid Cap Value Fund ^(11),(18)

2/4/04

Yes

Variable Portfolio – Invesco International Growth Fund

4/14/10

Yes

Variable Portfolio – J.P. Morgan Core Bond Fund

4/14/10

Yes

Variable Portfolio – Jennison Mid Cap Growth Fund

4/14/10

Yes

Variable Portfolio – Marsico Growth Fund

4/14/10

Yes

Variable Portfolio – MFS Value Fund

4/14/10

Yes

Variable Portfolio – Moderate Portfolio

4/14/10

Yes

Variable Portfolio – Moderately Aggressive Portfolio

4/14/10

Yes

Variable Portfolio – Moderately Conservative Portfolio

4/14/10

Yes

Variable Portfolio – Mondrian International Small Cap Fund

4/14/10

Yes

Variable Portfolio – Morgan Stanley Global Real Estate Fund

4/14/10

Variable Portfolio – NFJ Dividend Value Fund

4/14/10

Yes

Variable Portfolio – Nuveen Winslow Large Cap Growth Fund

4/14/10

Yes

Variable Portfolio – Partners Small Cap Growth Fund

4/14/10

Yes

Variable Portfolio – Partners Small Cap Value Fund ^(11),(18)

8/14/01

Yes

Variable Portfolio – PIMCO Mortgage-Backed Securities Fund

4/14/10

Yes

Variable Portfolio – Pyramis International Equity Fund

4/14/10

Yes

Variable Portfolio – Wells Fargo Short Duration Government Fund

4/14/10

Yes

Seligman Capital Fund, Inc.

10/21/68

10/9/69

Corporation

12/31

Yes

Seligman Growth Fund, Inc.

1/26/37

4/1/37

Corporation

12/31

Yes

Seligman LaSalle Real Estate Fund Series, Inc.

5/30/03

Corporation

12/31

RiverSource LaSalle Global Real Estate Fund ⁽¹⁷⁾

12/29/06

RiverSource LaSalle Monthly Dividend Real Estate Fund ⁽¹⁷⁾

7/16/03

Yes

Seligman Municipal Fund Series, Inc.

8/8/83

Corporation

9/30

Seligman National Municipal Class

12/31/83

Yes

Seligman Minnesota Municipal Class

12/30/83

Seligman New York Municipal Class

1/3/84

Seligman Municipal Series Trust

7/25/84

Business Trust

9/30

Seligman California Municipal High-Yield Series

11/20/84

Seligman California Municipal Quality Series

11/20/84

Seligman Portfolios, Inc.

7/1/87

Corporation

12/31

Statement of Additional Information – March 7, 2011

Page 169

Fiscal

Date of

Date Began

Form of

State of

Year

Fund*

Organization

Operations

Organization

End**

Diversified***

Seligman Capital Portfolio

6/21/88

Yes

Seligman Communications and Information Portfolio

10/11/94

Yes

Seligman Large-Cap Value Portfolio

5/1/98

Yes

Seligman Smaller-Cap Value Portfolio

5/1/98

Yes


*		Effective Oct. 1, 2005 American Express Funds changed its name to RiverSource funds and the names Threadneedle and Partners were removed from fund names. Effective Sept. 27, 2010, several of the funds were renamed from RiverSource, Seligman and Threadneedle to Columbia.


***		Unless otherwise noted, each fund within the registrant has the same fiscal year end as that noted for the registrant.


***		If a Non-diversified fund is managed as if it were a diversified fund for a period of three years, its status under the 1940 Act will convert automatically from Non-diversified to diversified. A diversified fund may convert to Non-diversified status only with shareholder approval.


(1)		Date merged into a Minnesota corporation incorporated on April 8, 1986.


(2)		Effective April 21, 2006, AXP Discovery Series, Inc. changed its name to RiverSource Bond Series, Inc.; AXP Fixed Income Series, Inc. changed its name to RiverSource Diversified Income Series, Inc.; AXP Growth Series, Inc. changed its name to RiverSource Large Cap Series, Inc.; AXP High Yield Tax-Exempt Series, Inc. changed its name to RiverSource Tax-Exempt Income Series, Inc.; AXP Managed Series, Inc. changed its name to RiverSource Strategic Allocation Series, Inc.; AXP Partners International Series, Inc. changed its name to RiverSource International Managers Series, Inc.; AXP Partners Series, Inc. changed its name to RiverSource Managers Series, Inc.; and for all other corporations and business trusts, AXP was replaced with RiverSource in the registrant name.


(3)		Effective June 27, 2003, Bond Fund changed its name to Diversified Bond Fund, Federal Income Fund changed its name to Short Duration U.S. Government Fund and Extra Income Fund changed its name to High Yield Bond Fund, Variable Portfolio – Bond Fund changed its name to Variable Portfolio – Diversified Bond Fund, Variable Portfolio – Extra Income Fund changed its name to Variable Portfolio – High Yield Bond Fund and Variable Portfolio – Federal Income Fund changed its name to Variable Portfolio – Short Duration U.S. Government Fund.


(4)		Effective Oct. 1, 2005, Equity Select Fund changed its name to Mid Cap Growth Fund, High Yield Tax-Exempt Fund changed its name to Tax-Exempt High Income Fund, Managed Allocation Fund changed its name to Strategic Allocation Fund, Mutual changed its name to Balanced Fund, Quantitative Large Cap Equity Fund changed its name to Disciplined Equity Fund, and Threadneedle International Fund changed its name to International Opportunity Fund. Variable Portfolio – Equity Select Fund changed its name to Variable Portfolio – Mid Cap Growth Fund, Variable Portfolio – Threadneedle Emerging Markets Fund changed its name to Variable Portfolio – Emerging Markets Fund, Variable Portfolio – Threadneedle International Fund changed its name to Variable Portfolio – International Opportunity Fund, and Variable Portfolio – Managed Fund changed its name to Variable Portfolio – Balanced Fund.


(5)		Effective July 9, 2004, Emerging Markets Fund changed its name to Threadneedle Emerging Markets Fund, European Equity Fund changed its name to Threadneedle European Equity Fund, Global Equity Fund changed its name to Threadneedle Global Equity Fund, and International Fund changed its name to Threadneedle International Fund, Variable Portfolio – Capital Resource Fund changed its name to Variable Portfolio – Large Cap Equity Fund, Variable Portfolio – Emerging Markets Fund changed its name to Variable Portfolio – Threadneedle Emerging Markets Fund and Variable Portfolio – International Fund changed its name to Variable Portfolio – Threadneedle International Fund.


(6)		Effective Oct. 20, 2003, Global Growth Fund changed its name to Global Equity Fund.


(7)		Effective Jan. 31, 2008, the fiscal year end was changed from May 31 to Jan. 31.


(8)		Effective Feb. 18, 2004, Utilities Fund changed its name to Dividend Opportunity Fund.


(9)		Effective Nov. 1, 2006, Precious Metals Fund changed its name to Precious Metals and Mining Fund.


(10)		Effective April 13, 2006, the fiscal year end was changed from June 30 to Aug. 31.


(11)		Effective March 31, 2008, RiverSource Emerging Markets Fund changed its name to Threadneedle Emerging Markets Fund; RiverSource Global Equity Fund changed its name to Threadneedle Global Equity Fund; RiverSource European Equity Fund changed its name to Threadneedle European Equity Fund; RiverSource International Opportunity Fund changed its name to Threadneedle International Opportunity Fund; RiverSource International Aggressive Growth Fund changed its name to RiverSource Partners International Select Growth Fund; RiverSource International Select Value Fund changed its name to RiverSource Partners International Select Value Fund; RiverSource International Small Cap Fund changed its name to RiverSource Partners International Small Cap Fund; RiverSource Fundamental Value Fund changed its name to RiverSource Partners Fundamental Value Fund; RiverSource Small Cap Value Fund changed its name to RiverSource Partners Small Cap Value Fund; RiverSource Variable Portfolio – Fundamental Value Fund changed its name to RiverSource Partners Variable Portfolio – Fundamental Value Fund; RiverSource Variable Portfolio – Select Value Fund changed its name to RiverSource Partners Variable Portfolio – Select Value Fund; and RiverSource Variable Portfolio – Small Cap Value Fund changed its name to RiverSource Partners Variable Portfolio – Small Cap Value Fund.


(12)		Prior to January 2008, the assets of the funds in RiverSource Variable Series Trust were held by funds organized under six separate Minnesota Corporations.


(13)		Effective June 8, 2005, Variable Portfolio – Inflation Protected Securities Fund changed its name to Variable Portfolio – Global Inflation Protected Securities Fund.


(14)		Prior to March 7, 2011, Columbia Funds Series Trust II was known as RiverSource Series Trust. Prior to September 11, 2007, RiverSource Series Trust was known as RiverSource Retirement Series Trust.


(15)		Prior to March 7, 2011, the certain of the funds were organized as series under various Minnesota and Maryland corporations.


(16)		Effective May 1, 2009, RiverSource Variable Portfolio – Growth Fund changed its name to Seligman Variable Portfolio – Growth Fund, RiverSource Variable Portfolio – Large Cap Equity Fund changed its name to RiverSource Variable Portfolio – Dynamic Equity Fund, RiverSource Variable Portfolio – Large Cap Value Fund changed its name to Seligman Variable Portfolio – Larger-Cap Value Fund, and RiverSource Variable Portfolio – Small Cap Advantage Fund changed its name to Seligman Variable Portfolio – Smaller-Cap Value Fund.


(17)		Effective Sept. 25, 2009, Seligman Cash Management Fund, Inc. changed its name to RiverSource Government Money Market Fund, Inc.; Seligman LaSalle Global Real Estate Fund changed its name to RiverSource LaSalle Global Real Estate Fund; and Seligman LaSalle Monthly Dividend Real Estate Fund changed its name to RiverSource LaSalle Monthly Dividend Real Estate Fund.


(18)		Effective May 1, 2010, RiverSource Partners Variable Portfolio – Fundamental Value Fund changed its name to Variable Portfolio – Davis New York Venture Fund; RiverSource Partners Variable Portfolio – Select Value Fund changed its name to Variable Portfolio – Goldman Sachs Mid Cap Value Fund; and RiverSource Partners Variable Portfolio – Small Cap Value Fund changed its name to Variable Portfolio – Partners Small Cap Value Fund.


(19)		Effective Sept. 27, 2010, RiverSource Limited Duration Bond Fund changed its name to Columbia Limited Duration Credit Fund; RiverSource Mid Cap Growth Fund changed its name to Columbia Mid Cap Growth Opportunity Fund; Threadneedle Emerging Markets Fund changed its name to Columbia Emerging Markets Opportunity Fund; RiverSource Income Builder Basic Income Fund changed its name to Columbia Income Builder Fund; RiverSource Income Builder Moderate Income Builder Fund changed its name to Columbia

Statement of Additional Information – March 7, 2011

Page 170

Board Members and Officers

Shareholders elect a Board that oversees a fund’s operations. The Board appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following is a list of each fund’s Board members. Each Board member oversees 145 Columbia, RiverSource, Seligman and Threadneedle funds. Under current Board policy, members generally serve until the next Board meeting after he or she reaches the mandatory retirement age established by the Board, or the fifteenth anniversary of the first Board meeting they attended as members of the Board.

On Nov. 7, 2008, Columbia Management announced the closing of its acquisition of J. & W. Seligman & Co. Incorporated (the “Seligman Acquisition”). In connection with the Seligman Acquisition, Messrs. Leroy C. Richie and John F. Maher, who were members of the Seligman funds’ Board prior to Nov. 7, 2008, began service on the Board after the Seligman Acquisition, which resulted in an overall increase from ten directors to twelve for all funds.

Table 26. Board Members

Independent Board Members

Position held

Other present or

with funds and

Principal occupation

past directorships

Committee

Name, address, age

length of service

during past five years

(within past 5 years)

memberships

Kathleen Blatz
901 S. Marquette Ave. Minneapolis, MN 55402 Age 56

Board member since 1/11/06

Chief Justice, Minnesota Supreme Court, 1998-2006; Attorney

None

Audit, Board Governance, Compliance, Investment Review

Pamela G. Carlton
901 S. Marquette Ave. Minneapolis, MN 55402 Age 56

Board member since 7/11/07

President, Springboard-Partners in Cross Cultural Leadership (consulting company)

None

Audit, Investment Review

Patricia M. Flynn
901 S. Marquette Ave. Minneapolis, MN 55402 Age 60

Board member since 11/1/04

Trustee Professor of Economics and Management, Bentley University; former Dean, McCallum Graduate School of Business, Bentley University

None

Board Governance, Contracts, Investment Review

Anne P. Jones
901 S. Marquette Ave. Minneapolis, MN 55402 Age 76

Board member since 3/1/85

Attorney and Consultant

None

Audit, Compliance, Executive, Investment Review

Stephen R. Lewis, Jr. 901 S. Marquette Ave. Minneapolis, MN 55402 Age 72

Chair of the Board since 1/1/07, Board member since 1/1/02

President Emeritus and Professor of Economics, Carleton College

Valmont Industries, Inc. (manufactures irrigation systems)

Board Governance, Compliance, Contracts, Executive, Investment Review

John F. Maher
901 S. Marquette Ave. Minneapolis, MN 55402
Age 67

Board member since 12/10/08

Retired President and Chief Executive Officer and former Director, Great Western Financial Corporation (financial services), 1986-1997

None

Audit, Investment Review

Catherine James Paglia 901 S. Marquette Ave. Minneapolis, MN 55402 Age 58

Board member since 11/1/04

Director, Enterprise Asset Management, Inc. (private real estate and asset management company)

None

Board Governance, Compliance, Contracts, Executive, Investment Review

Leroy C. Richie
901 S. Marquette Ave. Minneapolis, MN 55402
Age 69

Board member since 11/11/08

Counsel, Lewis & Munday, P.C. since 2004; former Vice President and General Counsel, Automotive Legal Affairs, Chrysler Corporation

Digital Ally, Inc. (digital imaging); Infinity, Inc. (oil and gas exploration and production); OGE Energy Corp. (energy and energy services)

Contracts, Investment Review

Statement of Additional Information – March 7, 2011

Page 172

Position held

Other present or

with funds and

Principal occupation

past directorships

Committee

Name, address, age

length of service

during past five years

(within past 5 years)

memberships

Alison Taunton-Rigby 901 S. Marquette Ave. Minneapolis, MN 55402 Age 66

Board member since 11/13/02

Chief Executive Officer and Director, RiboNovix, Inc. since 2003 (biotechnology); former President, Aquila Biopharmaceuticals

Idera Pharmaceuticals, Inc. (biotechnology); Healthways, Inc. (health management programs)

Contracts, Executive, Investment Review

Board Member Affiliated with the Investment Manager*

Position held

with funds and

Principal occupation

Other present or past directorships

Committee

Name, address, age

length of service

during past five years

(within past 5 years)

memberships

William F. Truscott
53600 Ameriprise Financial Center
Minneapolis, MN 55474
Age 50

Board member
since 11/7/01, Vice President since 2002

Chairman of the Board, Columbia Management Investment Advisers, LLC (formerly RiverSource Investments, LLC) since May 2010 (previously President, Chairman of the Board and Chief Investment Officer, 2001-April 2010); Senior Vice president, Atlantic Funds, Columbia Funds and Nations Funds since May 2010; Chief Executive Officer, U.S. Asset Management & President – Annuities, Ameriprise Financial, Inc. since May 2010 (previously President – U.S. Asset Management and Chief Investment Officer, 2005-April 2010 and Senior Vice President – Chief Investment Officer, 2001-2005); Director, President and Chief Executive Officer, Ameriprise Certificate Company since 2006; Director, Columbia Management Investment Distributors, Inc. (formerly RiverSource Fund Distributors, Inc.) since May 2010 (previously Chairman of the Board and Chief Executive Officer, 2008-April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006

None


*		Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the investment manager or Ameriprise Financial.

Statement of Additional Information – March 7, 2011

Page 173

The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. In addition to Mr. Truscott, who is Vice President, the funds’ other officers are:

Table 27. Fund Officers


	Position held
	with funds and	Principal occupation
Name, address, age	length of service	during past five years
J. Kevin Connaughton 225 Franklin Street Boston, MA 02110 Age 46	President since 5/1/10	Senior Vice President and General Manager – Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds since 2009 (previously Senior Vice President and Chief Financial Officer, June 2008 - January 2009); President, Atlantic Funds and Nations Funds since 2009; Managing Director of Columbia Management Advisors, LLC, December 2004 - April 2010; Treasurer, Columbia Funds, October 2003 - May 2008; Treasurer, the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000 - December 2006


Amy K. Johnson 5228 Ameriprise Financial Center Minneapolis, MN 55474 Age 45	Vice President since 12/5/06	Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC (formerly RiverSource Investments, LLC) since May 2010 (previously Chief Administrative Officer, 2009 – April 2010 and Vice President – Asset Management and Trust Company Services, 2006–2009 and Vice President – Operations and Compliance, 2004-2006); Senior Vice President, Columbia Funds, Atlantic Funds and Nations Funds since May 2010


Michael G. Clarke 225 Franklin Street Boston, MA 02110 Age 41	Treasurer since 1/12/11	Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, from September 2004 to April 2010; senior officer of Columbia Funds and affiliated funds since 2002


Scott R. Plummer 5228 Ameriprise Financial Center Minneapolis, MN 55474 Age 51	Vice President, General Counsel and Secretary since 12/5/06	Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC (formerly RiverSource Investments, LLC) since June 2005; Vice President and Lead Chief Counsel – Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel – Asset Management, 2005-April 2010 and Vice President – Asset Management Compliance, 2004-2005); Senior Vice President, Secretary and Chief Legal Officer, Atlantic Funds, Columbia Funds and Nations Funds since May 2010; Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. (formerly RiverSource Fund Distributors, Inc.) since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006


Michael A. Jones 225 Franklin Street Boston, MA 02110 Age 51	Vice President since 5/1/10	Director and President, Columbia Management Investment Advisers, LLC since May 2010; President and Director, Columbia Management Investment Distributors, Inc. since May 2010; Senior Vice President, Atlantic Funds, Columbia Funds and Nations Funds since May 2010; Manager, Chairman, Chief Executive Officer and President, Columbia Management Advisors, LLC, 2007 – April 2010; Chief Executive Officer, President and Director, Columbia Management Distributors, Inc., 2006 – April 2010; former Co-President and Senior Managing Director, Robeco Investment Management

Statement of Additional Information – March 7, 2011

Page 174


	Position held
	with funds and	Principal occupation
Name, address, age	length of service	during past five years
Colin Moore 225 Franklin Street Boston, MA 02110 Age 52	Vice President since 5/1/10	Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Senior Vice President, Atlantic Funds, Columbia Funds and Nations Funds since May 2010; Manager, Managing Director and Chief Investment Officer, Columbia Management Advisors, LLC, 2007- April 2010; Head of Equities, Columbia Management Advisors, LLC, 2002-Sept. 2007


Linda Wondrack 225 Franklin Street Boston, MA 02110 Age 46	Chief Compliance Officer since 5/1/10	Vice President and Chief Compliance Officer, Columbia Management Investment Advisers, LLC since May 2010; Chief Compliance Officer, Columbia Funds since 2007; Senior Vice President and Chief Compliance Officer, Atlantic Funds and Nations Funds since 2007; Director (Columbia Management Group, LLC and Investment Product Group Compliance), Bank of America, June 2005 - April 2010


Neysa M. Alecu 2934 Ameriprise Financial Center Minneapolis, MN 55474 Age 47	Money Laundering Prevention Officer since 11/9/05 and Identity Theft Prevention Officer since 2008	Anti – Money Laundering Officer, Columbia Management Investment Advisers, LLC (formerly RiverSource Investments, LLC) since 2008; Vice President – Compliance, Ameriprise Financial, Inc. since 2008; Anti-Money Laundering Officer and Identity Theft Prevention Officer, Columbia Management Investment Distributors, Inc. (formerly RiverSource Fund Distributors, Inc.) since 2008; Anti-Money Laundering Officer, Ameriprise Financial, Inc. since 2005; Compliance Director, Ameriprise Financial, Inc., 2004-2008

Responsibilities of Board with respect to fund management

The Board is chaired by an Independent Director who has significant additional responsibilities compared to the other Board members, including, among other things: setting the agenda for Board meetings, communicating and meeting regularly with Board members between Board and committee meetings on fund-related matters with the funds’ Chief Compliance Officer, counsel to the Independent Directors, and representatives of the funds’ service providers and overseeing Board Services. The Board initially approves an Investment Management Services Agreement and other contracts with the investment manager and its affiliates, and other service providers. Once the contracts are approved, the Board monitors the level and quality of services including commitments of service providers to achieve expected levels of investment performance and shareholder services. In addition, the Board oversees that processes are in place to assure compliance with applicable rules, regulations and investment policies and addresses possible conflicts of interest. Annually, the Board evaluates the services received under the contracts by receiving reports covering investment performance, shareholder services, marketing, and the investment manager’s profitability in order to determine whether to continue existing contracts or negotiate new contracts. The Board also oversees fund risks, primarily through the functions (described below) performed by the Investment Review Committee, the Audit Committee and the Compliance Committee.

Committees of the Board

The Board has organized the following standing committees to facilitate its work: Board Governance Committee, Compliance Committee, Contracts Committee, Executive Committee, Investment Review Committee and Audit Committee. These Committees are comprised solely of Independent Directors (persons who are not “interested persons” of the fund as that term is defined in the 1940 Act. The table above describing each Director also includes their respective committee memberships. The duties of these committees are described below.

Mr. Lewis, as Chair of the Board, acts as a point of contact between the Independent Directors and the investment manager between Board meetings in respect of general matters.

Board Governance Committee — Recommends to the Board the size, structure and composition of the Board and its committees; the compensation to be paid to members of the Board; and a process for evaluating the Board’s performance. The committee also reviews candidates for Board membership including candidates recommended by shareholders. The committee also makes recommendations to the Board regarding responsibilities and duties of the Board, oversees proxy voting and supports the work of the Board Chair in relation to furthering the interests of the Funds and their shareholders on external matters. The committee also reviews candidates for Board membership, including candidates recommended by shareholders.

Statement of Additional Information – March 7, 2011

Page 175

To be considered as a candidate for director, recommendations must include a curriculum vitae and be mailed to the Chair of the Board, 901 Marquette Avenue South, Suite 2810, Minneapolis, MN 55402-3268. To be timely for consideration by the committee, the submission, including all required information, must be submitted in writing not less than 120 days before the date of the proxy statement for the previous year’s annual meeting of shareholders, if such a meeting is held. The committee will consider only one candidate submitted by such a shareholder or group for nomination for election at a meeting of shareholders. The committee will not consider self-nominated candidates or candidates nominated by members of a candidate’s family, including such candidate’s spouse, children, parents, uncles, aunts, grandparents, nieces and nephews.

The committee will consider and evaluate candidates submitted by the nominating shareholder or group on the basis of the same criteria as those used to consider and evaluate candidates submitted from other sources. The committee may take into account a wide variety of factors in considering director candidates, including (but not limited to): (i) the candidate’s knowledge in matters relating to the investment company industry; (ii) any experience possessed by the candidate as a director or senior officer of other public or private companies; (iii) the candidate’s educational background; (iv) the candidate’s reputation for high ethical standards and personal and professional integrity; (v) any specific financial, technical or other expertise possessed by the candidate, and the extent to which such expertise would complement the Board’s existing mix of skills and qualifications; (vi) the candidate’s perceived ability to contribute to the ongoing functions of the Board, including the candidate’s ability and commitment to attend meetings regularly, work collaboratively with other members of the Board and carry out his or her duties in the best interests of the fund; (vii) the candidate’s ability to qualify as an independent director; and (viii) such other criteria as the committee determines to be relevant in light of the existing composition of the Board and any anticipated vacancies or other factors.

Members of the committee (and/or the Board) also meet personally with each nominee to evaluate the candidate’s ability to work effectively with other members of the Board, while also exercising independent judgment. Although the Board does not have a formal diversity policy, the Board endeavors to comprise itself of members with a broad mix of professional and personal backgrounds. Thus, the committee and the Board accorded particular weight to the individual professional background of each Independent Director, as encapsulated in their bios included above in Table 26.

The Board believes that the funds are well-served by a Board, the membership of which consists of persons that represent a broad mix of professional and personal backgrounds. In considering nominations, the Committee takes the following matrix into account in assessing how a candidate’s professional background would fit into the mix of experiences represented by the then-current Board.

PROFESSIONAL BACKGROUND — 2010

Audit

For Profit;

Non-Profit;

Committee;

CIO/CFO;

Government;

Legal;

Financial

Name

Geographic

CEO/COO

CEO

Investment

Regulatory

Political

Academic

Expert

Blatz

Carlton

Flynn

Jones

Lewis

Maher

Paglia

Richie

Taunton-Rigby

With respect to the directorship of Mr. Truscott, who is not an Independent Director, the committee and the Board have concluded that having a senior member of the investment manager serve on the Board can facilitate the Independent Directors’ increased access to information regarding the funds’ investment manager, which is the funds’ most significant service provider.

Compliance Committee — Supports the funds’ maintenance of a strong compliance program by providing a forum for Independent Directors to consider compliance matters impacting the Funds or their key service providers; developing and implementing, in coordination with the funds’ Chief Compliance Officer (CCO), a process for the review and consideration of compliance reports that are provided to the Boards; and providing a designated forum for the funds’ CCO to meet with Independent Directors on a regular basis to discuss compliance matters.

Contracts Committee — Reviews and oversees the contractual relationships with service providers. Receives and analyzes reports covering the level and quality of services provided under contracts with the fund and advises the Board regarding actions taken on these contracts during the annual review process.

Statement of Additional Information – March 7, 2011

Page 176

Distribution Committee — Reviews and supports product development, marketing, sales activity and practices related to the funds and will report to the Board as appropriate.

Executive Committee — Acts for the Board between meetings of the Board.

Investment Review Committee — Reviews and oversees the management of the funds’ assets. Considers investment management policies and strategies; investment performance; risk management techniques; and securities trading practices and reports areas of concern to the Board.

Audit Committee — Oversees the accounting and financial reporting processes of the funds and internal controls over financial reporting. Oversees the quality and integrity of the funds’ financial statements and independent audits as well as the funds’ compliance with legal and regulatory requirements relating to the funds’ accounting and financial reporting, internal controls over financial reporting and independent audits. The committee also makes recommendations regarding the selection of the funds’ independent auditor and reviews and evaluates the qualifications, independence and performance of the auditor. The committee oversees the funds’ risks by, among other things, meeting with the funds’ internal auditors, establishing procedures for the confidential, anonymous submission by employees of concerns about accounting or audit matters, and overseeing the funds’ Disclosure Controls and Procedures.

This table shows the number of times the committees met during each fund’s most recent fiscal period. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 28. Committee Meetings


	Board					Investment
	Governance	Compliance	Contracts	Distribution	Executive	Review	Audit
Fiscal Period	Committee	Committee	Committee	Committee*	Committee	Committee	Committee
For funds with fiscal period ending January 31	5	5	6	4	2	6	6

For funds with fiscal period ending March 31	5	5	6	4	1	5	6

For funds with fiscal period ending April 30	5	5	6	3	0	5	6

For funds with fiscal period ending May 31	5	5	6	3	0	5	6

For funds with fiscal period ending June 30	5	5	6	2	0	5	6

For funds with fiscal period ending July 31	5	5	6	2	0	5	6

For funds with fiscal period ending August 31	5	5	6	2	0	5	7

For funds with fiscal period ending September 30	5	5	6	1	0	5	7

For funds with fiscal period ending October 31	5	5	6	1	0	5	7

For funds with fiscal period ending November 30	5	5	6	0	0	5	7

For funds with fiscal period ending December 31	6	5	6	0	0	5	8


*		Effective January 2011, the Distribution Committee was dissolved.

Statement of Additional Information – March 7, 2011

Page 177

BOARD MEMBER HOLDINGS

The following table shows the Board members’ dollar range of equity securities beneficially owned on Dec. 31, 2010 of each individual fund owned by a Board member, and the aggregate dollar range of equity securities of all funds overseen by the Board members.

Table 29. Board Member Holdings

Based on net asset values as of Dec. 31, 2010:


			Aggregate dollar range
		Dollar range of	of equity securities of all
		equity securities in	Funds overseen by
Board Member	Fund	the fund	Board Member
Kathleen Blatz	Columbia Absolute Return Currency and Income Fund	$50,001-$100,000	Over $100,000


	Columbia Dividend Opportunity Fund	Over $100,000


	Columbia Emerging Markets Bond Fund	Over 100,000


	Columbia Emerging Markets Opportunity Fund	$10,001-$50,000


	Columbia Energy and Natural Resources Fund	$50,001-$100,000


	Columbia Frontier Fund	$50,001-$100,000


	Columbia Income Opportunities Fund	$50,001-$100,000


	Columbia Multi-Advisor Small Cap Value Fund	$50,001-$100,000


	Columbia Seligman Communications and Information Fund	$10,001-$50,000


	Columbia Strategic Allocation Fund	Over $100,000


	RiverSource LaSalle International Real Estate Fund, Inc.	$1-$10,000


	RiverSource Precious Metals and Mining Fund	$50,001-$100,000


	RiverSource Real Estate Fund	$50,001-$100,000


	Seligman National Municipal Fund	$1-$10,000


	Threadneedle International Opportunity Fund	Over $100,000


	Tri-Continental Corporation	$1-$10,000

Pamela Carlton	Columbia Absolute Return Currency and Income Fund	$1-$10,000	Over $100,000**


	Columbia Diversified Equity Income Fund	$10,001-$50,000


	Columbia Emerging Markets Opportunity Fund	$1-$10,000


	Columbia Floating Rate Fund*	$50,001-$100,000


	Columbia Global Equity Fund	$1-$10,000


	Columbia Money Market Fund*	$1-$10,000


	RiverSource LaSalle International Real Estate Fund	$1-$10,000


	RiverSource Short Duration U.S. Government Fund	$50,001-$100,000


	Seligman National Municipal Fund	$1-$10,000


	Tri-Continental Corporation	$1-$10,000

Statement of Additional Information – March 7, 2011

Page 178


			Aggregate dollar range
		Dollar range of	of equity securities of all
		equity securities in	Funds overseen by
Board Member	Fund	the fund	Board Member
Stephen R. Lewis, Jr.	Columbia 120/20 Contrarian Equity Fund	$10,001-$50,000	Over $100,000**


	Columbia Absolute Return Currency and Income Fund	$10,001-$50,000


	Columbia Diversified Bond Fund	$1-$10,000


	Columbia Diversified Equity Income Fund	$10,001-$50,000


	Columbia Dividend Opportunity Fund	$10,001-$50,000


	Columbia Emerging Markets Bond Fund*	$50,001-$100,000


	Columbia Emerging Markets Opportunity Fund*	$50,001-$100,000


	Columbia Global Bond Fund	$10,001-$50,000


	Columbia Income Opportunities Fund*	$50,001-$100,000


	Columbia Large Growth Quantitative Fund*	$10,001-$50,000


	Columbia Limited Duration Credit Fund*	Over $100,000


	Columbia Mid Cap Growth Opportunity Fund	$10,001-$50,000


	Columbia Money Market Fund*	$10,001-$50,000


	Columbia Select Large-Cap Value Fund*	Over $100,000


	Columbia Seligman Communications and Information Fund, Inc.*	Over $100,000


	Columbia Strategic Allocation Fund	$10,001-$50,000


	RiverSource LaSalle International Real Estate Fund, Inc.	$10,001-$50,000


	Threadneedle Global Equity Income Fund	$10,001-$50,000


	Threadneedle International Opportunity Fund*	$10,001-$50,000


	Tri-Continental Corporation	$1-$10,000

John F. Maher	Columbia Money Market Fund*	$10,001-$50,000	Over $100,000**


	Columbia Seligman Communications and Information Fund, Inc.*	Over $100,000


	RiverSource LaSalle International Real Estate Fund, Inc.	$1-$10,000


	Seligman National Municipal Fund	$10,001-$50,000


	Tri-Continental Corporation	$50,001-$100,000

Catherine James Paglia	Columbia Floating Rate Fund*	Over $100,000	Over $100,000**


	Columbia Money Market Fund*	$10,001-$50,000


	Columbia Seligman Communications and Information Fund, Inc.*	Over $100,000


	RiverSource LaSalle International Real Estate Fund, Inc.	$1-$10,000


	Tri-Continental Corporation	$1-$10,000

Statement of Additional Information – March 7, 2011

Page 180


			Aggregate dollar range
		Dollar range of	of equity securities of all
		equity securities in	Funds overseen by
Board Member	Fund	the fund	Board Member
Leroy C. Richie	Columbia Diversified Bond Fund	$1-$10,000	Over $100,000


	Columbia Emerging Markets Opportunity Fund	$1-$10,000


	Columbia Frontier Fund, Inc.	$1-$10,000


	Columbia Global Equity Fund	$1-$10,000


	Columbia High Yield Bond Fund	$1-$10,000


	Columbia Large Core Quantitative Fund	$1-$10,000


	Columbia Select Large-Cap Value Fund	$1-$10,000


	Columbia Select Smaller-Cap Value Fund	$1-$10,000


	Columbia Seligman Communications and Information Fund, Inc.	$1-$10,000


	Columbia Seligman Global Technology Fund	$1-$10,000


	RiverSource Balanced Fund	$1-$10,000


	RiverSource LaSalle International Real Estate Fund, Inc.	$1-$10,000


	RiverSource Partners International Select Growth Fund	$1-$10,000


	RiverSource Partners International Small Cap Fund	$1-$10,000


	RiverSource Short Duration U.S. Government Fund	$1-$10,000


	Seligman Capital Fund, Inc.	$1-$10,000


	Seligman Growth Fund, Inc.	$1-$10,000


	Seligman National Municipal Fund	$1-$10,000


	Tri-Continental Corporation	$50,001-$100,000

Alison Taunton Rigby	Columbia 120/20 Contrarian Equity Fund	$10,001-$50,000	Over $100,000


	Columbia Absolute Return Currency and Income Fund	$50,001-$100,000


	Columbia Diversified Equity Income Fund	$10,001-$50,000


	Columbia Emerging Markets Opportunity Fund	Over $100,000


	Columbia Income Builder Fund III	Over $100,000


	Columbia Mid Cap Value Opportunity Fund	$50,001-$100,000


	Columbia Multi-Advisor Small Cap Value Fund	$50,001-$100,000


	Columbia Seligman Communications and Information Fund	$50,001-$100,000


	Columbia Strategic Allocation Fund	Over $100,000


	RiverSource Partners International Select Growth Fund	Over $100,000


	Seligman Growth Fund, Inc.	$50,001-$100,000


	Seligman LaSalle International Real Estate Fund, Inc.	$1-$10,000


	Seligman National Municipal Fund	$1-$10,000


	Tri-Continental Corporation	$1-$10,000

Statement of Additional Information – March 7, 2011

Page 181


			Aggregate dollar range
		Dollar range of	of equity securities of all
		equity securities in	Funds overseen by
Board Member	Fund	the fund	Board Member
William F. Truscott	Columbia 120/20 Contrarian Equity Fund	$50,001-$100,000	Over $100,000


	Columbia Absolute Return Currency and Income Fund	$10,001-$50,000


	Columbia Acorn International Fund	Over $100,000


	Columbia Acorn Select Fund	Over $100,000


	Columbia Contrarian Core Fund	$50,001-$100,000


	Columbia Corporate Income Fund	$10,001-$50,000


	Columbia Diversified Bond Fund	$10,001-$50,000


	Columbia Diversified Equity Income Fund	$10,001-$50,000


	Columbia Dividend Income Fund	$1-$10,000


	Columbia Dividend Opportunity Fund	$10,001-$50,000


	Columbia Emerging Markets Bond Fund	$1-$10,000


	Columbia Emerging Markets Fund	$10,001-$50,000


	Columbia Emerging Markets Opportunity Fund	$10,001-$50,000


	Columbia Equity Value Fund	$10,001-$50,000


	Columbia Global Bond Fund	Over $100,000


	Columbia Global Equity Fund	Over $100,000


	Columbia High Yield Bond Fund	Over $100,000


	Columbia Income Opportunities Fund	$50,001-$100,000


	Columbia Large Core Quantitative Fund	Over $100,000


	Columbia Large Growth Quantitative Fund	$10,001-$50,000


	Columbia Large Value Quantitative Fund	$50,001-$100,000


	Columbia Limited Duration Credit Fund	Over $100,000


	Columbia Mid Cap Growth Fund	$10,001-$50,000


	Columbia Mid Cap Value Opportunity Fund	$50,001-$100,000


	Columbia Money Market Fund	$1-$10,000


	Columbia Multi-Advisor International Value Fund	$10,001-$50,000


	Columbia Portfolio Builder Moderate Aggressive	$50,001-$100,000


	Columbia Retirement Plus 2035 Fund	$10,001-$50,000


	Columbia Select Large-Cap Growth Fund	$10,001-$50,000


	Columbia Select Large-Cap Value Fund	$10,001-$50,000


	Columbia Select Smaller-Cap Value Fund	Over $100,000


	Columbia Seligman Communications and Information Fund, Inc.	$10,001-$50,000


	Columbia Seligman Global Technology Fund	$50,001-$100,000


	Columbia Seligman Premium Technology Growth Fund, Inc.	$10,001-$50,000


	Columbia Small Cap Core Fund	$10,001-$50,000


	Columbia Small Cap Value Fund I	$10,001-$50,000


	Columbia Strategic Allocation Fund	Over $100,000


	RiverSource Disciplined International Equity Fund	Over $100,000


	RiverSource Disciplined Small and Mid Cap Equity Fund	$50,001-$100,000

Statement of Additional Information – March 7, 2011

Page 182


			Aggregate dollar range
		Dollar range of	of equity securities of all
		equity securities in	Funds overseen by
Board Member	Fund	the fund	Board Member
	RiverSource LaSalle International Real Estate Fund, Inc.	$1-$10,000


	RiverSource Partners International Select Growth Fund	Over $100,000


	RiverSource Strategic Income Allocation Fund	Over $100,000


	Seligman Growth Fund	Over $100,000


	Seligman National Municipal Fund	$1-$10,000


	Tri-Continental Corporation	$10,001-$50,000


*		Deferred compensation invested in share equivalents:


A. Carlton	Columbia Floating Rate Fund	$50,001-$100,000
	Columbia Money Market Fund	$1-$10,000
B. Flynn	Columbia Money Market Fund	$10,001-$50,000
	Columbia Portfolio Builder Moderately Aggressive Fund	$50,001-$100,001
	Columbia Seligman Communications and Information Fund, Inc.	$50,001-$100,000
	Columbia Strategic Allocation Fund	$50,001-$100,000
	RiverSource S&P 500 Index Fund	$50,001-$100,000
	Seligman Growth Fund	$10,001-$50,000
	Threadneedle International Opportunity Fund	$50,001-$100,000
C. Lewis	Columbia Emerging Markets Bond Fund	$50,001-$100,000
	Columbia Emerging Markets Opportunity Fund	$10,001-$50,000
	Columbia Income Opportunities Fund	$10,001-$50,000
	Columbia Large Growth Quantitative Fund	$10,001-$50,000
	Columbia Limited Duration Credit Fund	Over $100,000
	Columbia Money Market Fund	$10,001-$50,000
	Columbia Select Large-Cap Value Fund	Over $100,000
	Columbia Seligman Communications and Information Fund, Inc.	$50,001-$100,000
	Threadneedle International Opportunity Fund	$10,001-$50,000
D. Maher	Columbia Money Market Fund	$10,001-$50,000
	Columbia Seligman Communications and Information Fund, Inc.	Over $100,000
E. Paglia	Columbia Floating Rate Fund	Over $100,000
	Columbia Money Market Fund	$10,001-$50,000
	Columbia Seligman Communications and Information Fund, Inc.	Over $100,000


**		Total includes deferred compensation invested in share equivalents.

As of 30 days prior to the date of this SAI, William F. Truscott owned 2.48% of Columbia Retirement Plus 2035 Fund Class A shares and 1.21% of RiverSource Disciplined International Equity Fund Class A shares. The Board members and officers as a group owned less than 1% of the outstanding shares of any class of any other Columbia, RiverSource, Seligman or Threadneedle fund.

Statement of Additional Information – March 7, 2011

Page 183

COMPENSATION OF BOARD MEMBERS

Total compensation. The following table shows the total compensation paid to independent Board members from all the funds in the last fiscal period.

Table 30. Board Member Compensation – All Funds


	Total Cash Compensation from
Board member ^(a)	Funds Paid to Board member
Kathleen Blatz	$	201,227

Arne H. Carlson ^(c)		226,354

Pamela G. Carlton		196,227

Patricia M. Flynn		210,475	^(b)

Anne P. Jones		203,727

Jeffrey Laikind ^(d)		189,890	^(b)

Stephen R. Lewis, Jr.		400,503	^(b)

John F. Maher		210,000	^(b)

Catherine James Paglia		203,727

Leroy Richie		198,727

Alison Taunton-Rigby		198,727


(a)		Board member compensation is paid by the funds and is comprised of a combination of a base fee and meeting fees, with the exception of the Chair of the Board, who receives a base annual compensation. Payment of compensation is administered by a company providing limited administrative services to the funds and to the Board. Compensation noted in the table does not include amounts paid by Ameriprise Financial to Board members for attendance at Board and committee meetings relating to Ameriprise Financial’s acquisition of the long-term asset management business of Columbia Management Group, LLC, including certain of its affiliates. The Chair of the Board did not receive any such compensation from Ameriprise Financial.


(b)		Ms. Flynn, Mr. Laikind, Mr. Lewis and Mr. Maher elected to defer a portion of the total cash compensation payable during the period in the amount of $110,000, $145,938, $86,000 and $210,000, respectively. Amount deferred by fund is set forth in Table 31. Additional information regarding the deferred compensation plan is described below.


(c)		Mr. Carlson ceased serving as a member of the Board effective Dec. 31, 2010.

(d)		Mr. Laikind ceased serving as a member of the Board effective Nov. 11, 2010.

The Independent Directors determine the amount of compensation that they receive, including the amount paid to the Chair of the Board. In determining compensation for the Independent Directors, the Independent Directors take into account a variety of factors including, among other things, their collective significant work experience (e.g., in business and finance, government or academia). The Independent Directors also recognize that these individuals’ advice and counsel are in demand by other organizations, that these individuals may reject other opportunities because the time demands of their duties as Independent Directors, and that they undertake significant legal responsibilities. The Independent Directors also consider the compensation paid to independent board members of other mutual fund complexes of comparable size. In determining the compensation paid to the Chair, the Independent Directors take into account, among other things, the Chair’s significant additional responsibilities (e.g., setting the agenda for Board meetings, communicating or meeting regularly with the Funds’ Chief Compliance Officer, Counsel to the Independent Directors, and the Funds’ service providers) which result in a significantly greater time commitment required of the Board Chair. The Chair’s compensation, therefore, has generally been set at a level between 2.5 and 3 times the level of compensation paid to other independent Board members.

Effective Jan. 1, 2010, independent Board members will be paid an annual retainer of $125,000. Committee and sub- committee Chairs each receive an additional annual retainer of $5,000. In addition, Independent Board Directors are paid the following fees for attending Board and committee meetings: $5,000 per day of in-person Board meetings and $2,500 per day of in-person committee or sub-committee meetings (if such meetings are not held on the same day as a Board meeting). Independent Directors are not paid for special meetings conducted by telephone. In 2011, the Board’s Chair will receive total annual cash compensation of $430,000.

The Independent Directors may elect to defer payment of up to 100% of the compensation they receive in accordance with a Deferred Compensation Plan (the Deferred Plan). Under the Deferred Plan, a Board member may elect to have his or her deferred compensation treated as if they had been invested in shares of one or more RiverSource, Seligman or Threadneedle funds in the Fund Family and the amount paid to the Board member under the Deferred Plan will be determined based on the performance of such investments. Distributions may be taken in a lump sum or over a period of years. The Deferred Plan will remain unfunded for federal income tax purposes under the Internal Revenue Code of 1986, as amended. It is anticipated that deferral of Board member compensation in accordance with the Deferred Plan will have, at most, a negligible impact on fund assets and liabilities.

Statement of Additional Information – March 7, 2011

Page 184

Compensation from each fund. The following table shows the compensation paid to independent Board members from each fund during its last fiscal period.

Table 31. Board Member Compensation — Individual Funds


	Aggregate Compensation from Fund
																					Taunton-
Fund	Blatz		Carlson		Carlton ^(a)		Flynn		Jones		Laikind ^(b)		Lewis		Maher		Paglia		Richie		Rigby
*For funds with fiscal period ending January 31*

Columbia Income Builder Fund		*		*		*		*		*		*		*		*		*		*		*

Columbia Income Builder Fund II		*		*		*		*		*		*		*		*		*		*		*

Columbia Income Builder Fund III		*		*		*		*		*		*		*		*		*		*		*

Columbia Portfolio Builder Aggressive		*		*		*		*		*		*		*		*		*		*		*

Columbia Portfolio Builder Conservative		*		*		*		*		*		*		*		*		*		*		*

Columbia Portfolio Builder Moderate		*		*		*		*		*		*		*		*		*		*		*

Columbia Portfolio Builder Moderate Aggressive		*		*		*		*		*		*		*		*		*		*		*

Columbia Portfolio Builder Moderate Conservative		*		*		*		*		*		*		*		*		*		*		*

Columbia Portfolio Builder Total Equity		*		*		*		*		*		*		*		*		*		*		*

RiverSource S&P 500 Index — total	$	294	$	303	$	273	$	282	$	295	$	273	$	677	$	265	$	303	$	282	$	282
Amount deferred		0		0		96		91		0		25		105		265		0		0		0

RiverSource Small Company Index — total		928		954		862		887		928		862		2,129		834		954		887		887
Amount deferred		0		0		302		287		0		80		329		834		0		0		0

*For funds with fiscal period ending March 31*

Columbia Equity Value — total		1,720		1,744		1,604		1,653		1,744		1,604		3,776		1,561		1,744		1,629		1,629
Amount deferred		0		0		463		595		0		336		618		1,561		0		0		0

RiverSource Precious Metals and Mining — total		354		359		330		339		359		330		776		321		358		335		335
Amount deferred		0		0		96		122		0		68		127		321		0		0		0

*For funds with fiscal period ending April 30*

Columbia 120/20 Contrarian Equity — total		103		104		97		100		104		97		221		95		104		99		99
Amount deferred		0		0		24		38		0		29		37		95		0		0		0

Columbia Recovery and Infrastructure — total		912		929		869		903		929		869		1,880		853		929		886		886
Amount deferred		0		0		170		366		0		333		326		853		0		0		0

Columbia Retirement Plus 2010		*		*		*		*		*		*		*		*		*		*		*

Columbia Retirement Plus 2015		*		*		*		*		*		*		*		*		*		*		*

Columbia Retirement Plus 2020		*		*		*		*		*		*		*		*		*		*		*

Columbia Retirement Plus 2025		*		*		*		*		*		*		*		*		*		*		*

Columbia Retirement Plus 2030		*		*		*		*		*		*		*		*		*		*		*

Columbia Retirement Plus 2035		*		*		*		*		*		*		*		*		*		*		*

Columbia Retirement Plus 2040		*		*		*		*		*		*		*		*		*		*		*

Columbia Retirement Plus 2045		*		*		*		*		*		*		*		*		*		*		*

*For funds with fiscal period ending May 31*

Columbia High Yield Bond — total		4,436		4,626		4,212		4,374		4,495		4,212		9,268		4,114		4,495		4,271		4,271
Amount deferred		0		0		890		1,720		0		1,490		1,594		4,114		0		0		0

Columbia Multi-Advisor Small Cap Value — total		980		1,025		931		968		993		931		2,038		907		993		944		945
Amount deferred		0		0		196		381		0		330		350		907		0		0		0

Statement of Additional Information – March 7, 2011

Page 185


	Aggregate Compensation from Fund
																					Taunton-
Fund	Blatz		Carlson		Carlton ^(a)		Flynn		Jones		Laikind ^(b)		Lewis		Maher		Paglia		Richie		Rigby
Columbia U.S. Government Mortgage — total	$	664	$	687	$	625	$	643	$	671	$	625	$	1,398	$	604	$	671	$	632	$	631
Amount deferred		0		0		160		239		0		170		233		604		0		0		0

RiverSource Partners Fundamental Value — total		1,495		1,556		1,417		1,469		1,514		1,417		3,115		1,378		1,514		1,436		1,436
Amount deferred		0		0		314		570		0		474		532		1,378		0		0		0

RiverSource Short Duration U.S. Government — total		1,779		1,847		1,684		1,742		1,801		1,684		3,725		1,636		1,801		1,705		1,705
Amount deferred		0		0		384		672		0		544		633		1,636		0		0		0

*For funds with fiscal period ending June 30*

Columbia Dividend Opportunity — total		3,054		3,178		2,932		3,104		3,095		3,062		6,388		3,025		3,095		2,974		2,974
Amount deferred		0		0		534		1,327		0		1,329		1,167		3,025		0		0		0

RiverSource Real Estate — total		424		444		408		435		430		430		884		427		430		414		414
Amount deferred		0		0		69		190		0		199		164		427		0		0		0

*For funds with fiscal period ending July 31*

Columbia Floating Rate — total		1,013		1,076		972		1,032		1,027		1,017		2,116		1,011		1,027		986		986
Amount deferred		0		0		151		454		0		490		395		1,011		0		0		0

Columbia Income Opportunities — total		1,838		1,952		1,764		1,869		1,862		1,847		3,812		1,832		1,862		1,789		1,789
Amount deferred		0		0		271		826		0		898		714		1,832		0		0		0

Columbia Inflation Protected Securities — total		1,632		1,733		1,566		1,658		1,653		1,639		3,404		1,625		1,653		1,588		1,588
Amount deferred		0		0		244		731		0		790		636		1,625		0		0		0

Columbia Large Core Quantitative — total		10,069		10,674		9,637		10,207		10,203		10,076		20,381		10,019		10,203		9,771		9,771
Amount deferred		0		0		1,502		4,494		0		4,851		3,824		10,019		0		0		0

Columbia Limited Duration Credit — total		1,151		1,233		1,111		1,184		1,168		1,170		2,359		1,158		1,168		1,128		1,128
Amount deferred		0		0		145		539		0		620		453		1,158		0		0		0

Columbia Money Market — total		7,280		7,694		6,974		7,354		7,370		7,272		15,303		7,219		7,370		7,063		7,063
Amount deferred		0		0		1,162		3,195		0		3,350		2,824		7,219		0		0		0

RiverSource Disciplined Small and Mid Cap Equity — total		340		363		327		348		345		344		706		342		345		331		331
Amount deferred		0		0		50		154		0		169		133		342		0		0		0

RiverSource Disciplined Small Cap Value — total		123		131		119		126		125		125		254		124		125		120		120
Amount deferred		0		0		17		56		0		62		48		124		0		0		0

*For funds with fiscal period ending August 31*

Columbia Diversified Bond — total		10,872		11,740		10,452		11,219		11,014		11,180		21,928		11,153		11,014		10,593		10,593
Amount deferred		0		0		1,384		5,161		0		5,973		4,319		11,153		0		0		0

Columbia Minnesota Tax-Exempt — total		827		891		794		851		837		847		1,665		845		838		804		804
Amount deferred		0		0		108		389		0		445		326		845		0		0		0

RiverSource California Tax-Exempt — total		389		417		373		398		394		396		782		395		394		377		377
Amount deferred		0		0		54		180		0		203		152		395		0		0		0

RiverSource New York Tax-Exempt — total		135		145		129		138		136		137		271		137		136		131		131
Amount deferred		0		0		18		63		0		71		53		137		0		0		0

Statement of Additional Information – March 7, 2011

Page 186


	Aggregate Compensation from Fund
																					Taunton-
Fund	Blatz		Carlson		Carlton ^(a)		Flynn		Jones		Laikind ^(b)		Lewis		Maher		Paglia		Richie		Rigby
*For funds with fiscal period ending September 30*

Columbia Diversified Equity Income — total	$	10,932	$	12,190	$	10,623	$	11,419	$	11,084	$	11,344	$	22,170	$	11,356	$	11,083	$	10,775	$	10,775
Amount deferred		0		0		1,074		5,407		0		6,674		4,432		11,356		0		0		0

Columbia Large Growth Quantitative — total		1,782		1,986		1,731		1,859		1,806		1,846		3,604		1,848		1,806		1,755		1,755
Amount deferred		0		0		176		878		0		1,083		720		1,848		0		0		0

Columbia Large Value Quantitative — total		645		718		626		672		654		668		1,311		669		654		635		635
Amount deferred		0		0		66		317		0		387		261		669		0		0		0

Columbia Mid Cap Value Opportunity — total		5,352		6,001		5,216		5,636		5,433		5,595		10,813		5,602		5,433		5,296		5,296
Amount deferred		0		0		477		2,703		0		3,397		2,187		5,602		0		0		0

Columbia Strategic Allocation — total		2,819		3,132		2,737		2,936		2,857		2,916		5,735		2,918		2,857		2,775		2,775
Amount deferred		0		0		289		1,382		0		1,690		1,140		2,918		0		0		0

RiverSource Balanced — total		1,503		1,677		1,461		1,569		1,524		1,560		3,056		1,561		1,524		1,482		1,482
Amount deferred		0		0		148		743		0		917		611		1,561		0		0		0

RiverSource Strategic Income Allocation — total		800		901		779		838		811		835		1,625		835		811		790		790
Amount deferred		0		0		73		401		0		504		328		835		0		0		0

Seligman California Municipal High-Yield — total		83		93		81		87		85		87		170		87		84		82		82
Amount deferred		0		0		8		41		0		51		34		87		0		0		0

Seligman California Municipal Quality — total		96		108		94		100		98		100		196		100		98		95		95
Amount deferred		0		0		9		48		0		59		39		100		0		0		0

Seligman Minnesota Municipal — total		162		181		158		169		164		168		330		168		164		159		159
Amount deferred		0		0		16		80		0		99		66		168		0		0		0

Seligman National Municipal — total		1,579		1,766		1,534		1,646		1,599		1,639		3,216		1,638		1,599		1,555		1,555
Amount deferred		0		0		155		780		0		964		642		1,638		0		0		0

Seligman New York Municipal — total		200		224		194		208		202		208		406		208		202		197		197
Amount deferred		0		0		19		99		0		123		81		208		0		0		0

*For funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income — total		498		553		483		518		504		515		988		515		504		490		490
Amount deferred		0		0		42		248		0		315		201		515		0		0		0

Columbia Asia Pacific ex-Japan — total		424		506		419		452		428		456		914		452		429		424		424
Amount deferred		0		0		14		232		0		325		195		452		0		0		0

Columbia Emerging Markets Bond — total		605		674		587		630		613		626		1,208		626		613		596		596
Amount deferred		0		0		50		303		0		386		246		625		0		0		0

Columbia Emerging Markets Opportunity — total		1,496		1,676		1,455		1,565		1,516		1,556		2,997		1,557		1,516		1,476		1,476
Amount deferred		0		0		117		757		0		973		615		1,557		0		0		0

Columbia European Equity — total		172		191		167		179		174		178		343		178		174		169		169
Amount deferred		0		0		14		86		0		109		70		178		0		0		0

Columbia Frontier — total		235		273		233		257		239		255		475		255		240		237		237
Amount deferred		0		0		7		132		0		184		103		255		0		0		0

Statement of Additional Information – March 7, 2011

Page 187


	Aggregate Compensation from Fund
																					Taunton-
Fund	Blatz		Carlson		Carlton ^(a)		Flynn		Jones		Laikind ^(b)		Lewis		Maher		Paglia		Richie		Rigby
Columbia Global Bond — total	$	1,209	$	1,353	$	1,175	$	1,260	$	1,225	$	1,254	$	2,424	$	1,254	$	1,226	$	1,191	$	1,191
Amount deferred		0		0		99		607		0		775		495		1,254		0		0		0

Columbia Global Equity — total		1,118		1,243		1,086		1,166		1,134		1,157		2,226		1,158		1,134		1,102		1,102
Amount deferred		0		0		93		559		0		710		453		1,158		0		0		0

Columbia Global Extended Alpha — total		21		23		20		22		21		21		41		21		21		20		20
Amount deferred		0		0		1		10		0		14		9		21		0		0		0

Columbia Multi-Advisor International Value — total		1,761		1,953		1,708		1,832		1,786		1,817		3,500		1,819		1,786		1,733		1,733
Amount deferred		0		0		151		875		0		1,106		711		1,819		0		0		0

Columbia Seligman Global Technology — total		1,215		1,361		1,183		1,274		1,232		1,266		2,434		1,267		1,231		1,200		1,200
Amount deferred		0		0		92		618		0		799		501		1,267		0		0		0

RiverSource Disciplined International Equity — total		1,236		1,371		1,203		1,299		1,256		1,282		2,463		1,284		1,256		1,223		1,223
Amount deferred		0		0		94		627		0		805		504		1,284		0		0		0

RiverSource Partners International Select Growth — total		953		1,061		925		993		966		985		1,901		986		966		939		939
Amount deferred		0		0		79		476		0		605		387		986		0		0		0

RiverSource Partners International Small Cap — total		256		294		252		275		260		273		518		273		260		256		256
Amount deferred		0		0		12		139		0		188		110		273		0		0		0

Threadneedle Global Equity Income — total		73		81		71		76		74		76		146		76		74		72		72
Amount deferred		0		0		6		37		0		48		30		76		0		0		0

Threadneedle International Opportunity — total		947		1,055		920		987		960		980		1,890		980		961		933		933
Amount deferred		0		0		78		474		0		603		385		980		0		0		0

*For funds with fiscal period ending November 30*

Columbia AMT-Free Tax-Exempt Bond — total		1,571		1,763		1,532		1,646		1,592		1,640		3,144		1,639		1,592		1,554		1,554
Amount deferred		0		0		62		828		0		1,140		659		1,639		126		0		0

Columbia Mid Cap Growth Opportunity — total		2,294		2,594		2,244		2,436		2,331		2,418		4,569		2,422		2,117		2,280		2,280
Amount deferred		0		0		67		1,241		0		1,732		972		2,422		94		0		0

RiverSource Intermediate
Tax-Exempt — total		227		255		221		237		230		237		454		240		229		224		224
Amount deferred		0		0		9		120		0		165		95		240		16		0		0

RiverSource Tax-Exempt
High Income — total		5,366		6,024		5,235		5,625		5,438		5,602		10,741		5,599		5,438		5,307		5,307
Amount deferred		0		0		213		2,828		0		3,894		2,253		5,599		427		0		0

*For funds with fiscal period ending December 31*

Columbia Government
Money Market — total		340		384		332		360		345		328		672		357		345		337		337
Amount deferred		0		0		0		188		0		253		145		357		0		0		0

Columbia Select Large-Cap Value — total		808		910		789		851		819		768		1,611		848		819		800		800
Amount deferred		0		0		0		445		0		591		347		848		0		0		0

Columbia Select Smaller-Cap Value — total		984		1,108		962		1,041		999		938		1,943		1,035		998		977		977
Amount deferred		0		0		0		544		0		722		419		1,035		0		0		0

Statement of Additional Information – March 7, 2011

Page 188


	Aggregate Compensation from Fund
																					Taunton-
Fund	Blatz		Carlson		Carlton ^(a)		Flynn		Jones		Laikind ^(b)		Lewis		Maher		Paglia		Richie		Rigby
Columbia Seligman Communications and Information — total	$	8,560	$	9,580	$	8,342	$	8,981	$	8,680	$	8,127	$	16,999	$	8,936	$	8,680	$	8,462	$	8,462
Amount deferred		0		0		0		4,681		0		6,242		3,647		8,936		0		0		0

RiverSource LaSalle
Global Real Estate — total		33		37		32		35		33		31		65		34		33		33		33
Amount deferred		0		0		0		18		0		24		14		34		0		0		0

RiverSource LaSalle Monthly
Dividend Real Estate — total		67		75		66		71		68		64		134		70		68		66		66
Amount deferred		0		0		0		37		0		49		29		70		0		0		0

Seligman Capital — total		548		613		534		575		555		519		1,087		572		555		541		541
Amount deferred		0		0		0		300		0		399		233		572		0		0		0

Seligman Growth — total		3,750		4,196		3,656		3,939		3,805		3,574		7,450		3,917		3,804		3,710		3,710
Amount deferred		0		0		0		2,053		0		2,745		1,598		3,917		0		0		0


*		The Funds-of-Funds do not pay additional compensation to the Board members for attending meetings. Compensation is paid directly from the affiliated underlying funds in which each Fund-of-Funds invests.

(a)		Mr. Carlson ceased serving as a member of the Board effective Dec. 31, 2010.

(b)		Mr. Laikind ceased serving as a member of the Board effective Nov. 11, 2010.

The funds, Columbia Management, unaffiliated and affiliated subadvisers, and Columbia Management Investment Distributors, Inc. have each adopted a Code of Ethics (collectively, the “Codes”) and related procedures reasonably designed to prevent violations of Rule 204A-1 under the Investment Advisers Act of 1940 and Rule 17j-1 under the 1940 Act. The Codes contain provisions reasonably necessary to prevent a fund’s access persons from engaging in any conduct prohibited by paragraph (b) of Rule 17j-1, which indicates that it is unlawful for any affiliated person of or principal underwriter for a fund, or any affiliated persons of an investment adviser of or principal underwriter for a fund, in connection with the purchase or sale, directly or indirectly, by the person of a security held or to be acquired by a fund (i) to employ any device, scheme or artifice to defraud a fund; (ii) to make any untrue statement of a material fact to a fund or omit to state a material fact necessary in order to make the statements made to a fund, in light of the circumstance under which they are made, not misleading; (iii) to engage in any act, practice or course of business that operates or would operate as a fraud or deceit on a fund; or (iv) to engage in any manipulative practice with respect to a fund. The Codes prohibit personnel from engaging in personal investment activities that compete with or attempt to take advantage of planned portfolio transactions for the funds.

Copies of the Codes are on public file with the SEC and can be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. The information on the operation of the SEC’s Public Reference Room may be obtained by calling the SEC at 1-202-942-8090. Copies of the Codes are also available on the EDGAR Database on the SEC’s Internet site at www.sec.gov. Copies of the Codes may also be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing the SEC’s Public Reference Section, Washington, DC 20549-0102.

Statement of Additional Information – March 7, 2011

Page 189

Control Persons and Principal Holders of Securities

The following table identifies those investors who, as of 30 days after the end of the fund’s fiscal period, owned 5% or more of any class of a fund’s shares and those investors who owned 25% or more of a fund’s shares (all share classes taken together). Investors who own more than 25% of a fund’s shares are presumed under securities laws to control the fund and would be able to determine the outcome of most issues that are submitted to shareholders for vote. The table is organized by fiscal year end. You can find your fund’s fiscal year end in Table 1.

Table 32. Control Persons and Principal Holders of Securities

As of 30 days after the end of the fund’s fiscal period:

Fund Shares

Percent of Fund

Fund

Shareholder name, city and state

Share Class

Percentage

(if greater than 25%)

Funds with fiscal period ending January 31

Columbia Income Builder

Charles Schwab & Co., Inc. (Charles Schwab)

Class A

24.34%

—

Fund

a brokerage firm in San Francisco, CA

Columbia Management Investment Advisers, LLC

Class R4

100.00%

—

(Columbia Management), Minneapolis, MN

Columbia Income Builder

Charles Schwab

Class A

30.24%

26.31%

Fund II

Class R4

48.17%

Columbia Management

Class R4

51.83%

—

Columbia Income Builder

Charles Schwab

Class A

30.62%

26.58%

Fund III

Class R4

74.05%

Columbia Management

Class R4

25.95%

—

Columbia Portfolio Builder

Wells Fargo Bank NA (Wells Fargo Bank),

Class R4

52.43%

—

Aggressive

Minneapolis, MN

Charles Schwab

Class R4

30.18%

—

GWFS Equities Inc. (GWFS Equities),

Class R4

12.50%

—

Greenwood Village, CO

Columbia Portfolio Builder

Charles Schwab

Class A

5.32%

—

Conservative

Class R4

20.85%

Wells Fargo Bank

Class R4

59.72%

—

Columbia Management

Class R4

13.92%

—

GWFS Equities

Class R4

5.24%

—

Columbia Portfolio Builder

Charles Schwab

Class R4

54.79%

—

Moderate

Wells Fargo Bank

Class R4

32.25%

—

MG Trust Company Cust. FBO Becker Tire &

Class R4

9.17%

—

Treading, Inc., Denver, CO

Columbia Portfolio Builder

Charles Schwab

Class R4

73.17%

—

Moderate Aggressive

Fifth Third Bank TTEE, Cincinnati, OH

Class R4

11.66%

—

MG Trust Company Cust. FBO Becker Tire &

Class R4

7.96%

—

Treading, Inc., Denver, CO

Wells Fargo Bank

Class R4

5.64%

—

Columbia Portfolio Builder

Charles Schwab

Class R4

57.77%

—

Moderate Conservative

Columbia Management

Class R4

30.33%

—

Wells Fargo Bank

Class R4

11.90%

—

Columbia Portfolio Builder

Wells Fargo Bank

Class R4

52.82%

—

Total Equity

Charles Schwab

Class R4

43.75%

—

Statement of Additional Information – March 7, 2011

Page 190


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
RiverSource S&P 500 Index	Charles Schwab	Class A		100.00%		35.16%
		Class Z		21.47%

	Wachovia Bank NA (Wachovia Bank),	Class Z		78.44%		64.76%
	Charlotte, NC

RiverSource Small Company	Charles Schwab	Class A		6.24%		—
Index		Class R4		5.65%

	Wachovia Bank	Class R4		80.56%		—

*Funds with fiscal period ending March 31*

Columbia Equity Value	Charles Schwab	Class A		5.37%		—

	Columbia Management	Class R		21.35%		—
		Class R5		100.00%		—
		Class W		100.00%		—

	Columbia Portfolio Builder Aggressive Fund	Class I		17.81%		—

	Columbia Portfolio Builder Moderate Fund	Class I		25.96%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		29.71%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.55%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		17.70%		—

	MG Trust Company, FBO Alumaline Corp. of America, Denver, CO	Class R		71.11%		—

	Frontier Trust Company, FBO Aurora Packing Company 401K, Fargo, ND	Class R		7.54%		—

	John Hancock Life Insurance Company, Buffalo, NY	Class R4		74.65%		—

	Wachovia Bank	Class R3		96.49%		—
		Class R4		19.20%		—


RiverSource Precious	Charles Schwab	Class A		12.26%		—
Metals and Mining		Class R4		57.96%		—

	Columbia Management	Class I		100.00%		—

	Merrill Lynch Pierce Fenner & Smith (MLP Fenner & Smith), Jacksonville, FL	Class C		13.50%		—

	Frontier Trust Company, FBO Jacinto Medical Group PA 401K, Fargo, ND	Class R4		32.22%		—

	MG Trust Company, FBO Saddle Butte Operating, Denver, CO	Class R4		7.99%		—

*Funds with fiscal period ending April 30*

Columbia 120/20	Columbia Management	Class I		100.00%		—
Contrarian Equity		Class R5		100.00%

Statement of Additional Information – March 7, 2011

Page 191


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Recovery	Columbia Management	Class R		24.00%		—
and Infrastructure		Class R3		100.00%
		Class R5		33.12%

	Columbia Portfolio Builder Aggressive	Class I		17.50%		—

	Columbia Portfolio Builder Moderate	Class I		26.33%		—

	Columbia Portfolio Builder Moderate Aggressive	Class I		29.60%		—

	Columbia Portfolio Builder Moderate Conservative	Class I		6.80%		—

	Columbia Portfolio Builder Total Equity	Class I		17.31%		—

	Charles Schwab	Class R5		66.86%		—

	Frontier Trust Company FBO Brian P. Sommer	Class R		75.00%		—

	American Enterprise Investment Services Inc. (American Enterprise Investment Services), Minneapolis, MN	Class R4		29.19%		—

	NFS LLC FEBO Cisco Systems Inc., Acton, MA	Class R4		5.96%		—

Columbia Retirement	Columbia Management	Class R		100.00%		—
Plus 2010		Class R3		100.00%
		Class R4		100.00%
		Class R5		100.00%

	Wachovia Bank	Class Z		100.00%		63.98%

Columbia Retirement	Columbia Management	Class R		100.00%		—
Plus 2015		Class R3		100.00%
		Class R4		100.00%
		Class R5		100.00%

	Wachovia Bank	Class Z		100.00%		76.23%

Columbia Retirement	Columbia Management	Class R3		100.00%		—
Plus 2020		Class R4		100.00%
		Class R5		100.00%

	David T. Matthiesen, Littleton, CO	Class A		8.38%		—

	MG Trust Company FBO Applied Reliability Engineering, Denver, CO	Class R		80.49%		—

	Matrix Capital Bank MSCS (Matrix Capital), Denver, CO	Class R		14.86%		—

	Wachovia Bank	Class Z		100.00%		75.54%

Columbia Retirement	Columbia Management	Class R		16.35%		—
Plus 2025		Class R3		100.00%
		Class R4		100.00%
		Class R5		100.00%

	Eric Taketa, Wailuku, Hi	Class A		8.10%		—

	Anthony D. and Rebecca H. Marken, Lexington, MA	Class A		5.78%		—

	Matrix Capital	Class R		83.64%		—

	Wachovia Bank	Class Z		100.00%		87.25%

Statement of Additional Information – March 7, 2011

Page 192


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Retirement	Columbia Management	Class R		31.82%		—
Plus 2030		Class R3		100.00%
		Class R4		100.00%
		Class R5		100.00%

	John C. Bukowski, Suffern, NY	Class A		10.12%		—

	Steven and Teresa Bockian, Orlando, FL	Class A		5.89%		—

	MG Trust Company FBO Applied Reliability Engineering, Denver, CO	Class R		68.18%		—

	Wachovia Bank	Class Z		100.00%		87.56%

Columbia Retirement	Columbia Management	Class R		100.00%		—
Plus 2035		Class R3		100.00%
		Class R4		100.00%
		Class R5		100.00%

	Gary L. and Karen L. Fournier, Vicksburg, MS	Class A		7.30%		—

	Richard and Stefanie A. Nelson, Hot Springs, SD	Class A		5.23%		—

	Wachovia Bank	Class Z		99.87%		89.55%

Columbia Retirement	Columbia Management	Class R		32.46%		—
Plus 2040		Class R3		100.00%
		Class R4		100.00%
		Class R5		100.00%

	Matrix Capital	Class R		67.53%		—

	Wachovia Bank	Class Z		98.82%		86.36%

Columbia Retirement	Columbia Management	Class R		82.98%		—
Plus 2045		Class R3		100.00%
		Class R4		28.19%
		Class R5		100.00%

	MG Trust Company FBO Applied Reliability Engineering, Denver, CO	Class R		17.02%		—

	Scottrade Inc. FBO Michael C. Davis, St. Louis, MO	Class R4		71.81%		—

	Wachovia Bank	Class Z		100.00%		88.66%

*Funds with fiscal period ending May 31*

Columbia High Yield Bond	MLP Fenner & Smith	Class C		14.76%		—
		Class R		69.10%

	Columbia Income Builder Fund	Class I		21.74%		—

	Columbia Income Builder Fund II	Class I		37.23%		—

	Columbia Income Builder Fund III	Class I		23.77%		—

	American Enterprise Investment Services	Class W		99.99%		—

	ING Life Insurance and Annuity (ING), Hartford, CT	Class R3		89.20%		—
		Class R4		93.78%

	Massachusetts Mutual	Class R3		6.29%		—

	US Bank National Association, Milwaukee, WI	Class R5		99.52%		—

Statement of Additional Information – March 7, 2011

Page 193


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Multi-Advisor Small	Columbia Portfolio Builder Aggressive Fund	Class I		16.51%		—

Cap Value	Columbia Portfolio Builder Moderate Fund	Class I		30.26%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		33.96%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		7.68%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		8.91%		—

	Christa Fischer FBO Photo Systems Inc. 401K, Dexter, MI	Class R		5.94%		—

	Robert Guglielmo FBO Grid Electric Inc. 401K. Chester Springs, PA	Class R		5.16%		—

	Hartford Life Insurance Company (Hartford Life),	Class R		84.79%		—
	Weatogue, CT	Class R3		21.70%

	PIMS/Prudential Retirement, Boston, MA	Class R3		66.20%		—

	Reliance Trust Co. FBO VHFA, Atlanta, GA	Class R3		7.83%		—

	VRSCO FBO Pullman Regional Hospital, Houston, TX	Class R4		41.18%		—

	American Enterprise Investment Services	Class R4		30.00%		—

	Edward Dopkin FBO Classic Catering People Inc., Owings Mills, MD	Class R4		5.74%		—

	JP Morgan Chase Bank, Kansas City, MO	Class R5		99.94%		—

Columbia U.S. Government Mortgage	Columbia Income Builder Fund	Class I		25.69%		55.94%	^(a)

	Columbia Income Builder Fund II	Class I		31.90%		—

	Columbia Income Builder Fund III	Class I		11.28%		—

	Columbia Portfolio Builder Moderate Fund	Class I		12.20%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		7.16%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		5.80%		—

	RiverSource Life Insurance Company, Minneapolis, MN	Class R4		12.12%		—

	MLP Fenner & Smith	Class C		5.25%		—

	Counsel Trust FBO Harvard Mgmt Solutions, Pittsburgh, PA	Class R4		30.76%		—

	American Enterprise Investment Services	Class R4		30.75%		—

	Frontier Trust Co. FBO URY & Moskow LLC, Fargo, ND	Class R4		17.70%		—

Statement of Additional Information – March 7, 2011

Page 194


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
RiverSource Partners Fundamental Value	Columbia Portfolio Builder Aggressive Fund	Class I		17.66%		32.17%	^(a)

	Columbia Portfolio Builder Moderate Fund	Class I		26.20%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		29.64%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.66%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		17.53%		—

	American Enterprise Investment Services	Class R4		83.80%		—

	Columbia Management	Class R4		5.73%		—

RiverSource Short Duration	Columbia Management	Class W		100.00%		—

U.S. Government	Columbia Portfolio Builder Conservative Fund	Class I		43.31%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		39.88%		—

	Columbia Portfolio Builder Moderate Fund	Class I		16.80%		—

	MLP Fenner & Smith	Class R		79.26%		—

	Frontier Trust Co. FBO North Alabama Insurance, Fargo, ND	Class R		7.93%		—

	Wachovia Bank	Class R4		98.92%		—

*Funds with fiscal period ending June 30*

Columbia Dividend	Columbia Management	Class R3		100.00%		—
Opportunity		Class W		100.00%		—

	Columbia Income Builder Fund	Class I		10.12%		—

	Columbia Income Builder Fund II	Class I		19.29%		—

	Columbia Income Builder Fund III	Class I		8.56%		—

	Columbia Portfolio Builder Aggressive Fund	Class I		10.93%		—

	Columbia Portfolio Builder Moderate Fund	Class I		16.35%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		18.32%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		10.80%		—

	MLP Fenner & Smith	Class R		97.90%		—

	VRSCO FBO Hamilton Healthcare, Houston, TX	Class R4		64.38%		—

	American Enterprise Investment Services	Class R4		6.76%		—

	Securian Financial Services, St. Paul, MN	Class R5		38.12%		—

	Counsel Trust FBO Bennett Tueller Johnson & Deere, Pittsburgh, PA	Class R5		15.11%		—

	TD Ameritrade Trust Co., Denver CO	Class R5		13.55%		—

	Counsel Trust FBO Western Gynecological Clinic, Pittsburgh, PA	Class R5		12.04%		—

	Counsel Trust FBO Utah Woolen Mills Profit Sharing Plan, Pittsburgh, PA	Class R5		12.01%		—

	NFS LLC FEBO Sylvia C San Martin TTEE, St. Augustine, FL	Class R5		7.89%		—

Statement of Additional Information – March 7, 2011

Page 195


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
RiverSource Real Estate	Columbia Management	Class R4		12.42%		68.41%	^(a)
		Class W		100.00%

	Columbia Income Builder Fund II	Class I		13.28%		—

	Columbia Income Builder Fund III	Class I		10.48%		—

	Columbia Portfolio Builder Aggressive Fund	Class I		9.81%		—

	Columbia Portfolio Builder Moderate Fund	Class I		23.04%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		18.72%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		8.24%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		8.21%		—

	American Enterprise Investment Services	Class R4		87.58%		—

*For funds with fiscal period ending July 31*

Columbia Floating Rate	Columbia Management	Class R5		100.00%		27.75%	^(a)
		Class W		100.00%		—

	Columbia Income Builder Fund	Class I		12.28%		—

	Columbia Income Builder Fund II	Class I		35.22%		—

	Columbia Income Builder Fund III	Class I		21.95%		—

	Columbia Portfolio Builder Moderate Fund	Class I		12.95%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		9.21%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.17%		—

	Charles Schwab	Class A		6.52%		—

	MLP Fenner & Smith	Class C		9.19%		—

	American Enterprise Investment Services	Class R4		64.03		—

	NFS LLC FEBO American Trust & Svgs, Dubuque, IA	Class R4		7.31%		—

Columbia Income Opportunities	Columbia Portfolio Builder Aggressive Fund	Class I		5.58%		—

	Columbia Portfolio Builder Moderate Fund	Class I		39.73%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		22.91%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		18.80%		—

	Columbia Income Builder Fund II	Class I		6.41%		—

	MLP Fenner & Smith	Class B		6.32%		—
		Class C		8.83%		—

	Morgan Stanley Smith Barney, Jersey City, NJ	Class C		7.78%		—

	American Enterprise Investment Services	Class R4		12.78%		—

	GWFS Equities	Class R4		84.82%		—

Statement of Additional Information – March 7, 2011

Page 196


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Inflation Protected Securities	RiverSource Life Insurance Company, Minneapolis, MN	Class R4		13.62%		31.95%	^(a)

	Columbia Income Builder Fund	Class I		9.81%		—

	Columbia Income Builder Fund II	Class I		9.74%		—

	Columbia Portfolio Builder Conservative Fund	Class I		10.06%		—

	Columbia Portfolio Builder Moderate Fund	Class I		28.92%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		16.65%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		13.74%		—

	Citigroup Global Markets, Owings Mills, MD	Class C		15.08%		—

	MLP Fenner & Smith	Class C		9.31%		—
		Class R		64.40%		—

	Frontier Trust Co. FBO Moen 401K, Fargo, ND	Class R		5.97%		—

	Frontier Trust Co. FBO B & L Corp. 401K, Fargo, ND	Class R		5.91%		—

	Frontier Trust Co. FBO C. Anthony Phillips Accountancy, Fargo, ND	Class R		5.91%		—

	Matrix Capital Bank MSCS, Denver, Co	Class R4		68.92%		—

	RiverSource Life Insurance Co.	Class R4		7.21%		—

	American Enterprise Investment Services Inc.	Class W		99.96%		—

Columbia Large Core	Columbia Management	Class R		100.00%		—
Quantitative

	Disciplined Asset Allocation Moderate Fund	Class I		6.94%		—

	Columbia Portfolio Builder Aggressive Fund	Class I		10.92%		—

	Columbia Portfolio Builder Moderate Fund	Class I		16.57%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		18.58%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		10.77%		—

	American Enterprise Investment Services	Class W		99.99%		—

	MLP Fenner & Smith	Class C		9.73%		—
		Class R		78.57%		—

	Wachovia Bank	Class R4		95.66%		—
		Class R5		99.91%		—

Columbia Limited Duration Credit	Columbia Management	Class W		100.00%		—

	Columbia Portfolio Builder Conservative Fund	Class I		38.30%		—

	Columbia Portfolio Builder Moderate Fund	Class I		13.20%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		7.60%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		35.57%		—

	MLP Fenner & Smith	Class C		9.58%		—

	American Enterprise Investment Services Inc.	Class R4		85.91%		—

Statement of Additional Information – March 7, 2011

Page 197


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Money Market	Columbia Management	Class R		100.00%		—

	Columbia Income Builder Fund	Class I		35.70%		—

	Columbia Portfolio Builder Conservative Fund	Class I		52.27%		—

	Columbia Management	Class B		6.67%		—

	Columbia Management	Class C		28.62%		—

	Frontier Trust Co. FBO Mythics, Inc. 401K, Fargo, ND	Class R5		54.23%		—

	Frontier Trust Co. FBO Greatmats.com Corp., Fargo, ND	Class R5		30.29%		—

	Counsel Trust DBA MATC FBO Harvard Management Solutions 401K, Pittsburgh, PA	Class R5		5.67%		—

	American Enterprise Investment Services	Class W		99.99%		—

	Wachovia Bank	Class Y		99.67%		—

	Columbia Management	Class Z		99.97%		—

RiverSource Disciplined	Columbia Management	Class R4		82.91%		—
Small and Mid Cap Equity

	Disciplined Asset Allocation Aggressive Fund	Class I		7.82%		—

	Disciplined Asset Allocation Moderate Fund	Class I		22.13%		—

	Disciplined Asset Allocation Moderately Aggressive Fund	Class I		16.28%		—

	Disciplined Asset Allocation Moderately Conservative Fund	Class I		8.42%		—

	Columbia Retirement Plus Fund 2020	Class I		5.77%		—

	Columbia Retirement Plus Fund 2025	Class I		7.60%		—

	Columbia Retirement Plus Fund 2030	Class I		7.31%		—

	Columbia Retirement Plus Fund 2035	Class I		5.60%		—

	Brian C. Burghardt, Glendale, WI	Class B		6.39%		—

	Louiselle A. Pilegi, Agawam,MA	Class B		6.21%		—

	Jennifer Woolbright, Reston, VA	Class C		14.29%		—

	Carl L. and Vicki L. Ulepich, Frontenac, KS	Class C		10.98%		—

	Patrick J. and Edilia I. Powers, Forest Park, IL	Class C		9.95%		—

	Mary Caroline Walsh Murguia, San Antonio, TX	Class C		7.45%		—

	American Enterprise Investment Services	Class R4		17.09%		—
		Class W		99.99%		—

Statement of Additional Information – March 7, 2011

Page 198


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
RiverSource Disciplined	Columbia Management	Class B		6.09%		91.93%	^(a)
Small Cap Value		Class C		6.42%
		Class R		100.00%
		Class R3		67.31%

	Columbia Income Builder Fund	Class I		29.39%		—

	Columbia Income Builder Fund II	Class I		46.90%		—

	Columbia Income Builder Fund III	Class I		23.69%		—

	Eric B. and Lucilla Henderson, Lake Jackson, TX	Class B		9.49%		—

	Doris M. Tole, Pittsburgh, PA	Class B		9.21%		—

	Kenneth E. Farnen, Homer, AK	Class B		9.01%		—

	Marilyn A. and Gary F. Consorto, Vonore, TN	Class B		6.13%		—

	Donald R. Chmielewski, Isle, MN	Class B		5.65%		—

	Morgan Stanley Smith Barney, Jersey City, NJ	Class C		20.08%		—

	Sanford A. Greentree, Westlake Vlg, CA	Class C		19.83%		—

	Jill Thompson, Moundsview, MN	Class C		9.29%		—

	Bea Vande Merwe, Salt Lake City, UT	Class C		9.07%		—

	Timothy E. Releford, New York, NY	Class C		8.66%		—

	Richard T. Castiano, Fort Myers, FL	Class C		7.81%		—

	MG Trust Company, Denver, CO	Class R3		32.69%		—

*Funds with fiscal period ending August 31*

Columbia Diversified Bond	Columbia Management	Class R3		93.14%		—
		Class W		100.00%

	American Enterprise Investment Services	Class W		99.99%		—

	Citigroup Global Markets, Owings Mills, MD	Class C		29.63%		—

	MLP Fenner & Smith	Class C		15.31%		—
		Class R		52.20%		—

	Columbia Portfolio Builder Conservative Fund	Class I		6.41%		—

	Columbia Portfolio Builder Moderate Fund	Class I		34.21%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		20.02%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		10.17%		—

	MG Trust Company, Denver, CO	Class R		15.70%		—

	Frontier Trust Co. FBO Thomas J. King, Fargo, ND	Class R		12.89%		—

	Wachovia Bank	Class R4		99.08%		—

	Patricks Plain,Easton, MD	Class R5		55.69%		—

	American Enterprise Investment Services	Class R5		39.90%		—

Columbia Minnesota Tax-Exempt	Leonard and Marion Hoppe, Graceville, MN	Class B		6.59%		—

	Richard J. and Mary H. Hill, St. Louis Park, MN	Class B		6.41%		—

	Lois Drontle, Eden Prairie, MN	Class B		5.20%		—

Statement of Additional Information – March 7, 2011

Page 199


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
RiverSource California Tax-Exempt	First Clearing, LLC, Moss Family Trust, Descan SO, CA	Class A		11.83%		—

	ETrade Clearing LLC, Merrifield, VA	Class A		7.41%		—

	Sara L. Oswald, San Diego, CA	Class A		6.29%		—

	Kathleen Scopaz, San Clemente, CA	Class B		17.51%		—

	Angelo Bomio, Salinas, CA	Class B		12.52%		—

	Gerald L. and JoAnne Karels, Tulare, CA	Class B		8.89%		—

	Columbia Management	Class B		8.69%		—

	Miriam A. and Myrin C. Wilcox, Porterville, CA	Class B		6.15%		—

	Brian W. Robins, San Diego, CA	Class B		5.17%		—

	American Enterprise Investment Services	Class C		26.91%

	MLP Fenner & Smith	Class C		5.96%

RiverSource New York	Jeffrey B. Seller, New York, NY	Class A		7.67%		—

Tax-Exempt	American Enterprise Investment Service	Class A		6.28%		—

	MLP Fenner & Smith	Class B		25.97%		—

	Edward Ebler, Babylon, NY	Class B		15.14%		—

	Sharon Ganz, Forest Hills, NY	Class B		12.89%		—

	Vincent J. Solimine, Glen Cove, NY	Class B		7.80%		—

	Richard Clark, Somers, NY	Class B		5.11%		—

	Thomas W. and Susan M. Noonan, Clifton Park, Ny	Class C		43.74%		—

	Ena S. Ryan, Brooklyn, NY	Class C		22.49%		—

	Frederic I. Nelson, Oceanside, NY	Class C		16.15%		—

	Ottoviano Asarese, Buffalo, NY	Class C		15.07%		—

	Joseph P. and Cynthia A. Dowd, Wynantskill, NY	Class C		14.46%		—

	James H. Sisung, Staatsburg, NY	Class C		13.47%		—

	James R. And Kelly S. Betters, Leroy, NY	Class C		12.01%		—

	Arthur E. and Gertrude Kranz, S. Farmingdale, NY	Class C		11.76%		—

	Christopher Paul Pellegrini, Rye, NY	Class C		11.58%		—

	First Clearing LLC, St. Louis, MO	Class C		11.17%		—

	Melinda and James Coates, Rego Park, NY	Class C		10.19%		—

	Lauren M. Trotta, New York, NY	Class C		10.02%		—

Statement of Additional Information – March 7, 2011

Page 200


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
*Funds with fiscal period ending September 30*

Columbia Diversified Equity	Columbia Management	Class W		100.00%		—
Income		Class Z		12.25%

	Columbia Portfolio Builder Aggressive Fund	Class I		17.43%		—

	Columbia Portfolio Builder Moderate Fund	Class I		26.92%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		29.43%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.85%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		16.94%		—

	Hartford Life	Class R		52.88%		—

	Hartford Securities Distribution Company Inc., Hartford, CT	Class R		14.58%		—

	GWFS Equities	Class R		11.46		—
		Class R3		74.33%		—
		Class R5		10.29%		—

	Wachovia Bank	Class R		14.96%		—
		Class R3		8.12%		—
		Class R4		28.86%		—
		Class R5		28.95%		—

	Tomorrow’s Scholar, Milwaukee, WI	Class R4		12.16%		—

	American Century Investments, Kansas City, MO	Class R4		6.47%		—

	ING	Class R4		13.39%		—
		Class R5		33.41%		—

	Ameriprise Trust Company	Class R5		8.09%		—

	Taynik & Co., Boston, MA	Class R5		7.37%		—

	Mercer Trust Company FBO Johnson Outdoors Inc., Norwood, MA	Class R5		7.26%		—

	Suchetha M. Prabhu, Essex Jct, VT	Class Z		87.75%		—

Columbia Large Growth	Columbia Management	Class R		100.00%		30.62% ^(a	⁾
Quantitative		Class R4		100.00%

	Columbia Portfolio Builder Aggressive Fund	Class I		13.78%		—

	Columbia Portfolio Builder Moderate Fund	Class I		21.24%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		23.27%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		5.42%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		13.39%		—

	MLP Fenner & Smith	Class C		48.20%		—

	American Enterprise Investment Services Inc.	Class W		99.98%		—

Statement of Additional Information – March 7, 2011

Page 201


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Large Value	Columbia Management	Class C		8.02%		42.46% ^(a	⁾
Quantitative		Class R		100.00%
		Class R4		55.13%
		Class Z		100.00%

	SSB and Trust Co., Boston, MA	Class I		45.24%		—

	Columbia Income Builder Fund	Class I		7.88%		—

	Columbia Income Builder Fund II	Class I		8.62%		—

	RiverSource Disciplined Asset Allocation Portfolio Moderate	Class I		8.25%		—

	RiverSource Disciplined Asset Allocation Portfolio Moderately Aggressive	Class I		5.74%		—

	American Enterprise Investment Services Inc.	Class W		99.98%		—

	Jay Hunter and Mary Sue Hyer, Winter Haven, FL	Class A		5.77%		—

	James Spirito, Hillsdale, NJ	Class B		14.43		—

	Theresa Strassburger, Albuquerque, NM	Class B		9.89%		—

	Richard W. and Robin O. Wagner, Oakland Park, IL	Class B		9.28%		—

	Kevin Heniff, Mokena, IL	Class B		9.05%		—

	Carolynn C. Heine, Crete, IL	Class B		6.77%		—

	Tristan Hotaling, Black Hawk, CO	Class C		20.37%		—

	Pershing LLC, Jersey City, NJ	Class C		19.10%		—

	Ramona A. Scarth Family Trust, Henderson, NV	Class C		8.02%		—

Columbia Mid Cap Value	Columbia Management	Class W		100.00%		—
Opportunity		Class Z		10.03%

	Columbia Portfolio Builder Aggressive Fund	Class I		17.42%		—

	Columbia Portfolio Builder Moderate Fund	Class I		26.90%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		29.45%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.85%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		16.95%		—

	MLP Fenner & Smith	Class C		19.32%		—

	Hartford Life	Class R		78.27%		—
		Class R3		14.89%		—

	State Street Bank Cust FBO ADP Access, Boston, MA	Class R3		8.40%		—

	Wells Fargo Bank	Class R3		5.98%		—

	GWFS Equities	Class R3		43.17%		—

	Wachovia Bank	Class R4		17.63%		—

	ING	Class R4		17.69%		—
		Class R5		13.59%		—

	John Hancock Life Insurance Company, Buffalo, NY	Class R4		21.93%		—

	NFS LLC FEBO 401K Finops IC Funds, Covington, KY	Class R4		24.49%		—

	Wells Fargo Bank	Class R5		9.94%		—

	Standard Insurance Co.	Class R5		8.19%		—

Statement of Additional Information – March 7, 2011

Page 202


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
	State Street Bank & Trust IRA Mary L. Kloser, Seeley Lake, MT	Class Z		89.97%		—

Columbia Strategic Allocation	Columbia Management	Class I		100.00%		—
		Class R		100.00%
		Class Z		100.00%

	American Enterprise Investment Services Inc.	Class R4		70.28%		—

RiverSource Balanced	Columbia Management	Class R		6.71%		—
		Class R5		28.03%

	MLP Fenner & Smith	Class C		7.45%		—
		Class R		77.01%

	Citigroup Global Markets	Class C		5.89%		—

	Frontier Trust Company FBO, B & L Corp. 401K, Fargo, ND	Class R		16.28%		—

	Wachovia Bank	Class R4		100.00%		—

	American Enterprise Investment Services Inc.	Class R5		67.64%		—

RiverSource Strategic Income	Columbia Management	Class R		100.00%		—
Allocation Fund

	Patrick’s Plain	Class R5		97.99%		—

	American Enterprise Investment Services Inc.	Class R4		81.72%		—

Seligman California Municipal	Citigroup Global Markets	Class A		6.05%		—
High Yield Series		Class C		11.51%

	MLP Fenner & Smith	Class A		6.23%		—
		Class C		19.15%

	Morgan Stanley & Co. (Morgan Stanley), Jersey City, NJ	Class A Class C		5.38% 15.24%		—

	Christopher Ranch LLC, Gilroy, CA	Class C		11.14%		—

Seligman California Municipal	MLP Fenner & Smith	Class C		67.74%		—
Quality Series

	Citigroup	Class C		5.52%		—

	Morgan Stanley	Class A		11.49%		—

	First Clearing LLC Alice Ogden Trust, Calle Real, CA	Class A		5.13%		—

Seligman Minnesota Municipal	Edward D. Jones & Co., Maryland H&S, MO	Class A		17.62%		—

	MLP Fenner & Smith	Class C		10.33%		—

	Citigroup	Class C		5.29%		—

	UBS Financial Services Inc. FBO Ethelyn C. Engel, Cold Spring, MN	Class C		7.40%		—

	Anne E. Brass, Anoka, MN	Class C		6.72%		—

Seligman National Municipal	Citigroup Global Markets	Class A		6.40%		—
		Class C		12.95%

	MLP Fenner & Smith	Class A		8.51%		—

	Edward D. Jones & Co. Maryland H&S, MO	Class C		6.30%		—

Seligman New York Municipal	Citigroup Global Markets	Class C		5.97%		—

	MLP Fenner & Smith	Class C		22.86%		—

	RBC Capital Markets Corp. FBO James Grunebaum, Buffalo, NY	Class C		6.64%		—

Statement of Additional Information – March 7, 2011

Page 203


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
*Funds with fiscal period ending October 31*

Columbia Absolute Return Currency and Income	Columbia Management	Class Z		5.08%		—

	RiverSource Disciplined Asset Allocation Conservative Fund	Class I		9.22%		—

	RiverSource Disciplined Asset Allocation Moderate Fund	Class I		9.03%		—

	RiverSource Disciplined Asset Allocation Moderately Conservative Fund	Class I		6.63%		—

	Columbia Income Builder Fund	Class I		26.68%		—

	Columbia Income Builder Fund III	Class I		9.60%		—

	Columbia Income Builder Fund II	Class I		32.54%		—

	American Enterprise	Class W		99.98%		—

	MLP Fenner & Smith	Class C		5.56%		—

	Stephen W. Lemmon, Austin TX	Class Z		70.93%		—

	State Street Bank & Trust IRA James Harold Maret, Hartwell, GA	Class Z		23.99%		—

Columbia Asia Pacific ex-	Columbia Management	Class C		16.03%		—
Japan		Class I		100.00%
		Class R		100.00%
		Class Z		100.00%

	American Enterprise	Class A		56.81%		—
		Class C		83.97%

	MAC & Co., Pittsburgh, PA	Class R5		16.87%		—

Columbia Emerging Markets	Columbia Management	Class R4		9.47%		31.69%	^(a)

Bond	Disciplined Asset Allocation Conservative Fund	Class I		5.10%		—

	Disciplined Asset Allocation Moderate Fund	Class I		6.65%		—

	Columbia Income Builder Fund III	Class I		25.08%		—

	Columbia Income Builder Fund II	Class I		39.79%		—

	Columbia Income Builder Fund	Class I		14.01%		—

	American Enterprise Investment Services, Inc.	Class R4		79.93%		—
		Class W		99.95%

	Citigroup Global Markets	Class C		17.66%		—

	MLP Fenner & Smith	Class C		10.83%		—

	MG Trust Company FBO Synergy Seven Inc., Denver, CO	Class R4		6.71%		—

	LPL Financial	Class Z		47.20%		—

	State Street Bank & Trust, Okate, SC	Class Z		9.94%		—

	RBC Capital Markets Corp. FBO Joan A. Jagow, Chagrin Falls, OH	Class Z		6.56%		—

Statement of Additional Information – March 7, 2011

Page 204


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Emerging Markets	Columbia Management	Class W		100.00%		—
Opportunity		Class Z		9.85%

	Columbia Portfolio Builder Aggressive Fund	Class I		17.88%		—

	Columbia Portfolio Builder Moderate Fund	Class I		27.53%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		30.22%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.99%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		17.36%		—

	MLP Fenner & Smith	Class C		33.15%		—
		Class R		79.92%		—

	American Enterprise Investment Services, Inc.	Class R4		33.14%		—

	Patricks Plain LLC, Easton, MD	Class R5		84.14%		—

	State Street Bank & Trust Roth IRS Kimberly V. Flower, El Portal, FL	Class Z		51.53%		—

	State Street Bank & Trust IRA Zafar H. Fatimi, Bellport, NY	Class Z		20.06%		—

	State Street Bank & Trust Jennifer A. George Cust.	Class Z		18.56%		—

Columbia European Equity	Columbia Management	Class R4		13.72%		—
		Class Z		100.00%

	American Enterprise Investment Services	Class R4		11.10%		—

	Columbia Retirement Plus 2015 Fund	Class I		10.61%		—

	Columbia Retirement Plus 2020 Fund	Class I		14.27%		—

	Columbia Retirement Plus 2025 Fund	Class I		19.71%		—

	Columbia Retirement Plus 2030 Fund	Class I		18.11%		—

	Columbia Retirement Plus 2035 Fund	Class I		13.79%		—

	Columbia Retirement Plus 2040 Fund	Class I		10.13%		—

	Columbia Retirement Plus 2045 Fund	Class I		10.37%		—

	Citigroup Global Markets	Class C		6.37%		—

	MG Trust Company Cust. FBO Urologic Surgery, P.C. 401K, Denver, CO	Class R4		71.45%		—

Statement of Additional Information – March 7, 2011

Page 205


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Frontier	Columbia Management	Class R4		12.36%		32.79%	^(a)
		Class Z		100.00%

	Columbia Portfolio Builder Aggressive Fund	Class I		17.46%		—

	Columbia Portfolio Builder Moderate Fund	Class I		26.00%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		26.95%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.88%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		16.95%		—

	MLP Fenner & Smith	Class C		19.23%		—
		Class R		41.51%

	American Enterprise Investment Services	Class R4		77.27%		—

	Frontier Trust Company FBO Financial Network Audit, LLC	Class R		17.68%		—

	Frontier Trust Company FBO C. Anthony Phillips Accountancy 401K	Class R		7.98%		—

	Frontier Trust Company FBO Dedicated Systems	Class R		7.08%		—

	Seligman Advisors Inc., Minneapolis, MN	Class R		8.14%		—

	Accutek Packaging Equipment Company 401K	Class R		7.26%		—

	Gramma Fisher Foundation, Easton, MD	Class R5		68.74%		—

	Patricks Plain LLC, Easton, MD	Class R5		28.20%		—

Columbia Global Bond	Columbia Management	Class R		100.00%		36.61%	^(a)
		Class Z		10.75%

	Columbia Income Builder Fund II	Class I		5.76%		—

	Columbia Portfolio Builder Conservative Fund	Class I		10.94%		—

	Columbia Portfolio Builder Moderate Fund	Class I		31.65%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		17.91%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		14.98%		—

	American Enterprise Investment Services	Class R4		75.23%		—

	Leslie Betts FBO Pharmacy Administrative Solutions	Class R4		7.31%		—

	Michael Gallina FBO Manns Jewelers Inc.	Class R4		5.46%		—

	State Street Bank & Trust, Alexandria, VA	Class Z		64.05%		—

	Edward D. Jones & Co., Maryland Hts., MO	Class Z		20.95%		—

Statement of Additional Information – March 7, 2011

Page 206


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Global Equity	Columbia Management	Class R		10.21%		—
		Class R5		23.24%
		Class W		100.00%
		Class Z		100.00%

	Columbia Portfolio Builder Aggressive Fund	Class I		12.15%		—

	Columbia Portfolio Builder Moderate Fund	Class I		32.75%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		35.55%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		8.22%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		8.42%		—

	MLP Fenner & Smith	Class C		7.45%		—

	Frontier Trust Company FBO C. Anthony Phillips Accountancy 401K, Fargo, ND	Class R		21.64%		—

	MG Trust Company Cust. FBO Applied Reliability Engineering, Denver, CO	Class R		20.41%		—

	Frontier Trust Company FBO Financial Network Audit, LLC, Fargo, ND	Class R		18.68%		—

	Frontier Trust Company FBO EFK Moen 401K, Fargo, ND	Class R		13.49%		—

	Frontier Trust Company FBO Nile Project, Inc., Fargo, ND	Class R		6.95%		—

	Accutek Packaging Equipment Company 401K	Class R		6.08%		—

	Wachovia Bank	Class R4		98.08%		—

	American Enterprise Investment Services, Inc.	Class R5		76.76%		—

Columbia Global Extended Alpha	Columbia Management	Class C Class I		5.16% 100.00%		51.12%	^(a)

		Class R		99.99%
		Class R4		11.55%
		Class Z		9.63%

	Charles Schwab	Class C		7.31%		—

	American Enterprise Investment Services, Inc.	Class B		70.30%		—
		Class C		69.49%
		Class R4		88.46%

	Pershing LLC, Jersey City, NJ	Class C		11.75%		—

	Charles Schwab	Class C		7.31%		—

	TD Ameritrade Inc., Omaha, NE	Class Z		90.37%		—

Columbia Multi-Advisor	Columbia Management	Class Z		100.00%		27.51%	^(a)
International Value

	Columbia Portfolio Builder Aggressive Fund	Class I		17.37%		—

	Columbia Portfolio Builder Moderate Fund	Class I		26.92%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		29.32%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.83%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		16.83%		—

	American Enterprise Investment Services	Class R4		45.15%		—

Statement of Additional Information – March 7, 2011

Page 207


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Seligman Global Technology	Columbia Management	Class Z		14.14%		—

	Columbia Portfolio Builder Aggressive Fund	Class I		17.47%		—

	Columbia Portfolio Builder Moderate Fund	Class I		26.77%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		29.51%		—

	Columbia Portfolio Builder Moderate Conservative Fund	Class I		6.87%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		16.95%		—

	MLP Fenner & Smith	Class A		9.11%		—
		Class B		6.50%
		Class C		19.64%
		Class R		12.72%

	Morgan Stanley, Jersey City, NJ	Class C		5.05%		—

	Hartford Life Insurance Co., Hartford, CT	Class R		65.14%		—

	American Enterprise Investment Services	Class R4		30.81%		—

	Frontier Trust Company FBO Chalet Dental Care 401K	Class R		5.36%		—

	MAC & Co., Pittsburgh, PA	Class R5		99.84%		—

	Julie Rosenfield, Broadmore Rd.	Class Z		85.86%		—

RiverSource Disciplined International Equity	Columbia Management	Class R Class R4		100.00% 14.43%		32.26%	^(a)

	Disciplined Asset Allocation Moderate Fund	Class I		12.32%		—

	Disciplined Asset Allocation Moderately Aggressive Fund	Class I		8.49%		—

	Columbia Income Builder Fund III	Class I		6.20%		—

	Columbia Income Builder Fund II	Class I		7.79%		—

	Columbia Portfolio Builder Aggressive Fund	Class I		7.96%		—

	Columbia Portfolio Builder Moderate Fund	Class I		12.41%		—

	Columbia Portfolio Builder Moderate Aggressive Fund	Class I		13.44%		—

	Columbia Portfolio Builder Total Equity Fund	Class I		7.72%		—

	American Enterprise Investment Services, Inc.	Class C		6.39%		—
		Class R4		81.31%
		Class W		99.98%

Statement of Additional Information – March 7, 2011

Page 208


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Columbia Seligman Communications and Information	Columbia Management	Class R3		6.92%		—

	UBS WM USA, Weehawken, NJ	Class C		7.92%		—

	Portfolio Builder Aggressive	Class I		17.74%		—

	Portfolio Builder Moderate	Class I		26.39%		—

	Portfolio Builder Moderate Aggressive	Class I		29.62%		—

	Portfolio Builder Moderate Conservative	Class I		6.40%		—

	Portfolio Builder Total Equity	Class I		17.79%		—

	MLP Fenner & Smith	Class A		12.12%		—
		Class B		19.82%
		Class C		21.83%
		Class R		36.38%
		Class R5		55.98%

	Citigroup Global Markets	Class B		7.58%		—
		Class C		6.79%

	MG Trust Company FBO Exceptional Software	Class R3		13.31%		—
	Strategies, Denver, Co	Class R4		28.72%		—
	Charles Schwab	Class R5		11.48%

	Hartford Life Insurance Co., Hartford, CT	Class R		26.45%		—

	JPMorgan Chase Bank, New York, NY	Class R		14.10%		—

	Pershing LLC, Jersey City, NJ	Class R3		72.95%		—

	Gramma Fisher Foundation	Class R5		8.61%		—

	Patricks Plain LLC	Class R5		6.40%		—

	RBC Capital Markets Corp.	Class Z		10.54%		—

	TD Ameritrade, Omaha, NE	Class Z		8.34%		—

	LPL Financial, San Diego, CA	Class Z		5.76%		—

	Frontier Trust Company FBO Red River Employers 401K, Fargo, ND	Class R4		66.32%		—

RiverSource LaSalle Global	Columbia Management	Class A		23.73%		55.80% ^(a	⁾
Real Estate		Class R4		67.03%

	Seligman Advisors	Class A		8.92%		—

	Morgan Stanley Smith Barney	Class A		12.00%		—

	MLP Fenner & Smith	Class A		8.92%		—
		Class C		28.58%
		Class R		81.77%

	Portfolio Builder Aggressive	Class I		57.11%		—

	Portfolio Builder Total Equity	Class I		42.79%

	Frontier Trust Company FBO CBS-IO, 401K, Fargo, ND	Class R		5.25%		—

	Richard Roberts FBO Mountaineer Gas Services, Tulsa, OK	Class R		6.81%		—

	Charles Schwab	Class R4		20.71%		—

	Scottrade Inc. FBO Jeffrey Powers IRA, Saint Louis, MO	Class R4		12.26%		—

	Gramma Fisher Foundation	Class R5		61.67%		—

	Patricks Plain LLC	Class R5		37.90%		—

Statement of Additional Information – March 7, 2011

Page 215


		Fund Shares			Percent of Fund
Fund	Shareholder name, city and state	Share Class	Percentage		(if greater than 25%)
Seligman Growth	Portfolio Builder Aggressive	Class I		17.73%		—

	Portfolio Builder Moderate	Class I		26.51%		—

	Portfolio Builder Moderate Aggressive	Class I		29.56%		—

	Portfolio Builder Moderate Conservative	Class I		6.40%		—

	Portfolio Builder Total Equity	Class I		17.75%		—

	MLP Fenner & Smith	Class C		5.23%		—

	Accuteck Packaging Company, Vista, CA	Class R		24.93%		—

	Frontier Trust Company FBO Financial Network Audit 401K, Fargo, ND	Class R		11.15%		—

	Frontier Trust Company FBO EFK Moen 401K, Fargo, ND	Class R		10.91%		—

	Frontier Trust Company FBO B & L Corporation 401K, Fargo, ND	Class R		7.33%		—

	Frontier Trust Company FBO C. Anthony Philips Accountancy 401K, Fargo, ND	Class R		6.05%		—

	Frontier Trust Company FBO Edwards Sales 401K, Fargo, ND	Class R		5.83%		—

	Ameriprise Trust Company	Class R4		92.00%		—

	Wacovia Bank	Class R4		7.47%		—

	Gramma Fisher Foundation	Class R5		85.95%		—

	Charles Schwab	Class R5		13.19%		—


(a)		Combination of all share classes of Columbia Management initial capital and affiliated funds-of-funds’ investments.

A fund may serve as an underlying investment of funds-of-funds that principally invest in shares of affiliated funds in the Fund Family (the underlying funds). The underlying funds and the funds-of-funds share the same officers, Board members, and investment manager. The funds-of-funds do not invest in an underlying fund for the purpose of exercising management or control; however, from time to time, investments by the funds-of-funds in a fund may represent a significant portion of a fund. Because the funds-of-funds may own a substantial portion of the shares of a fund, procedures have been put into place to assure that public shareholders will determine the outcome of all actions taken at underlying fund shareholder meetings. In proxy voting, the funds-of-funds will vote on each proposal in the same proportion that other shareholders vote on the proposal.

In addition, Columbia Management or an affiliate may own shares of a fund as a result of an initial capital investment at the inception of the fund or class. To the extent Columbia Management, as manager of the funds-of-funds, may be deemed a beneficial owner of the shares of an underlying fund held by the funds-of-funds, and such shares, together with any initial capital investment by Columbia Management or an affiliate, represent more than 25% of a fund, Columbia Management and its affiliated companies may be deemed to control the fund.

Information Regarding Pending and Settled Legal Proceedings

In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc. , was filed in the United States District Court for the District of Arizona. The plaintiffs allege that they are investors in several American Express Company (now known as legacy RiverSource) mutual funds and they purport to bring the action derivatively on behalf of those funds under the 1940 Act. The plaintiffs allege that fees allegedly paid to the defendants by the funds for investment advisory and administrative services are excessive. The plaintiffs seek remedies including restitution and rescission of investment advisory and distribution agreements. The plaintiffs voluntarily agreed to transfer this case to the United States District Court for the District of Minnesota (the “District Court”). In response to defendants’ motion to dismiss the complaint, the District Court dismissed one of plaintiffs’ four claims and granted plaintiffs limited discovery. Defendants moved for summary judgment in April 2007. Summary judgment was granted in the defendants’ favor on July 9, 2007. The plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals (the

Statement of Additional Information – March 7, 2011

Page 217

“Eighth Circuit”) on Aug. 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the District Court for further proceedings. On August 6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the “Supreme Court”), asking the Supreme Court to stay the District Court proceedings while the Supreme Court considers and rules in a case captioned Jones v. Harris Associates , which involves issues of law similar to those presented in the Gallus case. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates , and on April 5, 2010, the Supreme Court vacated the Eighth Circuit’s decision in the Gallus case and remanded the case to the Eighth Circuit for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates . On June 4, 2010, the Eighth Circuit remanded the Gallus case to the District Court for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates . On December 9, 2010, the District Court reinstated its July 9, 2007 summary judgment order in favor of the defendants. On January 10, 2011, plaintiffs filed a notice of appeal with the Eighth Circuit.

In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)), entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the funds’ Boards of Directors/Trustees.

Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Funds are not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.

There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased fund redemptions, reduced sale of fund shares or other adverse consequences to the Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.

Independent Registered Public Accounting Firm

For RiverSource and Threadneedle funds, the financial statements for the fiscal years ended on or after July 31, 2007, and for Seligman funds, the financial statements for the fiscal years ended on or after Sept. 30, 2009 contained in a fund’s Annual Report were audited by the independent registered public accounting firm, Ernst & Young LLP, 220 South 6th Street, Suite 1400, Minneapolis, MN 55402. The independent registered public accounting firm also provides other accounting and tax-related services as requested by the funds. For RiverSource funds, the financial statements for periods ended on or before June 30, 2007 were audited by other auditors. For Seligman funds, the financial statements for periods ended on or before Dec. 31, 2008 were audited by Deloitte & Touche LLP.

Statement of Additional Information – March 7, 2011

Page 218

Appendix A

DESCRIPTION OF RATINGS

Standard & Poor’s Long-Term Debt Ratings.

A Standard & Poor’s corporate or municipal debt rating is a current assessment of the creditworthiness of an obligor with respect to a specific obligation. This assessment may take into consideration obligors such as guarantors, insurers, or lessees.

The debt rating is not a recommendation to purchase, sell, or hold a security, inasmuch as it does not comment as to market price or suitability for a particular investor.

The ratings are based on current information furnished by the issuer or obtained by S&P from other sources it considers reliable. S&P does not perform an audit in connection with any rating and may, on occasion, rely on unaudited financial information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of such information or based on other circumstances.

The ratings are based, in varying degrees, on the following considerations:


	•	Likelihood of default capacity and willingness of the obligor as to the timely payment of interest and repayment of principal in accordance with the terms of the obligation.

	•	Nature of and provisions of the obligation.

	•	Protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.

Investment Grade

Debt rated AAA has the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.

Debt rated AA has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in a small degree.

Debt rated A has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher-rated categories.

Debt rated BBB is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher-rated categories.

Speculative Grade

Debt rated BB, B, CCC, CC, and C is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. BB indicates the least degree of speculation and C the highest. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major exposures to adverse conditions.

Debt rated BB has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to inadequate capacity to meet timely interest and principal payments. The BB rating category also is used for debt subordinated to senior debt that is assigned an actual or implied BBB- rating.

Debt rated B has a greater vulnerability to default but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal. The B rating category also is used for debt subordinated to senior debt that is assigned an actual or implied BB or BB- rating.

Debt rated CCC has a currently identifiable vulnerability to default and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The CCC rating category also is used for debt subordinated to senior debt that is assigned an actual or implied B or B- rating.

Debt rated CC typically is applied to debt subordinated to senior debt that is assigned an actual or implied CCC rating.

Debt rated C typically is applied to debt subordinated to senior debt that is assigned an actual or implied CCC rating. The C rating may be used to cover a situation where a bankruptcy petition has been filed, but debt service payments are continued.

The rating CI is reserved for income bonds on which no interest is being paid.

Statement of Additional Information – March 7, 2011

A-1

Debt rated D is in payment default. The D rating category is used when interest payments or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The D rating also will be used upon the filing of a bankruptcy petition if debt service payments are jeopardized.

Moody’s Long-Term Debt Ratings

Aaa – Bonds that are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.

Aa – Bonds that are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present that make the long-term risk appear somewhat larger than in Aaa securities.

A – Bonds that are rated A possess many favorable investment attributes and are to be considered as upper-medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present that suggest a susceptibility to impairment some time in the future.

Baa – Bonds that are rated Baa are considered as medium-grade obligations (i.e., they are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.

Ba – Bonds that are rated Ba are judged to have speculative elements – their future cannot be considered as well- assured. Often the protection of interest and principal payments may be very moderate, and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.

B – Bonds that are rated B generally lack characteristics of a desirable investment. Assurance of interest and principal payments or maintenance of other terms of the contract over any long period of time may be small.

Caa – Bonds that are rated Caa are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest.

Ca – Bonds that are rated Ca represent obligations that are speculative in a high degree. Such issues are often in default or have other marked shortcomings.

C – Bonds that are rated C are the lowest rated class of bonds, and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.

Fitch’s Long-Term Debt Ratings

Fitch’s bond ratings provide a guide to investors in determining the credit risk associated with a particular security. The ratings represent Fitch’s assessment of the issuer’s ability to meet the obligations of a specific debt issue in a timely manner.

The rating takes into consideration special features of the issue, its relationship to other obligations of the issuer, the current and prospective financial condition and operating performance of the issuer and any guarantor, as well as the economic and political environment that might affect the issuer’s future financial strength and credit quality.

Fitch ratings do not reflect any credit enhancement that may be provided by insurance policies or financial guaranties unless otherwise indicated.

Fitch ratings are not recommendations to buy, sell or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature of taxability of payments made in respect of any security.

Fitch ratings are based on information obtained from issuers, other obligors, underwriters, their experts, and other sources Fitch believes to be reliable. Fitch does not audit or verify the truth or accuracy of such information. Ratings may be changed, suspended, or withdrawn as a result of changes in, or the unavailability of, information or for other reasons.

Investment Grade

AAA: Bonds considered to be investment grade and of the highest credit quality. The obligor has an exceptionally strong ability to pay interest and repay principal, which is unlikely to be affected by reasonably foreseeable events.

Statement of Additional Information – March 7, 2011

A-2

AA: Bonds considered to be investment grade and of very high credit quality. The obligor’s ability to pay interest and repay principal is very strong, although not quite as strong as bonds rated AAA. Because bonds rated in the AAA and AA categories are not significantly vulnerable to foreseeable future developments, short-term debt of these issuers is generally rated F-1+.

A: Bonds considered to be investment grade and of high credit quality. The obligor’s ability to pay interest and repay principal is considered to be strong, but may be more vulnerable to adverse changes in economic conditions and circumstances than bonds with higher ratings.

BBB: Bonds considered to be investment grade and of satisfactory credit quality. The obligor’s ability to pay interest and repay principal is considered to be adequate. Adverse changes in economic conditions and circumstances, however, are more likely to have adverse impact on these bonds and, therefore, impair timely payment. The likelihood that the ratings of these bonds will fall below investment grade is higher than for bonds with higher ratings.

Speculative Grade

BB: Bonds are considered speculative. The obligor’s ability to pay interest and repay principal may be affected over time by adverse economic changes. However, business and financial alternatives can be identified, which could assist the obligor in satisfying its debt service requirements.

B: Bonds are considered highly speculative. While bonds in this class are currently meeting debt service requirements, the probability of continued timely payment of principal and interest reflects the obligor’s limited margin of safety and the need for reasonable business and economic activity throughout the life of the issue.

CCC: Bonds have certain identifiable characteristics that, if not remedied, may lead to default. The ability to meet obligations requires an advantageous business and economic environment.

CC: Bonds are minimally protected. Default in payment of interest and/or principal seems probable over time.

C: Bonds are in imminent default in payment of interest or principal.

DDD, DD, and D: Bonds are in default on interest and/or principal payments. Such bonds are extremely speculative and should be valued on the basis of their ultimate recovery value in liquidation or reorganization of the obligor. DDD represents the highest potential for recovery on these bonds, and D represents the lowest potential for recovery.

SHORT-TERM RATINGS

Standard & Poor’s Commercial Paper Ratings

A Standard & Poor’s commercial paper rating is a current assessment of the likelihood of timely payment of debt considered short-term in the relevant market.

Ratings are graded into several categories, ranging from A-1 for the highest quality obligations to D for the lowest. These categories are as follows:


A-1	This highest category indicates that the degree of safety regarding timely payment is strong. Those issues determined to possess extremely strong safety characteristics are denoted with a plus sign (+) designation.

A-2	Capacity for timely payment on issues with this designation is satisfactory. However, the relative degree of safety is not as high as for issues designated A-1.

A-3	Issues carrying this designation have adequate capacity for timely payment. They are, however, more vulnerable to the adverse effects of changes in circumstances than obligations carrying the higher designations.

B	Issues are regarded as having only speculative capacity for timely payment.

C	This rating is assigned to short-term debt obligations with doubtful capacity for payment.

D	Debt rated D is in payment default. The D rating category is used when interest payments or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period.

Standard & Poor’s Muni Bond and Note Ratings

An S&P municipal bond or note rating reflects the liquidity factors and market-access risks unique to these instruments. Notes maturing in three years or less will likely receive a note rating. Notes maturing beyond three years will most likely receive a long-term debt rating.

Statement of Additional Information – March 7, 2011

A-3

Note rating symbols and definitions are as follows:


SP-1	Strong capacity to pay principal and interest. Issues determined to possess very strong characteristics are given a plus (+) designation.

SP-2	Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the notes.

SP-3	Speculative capacity to pay principal and interest.

Municipal bond rating symbols and definitions are as follows:

Standard & Poor’s rating SP-1 indicates very strong or strong capacity to pay principal and interest. Those issues determined to possess overwhelming safety characteristics will be given a plus (+) designation.

Standard & Poor’s rating SP-2 indicates satisfactory capacity to pay principal and interest.

Standard & Poor’s rating SP-3 indicates speculative capacity to pay principal and interest.

Moody’s Short-Term Ratings

Moody’s short-term debt ratings are opinions of the ability of issuers to repay punctually senior debt obligations. These obligations have an original maturity not exceeding one year, unless explicitly noted.

Moody’s employs the following three designations, all judged to be investment grade, to indicate the relative repayment ability of rated issuers:

Issuers rated Prime-1 (or supporting institutions) have a superior ability for repayment of senior short-term debt obligations. Prime-1 repayment ability will often be evidenced by many of the following characteristics: (i) leading market positions in well-established industries, (ii) high rates of return on funds employed, (iii) conservative capitalization structure with moderate reliance on debt and ample asset protection, (iv) broad margins in earnings coverage of fixed financial charges and high internal cash generation, and (v) well established access to a range of financial markets and assured sources of alternate liquidity.

Issuers rated Prime-2 (or supporting institutions) have a strong ability for repayment of senior short-term debt obligations. This will normally be evidenced by many of the characteristics cited above, but to a lesser degree. Earnings trends and coverage ratios, while sound, may be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained.

Issuers rated Prime-3 (or supporting institutions) have an acceptable ability for repayment of senior short-term obligations. The effect of industry characteristics and market compositions may be more pronounced. Variability in earnings and profitability may result in changes in the level of debt protection measurements and may require relatively high financial leverage. Adequate alternate liquidity is maintained.

Issuers rated Not Prime do not fall within any of the Prime rating categories.

Moody’s Short-Term Muni Bonds and Notes

Short-term municipal bonds and notes are rated by Moody’s. The ratings reflect the liquidity concerns and market access risks unique to notes.

Moody’s MIG 1/VMIG 1 indicates the best quality. There is present strong protection by established cash flows, superior liquidity support or demonstrated broad-based access to the market for refinancing.

Moody’s MIG 2/VMIG 2 indicates high quality. Margins of protection are ample although not so large as in the preceding group.

Moody’s MIG 3/VMIG 3 indicates favorable quality. All security elements are accounted for but there is lacking the undeniable strength of the preceding grades. Liquidity and cash flow protection may be narrow and market access for refinancing is likely to be less well established.

Moody’s MIG 4/VMIG 4 indicates adequate quality. Protection commonly regarded as required of an investment security is present and although not distinctly or predominantly speculative, there is specific risk.

Fitch’s Short-Term Ratings

Fitch’s short-term ratings apply to debt obligations that are payable on demand or have original maturities of generally up to three years, including commercial paper, certificates of deposit, medium-term notes, and municipal and investment notes. The

Statement of Additional Information – March 7, 2011

A-4

Appendix B

STATE TAX-EXEMPT FUNDS

STATE RISK FACTORS

The State Tax-Exempt Funds invest primarily in the municipal securities issued by a single state and political sub-divisions that state. Each Fund will be particularly affected by political and economic conditions and developments in the state in which it invests. This vulnerability to factors affecting the state’s tax- exempt investments will be significantly greater than that of more geographically diversified funds, which may result in greater losses and volatility. Because of the relatively small number of issuers of tax-exempt securities, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss by investing in a few issuers than a fund that invests more broadly. At times, the Fund and other accounts managed by the investment manager may own all or most of the debt of a particular issuer. This concentration of ownership may make it more difficult to sell, or to determine the fair value of, these investments. In addition, a Fund may concentrate in a segment of the tax-exempt debt market, such as revenue bonds for health care facilities, housing or airports. These investments may cause the value of a fund’s shares to change more than the values of funds’ shares that invest in more diversified investments. The yields on the securities in which the Fund invests generally are dependent on a variety of factors, including the financial condition of the issuer or other obligor, the revenue source from which the debt service is payable, general economic and monetary conditions, conditions in the relevant market, the size of a particular issue, the maturity of the obligation, and the rating of the issue. In addition to such factors, geographically concentrated securities will experience particular sensitivity to local conditions, including political and economic changes, adverse conditions to an industry significant to the area, and other developments within a particular locality. Because many tax-exempt bonds may be revenue or general obligations of local governments or authorities, ratings on tax-exempt bonds may be different from the ratings given to the general obligation bonds of a particular state.

Certain events may adversely affect all investments within a particular market segment of the market. Examples include litigation, legislation or court decisions, concerns about pending or contemplated litigation, legislation or court decisions, or lower demand for the services or products provided by a particular market segment. Investing mostly in state-specific tax-exempt investments makes the Fund more vulnerable to that state’s economy and to factors affecting tax-exempt issuers in that state than would be true for more geographically diversified funds. These risks include, among others:


	•	the inability or perceived inability of a government authority to collect sufficient tax or other revenues to meet its payment obligations;

	•	natural disasters and ecological or environmental concerns;

	•	the introduction of constitutional or statutory limits on a tax-exempt issuer’s ability to raise revenues or increase taxes;

	•	the inability of an issuer to pay interest on or repay principal or securities in which the funds invest during recessionary periods; and

	•	economic or demographic factors that may cause a decrease in tax or other revenues for a government authority or for private operators of publicly financed facilities.

More information about state specific risks may be available from official state resources.

Statement of Additional Information – March 7, 2011

B-1

Appendix C

RiverSource S&P 500 Index Fund

ADDITIONAL INFORMATION ABOUT THE S&P 500 INDEX

The fund is not sponsored, endorsed, sold or promoted by S&P. S&P makes no representation or warranty, express or implied, to the shareholders of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the S&P 500 Index to track general stock market performance. S&P’s only relationship to the Fund is the licensing of certain trademarks and trade names of S&P and of the S&P 500 Index, which are determined, composed and calculated by S&P without regard to the Fund. S&P has no obligation to take the needs of the Fund or its shareholders into consideration in determining, composing or calculating the S&P 500 Index. S&P is not responsible for and has not participated in the determination of the prices and amount of the Fund or the timing of the issuance or sale of the Fund or in the determination or calculation of the equation by which the Fund’s shares are to be converted into cash. S&P has no obligation or liability in connection with the administration, marketing or trading of Fund shares.

S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN (THE S&P INDEX) AND S&P SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS THEREIN. S&P MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE FUND, ITS SHAREHOLDERS OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

Statement of Additional Information – March 7, 2011

C-1

Appendix D

Class A – Calculation of the Sales Charge

Sales charges are determined as shown in the following table. The table is organized by investment category. You can find your fund’s investment category in Table 1.


	Sales charge ^(a) as a percentage of:
		Public offering	Net amount
Fund category	Total market value	price ^(b)	invested
	$0 – $49,999	5.75%	6.10%

	$50,000 – $99,999	4.50%	4.71%

	$100,000 – $249,999	3.50%	3.63%

Balanced, Equity, Fund-of-funds – equity*	$250,000 – $499,999	2.50%	2.56%

	$500,000 – $999,999	2.00%	2.04%

	$1,000,000 or more ^(c),(d)	0.00%	0.00%

	$0 – $49,999	4.75%	4.99%

	$50,000 – $99,999	4.25%	4.44%

Fund-of-funds – fixed income, State tax-exempt fixed income, Taxable fixed income, Tax-exempt fixed income	$100,000 – $249,999	3.50%	3.63%

	$250,000 – $499,999	2.50%	2.56%

	$500,000 – $999,999	2.00%	2.04%

	$1,000,000 or more ^(c),(d)	0.00%	0.00%

For Columbia Absolute Return Currency and Income Fund, Columbia Floating Rate Fund, Columbia Inflation Protected Securities Fund, Columbia Limited Duration Credit Fund, RiverSource Intermediate Tax-Exempt Fund and RiverSource Short Duration U.S. Government Fund	$0 – $99,999	3.00%	3.09%

	$100,000 – $249,999	2.50%	2.56%

	$250,000 – $499,999	2.00%	2.04%

	$500,000 – $999,999	1.50%	1.52%

	$1,000,000 or more ^(c),(d)	0.00%	0.00%


*		RiverSource S&P 500 Index Fund is not subject to a front-end sales change on Class A shares.

(a)		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.

(b)		Purchase price includes the sales charge.


(c)		Although there is no sales charge for purchases with a total market value of $1 million or more, and therefore no re-allowance, the distributor may pay a selling and/or servicing agent the following out of its own resources: 1.00% on purchases from $1 million up to but not including $3 million; 0.50% on purchases of $3 million up to but not including $50 million; and 0.25% on amounts of $50 million or more. The distributor may be reimbursed if a CDSC is deducted when the shares are redeemed.


(d)		For eligible employee benefit plans, selling and/or servicing agents are eligible to receive from the distributor the following sales commissions on purchases that are coded as commission eligible trades: 1.00% on all purchases up to but not including $3 million, including those in amounts of less than $1 million; up to 0.50% on all purchases of $3 million up to but not including $50 million; and up to 0.25% on all purchases of $50 million or more.

Statement of Additional Information – March 7, 2011

D-1

Appendix E

Legacy Columbia Funds

Legacy Columbia funds are funds that were branded Columbia or Columbia Acorn prior to Sept. 27, 2010.

Columbia ^sm Acorn ^® Fund

Columbia ^sm Acorn International ^®

Columbia ^sm Acorn International Select ^®

Columbia ^sm Acorn Select ^®

Columbia ^sm Acorn USA ^®

Columbia Asset Allocation Fund

Columbia Asset Allocation Fund II

Columbia Balanced Fund

Columbia Blended Equity Fund

Columbia Bond Fund

Columbia California Intermediate Municipal Bond Fund

Columbia California Tax-Exempt Fund

Columbia Connecticut Intermediate Municipal Bond Fund

Columbia Connecticut Tax-Exempt Fund

Columbia Conservative High Yield Fund

Columbia Contrarian Core Fund

Columbia Convertible Securities Fund

Columbia Core Bond Fund

Columbia Corporate Income Fund (formerly known as Columbia Income Fund)

Columbia Disciplined Value Fund

Columbia Dividend Income Fund

Columbia Emerging Markets Fund

Columbia Energy and Natural Resources Fund

Columbia Federal Securities Fund

Columbia Georgia Intermediate Municipal Bond Fund

Columbia Global Value Fund

Columbia Greater China Fund

Columbia High Income Fund

Columbia High Yield Municipal Fund

Columbia High Yield Opportunity Fund

Columbia Intermediate Bond Fund

Columbia Intermediate Municipal Bond Fund

Columbia International Bond Fund

Columbia International Growth Fund

Columbia International Stock Fund

Columbia International Value Fund

Columbia Large Cap Core Fund

Columbia Large Cap Enhanced Core Fund

Columbia Large Cap Growth Fund

Columbia Large Cap Index Fund

Columbia Large Cap Value Fund

Columbia Liberty Fund

Columbia LifeGoal ^® Balanced Growth Portfolio

Columbia LifeGoal ^® Growth Portfolio

Columbia LifeGoal ^® Income and Growth Portfolio

Columbia LifeGoal ^® Income Portfolio

Columbia Marsico 21st Century Fund

Columbia Marsico Focused Equities Fund

Columbia Marsico Global Fund

Columbia Marsico Growth Fund

Columbia Marsico International Opportunities Fund

Columbia Maryland Intermediate Municipal Bond Fund

Columbia Massachusetts Intermediate Municipal Bond Fund

Columbia Massachusetts Tax-Exempt Fund

Columbia Masters International Equity Portfolio

Columbia Mid Cap Core Fund

Columbia Mid Cap Growth Fund

Columbia Mid Cap Index Fund

Columbia Mid Cap Value Fund

Columbia Multi-Advisor International Equity Fund

Columbia New Jersey Intermediate Municipal Bond Fund

Columbia New York Intermediate Municipal Bond Fund

Columbia New York Tax-Exempt Fund

Columbia North Carolina Intermediate Municipal Bond Fund

Columbia Oregon Intermediate Municipal Bond Fund

Columbia Overseas Value Fund

Columbia Pacific/Asia Fund

Columbia Real Estate Equity Fund

Columbia Rhode Island Intermediate Municipal Bond Fund

Columbia Select Large Cap Growth Fund

Columbia Select Opportunities Fund

Columbia Select Small Cap Fund

Columbia Short Term Bond Fund

Columbia Short Term Municipal Bond Fund

Columbia Short-Intermediate Bond Fund

Columbia Small Cap Core Fund

Columbia Small Cap Growth Fund I

Columbia Small Cap Growth Fund II

Columbia Small Cap Index Fund

Columbia Small Cap Value Fund I

Columbia Small Cap Value Fund II

Columbia South Carolina Intermediate Municipal Bond Fund

Columbia Strategic Income Fund

Columbia Strategic Investor Fund

Columbia Tax-Exempt Fund

Columbia Technology Fund

Columbia ^sm Thermostat Fund ^®

Columbia Total Return Bond Fund

Columbia U.S. Treasury Index Fund

Columbia Value and Restructuring Fund

Columbia Virginia Intermediate Municipal Bond Fund

Columbia World Equity Fund

Statement of Additional Information – March 7, 2011

E-1

Appendix F

Legacy RiverSource Funds

Legacy RiverSource funds include RiverSource, Seligman and Threadneedle funds, funds renamed effective Sept. 27, 2010 to bear the Columbia brand, and certain other funds. Prior fund names are noted in parenthesis.

Columbia 120/20 Contrarian Equity Fund (formerly known as RiverSource 120/20 Contrarian Equity Fund)

Columbia Absolute Return Currency and Income Fund (formerly known as RiverSource Absolute Return Currency and Income Fund)

Columbia AMT-Free Tax-Exempt Bond Fund (formerly known as RiverSource Tax-Exempt Bond Fund)

Columbia Asia Pacific ex-Japan Fund (formerly known as Threadneedle Asia Pacific Fund)

Columbia Diversified Bond Fund (formerly known as RiverSource Diversified Bond Fund)

Columbia Diversified Equity Income Fund (formerly known as RiverSource Diversified Equity Income Fund)

Columbia Dividend Opportunity Fund (formerly known as RiverSource Dividend Opportunity Fund)

Columbia Emerging Markets Bond Fund (formerly known as RiverSource Emerging Markets Bond Fund)

Columbia Emerging Markets Opportunity Fund (formerly known as Threadneedle Emerging Markets Fund)

Columbia Equity Value Fund (formerly known as RiverSource Equity Value Fund)

Columbia European Equity Fund (formerly known as Threadneedle European Equity Fund)

Columbia Floating Rate Fund (formerly known as RiverSource Floating Rate Fund)

Columbia Frontier Fund, Inc. (formerly known as Seligman Frontier Fund, Inc.)

Columbia Global Bond Fund (formerly known as RiverSource Global Bond Fund)

Columbia Global Equity Fund (formerly known as Threadneedle Global Equity Fund)

Columbia Global Extended Alpha Fund (RiverSource Global Extended Alpha Fund)

Columbia Government Money Market Fund, Inc. (formerly known as RiverSource Government Money Market Fund, Inc.)

Columbia High Yield Bond Fund (formerly known as RiverSource High Yield Bond Fund)

Columbia Income Builder Fund (formerly known as RiverSource Income Builder Basic Income Fund)

Columbia Income Builder Fund II (formerly known as RiverSource Income Builder Moderate Income Fund)

Columbia Income Builder Fund III (formerly known as RiverSource Income Builder Enhanced Income Fund)

Columbia Income Opportunities Fund (formerly known as RiverSource Income Opportunities Fund)

Columbia Inflation Protected Securities Fund (formerly known as RiverSource Inflation Protected Securities Fund)

Columbia Large Core Quantitative Fund (formerly known as RiverSource Disciplined Equity Fund)

Columbia Large Growth Quantitative Fund (formerly known as RiverSource Disciplined Large Cap Growth Fund)

Columbia Large Value Quantitative Fund (formerly known as RiverSource Disciplined Large Cap Value Fund)

Columbia Limited Duration Credit Fund (formerly known as RiverSource Limited Duration Bond Fund)

Columbia Marsico Flexible Capital Fund

Columbia Mid Cap Growth Opportunity Fund (formerly known as RiverSource Mid Cap Growth Fund)

Columbia Mid Cap Value Opportunity Fund (formerly known as RiverSource Mid Cap Value Fund)

Columbia Minnesota Tax-Exempt Fund (formerly known as RiverSource Minnesota Tax-Exempt Fund)

Columbia Money Market Fund (formerly known as RiverSource Cash Management Fund)

Columbia Multi-Advisor International Value Fund (formerly known as RiverSource Partners International Select Value Fund)

Columbia Multi-Advisor Small Cap Value Fund (formerly known as RiverSource Partners Small Cap Value Fund)

Columbia Portfolio Builder Aggressive Fund (formerly known as RiverSource Portfolio Builder Aggressive Fund)

Columbia Portfolio Builder Conservative Fund (formerly known as RiverSource Portfolio Builder Conservative Fund)

Columbia Portfolio Builder Moderate Aggressive Fund (formerly known as RiverSource Portfolio Builder Moderate Aggressive Fund)

Columbia Portfolio Builder Moderate Conservative Fund (formerly known as RiverSource Portfolio Builder Moderate Conservative Fund)

Columbia Portfolio Builder Moderate Fund (formerly known as RiverSource Portfolio Builder Moderate Fund)

Columbia Portfolio Builder Total Equity Fund (formerly known as RiverSource Portfolio Builder Total Equity Fund)

Columbia Recovery and Infrastructure Fund (formerly known as RiverSource Recovery and Infrastructure Fund)

Columbia Retirement Plus 2010 Fund (formerly known as RiverSource Retirement Plus 2010 Fund)

Columbia Retirement Plus 2015 Fund (formerly known as RiverSource Retirement Plus 2015 Fund)

Columbia Retirement Plus 2020 Fund (formerly known as RiverSource Retirement Plus 2020 Fund)

Columbia Retirement Plus 2025 Fund (formerly known as RiverSource Retirement Plus 2025 Fund)

Columbia Retirement Plus 2030 Fund (formerly known as RiverSource Retirement Plus 2030 Fund)

Columbia Retirement Plus 2035 Fund (formerly known as RiverSource Retirement Plus 2035 Fund)

Columbia Retirement Plus 2040 Fund (formerly known as RiverSource Retirement Plus 2040 Fund)

Statement of Additional Information – March 7, 2011

F-1

Columbia Retirement Plus 2045 Fund (formerly known as RiverSource Retirement Plus 2045 Fund)

Columbia Select Large-Cap Value Fund (formerly known as Seligman Large-Cap Value Fund)

Columbia Select Smaller-Cap Value Fund (formerly known as Seligman Smaller-Cap Value Fund)

Columbia Seligman Communications and Information Fund, Inc. (formerly known as Seligman Communications and Information Fund, Inc.)

Columbia Seligman Global Technology Fund (formerly known as Seligman Global Technology Fund)

Columbia Short-Term Cash Fund (formerly known as RiverSource Short-Term Cash Fund)

Columbia Strategic Allocation Fund (formerly known as RiverSource Strategic Allocation Fund)

Columbia U.S. Government Mortgage Fund (formerly known as RiverSource U.S. Government Mortgage Fund)

RiverSource Balanced Fund

RiverSource California Tax-Exempt Fund

RiverSource Disciplined International Equity Fund

RiverSource Disciplined Small and Mid Cap Equity Fund

RiverSource Disciplined Small Cap Value Fund

RiverSource Intermediate Tax-Exempt Fund

RiverSource LaSalle Global Real Estate Fund

RiverSource LaSalle Monthly Dividend Real Estate Fund

RiverSource New York Tax-Exempt Fund

RiverSource Partners Fundamental Value Fund

RiverSource Partners International Select Growth Fund

RiverSource Partners International Small Cap Fund

RiverSource Precious Metals and Mining Fund

RiverSource Real Estate Fund

RiverSource S&P 500 Index Fund

RiverSource Short Duration U.S. Government Fund

RiverSource Small Company Index Fund

RiverSource Strategic Income Allocation Fund

RiverSource Tax-Exempt High Income Fund

Seligman California Municipal High Yield Series

Seligman California Municipal Quality Series

Seligman Capital Fund, Inc.

Seligman Growth Fund, Inc.

Seligman Minnesota Municipal Class

Seligman National Municipal Class

Seligman New York Municipal Class

Threadneedle Global Equity Income Fund

Threadneedle International Opportunity Fund

S-6500 CV (3/11)

Statement of Additional Information – March 7, 2011

F-2

Portfolio of Investments

Dec. 31, 2010

(Percentages represent value of investments compared to net assets)

Investments in Securities


U.S. Government Agencies (78.5%)
				Amount
	Effective			payable at
Issuer	yield			maturity			Value(a)

Federal Home Loan Bank Discount Notes
01-03-11		0.001	%		$20,100,000		$20,099,999
01-14-11		0.160			10,000,000	(b)	9,999,386
01-21-11		0.110			10,975,000		10,974,329
11-25-11		0.400			2,000,000		2,000,000
Federal Home Loan Mortgage Corp. Discount Notes
02-24-11		0.130			5,000,000		4,999,025
Federal National Mortgage Association Discount Notes
04-28-11		0.200			10,000,000		9,993,663
U.S. Treasury Bills
01-13-11		0.030			30,000,000		29,999,700
02-03-11		0.120			10,000,000		9,998,900
02-24-11		0.110			10,000,000		9,998,403


Total U.S. Government Agencies
(Cost: $108,063,405)				$108,063,405


Repurchase Agreements (14.7%)
	Effective		Principal
Issuer	yield		amount		Value(a)

Brokerage
Barclays Bank PLC dated 12-31-10, matures 01-03-11, repurchase price $20,200,337 (collateralized by: U.S. Treasury STRIPS) Total market value
$20,200,000		0.000%		$20,200,000	$20,200,000


Total Repurchase Agreements
(Cost: $20,200,000)			$20,200,000


Bonds (6.9%)
	Coupon			Principal
Issuer	rate			amount		Value(a)

U.S. Government Obligations & Agencies
Federal Home Loan Bank
12-09-11		0.400	%		$8,000,000	$7,999,885
12-30-11		0.500			1,500,000	1,500,000


Total Bonds
(Cost: $9,499,885) $9,499,885


Investments of Cash Collateral Received
for Securities on Loan (0.7%)
	Effective		Principal
Issuer	yield		amount		Value(a)

Repurchase Agreements(c)
Goldman Sachs & Co. dated 12-31-10, matures 01-03-11, repurchase price
$917,833		0.170%		$917,820	$917,820


Total Investments of Cash Collateral Received for Securities on Loan
(Cost: $917,820)			$917,820


Total Investments in Securities
(Cost: $138,681,110)(d)			$138,681,110

Notes to Portfolio of Investments


(a)		Securities are valued by using policies described in Note 2 to the financial statements.

(b)		At Dec. 31, 2010, security was partially or fully on loan. See Note 4 to the financial statements.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 13

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 (including NAV for open-end mutual funds). 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.

Short-term securities are valued using amortized cost, as permitted under Rule 2a-7 of the Investment Company Act of 1940, as amended. Generally, amortized cost approximates the current fair value of these securities, but because the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

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

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 15

Portfolio of Investments (continued)

Fair Value Measurements (continued)

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 valuations may include, but are not limited to, financial statement analysis, capital account balances, 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 Dec. 31, 2010:


	Fair value at Dec. 31, 2010
	Level 1		Level 2
	quoted prices		other		Level 3
	in active		significant		significant
	markets for		observable		unobservable
Description(a)	identical assets		inputs(b)		inputs		Total
Short-Term Securities
U.S. Government Agencies		$—		$108,063,405		$—		$108,063,405
Repurchase Agreements		—		20,200,000		—		20,200,000

Total Short-Term Securities		—		128,263,405		—		128,263,405

Bonds
U.S. Government Obligations & Agencies		—		9,499,885		—		9,499,885

Total Bonds		—		9,499,885		—		9,499,885

Other
Investments of Cash Collateral Received for Securities on Loan		—		917,820		—		917,820

Total Other		—		917,820		—		917,820

Total		$—		$138,681,110		$—		$138,681,110


(a)		See the Portfolio of Investments for all investment classifications not indicated in the table.

(b)		There were no significant transfers between Levels 1 and 2 during the period.

How to find information about the Fund’s quarterly portfolio holdings


(i)		The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q;

(ii)		The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov;

(iii)		The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and

(iv)		The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611.

16 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

Statement of Assets and Liabilities

Dec. 31, 2010


Assets
Investments in securities, at value
Short-term securities and bonds* (identified cost $117,563,290)		117,563,290
Repurchase agreements (identified cost $20,200,000)		20,200,000
Investments of cash collateral received for securities on loan
Repurchase agreements (identified cost $917,820)		917,820

Investments in securities, at value (identified cost $138,681,110)		138,681,110
Cash		198,256
Receivable from Investment Manager		708
Capital shares receivable		286,087
Accrued interest receivable		5,442
Other assets		3,719

Total assets		139,175,322

Liabilities
Dividends payable to shareholders		38
Capital shares payable		361,260
Payable upon return of securities loaned		917,820
Accrued investment management services fees		1,247
Accrued distribution fees		71
Accrued transfer agency fees		18,220
Accrued administrative services fees		227
Other accrued expenses		218,874

Total liabilities		1,517,757

Net assets applicable to outstanding capital stock	$	137,657,565

Represented by
Capital stock — $.01 par value	$	1,376,469
Additional paid-in capital		136,283,617
Excess of distributions over net investment income		(2,621	)
Accumulated net realized gain (loss)		100

Total — representing net assets applicable to outstanding capital stock	$	137,657,565

*Value of securities on loan	$	10,799,154


Net asset value per share
	Net assets		Shares outstanding		Net asset value per share
Class A	$	115,614,024		115,623,598	$	1.00
Class B	$	3,482,518		3,481,496	$	1.00
Class C	$	13,509,335		13,489,555	$	1.00
Class R	$	3,440,176		3,440,734	$	1.00
Class R5	$	440,330		440,327	$	1.00
Class Z	$	1,171,182		1,171,180	$	1.00

The accompanying Notes to Financial Statements are an integral part of this statement.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 17

Statements of Changes in Net Assets (continued)


Year ended Dec. 31,	2010			2009
Capital share transactions at a constant $1 net asset value
Proceeds from sales
Class A shares	$	63,294,135		$	111,251,313
Class B shares		2,122,548			2,700,244
Class C shares		11,556,802			9,024,006
Class R shares		3,355,318			3,308,763
Class R5 shares		433,231			12,630,747
Class Z shares		1,734,199			N/A
Fund merger (Note 6)
Class A shares		56,730,437			N/A
Reinvestment of distributions at net asset value
Class A shares		10,322			39,430
Class B shares		345			470
Class C shares		1,225			1,298
Class C2 shares*		N/A			56
Class R shares		375			284
Class R5 shares		27			5,691
Class Z shares		15			N/A
Conversions from Class B to Class A
Class A shares		882,443			789,457
Class B shares		(882,443	)		(789,457	)
Conversions from Class C2 to Class A*
Class A shares		N/A			2,491,332
Class C2 shares		N/A			(2,491,332	)
Payments for redemptions
Class A shares		(95,182,577	)		(148,817,648	)
Class B shares		(2,502,961	)		(4,105,737	)
Class C shares		(11,587,399	)		(12,056,427	)
Class C2 shares*		N/A			(359,865	)
Class R shares		(3,049,295	)		(1,820,362	)
Class R5 shares		(121,804	)		(32,945,721	)
Class Z shares		(563,034	)		N/A

Increase (decrease) in net assets from capital share transactions		26,231,909			(61,143,458	)

Total increase (decrease) in net assets		26,232,194			(61,145,979	)
Net assets at beginning of year		111,425,371			172,571,350

Net assets at end of year	$	137,657,565		$	111,425,371

Excess of distributions over net investment income	$	(2,621	)	$	(2,521	)


*		Effective March 27, 2009, Class C2 shares converted to Class A shares.

The accompanying Notes to Financial Statements are an integral part of this statement.

20 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

Financial Highlights

The following tables are intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.


Class A	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.01			.04			.04

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.01	) ^(b)		(.04	)		(.04	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.03%			1.12%			4.09%			3.95%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.80%			1.14%			.91%			.86%			.90%

Net expenses after expense waiver/reimbursement ^(c)		.17%			.25%			.79%			.86%			.90%

Net investment income (loss)		.01%			.03%			1.07%			4.03%			3.86%

Supplemental data
Net assets, end of period (in millions)		$116			$90			$124			$133			$124


Class B	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		(.00	) ^(a)		.00	^(a)		.00	^(a)		.03			.03

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.00	) ^(a),(b)		(.03	)		(.03	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.01%			.35%			3.00%			2.85%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		1.54%			1.99%			1.91%			1.86%			1.89%

Net expenses after expense waiver/reimbursement ^(c)		.18%			.29%			1.53%			1.86%			1.89%

Net investment income (loss)		(.00%	) ^(d)		.00%	^(d)		.33%			3.03%			2.86%

Supplemental data
Net assets, end of period (in millions)		$3			$5			$7			$7			$9

See accompanying Notes to Financial Highlights.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 21

Financial Highlights (continued)


Class C	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.00	^(a)		.03			.03

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.00	) ^(a),(b)		(.03	)		(.03	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.01%			.35%			3.00%			2.85%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		1.00%			1.96%			1.91%			1.86%			1.89%

Net expenses after expense waiver/reimbursement ^(c)		.17%			.28%			1.53%			1.86%			1.89%

Net investment income (loss)		.01%			.00%	^(d)		.33%			3.03%			2.86%

Supplemental data
Net assets, end of period (in millions)		$14			$14			$17			$14			$13


Class R*	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.01			.04			.04

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.01	) ^(b)		(.04	)		(.04	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.01%			.93%			3.83%			3.69%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.91%			1.32%			1.16%			1.11%			1.15%

Net expenses after expense waiver/reimbursement ^(c)		.18%			.22%			1.01%			1.11%			1.15%

Net investment income (loss)		.00%	^(d)		.00%	^(d)		.84%			3.78%			3.61%

Supplemental data
Net assets, end of period (in millions)		$3			$3			$2			$1			$—

See accompanying Notes to Financial Highlights.

22 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT


Class R5	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)		.00	^(a)		.01			.04			.04

Less distributions:
Dividends from net investment income		(.00	) ^(a)		(.00	) ^(a)		(.01	) ^(b)		(.04	)		(.04	)

Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00

Total return		.01%			.03%			1.38%			4.36%			4.23%

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.66%			.94%			.63%			.59%			.60%

Net expenses after expense waiver/reimbursement ^(c)		.18%			.36%			.53%			.59%			.60%

Net investment income (loss)		.01%			.06%			1.33%			4.30%			4.16%

Supplemental data
Net assets, end of period (in millions)		$—			$—			$20			$15			$12


	Year ended
Class Z	Dec. 31,
Per share data	2010 ^(e)
Net asset value, beginning of period		$1.00

Income from investment operations:
Net investment income (loss)		.00	^(a)

Less distributions:
Dividends from net investment income		(.00	) ^(a)

Net asset value, end of period		$1.00

Total return		.00%	^(d)

Ratios to average net assets
Gross expenses prior to expense waiver/reimbursement		.93%	^(f)

Net expenses after expense waiver/reimbursement ^(c)		.18%	^(f)

Net investment income (loss)		.01%	^(f)

Supplemental data
Net assets, end of period (in millions)		$1

Notes to Financial Highlights


*		Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.
^(a)		Rounds to less than $0.01 per share.
^(b)		In addition, the Fund paid a short-term capital gain distribution of $0.000146 on July 25, 2008.
^(c)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses.
^(d)		Rounds to less than 0.01%.
^(e)		For the period from Sept. 27, 2010 (when shares became available) to Dec. 31, 2010.
^(f)		Annualized.

The accompanying Notes to Financial Statements are an integral part of this statement.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 23

Notes to Financial Statements


1.	ORGANIZATION

Columbia Government Money Market Fund, Inc. (formerly known as RiverSource Government Money Market Fund, Inc.) (the Fund) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, open-end management investment company. The Fund has 1.4 billion authorized shares of capital stock.

The Fund offers Class A, Class B, Class C, Class R, Class R5 and Class Z shares.


•	Class A shares have no sales charge.

•	The Fund no longer accepts investments by new or existing investors in the Fund’s Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of the Fund and exchanges by existing Class B shareholders of certain other funds within the Columbia Family of Funds. Class B shares may be subject to a maximum contingent deferred sales charge (CDSC) of 5.00% based upon the holding period after purchase. Class B shares will generally convert to Class A shares eight years after purchase.

•	Class C shares are subject to a 1.00% CDSC on shares redeemed within one year of purchase.

•	Class R shares are not subject to sales charges and are available to qualifying institutional investors. Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.

•	Class R5 shares are not subject to sales charges, however, the class was closed to new investors effective Dec. 31, 2010.

•	Class Z shares are not subject to sales charges and are available only to certain investors, as described in the Fund’s prospectus. Class Z shares became effective Sept. 27, 2010.

All classes of shares have identical voting, dividend and liquidation rights. Class specific expenses (e.g., distribution and service fees, transfer agency fees, plan administration services fees) differ among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets.


2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of estimates

Preparing financial statements that conform to U.S. generally accepted accounting principles requires management to make estimates (e.g., on assets, liabilities and contingent assets and liabilities) that could differ from actual results.

24 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

Valuation of securities

Securities in the Fund are valued utilizing the amortized cost valuation method permitted in accordance with Rule 2a-7 under the 1940 Act provided certain conditions are met, including that the Fund’s Board of Directors (the Board) continues to believe that the amortized cost valuation method fairly reflects the market-based net asset value per share of the Fund. This method involves valuing a portfolio security initially at its cost and thereafter assuming a constant accretion or amortization to maturity of any discount or premium, respectively. The Board has established procedures intended to stabilize the Fund’s net asset value for purposes of sales and redemptions at $1.00 per share. These procedures include determinations, at such intervals as the Board deems appropriate and reasonable in light of current market conditions, of the extent, if any, to which the Fund’s market-based net asset value deviates from $1.00 per share. In the event such deviation exceeds 1/2 of 1%, the Board will promptly consider what action, if any, should be initiated.

Repurchase agreements

The Fund may enter into repurchase agreements. Generally, securities received as collateral subject to repurchase agreements are deposited with the Fund’s custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. The market value of securities held as collateral for repurchase agreements is monitored on a daily basis to ensure the existence of the proper level of collateral.

Guarantees and indemnifications

Under the Fund’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined and the Fund has no historical basis for predicting the likelihood of any such claims.

Federal taxes

The Fund’s policy is to comply with Subchapter M of the Internal Revenue Code that applies to regulated investment companies and to distribute substantially all of its taxable income (which includes net short-term capital gains) to shareholders. No provision for income or excise taxes is thus required.

Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Generally, the tax authorities can examine all tax returns filed for the last three years.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 25

Notes to Financial Statements (continued)

Dividends to shareholders

Dividends from net investment income, declared daily and payable monthly, are reinvested in additional shares of the Fund at net asset value or payable in cash.

Other

Security transactions are accounted for on the date securities are purchased or sold. Interest income, including amortization of premium and discount, is recognized daily.


3.	EXPENSES AND SALES CHARGES

Investment management services fees

Under an Investment Management Services Agreement, Columbia Management Investment Advisers, LLC (the Investment Manager) determines which securities will be purchased, held or sold. The management fee is an annual fee that is equal to a percentage of the Fund’s average daily net assets that declines from 0.33% to 0.15% as the Fund’s net assets increase. The management fee for the year ended Dec. 31, 2010 was 0.33% of the Fund’s average daily net assets.

Administrative services fees

Under an Administrative Services Agreement, the Fund pays the Fund Administrator an annual fee for administration and accounting services equal to a percentage of the Fund’s average daily net assets that declines from 0.06% to 0.03% as the Fund’s net assets increase. The fee for the year ended Dec. 31, 2010 was 0.06% of the Fund’s average daily net assets. Prior to Jan. 1, 2011, Ameriprise Financial, Inc. served as the Fund Administrator. Since Jan. 1, 2011, Columbia Management Investment Advisers, LLC has served as the Fund Administrator.

Other fees

Other expenses are for, among other things, certain expenses of the Fund or the Board including: Fund boardroom and office expense, employee compensation, employee health and retirement benefits, and certain other expenses. Payment of these Fund and Board expenses is facilitated by a company providing limited administrative services to the Fund and the Board. For the year ended Dec. 31, 2010, there were no expenses incurred for these particular items.

Compensation of board members

Under a Deferred Compensation Plan (the Plan), the board members who are not “interested persons” of the Fund as defined under the 1940 Act may defer receipt of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the Fund or certain other funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for

26 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

market value changes and remains in the Fund until distributed in accordance with the Plan.

Transfer agency fees

Under a Transfer Agency Agreement, Columbia Management Investment Services Corp. (the Transfer Agent) is responsible for providing transfer agency services to the Fund.

Prior to Sept. 7, 2010, the Transfer Agent received annual account-based service fees from Class A, Class B and Class C shares that varied by class and annual asset-based service fees based on the Fund’s average daily net assets attributable to Class R and Class R5 shares. In addition, the Transfer Agent charged an annual fee per inactive account and received reimbursement from the Fund for certain out-of-pocket expenses.

Under a new Transfer Agency Agreement effective Sept. 7, 2010, the Transfer Agent has contracted with Boston Financial Data Services (BFDS) to serve as sub-transfer agent. The Transfer Agent receives monthly account-based service fees based on the number of open accounts and is reimbursed by the Fund for the fees and expenses the Transfer Agent pays to financial intermediaries that maintain omnibus accounts with the Fund subject to an annual limitation (that varies by class) that is a percentage of the average aggregate value of the Fund’s shares maintained in each such omnibus account (other than omnibus accounts for which American Enterprise Investment Services Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc., which are paid a per account fee). The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Fund.

The Transfer Agent also receives reimbursement for certain out-of-pocket expenses and may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, Individual Retirement Account (IRA) trustee agent fees and account transcript fees due to the Transfer Agent from shareholders of the Fund and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Fund.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 27

Notes to Financial Statements (continued)

For the year ended Dec. 31, 2010, the Fund’s effective transfer agent fee rates as a percentage of average daily net assets of each class were as follows:


Class A	0.18	%
Class B	0.19
Class C	0.18
Class R	0.08
Class R5	0.05
Class Z	0.07	*


*		Annualized.

The Fund and certain other associated investment companies (together, the Guarantors), have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), the former transfer agent, including the payment of rent by SDC (the Guaranty). The lease and the Guaranty expire in January 2019. At Dec. 31, 2010, the Fund’s total potential future obligation over the life of the Guaranty is $181,097. The liability remaining at Dec. 31, 2010 for non-recurring charges associated with the lease amounted to $122,416 and is included within other accrued expenses in the Statement of Assets and Liabilities. SDC is owned by six associated investment companies, including the Fund. The Fund’s ownership interest in SDC at Dec. 31, 2010 is included in other assets in the Statement of Assets and Liabilities at cost of $3,719.

Plan administration services fees

Prior to Sept. 7, 2010, under a Plan Administration Services Agreement with the Transfer Agent, the Fund paid an annual fee at a rate of 0.25% of the Fund’s average daily net assets attributable to Class R shares for the provision of various administrative, recordkeeping, communication and educational services.

Distribution fees

The Fund has an agreement with Columbia Management Investment Distributors, Inc. (the Distributor) for distribution and shareholder services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% and 0.50% of the Fund’s average daily net assets attributable to Class A and Class R shares (of which up to 0.25% may be used for services), respectively, and a fee at an annual rate of up to 1.00% of the Fund’s average daily net assets attributable to Class B and Class C shares. For Class B and Class C shares, of the 1.00% fee, up to 0.75% was reimbursed for distribution expenses. For the period from Jan. 1, 2010 through April 14, 2010, the Fund paid fees equal to 0.10%, 0.75% and 0.25%, for Class A, Class C and Class R shares, respectively. For the period from April 15, 2010 through Dec. 31,

28 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

Notes to Financial Statements (continued)

Under an agreement which is effective until Feb. 28, 2011, the Investment Manager and its affiliates have contractually agreed to waive certain fees and reimburse certain expenses such that net expenses will not exceed the following percentage of the class’ average daily net assets:


Class A	0.66	%
Class B	1.32
Class C	1.31
Class R	0.98
Class R5	0.48
Class Z	0.56

Effective March 1, 2011, the Investment Manager and its affiliates have contractually agreed to waive certain fees and reimburse certain expenses until Feb. 29, 2012, unless sooner terminated at the sole discretion of the Board, such that net expenses will not exceed the following percentage of the class’ average daily net assets:


Class A	0.66	%
Class B	1.31
Class C	1.31
Class R	0.81
Class R5	0.52
Class Z	0.56

In addition, from time to time, the Investment Manager and its affiliates may waive or absorb expenses of the Fund for the purpose of allowing the Fund to avoid a negative net yield or to increase the Fund’s positive net yield. The Fund’s yield would be negative if Fund expenses exceed Fund income. Any such expense limitation is voluntary and may be revised or terminated at any time without notice.


4.	LENDING OF PORTFOLIO SECURITIES

30 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

investments and any uninvested cash collateral are disclosed in the Statement of Assets and Liabilities along with the related obligation to return the collateral upon the return of the securities loaned. At Dec. 31, 2010, securities valued at $10,799,154 were on loan, secured by U.S. government securities valued at $10,046,593 and by cash collateral of $917,820 invested in short-term securities or in cash equivalents.

Risks of delay in recovery of securities or even loss of rights in the securities may occur should the borrower of the securities fail financially. Risks may also arise to the extent that the value of the securities loaned increases above the value of the collateral received. JPMorgan will indemnify the Fund from losses resulting from a borrower’s failure to return a loaned security when due. Such indemnification does not extend to losses associated with declines in the value of cash collateral investments. The Investment Manager is not responsible for any losses incurred by the Fund in connection with the securities lending program. Loans are subject to termination by the Fund or the borrower at any time, and are, therefore, not considered to be illiquid investments.

Pursuant to the Agreement, the Fund receives income for lending its securities either in the form of fees or by earning interest on invested cash collateral, net of negotiated rebates paid to borrowers and fees paid to the lending agent for services provided and any other securities lending expenses. Net income of $3,862 earned from securities lending for the year ended Dec. 31, 2010 is included in the Statement of Operations. The Fund also continues to earn interest and dividends on the securities loaned.


5.	BANK BORROWINGS

The Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility became effective on Oct. 14, 2010, replacing a prior credit facility. The credit facility agreement, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $300 million. The borrowers shall have the right, upon written notice to the Administrative Agent, to request an increase of up to $200 million in the aggregate amount of the credit facility from new or existing lenders, provided that the aggregate amount of the credit facility shall at no time exceed $500 million. Participation in such increase by any existing lender shall be at such lender’s sole discretion. Interest is charged to each fund based on its borrowings at a rate equal to the sum of the federal funds rate plus (i) 1.25% per annum plus (ii) if one-

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 31

Notes to Financial Statements (continued)

month LIBOR exceeds the federal funds rate, the amount of such excess. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum.

Prior to Oct. 14, 2010, the credit facility agreement, which was a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permitted collective borrowings up to $300 million. The Fund also paid a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum, in addition to an upfront fee equal to its pro rata share of 0.04% of the amount of the credit facility. The Fund had no borrowings during the year ended Dec. 31, 2010.


6.	FUND MERGER

At the close of business on March 26, 2010, Columbia Government Money Market Fund acquired the assets and assumed the identified liabilities of RiverSource Tax-Exempt Money Market Fund. The merger was completed after shareholders of the acquired fund approved the plan on March 10, 2010.

The aggregate net assets of Columbia Government Money Market Fund immediately before the acquisition were $107,077,716 and the combined net assets immediately after the acquisition were $163,808,153.

The acquisition was accomplished by a tax-free exchange of 56,730,372 shares of RiverSource Tax-Exempt Money Market Fund valued at $56,730,437.

In exchange for RiverSource Tax-Exempt Money Market Fund shares, Columbia Government Money Market Fund issued 56,730,372 Class A shares.

For financial reporting purposes, net assets received and shares issued by Columbia Government Money Market Fund were recorded at fair value; however, RiverSource Tax-Exempt Money Market Fund’s cost of investments was carried forward to align ongoing reporting of Columbia Government Money Market Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The components of RiverSource Tax-Exempt Money Market Fund’s net assets after adjustments for any permanent book-to-tax differences at the merger date were as follows:


Total net assets	$	56,730,437
Capital stock		56,730,722
Excess of distributions over net investment income		(1	)
Accumulated net realized loss		(284	)

32 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

The financial statements reflect the operations of Columbia Government Money Market Fund for the period prior to the acquisition and the combined fund for the period subsequent to the acquisition. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of RiverSource Tax-Exempt Money Market Fund that have been included in the combined Fund’s Statement of Operations since the acquisition was completed. Assuming the acquisition had been completed on Jan. 1, 2010, Columbia Government Money Market Fund’s pro-forma net investment loss, net gain on investments, and net decrease in net assets from operations for the year ended Dec. 31, 2010 would have been $892,812, $639 and $892,173, respectively.


7.	FEDERAL TAX INFORMATION

Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains were recorded by the Fund.

The tax character of distributions paid for the years indicated was as follows:


Year ended Dec. 31,	2010		2009
Ordinary income	$	12,783	$	44,634
Long-term capital gain		—		—

At Dec. 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed ordinary income	$	2,940
Undistributed accumulated long-term gain		—
Accumulated realized loss		(66	)
Unrealized appreciation (depreciation)		(5,357	)

Columbia Government Money Market Fund acquired $283 of capital loss carry-overs in connection with the RiverSource Tax-Exempt Money Market Fund merger (Note 6). The yearly utilization of the acquired capital losses is limited by the Internal Revenue Code.

For federal income tax purposes, the Fund had a capital loss carry-over of $66 at Dec. 31, 2010, that if not offset by capital gains will expire in 2013. For the year ended Dec. 31, 2010, $217 of capital loss carry-over was utilized. It is unlikely the Board will authorize a distribution of any net realized capital gains until the

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 33

Notes to Financial Statements (continued)

available capital loss carry-over has been offset or expires. There is no assurance that the Fund will be able to utilize all of its capital loss carry-over before it expires.


8.	SUBSEQUENT EVENTS

Management has evaluated Fund related events and transactions that occurred during the period from the date of the Statement of Assets and Liabilities through the date of issuance of the Fund’s financial statements. There were no events or transactions that occurred during the period that materially impacted the amounts or disclosures in the Fund’s financial statements.


9.	INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS

In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc. was filed in the United States District Court for the District of Arizona. The plaintiffs allege that they are investors in several American Express Company (now known as legacy RiverSource) mutual funds and they purport to bring the action derivatively on behalf of those funds under the Investment Company Act of 1940. The plaintiffs allege that fees allegedly paid to the defendants by the funds for investment advisory and administrative services are excessive. The plaintiffs seek remedies including restitution and rescission of investment advisory and distribution agreements. The plaintiffs voluntarily agreed to transfer this case to the United States District Court for the District of Minnesota (the District Court). In response to defendants’ motion to dismiss the complaint, the District Court dismissed one of plaintiffs’ four claims and granted plaintiffs limited discovery. Defendants moved for summary judgment in April 2007. Summary judgment was granted in the defendants’ favor on July 9, 2007. The plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit) on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the District Court for further proceedings. On August 6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the Supreme Court), asking the Supreme Court to stay the District Court proceedings while the Supreme Court considers and rules in a case captioned Jones v. Harris Associates, which involves issues of law similar to those presented in the Gallus case. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit’s decision in the Gallus case and remanded the case to the Eighth Circuit for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates . On June 4, 2010, the Eighth Circuit

34 COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT

remanded the Gallus case to the District Court for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates . On December 9, 2010, the District Court reinstated its July 9, 2007 summary judgment order in favor of the defendants. On January 10, 2011, plaintiffs filed a notice of appeal with the Eighth Circuit.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 35

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of
Columbia Government Money Market Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Government Money Market Fund, Inc. (formerly known as RiverSource Government Money Market Fund, Inc.) (the Fund) as of December 31, 2010, and the related statement of operations for the year then ended, and the statements of changes in net assets and financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Fund for the period ended December 31, 2008, were audited by other auditors whose report dated February 27, 2009, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

COLUMBIA GOVERNMENT MONEY MARKET FUND — 2010 ANNUAL REPORT 37

Portfolio of Investments

Columbia Select Large-Cap Value Fund

Dec. 31, 2010

(Percentages represent value of investments compared to net assets)

Investments in Securities


Common Stocks (99.8%)
Issuer	Shares			Value(a)

Aerospace & Defense (7.7%)
General Dynamics Corp.		140,000		$9,934,400
Honeywell International, Inc.		230,000		12,226,800
United Technologies Corp.		130,000		10,233,600

Total				32,394,800


Capital Markets (2.6%)
Morgan Stanley		400,000		10,884,000


Chemicals (7.6%)
EI du Pont de Nemours & Co.		230,000		11,472,400
Praxair, Inc.		100,000	(c)	9,547,000
The Sherwin-Williams Co.		135,000	(c)	11,306,250

Total				32,325,650


Commercial Banks (3.5%)
U.S. Bancorp		550,000		14,833,500


Communications Equipment (3.1%)
Juniper Networks, Inc.		350,000	(b,c)	12,922,000


Diversified Financial Services (9.3%)
Bank of America Corp.		1,530,000		20,410,200
JPMorgan Chase & Co.		450,000		19,089,000

Total				39,499,200


Food & Staples Retailing (3.7%)
Costco Wholesale Corp.		155,000		11,192,550
Wal-Mart Stores, Inc.		85,000		4,584,050

Total				15,776,600


Food Products (3.4%)
Tyson Foods, Inc., Class A		830,000		14,292,600


Health Care Equipment & Supplies (2.9%)
Baxter International, Inc.		240,000		12,148,800


Health Care Providers & Services (3.6%)
Humana, Inc.		275,000	(b)	15,053,500


Independent Power Producers & Energy Traders (3.3%)
The AES Corp.		1,160,000	(b)	14,128,800


Insurance (11.5%)
MetLife, Inc.		300,000		13,332,000
Prudential Financial, Inc.		190,000		11,154,900
The Travelers Companies, Inc.		160,000		8,913,600
Unum Group		630,000		15,258,600

Total				48,659,100


Multiline Retail (5.2%)
JC Penney Co., Inc.		360,000		11,631,600
Nordstrom, Inc.		245,000	(c)	10,383,100

Total				22,014,700


Oil, Gas & Consumable Fuels (14.5%)
Chevron Corp.		120,000		10,950,000
ConocoPhillips		180,000		12,258,000
Marathon Oil Corp.		300,000		11,109,000
The Williams Companies, Inc.		550,000		13,596,000
Valero Energy Corp.		590,000		13,640,800

Total				61,553,800


Pharmaceuticals (2.4%)
Bristol-Myers Squibb Co.		390,000	(c)	10,327,200


Road & Rail (5.3%)
CSX Corp.		185,000		11,952,850
Union Pacific Corp.		115,000		10,655,900

Total				22,608,750

See accompanying Notes to Portfolio of Investments.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 29

Portfolio of Investments (continued)

Columbia Select Large-Cap Value Fund


Common Stocks (continued)
Issuer	Shares			Value(a)

Specialty Retail (5.0%)
Lowe’s Companies, Inc.		500,000		$12,540,000
The Gap, Inc.		390,000		8,634,600

Total				21,174,600


Tobacco (5.2%)
Altria Group, Inc.		460,000		11,325,200
Philip Morris International, Inc.		180,000		10,535,400

Total				21,860,600


Total Common Stocks
(Cost: $347,565,111)				$422,458,200




Money Market Fund (0.2%)
	Shares			Value(a)

Columbia Short-Term Cash Fund, 0.229%		735,412	(e)	$735,412


Total Money Market Fund
(Cost: $735,412)				$735,412


Investments of Cash Collateral Received for Securities on Loan (6.0%)
				Amount
	Effective			payable at
Issuer	yield			maturity		Value(a)


Certificates of Deposit (1.4%)
Erste Bank der Oesterreichischen Sparkassen AG
01-18-11		0.430	%		$1,000,000	$1,000,000
KBC Bank NV
01-20-11		0.450			1,000,000	1,000,000
Sumitomo Mitsui Banking Corp.
01-12-11		0.300			2,000,000	2,000,000
United Overseas Bank Ltd.
02-22-11		0.340			2,000,000	2,000,000

Total						6,000,000


	Effective			Principal
Issuer	yield			amount		Value(a)


Repurchase Agreements (4.6%)(d)
Cantor Fitzgerald & Co. dated 12-31-10, matures 01-03-11, repurchase price
$5,000,167		0.400	%		$5,000,000	$5,000,000
Goldman Sachs & Co. dated 12-31-10, matures 01-03-11, repurchase price
$4,344,643		0.170			4,344,582	4,344,582
Merrill Lynch Pierce Fenner & Smith, Inc. dated 12-31-10, matures 01-03-11, repurchase price
$10,000,208		0.250			10,000,000	10,000,000

Total						19,344,582


Total Investments of Cash Collateral Received for Securities on Loan
(Cost: $25,344,582)						$25,344,582


Total Investments in Securities
(Cost: $373,645,105)(f)						$448,538,194

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.

(b)		Non-income producing.

(c)		At Dec. 31, 2010, security was partially or fully on loan. See Note 6 to the financial statements.

30 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Columbia Select Large-Cap Value Fund

Notes to Portfolio of Investments (continued)


(d)		The table below represents securities received as collateral for repurchase agreements. This collateral, which is generally high quality short-term obligations, is deposited with the Fund’s custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. The value of securities and/or cash held as collateral for repurchase agreements is monitored on a daily basis to ensure the existence of the proper level of collateral.


Cantor Fitzgerald & Co. (0.400%)
Security description	Value(a)
Fannie Mae Interest Strip		$160,155
Fannie Mae Pool		437,394
Fannie Mae Principal Strip		5,231
Fannie Mae REMICS		293,198
Federal Farm Credit Bank		272,685
Federal Home Loan Banks		488,537
Federal Home Loan Mortgage Corp		36,653
Federal National Mortgage Association		423,596
FHLMC Structured Pass Through Securities		173,399
Freddie Mac Non Gold Pool		419,859
Freddie Mac Reference REMIC		2,826
Freddie Mac REMICS		257,696
Freddie Mac Strips		75,992
Ginnie Mae I Pool		49,118
Ginnie Mae II Pool		272,271
Government National Mortgage Association		109,545
United States Treasury Inflation Indexed Bonds		15,057
United States Treasury Note/Bond		1,196,525
United States Treasury Strip Coupon		357,636
United States Treasury Strip Principal		52,627

Total market value of collateral securities		$5,100,000


Goldman Sachs & Co. (0.170%)
Security description	Value(a)
Government National Mortgage Association		$4,431,473

Total market value of collateral securities		$4,431,473

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 31

Columbia Select Large-Cap Value Fund

Fair Value Measurements

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 (including NAV for open-end mutual funds). 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).

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 33

Portfolio of Investments (continued)

Columbia Select Large-Cap Value Fund

Fair Value Measurements (continued)

inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, 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 Dec. 31, 2010:


	Fair value at Dec. 31, 2010
	Level 1		Level 2
	quoted prices		other		Level 3
	in active		significant		significant
	markets for		observable		unobservable
Description(a)	identical assets(b)		inputs		inputs		Total
Equity Securities
Common Stocks		$422,458,200		$—		$—		$422,458,200

Total Equity Securities		422,458,200		—		—		422,458,200

Other
Affiliated Money Market Fund(c)		735,412		—		—		735,412
Investments of Cash Collateral Received for Securities on Loan		—		25,344,582		—		25,344,582

Total Other		735,412		25,344,582		—		26,079,994

Total		$423,193,612		$25,344,582		$—		$448,538,194


(a)		See the Portfolio of Investments for all investment classifications not indicated in the table.

(b)		There were no significant transfers between Levels 1 and 2 during the period.

(c)		Money market fund that is a sweep investment for cash balances in the Fund at Dec. 31, 2010.

How to find information about the Fund’s quarterly portfolio holdings


(i)		The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q;

(ii)		The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov;

(iii)		The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and

(iv)		The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611.

34 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Portfolio of Investments

Columbia Select Smaller-Cap Value Fund

Dec. 31, 2010

(Percentages represent value of investments compared to net assets)

Investments in Securities


Common Stocks (98.5%)
Issuer	Shares			Value(a)

Aerospace & Defense (2.9%)
Cubic Corp.		305,006	(d)	$14,381,033


Airlines (5.8%)
Delta Air Lines, Inc.		1,110,000	(b)	13,986,000
United Continental Holdings, Inc.		620,000	(b,d)	14,768,400

Total				28,754,400


Auto Components (1.6%)
American Axle & Manufacturing Holdings, Inc.		600,000	(b,d)	7,716,000


Beverages (1.6%)
Central European Distribution Corp.		340,000	(b,d)	7,786,000


Chemicals (2.6%)
Cytec Industries, Inc.		40,600		2,154,236
Minerals Technologies, Inc.		165,000	(d)	10,792,650

Total				12,946,886


Commercial Services & Supplies (4.3%)
The Brink’s Co.		300,000		8,064,000
Waste Connections, Inc.		475,000		13,076,750

Total				21,140,750


Communications Equipment (1.5%)
F5 Networks, Inc.		55,000	(b,d)	7,158,800


Construction & Engineering (2.4%)
The Shaw Group, Inc.		340,000	(b)	11,638,200


Containers & Packaging (2.0%)
Owens-Illinois, Inc.		320,000	(b)	9,824,000


Diversified Consumer Services (3.0%)
Sotheby’s		330,000	(d)	14,850,000


Electrical Equipment (9.6%)
Belden, Inc.		450,000	(d)	16,569,000
EnerSys		500,000	(b,d)	16,060,000
Thomas & Betts Corp.		300,000	(b)	14,490,000

Total				47,119,000


Energy Equipment & Services (4.1%)
Exterran Holdings, Inc.		385,000	(b,d)	9,220,750
Tetra Technologies, Inc.		930,000	(b,d)	11,039,100

Total				20,259,850


Food Products (2.5%)
Smithfield Foods, Inc.		600,000	(b,d)	12,378,000


Health Care Equipment & Supplies (1.1%)
Analogic Corp.		110,000	(d)	5,446,100


Health Care Providers & Services (2.5%)
WellCare Health Plans, Inc.		415,034	(b,d)	12,542,327


Hotels, Restaurants & Leisure (5.8%)
Penn National Gaming, Inc.		355,000	(b,d)	12,478,250
Texas Roadhouse, Inc.		930,000	(b,d)	15,968,100

Total				28,446,350


Household Durables (1.7%)
Lennar Corp., Class A		435,000	(d)	8,156,250


Insurance (15.6%)
Aspen Insurance Holdings Ltd.		420,000	(c,d)	12,020,400
Endurance Specialty Holdings Ltd.		300,000	(c,d)	13,821,000
Infinity Property & Casualty Corp.		230,000	(d)	14,213,999
Lincoln National Corp.		510,000	(d)	14,183,100
The Hanover Insurance Group, Inc.		260,000	(d)	12,147,200

See accompanying Notes to Portfolio of Investments.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 35

Portfolio of Investments (continued)

Columbia Select Smaller-Cap Value Fund


Common Stocks (continued)
Issuer	Shares			Value(a)


Insurance (cont.)
WR Berkley Corp.		380,000	(d)	$10,404,400

Total				76,790,099


IT Services (2.1%)
CACI International, Inc., Class A		194,784	(b,d)	10,401,466


Machinery (4.5%)
Douglas Dynamics, Inc.		323,570	(d)	4,902,086
Mueller Industries, Inc.		355,000	(d)	11,608,500
Navistar International Corp.		97,000	(b,d)	5,617,270

Total				22,127,856


Personal Products (2.8%)
Herbalife Ltd.		200,000	(c)	13,674,000


Professional Services (1.1%)
School Specialty, Inc.		383,900	(b,d)	5,347,727


Semiconductors & Semiconductor Equipment (10.0%)
Cypress Semiconductor Corp.		954,989	(b,d)	17,743,696
ON Semiconductor Corp.		1,700,000	(b,d)	16,796,000
Varian Semiconductor Equipment Associates, Inc.		400,000	(b,d)	14,788,000

Total				49,327,696


Software (6.5%)
Lawson Software, Inc.		1,600,000	(b,d)	14,800,000
Quest Software, Inc.		620,000	(b,d)	17,198,800

Total				31,998,800


Transportation Infrastructure (0.9%)
Aegean Marine Petroleum Network, Inc.		409,000	(c)	4,265,870


Total Common Stocks
(Cost: $306,021,373)				$484,477,460




Money Market Fund (0.1%)
	Shares			Value(a)

Columbia Short-Term Cash Fund, 0.229%		710,342	(e)	$710,342


Total Money Market Fund
(Cost: $710,342)				$710,342


Investments of Cash Collateral Received
for Securities on Loan (18.4%)
				Amount
	Effective			payable at
Issuer	yield			maturity		Value(a)


Asset-Backed Commercial Paper (0.2%)
Rheingold Securitization
01-10-11		0.430	%		$999,630	$999,630


Certificates of Deposit (8.3%)
Banque et Caisse d’Epargne de l’Etat
02-22-11		0.300			1,998,468	1,998,468
Development Bank of Singapore Ltd.
01-25-11		0.310			2,000,000	2,000,000
DZ Bank AG
01-18-11		0.330			2,000,000	2,000,000
Erste Bank der Oesterreichischen Sparkassen AG
01-18-11		0.430			3,000,000	3,000,000
KBC Bank NV
01-20-11		0.450			4,000,000	4,000,000
Landesbank Hessen Thuringen
01-03-11		0.300			5,000,022	5,000,022
Mitsubishi UFJ Trust and Banking Corp.
01-06-11		0.330			3,000,000	3,000,000
N.V. Bank Nederlandse Gemeenten
01-27-11		0.330			2,000,000	2,000,000
Norinchukin Bank
02-08-11		0.330			3,000,000	3,000,000
Sumitomo Mitsui Banking Corp.
01-12-11		0.300			5,000,000	5,000,000
Sumitomo Trust & Banking Co., Ltd.
02-18-11		0.345			5,000,064	5,000,064
United Overseas Bank Ltd.
02-22-11		0.340			5,000,000	5,000,000

Total						40,998,554

See accompanying Notes to Portfolio of Investments.

36 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Columbia Select Smaller-Cap Value Fund


Investments of Cash Collateral Received
for Securities on Loan (continued)
				Amount
	Effective			payable at
Issuer	yield			maturity		Value(a)

Commercial Paper (0.4%)
Suncorp Metway Ltd.
01-10-11		0.400	%		$1,999,267	$1,999,267


Other Short-Term Obligations (0.4%)
Natixis Financial Products LLC
01-03-11		0.500			2,000,000	2,000,000


	Effective			Principal
Issuer	yield			amount		Value(a)

Repurchase Agreements (9.1%)(f)

Cantor Fitzgerald & Co. dated 12-31-10, matures 01-03-11, repurchase price
$10,000,333		0.400	%		$10,000,000	$10,000,000
Goldman Sachs & Co. dated 12-31-10, matures 01-03-11, repurchase price
$7,638,901		0.170			7,638,792	7,638,792
Merrill Lynch Government Securities Income dated 12-31-10, matures 01-03-11, repurchase price
$5,000,104		0.250			5,000,000	5,000,000
Merrill Lynch Pierce Fenner & Smith, Inc. dated 12-31-10, matures 01-03-11, repurchase price
$20,000,417		0.250			20,000,000	20,000,000
RBS Securities, Inc. dated 12-31-10, matures 01-03-11, repurchase price
$2,000,050		0.300			2,000,000	2,000,000

Total						44,638,792


Total Investments of Cash Collateral Received for Securities on Loan
(Cost: $90,636,243)						$90,636,243


Total Investments in Securities
(Cost: $397,367,958)(g)						$575,824,045

Notes to Portfolio of Investments


(a)		Securities are valued by using policies described in Note 2 to the financial statements.

(b)		Non-income producing.

(c)		Foreign security values are stated in U.S. dollars. At Dec. 31, 2010, the value of foreign securities, excluding short-term securities, represented 8.91% of net assets.

(d)		At Dec. 31, 2010, security was partially or fully on loan. See Note 6 to the financial statements.

(e)		Affiliated Money Market Fund — See Note 7 to the financial statements. The rate shown is the seven-day current annualized yield at Dec. 31, 2010.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 37

Portfolio of Investments (continued)

Columbia Select Smaller-Cap Value Fund

Notes to Portfolio of Investments (continued)


(f)		The table below represents securities received as collateral for repurchase agreements. This collateral, which is generally high quality short-term obligations, is deposited with the Fund’s custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. The value of securities and/or cash held as collateral for repurchase agreements is monitored on a daily basis to ensure the existence of the proper level of collateral.


Cantor Fitzgerald & Co. (0.400%)
Security description	Value(a)
Fannie Mae Interest Strip		$320,311
Fannie Mae Pool		874,788
Fannie Mae Principal Strip		10,461
Fannie Mae REMICS		586,397
Federal Farm Credit Bank		545,370
Federal Home Loan Banks		977,074
Federal Home Loan Mortgage Corp		73,306
Federal National Mortgage Association		847,192
FHLMC Structured Pass Through Securities		346,798
Freddie Mac Non Gold Pool		839,719
Freddie Mac Reference REMIC		5,651
Freddie Mac REMICS		515,393
Freddie Mac Strips		151,984
Ginnie Mae I Pool		98,236
Ginnie Mae II Pool		544,541
Government National Mortgage Association		219,090
United States Treasury Inflation Indexed Bonds		30,114
United States Treasury Note/Bond		2,393,049
United States Treasury Strip Coupon		715,272
United States Treasury Strip Principal		105,254

Total market value of collateral securities		$10,200,000



Goldman Sachs & Co. (0.170%)
Security description	Value(a)
Government National Mortgage Association		$7,791,568

Total market value of collateral securities		$7,791,568



Merrill Lynch Government Securities Income (0.250%)
Security description	Value(a)
Fannie Mae REMICS		$960,321
Freddie Mac REMICS		4,139,688

Total market value of collateral securities		$5,100,009

38 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Columbia Select Smaller-Cap Value Fund

Notes to Portfolio of Investments (continued)


Merrill Lynch Pierce Fenner & Smith, Inc. (0.250%)
Security description	Value(a)
Federal Home Loan Banks		$1,851,309
Federal Home Loan Mortgage Corp		1,077,885
Federal National Mortgage Association		1,199,677
Government National Mortgage Association		16,271,187

Total market value of collateral securities		$20,400,058



RBS Securities, Inc. (0.300%)
Security description	Value(a)
Amortizing Residential Collateral Trust		$73,306
Capital One Multi-Asset Execution Trust		268,197
Chase Issuance Trust		71,890
Citibank Credit Card Issuance Trust		167,941
Citibank Omni Master Trust		162,290
Discover Card Master Trust I		97,937
First Franklin Mortgage Loan Asset Backed Certificates		59,263
First National Master Note Trust		88,291
Ford Credit Auto Owner Trust		15,292
Freddie Mac Gold Pool		164,190
GS Mortgage Securities Corp II		66,716
HSBC Home Equity Loan Trust		187,801
Merrill Lynch/Countrywide Commercial Mortgage Trust		203,714
Nelnet Student Loan Trust		84,178
SLC Student Loan Trust		134,814
SLM Student Loan Trust		204,900
Structured Asset Investment Loan Trust		15,115
Wells Fargo Home Equity Trust		29,347

Total market value of collateral securities		$2,095,182


(g)		At Dec. 31, 2010, the cost of securities for federal income tax purposes was $398,196,120 and the aggregate gross unrealized appreciation and depreciation based on that cost was:


Unrealized appreciation	$186,510,965
Unrealized depreciation	(8,883,040	)

Net unrealized appreciation	$177,627,925

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 39

Portfolio of Investments (continued)

Columbia Select Smaller-Cap Value Fund

Fair Value Measurements

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 (including NAV for open-end mutual funds). 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).

Non-U.S. equity securities actively traded in foreign markets where there is a significant delay in the local close relative to the New York Stock Exchange (NYSE) are classified as Level 2. The values of these securities may include an adjustment to reflect the impact of significant market movements following the close of local trading, as described in Note 2 to the financial statements — Valuation of securities.

40 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Columbia Select Smaller-Cap Value Fund

Fair Value Measurements (continued)

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 valuations may include, but are not limited to, financial statement analysis, capital account balances, 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 Dec. 31, 2010:


	Fair value at Dec. 31, 2010
	Level 1		Level 2
	quoted prices		other		Level 3
	in active		significant		significant
	markets for		observable		unobservable
Description(a)	identical assets(b)		inputs		inputs		Total
Equity Securities
Common Stocks		$484,477,460		$—		$—		$484,477,460

Total Equity Securities		484,477,460		—		—		484,477,460

Other
Affiliated Money Market Fund(c)		710,342		—		—		710,342
Investments of Cash Collateral Received for Securities on Loan		—		90,636,243		—		90,636,243

Total Other		710,342		90,636,243		—		91,346,585

Total		$485,187,802		$90,636,243		$—		$575,824,045


(a)		See the Portfolio of Investments for all investment classifications not indicated in the table.

(b)		There were no significant transfers between Levels 1 and 2 during the period.

(c)		Money market fund that is a sweep investment for cash balances in the Fund at Dec. 31, 2010.

How to find information about the Fund’s quarterly portfolio holdings


(i)		The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q;
(ii)		The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov;
(iii)		The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and
(iv)		The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 41


		Columbia Select		Columbia Select
		Large-Cap Value		Smaller-Cap Value
Dec. 31, 2010		Fund		Fund
Represented by
Capital stock — $.001 par value		$	28,901	$	31,414
Additional paid-in capital			345,851,746		483,197,165
Undistributed net investment income/accumulated net investment loss			2,233,983		(12,605	)
Accumulated net realized gain (loss)			260,266		(170,038,858	)
Unrealized appreciation (depreciation) on investments			74,893,089		178,456,087

Total — representing net assets applicable to outstanding capital stock		$	423,267,985	$	491,633,203

*Value of securities on loan		$	24,843,269	$	88,209,214

Net assets applicable to outstanding shares:	Class A	$	271,885,499	$	380,847,868
	Class B	$	5,137,640	$	27,171,959
	Class C	$	48,210,278	$	51,712,432
	Class I	$	72,970,868	$	10,145,122
	Class R	$	11,593,849	$	15,733,006
	Class R4	$	22,794	$	3,600,908
	Class R5	$	1,606,478	$	2,288,845
	Class W	$	11,832,803		N/A
	Class Z	$	7,776	$	133,063
Outstanding shares of capital stock:	Class A		18,489,466		23,841,335
	Class B		371,975		1,935,309
	Class C		3,486,175		3,678,639
	Class I		4,841,229		596,227
	Class R		796,565		1,007,228
	Class R4		1,514		212,534
	Class R5		106,463		134,582
	Class W		806,994		N/A
	Class Z		516		7,823
Net asset value per share:	Class A ⁽¹⁾	$	14.70	$	15.97
	Class B	$	13.81	$	14.04
	Class C	$	13.83	$	14.06
	Class I	$	15.07	$	17.02
	Class R	$	14.55	$	15.62
	Class R4	$	15.06	$	16.94
	Class R5	$	15.09	$	17.01
	Class W	$	14.66		N/A
	Class Z	$	15.07	$	17.01


⁽¹⁾		The maximum offering price per share for Class A for Columbia Select Large-Cap Value Fund and Columbia Select Smaller-Cap Value Fund is $15.60 and $16.94, respectively. The offering price is calculated by dividing the net asset value by 1.0 minus the maximum sales charge of 5.75%.

The accompanying Notes to Financial Statements are an integral part of this statement.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 43


Columbia Select Large-Cap Value Fund
Year ended Dec. 31,	2010			2009
Capital share transactions
Proceeds from sales
Class A shares		100,127,676			126,075,217
Class B shares		1,112,114			678,008
Class C shares		11,161,214			5,481,625
Class I shares		44,461,123			22,947,699
Class R shares		4,624,122			2,788,934
Class R3 shares		—			5,000
Class R4 shares		28,874			5,000
Class R5 shares		757,599			2,889,460
Class W shares		11,942,563			N/A
Class Z shares		7,480			N/A
Reinvestment of distributions at net asset value
Class A shares		1,596,536			114,176
Class B shares		15,166			779
Class C shares		109,095			3,976
Class I shares		719,971			35,766
Class R shares		12,535			232
Class R4 shares		117			—
Class R5 shares		6,243			100
Conversions from Class B to Class A
Class A shares		1,213,163			2,386,379
Class B shares		(1,213,163	)		(2,386,379	)
Payments for redemptions
Class A shares		(75,885,283	)		(41,221,591	)
Class B shares		(1,546,416	)		(2,390,549	)
Class C shares		(11,318,508	)		(11,519,949	)
Class I shares		(5,096,247	)		(342,294	)
Class R shares		(3,054,183	)		(2,543,101	)
Class R3 shares		(5,000	)		—
Class R4 shares		(13,680	)		—
Class R5 shares		(50,298	)		(13,107,483	)
Class W shares		(66,431	)		N/A

Increase (decrease) in net assets from capital share transactions		79,646,382			89,901,005

Total increase (decrease) in net assets		141,035,425			134,975,626
Net assets at beginning of year		282,232,560			147,256,934

Net assets at end of year	$	423,267,985		$	282,232,560

Undistributed net investment income	$	2,233,983		$	1,294,762

The accompanying Notes to Financial Statements are an integral part of this statement.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 47

Statements of Changes in Net Assets


Columbia Select Smaller-Cap Value Fund
Year ended Dec. 31,	2010			2009
Operations
Investment income (loss) — net	$	(4,057,625	)	$	(2,463,560	)
Net realized gain (loss) on investments		36,759,346			(11,574,905	)
Net change in unrealized appreciation (depreciation) on investments		63,616,464			64,605,903

Net increase (decrease) in net assets resulting from operations		96,318,185			50,567,438

Capital share transactions
Proceeds from sales
Class A shares		24,381,762			11,520,753
Class B shares		998,028			609,733
Class C shares		5,112,124			5,225,564
Class I shares		2,058,671			5,601,641
Class R shares		6,985,236			3,386,757
Class R3 shares		—			2,500
Class R4 shares		446,844			2,500
Class R5 shares		10,089			1,570,581
Class Z shares		131,701			N/A
Fund merger (Note 10)
Class A shares		125,115,360			148,890,856
Class B shares		11,091,043			19,215,577
Class C shares		1,567,882			3,223,958
Class I shares		8,173			5,741
Class R shares		N/A			20,090
Class R3 shares		N/A			2,569
Class R4 shares		2,971,903			36,103
Class R5 shares		N/A			2,590
Conversion from Class B to Class A
Class A shares		9,600,306			1,518,332
Class B shares		(9,600,306	)		(1,518,332	)
Payments for redemptions
Class A shares		(73,002,651	)		(38,463,894	)
Class B shares		(7,374,464	)		(3,756,664	)
Class C shares		(12,720,638	)		(10,820,381	)
Class I shares		(49,441	)		—
Class R shares		(5,260,479	)		(3,944,349	)
Class R3 shares		(7,408	)		—
Class R4 shares		(400,299	)		—
Class R5 shares		(21,910	)		(7,746,136	)

Increase (decrease) in net assets from capital share transactions		82,041,526			134,586,089

Proceeds from regulatory settlement (Note 9)		34,652			28,080

Total increase (decrease) in net assets		178,394,363			185,181,607
Net assets at beginning of year		313,238,840			128,057,233

Net assets at end of year	$	491,633,203		$	313,238,840

Accumulated net investment loss	$	(12,605	)	$	(6,242	)

The accompanying Notes to Financial Statements are an integral part of this statement.

48 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Financial Highlights

The following tables are intended to help you understand each Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.

Columbia Select Large-Cap Value Fund


Class A	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.31			$9.77			$15.73			$14.43			$12.79

Income from investment operations:
Net investment income (loss)		.09			.10			.10			.04			.05
Net gains (losses) (both realized and unrealized)		2.39			2.45			(5.96	)		1.26			1.60

Total from investment operations		2.48			2.55			(5.86	)		1.30			1.65

Less distributions:
Dividends from net investment income		(.04	)		(.01	)		(.08	)		(.00	) ^(a)		(.01	)
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.09	)		(.01	)		(.10	)		(.00	) ^(a)		(.01	)

Net asset value, end of period		$14.70			$12.31			$9.77			$15.73			$14.43

Total return		20.21%			26.07%			(37.20%	)		9.03%			12.92%

Ratios to average net assets ^(b)
Total expenses		1.37%			1.61%			1.61%			1.51%			1.54%

Net investment income (loss)		.66%			.87%			.72%			.29%			.40%

Supplemental data
Net assets, end of period (in millions)		$272			$203			$83			$148			$137

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 49

Financial Highlights (continued)

Columbia Select Large-Cap Value Fund


Class B	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$11.62			$9.29			$14.96			$13.82			$12.33

Income from investment operations:
Net investment income (loss)		(.01	)		(.01	)		(.01	)		(.07	)		(.05	)
Net gains (losses) (both realized and unrealized)		2.25			2.34			(5.63	)		1.21			1.54

Total from investment operations		2.24			2.33			(5.64	)		1.14			1.49

Less distributions:
Dividends from net investment income		—			—			(.01	)		—			—
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.05	)		(.00	) ^(a)		(.03	)		—			—

Net asset value, end of period		$13.81			$11.62			$9.29			$14.96			$13.82

Total return		19.30%			25.10%			(37.68%	)		8.25%			12.08%

Ratios to average net assets ^(b)
Total expenses		2.14%			2.54%			2.37%			2.26%			2.29%

Net investment income (loss)		(.10%	)		(.08%	)		(.04%	)		(.47%	)		(.35%	)

Supplemental data
Net assets, end of period (in millions)		$5			$6			$9			$26			$37

Portfolio turnover rate		12%			24%			28%			18%			30%


Class C	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$11.63			$9.30			$14.95			$13.82			$12.32

Income from investment operations:
Net investment income (loss)		(.01	)		(.01	)		(.01	)		(.07	)		(.05	)
Net gains (losses) (both realized and unrealized)		2.26			2.34			(5.61	)		1.20			1.55

Total from investment operations		2.25			2.33			(5.62	)		1.13			1.50

Less distributions:
Dividends from net investment income		—			—			(.01	)		—			—
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.05	)		(.00	) ^(a)		(.03	)		—			—

Net asset value, end of period		$13.83			$11.63			$9.30			$14.95			$13.82

Total return		19.37%			25.07%			(37.58%	)		8.18%			12.18%

Ratios to average net assets ^(b)
Total expenses		2.13%			2.51%			2.37%			2.26%			2.29%

Net investment income (loss)		(.09%	)		(.05%	)		(.04%	)		(.47%	)		(.35%	)

Supplemental data
Net assets, end of period (in millions)		$48			$41			$38			$34			$36

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

50 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Columbia Select Large-Cap Value Fund


Class I	Year ended Dec. 31,
Per share data	2010			2009 ^(c)
Net asset value, beginning of period		$12.60			$11.64

Income from investment operations:
Net investment income (loss)		.15			.08
Net gains (losses) (both realized and unrealized)		2.47			.90

Total from investment operations		2.62			.98

Less distributions:
Dividends from net investment income		(.10	)		(.02	)
Distributions from realized gains		(.05	)		(.00	) ^(a)

Total distributions		(.15	)		(.02	)

Net asset value, end of period		$15.07			$12.60

Total return		20.80%			8.41%

Ratios to average net assets ^(b)
Total expenses		.92%			.89%	^(d)

Net investment income (loss)		1.13%			1.66%	^(d)

Supplemental data
Net assets, end of period (in millions)		$73			$24

Portfolio turnover rate		12%			24%


Class R*	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.19			$9.70			$15.63			$14.38			$12.76

Income from investment operations:
Net investment income (loss)		.05			.04			.06			.00	^(a)		.02
Net gains (losses) (both realized and unrealized)		2.37			2.45			(5.91	)		1.25			1.60

Total from investment operations		2.42			2.49			(5.85	)		1.25			1.62

Less distributions:
Dividends from net investment income		(.01	)		—			(.06	)		—			—
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.06	)		(.00	) ^(a)		(.08	)		—			—

Net asset value, end of period		$14.55			$12.19			$9.70			$15.63			$14.38

Total return		19.91%			25.69%			(37.41%	)		8.69%			12.70%

Ratios to average net assets ^(b)
Total expenses		1.66%			2.04%			1.87%			1.76%			1.79%

Net investment income (loss)		.38%			.41%			.46%			.03%			.15%

Supplemental data
Net assets, end of period (in millions)		$12			$8			$6			$8			$3

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 51

Financial Highlights (continued)

Columbia Select Large-Cap Value Fund


Class R4	Year ended Dec. 31,
Per share data	2010			2009 ^(c)
Net asset value, beginning of period		$12.59			$11.64

Income from investment operations:
Net investment income (loss)		.11			.07
Net gains (losses) (both realized and unrealized)		2.47			.89

Total from investment operations		2.58			.96

Less distributions:
Dividends from net investment income		(.06	)		(.01	)
Distributions from realized gains		(.05	)		(.00	) ^(a)

Total distributions		(.11	)		(.01	)

Net asset value, end of period		$15.06			$12.59

Total return		20.50%			8.29%

Ratios to average net assets ^(b)
Total expenses		1.21%			1.21%	^(d)

Net investment income (loss)		.83%			1.34%	^(d)

Supplemental data
Net assets, end of period (in millions)		$—			$—

Portfolio turnover rate		12%			24%


Class R5	Year ended Dec. 31,
Per share data	2010			2009			2008			2007			2006
Net asset value, beginning of period		$12.62			$9.96			$16.04			$14.64			$12.96

Income from investment operations:
Net investment income (loss)		.15			.11			.18			.13			.13
Net gains (losses) (both realized and unrealized)		2.46			2.55			(6.10	)		1.28			1.64

Total from investment operations		2.61			2.66			(5.92	)		1.41			1.77

Less distributions:
Dividends from net investment income		(.09	)		—			(.14	)		(.01	)		(.09	)
Distributions from realized gains		(.05	)		(.00	) ^(a)		(.02	)		—			—

Total distributions		(.14	)		(.00	) ^(a)		(.16	)		(.01	)		(.09	)

Net asset value, end of period		$15.09			$12.62			$9.96			$16.04			$14.64

Total return		20.73%			26.72%			(36.84%	)		9.62%			13.66%

Ratios to average net assets ^(b)
Total expenses		.98%			1.48%			.98%			.95%			.97%

Net investment income (loss)		1.09%			1.10%			1.35%			.85%			.97%

Supplemental data
Net assets, end of period (in millions)		$2			$1			$10			$15			$13

Portfolio turnover rate		12%			24%			28%			18%			30%

See accompanying Notes to Financial Highlights.

52 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Columbia Select Large-Cap Value Fund


	Year ended
Class W	Dec. 31,
Per share data	2010 ^(e)
Net asset value, beginning of period		$13.12

Income from investment operations:
Net investment income (loss)		(.00	) ^(a)
Net gains (losses) (both realized and unrealized)		1.68

Total from investment operations		1.68

Less distributions:
Dividends from net investment income		(.09	)
Distributions from realized gains		(.05	)

Total distributions		(.14	)

Net asset value, end of period		$14.66

Total return		12.80%

Ratios to average net assets ^(b)
Total expenses		2.30%	^(d)

Net investment income (loss)		(.11%	) ^(d)

Supplemental data
Net assets, end of period (in millions)		$12

Portfolio turnover rate		12%


	Year ended
Class Z	Dec. 31,
Per share data	2010 ^(e)
Net asset value, beginning of period		$13.48

Income from investment operations:
Net investment income (loss)		.03
Net gains (losses) (both realized and unrealized)		1.70

Total from investment operations		1.73

Less distributions:
Dividends from net investment income		(.09	)
Distributions from realized gains		(.05	)

Total distributions		(.14	)

Net asset value, end of period		$15.07

Total return		12.88%

Ratios to average net assets ^(b)
Total expenses		1.11%	^(d)

Net investment income (loss)		.87%	^(d)

Supplemental data
Net assets, end of period (in millions)		$—

Portfolio turnover rate		12%

See accompanying Notes to Financial Highlights.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 53

Financial Highlights (continued)

Columbia Select Smaller-Cap Value Fund


	Year ended
Class Z	Dec. 31,
Per share data	2010 ^(h)
Net asset value, beginning of period		$14.61

Income from investment operations:
Net investment income (loss)		(.01	)
Net gains (losses) (both realized and unrealized)		2.41

Total from investment operations		2.40

Net asset value, end of period		$17.01

Total return		16.43%

Ratios to average net assets ^(d)
Gross expenses prior to expense waiver/reimbursement		1.55%	^(g)

Net expenses after expense waiver/reimbursement ^(e)		1.02%	^(g)

Net investment income (loss)		(.34%	) ^(g)

Supplemental data
Net assets, end of period (in millions)		$—

Portfolio turnover rate		5%

Notes to Financial Highlights


^*		Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.
^(a)		Rounds to less than $0.01 per share.
^(b)		During the year ended Dec. 31, 2010, the Fund received its portion of proceeds from a regulatory settlement. Had the Fund not received these proceeds, the total return would have been lower by 0.01%.
^(c)		During the year ended Dec. 31, 2009, the Fund received its portion of proceeds from a regulatory settlement. Had the Fund not received these proceeds, the total return would have been lower by 0.02%.
^(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)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds).
^(f)		For the period from Aug. 3, 2009 (when shares became available) to Dec. 31, 2009.
^(g)		Annualized.
^(h)		For the period from Sept. 27, 2010 (when shares became available) to Dec. 31, 2010.

The accompanying Notes to Financial Statements are an integral part of this statement.

62 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Notes to Financial Statements


1.	ORGANIZATION

Seligman Value Fund Series, Inc. (the Corporation) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. Information presented in these financial statements pertains to Columbia Select Large-Cap Value Fund (formerly known as Seligman Large-Cap Value Fund) (Large-Cap Value Fund) and Columbia Select Smaller-Cap Value Fund (formerly known as Seligman Smaller-Cap Value Fund) (Smaller-Cap Value Fund), series of the Corporation (each a Fund and collectively, the Funds). Each Fund operates as a diversified fund and has one billion authorized shares of capital stock.

Each Fund offers Class A, Class B, Class C, Class I, Class R, Class R4, Class R5 and Class Z shares. Large-Cap Value Fund also offers Class W shares.

Class A shares are subject to a maximum front-end sales charge of 5.75% based on the investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a 1.00% contingent deferred sales charge (CDSC) if the shares are sold 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.

The Funds no longer accept investments by new or existing investors in the Funds’ Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of the Fund and exchanges by existing Class B shareholders of certain other funds within the Columbia Family of Funds. Class B shares may be subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will generally convert to Class A shares eight years after purchase.

Class C shares are subject to a 1.00% CDSC on shares redeemed within one year of purchase.

Class I shares are not subject to sales charges and are available only to the Columbia Family of Funds.

Class R shares are not subject to sales charges and are available to qualifying institutional investors. Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.

At Aug. 27, 2010, all Class R3 shares were liquidated. On this date Columbia Management Investment Advisers, LLC (the Investment Manager) owned 100% of the shares.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 63

Notes to Financial Statements (continued)

Class R4 and Class R5 shares are not subject to sales charges, however, these classes were closed to new investors effective Dec. 31, 2010.

Class W shares are not subject to sales charges and are available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs. Class W shares became effective Sept. 27, 2010.

Class Z shares are not subject to sales charges and are available only to certain investors, as described in the Funds’ prospectus. Class Z shares became effective Sept. 27, 2010.

At Dec. 31, 2010, the Investment Manager and affiliated funds-of-funds owned 100% of Class I shares of Large-Cap Value Fund and Smaller-Cap Value Fund.


2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of estimates

Valuation of securities

All securities are valued at the close of business of the New York Stock Exchange (NYSE). Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price from the primary exchange. Debt securities are generally traded in the over-the-counter market and are valued by an independent pricing service using an evaluated bid. When market quotes are not readily available, the pricing service, in determining fair values of debt securities, takes into consideration such factors as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, and other yield and risk factors it deems relevant in determining valuations. Foreign securities are valued based on quotations from the principal market in which such securities are normally traded. The policy adopted by the Corporation’s Board of Directors (the Board) generally contemplates the use of fair valuation in the event that price quotations or valuations are not readily

64 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

available, price quotations or valuations from other sources are not reflective of market value and thus deemed unreliable, or a significant event has occurred in relation to a security or class of securities (such as foreign securities) that is not reflected in price quotations or valuations from other sources. A fair value price is a good faith estimate of the value of a security at a given point in time.

Many securities markets and exchanges outside the U.S. close prior to the close of the NYSE and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the NYSE, including significant movements in the U.S. market after foreign exchanges have closed. In those situations, foreign securities will be fair valued pursuant to the policy adopted by the Board, including utilizing a third party pricing service to determine these fair values. This policy takes into account multiple factors, including movements in the U.S. securities markets, to determine a good faith estimate that reasonably reflects the current market conditions as of the close of the NYSE. The fair value of a security is likely to be different from the quoted or published price, if available.

Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates. Typically, those maturing in 60 days or less that originally had maturities of more than 60 days at acquisition date are valued at amortized cost using the market value on the 61st day before maturity. Short-term securities maturing in 60 days or less at acquisition date are valued at amortized cost. Amortized cost is an approximation of market value. Investments in money market funds are valued at net asset value.

Repurchase agreements

Each Fund may enter into repurchase agreements. Generally, securities received as collateral subject to repurchase agreements are deposited with the Funds’ custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. The market value of securities held as collateral for repurchase agreements is monitored on a daily basis to ensure the existence of the proper level of collateral.

Guarantees and indemnifications

Under each Fund’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to each Fund. In addition, certain of each Fund’s contracts with its service providers contain general indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown since the amount of any future

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 65

Notes to Financial Statements (continued)

claims that may be made against each Fund cannot be determined and each Fund has no historical basis for predicting the likelihood of any such claims.

Federal taxes

Each Fund’s policy is to comply with Subchapter M of the Internal Revenue Code that applies to regulated investment companies and to distribute substantially all of its taxable income (which includes net short-term capital gains) to shareholders. No provision for income or excise taxes is thus required.

Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Generally, the tax authorities can examine all tax returns filed for the last three years.

Dividends to shareholders

Dividends from net investment income, declared and paid at the end of the calendar year, when available, are reinvested in additional shares of each Fund at net asset value or payable in cash. Capital gains, when available, are normally distributed along with the income dividend.

Other

Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date and interest income, including amortization of premium, market discount and original issue discount using the effective interest method, is accrued daily.


3.	EXPENSES AND SALES CHARGES

Investment management services fees

Under an Investment Management Services Agreement, the Investment Manager determines which securities will be purchased, held or sold. The management fee is an annual fee that is equal to a percentage of each Fund’s average daily net assets that declines as each Fund’s net assets increase. The annual percentage range for each Fund is as follows:


Fund		Percentage range
Large-Cap Value Fund		0.755% to 0.565%
Smaller-Cap Value Fund		0.935% to 0.745%

The management fee for the year ended Dec. 31, 2010 was the following percentage of each Fund’s average daily net assets:


Fund	Percentage
Large-Cap Value Fund		0.755	%
Smaller-Cap Value Fund		0.935	%

66 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Effective March 1, 2011, the investment management services fee is equal to a percentage of the Fund’s average daily net assets, with such rate declining from 0.710% to 0.540% for Large-Cap Value Fund and from 0.790% to 0.700% for Smaller-Cap Value Fund as the Fund’s net assets increase. The reduction in the investment management services fee rate schedule was approved by the Funds’ Board in September 2010 in connection with various initiatives to achieve consistent investment management service and fee structures across all funds in the Fund Family.

Administrative services fees

Under an Administrative Services Agreement, each Fund pays the Fund Administrator an annual fee for administration and accounting services equal to a percentage of each Fund’s average daily net assets that declines as each Fund’s net assets increase. The annual percentage range for each Fund is as follows:


Fund		Percentage range
Large-Cap Value Fund		0.06% to 0.03%
Smaller-Cap Value Fund		0.08% to 0.05%

The fee for the year ended Dec. 31, 2010 was the following percentage of each Fund’s average daily net assets:


Fund	Percentage
Large-Cap Value Fund		0.06	%
Smaller-Cap Value Fund		0.08	%

Prior to Jan. 1, 2011, Ameriprise Financial, Inc. served as the Fund Administrator. Since Jan. 1, 2011, Columbia Management Investment Advisers, LLC has served as the Fund Administrator.

Other fees

Other expenses are for, among other things, certain expenses of each Fund or the Board including: Fund boardroom and office expense, employee compensation, employee health and retirement benefits, and certain other expenses. Payment of these Fund and Board expenses is facilitated by a company providing limited administrative services to the Funds and the Board. For the year ended Dec. 31, 2010, other expenses paid to this company were $389 for Large-Cap Value Fund. For Smaller-Cap Value Fund, no expenses were incurred for these particular items.

Compensation of board members

Under a Deferred Compensation Plan (the Plan), the board members who are not “interested persons” of the Funds as defined under the 1940 Act may defer receipt of their compensation. Deferred amounts are treated as though equivalent

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 67

Notes to Financial Statements (continued)

dollar amounts had been invested in shares of the Funds or certain other funds managed by the Investment Manager. Each Fund’s liability for these amounts is adjusted for market value changes and remains in the Funds until distributed in accordance with the Plan.

Transfer agency fees

Under a Transfer Agency Agreement, Columbia Management Investment Services Corp. (the Transfer Agent) is responsible for providing transfer agency services to the Funds.

Prior to Sept. 7, 2010, the Transfer Agent received annual account-based service fees from Class A, Class B and Class C shares that varied by class and annual asset-based service fees based on each Fund’s average daily net assets attributable to Class R, Class R4 and Class R5 shares. In addition, the Transfer Agent charged an annual fee per inactive account and received reimbursement from the Funds for certain out-of-pocket expenses.

Under a new Transfer Agency Agreement effective Sept. 7, 2010, the Transfer Agent has contracted with Boston Financial Data Services (BFDS) to serve as sub-transfer agent. The Transfer Agent receives monthly account-based service fees based on the number of open accounts and is reimbursed by the Funds for the fees and expenses the Transfer Agent pays to financial intermediaries that maintain omnibus accounts with the Funds subject to an annual limitation (that varies by class) that is a percentage of the average aggregate value of each Fund’s shares maintained in each such omnibus account (other than omnibus accounts for which American Enterprise Investment Services Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc., which are paid a per account fee). The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Funds.

The Transfer Agent also receives reimbursement for certain out-of-pocket expenses and may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, Individual Retirement Account (IRA) trustee agent fees and account transcript fees due to the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds.

68 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

For the year ended Dec. 31, 2010, the Funds’ effective transfer agent fee rates as a percentage of average daily net assets of each class were as follows:


	Class A			Class B			Class C			Class R			Class R4			Class R5			Class W			Class Z
Large-Cap Value Fund		0.21	%		0.23	%		0.22	%		0.08	%		0.05	%		0.05	%		0.03	%*		0.13	%*
Smaller-Cap Value Fund		0.33	%		0.35	%		0.34	%		0.12	%		0.05	%		0.05	%		N/A			0.14	%*


*		Annualized

Class I shares do not pay transfer agent fees.

Each Fund and certain other associated investment companies (together, the Guarantors), have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), the former transfer agent, including the payment of rent by SDC (the Guaranty). The lease and the Guaranty expire in January 2019. At Dec. 31, 2010, the total potential future obligation over the life of the Guaranty was $191,429 and $167,657 for Large-Cap Value Fund and Smaller-Cap Value Fund, respectively. The liability remaining at Dec. 31, 2010 for non-recurring charges associated with the lease amounted to $129,400 and $113,311 for Large-Cap Value Fund and Smaller-Cap Value Fund, respectively, and is included within other accrued expenses in the Statements of Assets and Liabilities.

Plan administration services fees

Under a Plan Administration Services Agreement with the Transfer Agent, each Fund pays an annual fee at a rate of 0.25% of each Fund’s average daily net assets attributable to Class R4 shares for the provision of various administrative, recordkeeping, communication and educational services. Prior to Sept. 7, 2010, the Funds also paid an annual fee at a rate of 0.25% of each Fund’s average daily net assets attributable to Class R shares for such services.

Distribution fees

Each Fund has an agreement with Columbia Management Investment Distributors, Inc. (the Distributor) for distribution and shareholder services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund paid a fee at an annual rate of up to 0.25% of each Fund’s average daily net assets attributable to Class A shares, a fee at an annual rate of up to 0.50% of each Fund’s average daily net assets attributable to Class R shares (of which up to 0.25% may be used for services) and a fee at an annual rate of up to 1.00% of each Fund’s average daily net assets attributable to Class B and Class C shares. For Class B and Class C shares, of the 1.00% fee, up to 0.75% is reimbursed for distribution expenses. Additionally, Large-Cap Value Fund paid a fee at an annual rate of up to 0.25% of the Fund’s average daily net assets attributable to Class W shares.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 69

Notes to Financial Statements (continued)

The amount of distribution expenses incurred by the Distributor and not yet reimbursed (unreimbursed expense) for each Fund was approximately as follows:


Fund	Class B		Class C
Large-Cap Value Fund	$	94,000	$	2,991,000
Smaller-Cap Value Fund		684,000		2,768,000

These amounts are based on the most recent information available as of Oct. 31, 2010, and may be recovered from future payments under the distribution plan or CDSCs. To the extent the unreimbursed expense has been fully recovered, the distribution fee is reduced.

Sales charges

Sales charges, including front-end and CDSCs, received by the Distributor for distributing the Funds’ shares for the year ended Dec. 31, 2010 were as follows:


Fund	Class A		Class B		Class C
Large-Cap Value Fund	$	108,019	$	10,701	$	1,895
Smaller-Cap Value Fund		159,586		22,115		1,845

Expenses waived/reimbursed by the Investment Manager and its affiliates

For the year ended Dec. 31, 2010, the Investment Manager and its affiliates waived/reimbursed certain fees and expenses for Smaller-Cap Value Fund, such that net expenses (excluding fees and expenses of acquired funds*) were as follows:


Class A	1.33	%
Class B	2.10
Class C	2.09
Class I	0.88
Class R	1.66
Class R4	1.18
Class R5	0.93
Class Z	1.02

The waived/reimbursed fees and expenses for the transfer agency fees at the class level for Smaller-Cap Value Fund were as follows:


Class A	$	392,668
Class B		38,335
Class C		61,107

The management fees waived/reimbursed at the Fund level for Smaller-Cap Value Fund were $847,598.

Under an agreement which is effective until March 31, 2011, the Investment Manager and its affiliates have contractually agreed to waive certain fees and

70 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Notes to Financial Statements (continued)


*		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 funds in which it invests (also referred to as “acquired funds”), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds). Because the acquired funds have varied expense and fee levels and the Fund may own different proportions of acquired funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.


4.	SECURITIES TRANSACTIONS

For the year ended Dec. 31, 2010, cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated for each Fund were as follows:


Fund	Purchases			Proceeds
Large-Cap Value Fund	$	121,527,505		$	43,084,049
Smaller-Cap Value Fund		138,090,768	*		91,884,526


*		Includes $116,734,199 from RiverSource Partners Small Cap Equity Fund that was acquired in the fund merger as described in Note 10. This purchase amount is excluded for purposes of calculating the Fund’s portfolio turnover rate.

Realized gains and losses are determined on an identified cost basis.


5.	CAPITAL SHARE TRANSACTIONS

Transactions in shares for each Fund for the periods indicated were as follows:


	Large-Cap Value Fund						Smaller-Cap Value Fund
Year ended Dec. 31,	2010			2009 ^(a)			2010			2009 ^(a)
Class A
Sold		7,596,457			11,524,294			1,704,569			1,110,302
Fund merger		N/A			N/A			9,168,598			12,707,984
Converted from Class B ^(b)		93,314			249,178			726,520			152,911
Reinvested distributions		110,030			9,230			—			—
Redeemed		(5,789,043	)		(3,815,370	)		(5,323,878	)		(3,603,696	)

Net increase (decrease)		2,010,758			7,967,332			6,275,809			10,367,501

Class B
Sold		89,008			69,841			83,897			65,161
Fund merger		N/A			N/A			919,234			1,847,310
Reinvested distributions		1,112			67			—			—
Converted to Class A ^(b)		(99,134	)		(261,578	)		(823,689	)		(171,802	)
Redeemed		(125,911	)		(243,893	)		(620,166	)		(394,875	)

Net increase (decrease)		(134,925	)		(435,563	)		(440,724	)		1,345,794

72 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Notes to Financial Statements (continued)

Large-Cap Value Fund

Smaller-Cap Value Fund

Year ended Dec. 31,

2010

2009 ^(a)

2010

2009 ^(a)

Class W ^(d)

Sold

811,518

N/A

Redeemed

(4,524

)

N/A

Net increase (decrease)

806,994

N/A

Class Z ^(d)

Sold

516

N/A

7,823

N/A

Net increase (decrease)

516

N/A

7,823

N/A


^(a)		Class I, Class R3 and Class R4 shares are for the period from Aug. 3, 2009 (when shares became available) to Dec. 31, 2009.
^(b)		Automatic conversion of Class B shares to Class A shares based on the original purchase date.
^(c)		Effective Sept. 7, 2010, Class R2 shares were renamed Class R shares.
^(d)		For the period from Sept. 27, 2010 (when shares became available) to Dec. 31, 2010.


6.	LENDING OF PORTFOLIO SECURITIES

Each Fund has entered into a Master Securities Lending Agreement (the Agreement) with JPMorgan Chase Bank, National Association (JPMorgan). The Agreement authorizes JPMorgan as lending agent to lend securities to authorized borrowers in order to generate additional income on behalf of each Fund. Pursuant to the Agreement, the securities loaned are secured by cash or U.S. government securities equal to at least 100% of the market value of the loaned securities. Any additional collateral required to maintain those levels due to market fluctuations of the loaned securities is delivered the following business day. Cash collateral received is invested by the lending agent on behalf of each Fund into authorized investments pursuant to the Agreement. The investments made with the cash collateral are listed in the Portfolio of Investments. The values of such investments and any uninvested cash collateral are disclosed in the Statements of Assets and Liabilities along with the related obligation to return the collateral upon the return of the securities loaned. At Dec. 31, 2010, securities on loan were as follows:


	Securities		Cash
Fund	value		collateral value
Large-Cap Value Fund	$	24,843,269	$	25,344,582
Smaller-Cap Value Fund		88,209,214		90,636,243

74 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

resulting from a borrower’s failure to return a loaned security when due. Such indemnification does not extend to losses associated with declines in the value of cash collateral investments. The Investment Manager is not responsible for any losses incurred by the Funds in connection with the securities lending program. Loans are subject to termination by each Fund or the borrower at any time, and are, therefore, not considered to be illiquid investments.

Pursuant to the Agreement, each Fund receives income for lending its securities either in the form of fees or by earning interest on invested cash collateral, net of negotiated rebates paid to borrowers and fees paid to the lending agent for services provided and any other securities lending expenses. Net income earned from securities lending is included in the Statements of Operations. For the year ended Dec. 31, 2010 these amounts were as follows:


Fund	Amount
Large-Cap Value Fund	$	33,138
Smaller-Cap Value Fund		92,983

Each Fund also continues to earn interest and dividends on the securities loaned.


7.	AFFILIATED MONEY MARKET FUND

Each Fund may invest its daily cash balance in Columbia Short-Term Cash Fund (formerly known as RiverSource Short-Term Cash Fund), a money market fund established for the exclusive use of certain funds managed by the Investment Manager and other institutional clients of the Investment Manager. The cost of each Fund’s purchases and proceeds from sales of shares of Columbia Short-Term Cash Fund aggregated for each Fund for the year ended Dec. 31, 2010 were as follows:


Fund	Purchases		Proceeds
Large-Cap Value Fund	$	89,188,015	$	88,452,603
Smaller-Cap Value Fund		38,026,837		37,316,495

The income distributions received with respect to each Fund’s investment in Columbia Short-Term Cash Fund can be found in the Statements of Operations and each Fund’s invested balance in Columbia Short-Term Cash Fund at Dec. 31, 2010, can be found in the Portfolio of Investments.


8.	BANK BORROWINGS

Each Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby each Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility became effective on

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 75

Notes to Financial Statements (continued)

Oct. 14, 2010, replacing a prior credit facility. The credit facility agreement, which is a collective agreement between each Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $300 million. The borrowers shall have the right, upon written notice to the Administrative Agent, to request an increase of up to $200 million in the aggregate amount of the credit facility from new or existing lenders, provided that the aggregate amount of the credit facility shall at no time exceed $500 million. Participation in such increase by any existing lender shall be at such lender’s sole discretion. Interest is charged to each fund based on its borrowings at a rate equal to the sum of the federal funds rate plus (i) 1.25% per annum plus (ii) if one-month LIBOR exceeds the federal funds rate, the amount of such excess. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. Each Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum.

Prior to Oct. 14, 2010, the credit facility agreement, which was a collective agreement between each Fund and certain other funds managed by the Investment Manager, severally and not jointly, permitted collective borrowings up to $300 million. Each Fund also paid a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum, in addition to an upfront fee equal to its pro rata share of 0.04% of the amount of the credit facility. The Funds had no borrowings during the year ended Dec. 31, 2010.


9.	PROCEEDS FROM REGULATORY SETTLEMENTS

During the year ended Dec. 31, 2010, as a result of a settlement of an administrative proceeding brought by the Securities and Exchange Commission against an unaffiliated third party relating to market timing and/or late trading of mutual funds, Smaller-Cap Value Fund received $34,652, which represented the Fund’s portion of the proceeds from the settlement (the Fund was not a party to the proceeding). The proceeds received by the Fund were recorded as an increase to additional paid-in capital.

During the year ended Dec. 31, 2009, as a result of a settlement of an administrative proceeding brought by the Securities and Exchange Commission against an unaffiliated third party relating to market timing and/or late trading of mutual funds, Smaller-Cap Value Fund received $28,080, which represented the Fund’s portion of the proceeds from the settlement (the Fund was not a party to the proceeding). The proceeds received by the Fund were recorded as an increase to additional paid-in capital.

76 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT


10.	FUND MERGER

At the close of business on March 26, 2010, Smaller-Cap Value Fund acquired the assets and assumed the identified liabilities of RiverSource Partners Small Cap Equity Fund (Partners Small Cap Equity Fund). The merger was completed after shareholders of the acquired fund approved the plan on March 10, 2010.

The aggregate net assets of Smaller-Cap Value Fund immediately before the acquisition were $326,732,292 and the combined net assets immediately after the acquisition were $467,486,653.

The acquisition was accomplished by a tax-free exchange of 30,331,428 shares of Partners Small Cap Equity Fund valued at $140,754,361.

In exchange for Partners Small Cap Equity Fund shares, Smaller-Cap Value Fund issued the following number of shares:


	Shares
Class A		9,168,598
Class B		919,234
Class C		129,796
Class I		564
Class R4		205,574

For financial reporting purposes, net assets received and shares issued by Smaller-Cap Value Fund were recorded at fair value; however, Partners Small Cap Equity Fund’s cost of investments was carried forward to align ongoing reporting of Smaller-Cap Value Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The components of Partners Small Cap Equity Fund’s net assets after adjustments for any permanent book-to-tax differences at the merger date were as follows:


Total net assets	$	140,754,361
Capital stock		169,358,389
Excess of distributions over net investment income		(2,590	)
Accumulated net realized loss		(52,755,610	)
Unrealized appreciation		24,154,172

The financial statements reflect the operations of Smaller-Cap Value Fund for the period prior to the acquisition and the combined fund for the period subsequent to the acquisition. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Partners Small Cap Equity Fund that have been included in the combined Fund’s Statement of Operations since the acquisition was completed. Assuming the acquisition had

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 77

Notes to Financial Statements (continued)

been completed on Jan. 1, 2010, Smaller-Cap Value Fund’s pro-forma net investment loss, net gain on investments, and net increase in net assets from operations for the year ended Dec. 31, 2010 would have been $4.4 million, $38.2 million and $121.6 million, respectively.

At the close of business on Sept. 11, 2009, Smaller-Cap Value Fund acquired the assets and assumed the identified liabilities of RiverSource Small Cap Advantage Fund (Small Cap Advantage Fund). The merger was completed after shareholders of the acquired fund approved the plan on June 2, 2009.

The aggregate net assets of Smaller-Cap Value Fund immediately before the acquisition were $137,659,486 and the combined net assets immediately after the acquisition were $309,056,970.

The acquisition was accomplished by a tax-free exchange of 47,329,029 shares of Small Cap Advantage Fund valued at $171,397,484.

In exchange for Small Cap Advantage Fund shares, Smaller-Cap Value Fund issued the following number of shares:


	Shares
Class A		12,707,984
Class B		1,847,310
Class C		309,597
Class I		463
Class R		1,746
Class R3		223
Class R4		2,911
Class R5		209

For financial reporting purposes, net assets received and shares issued by Smaller-Cap Value Fund were recorded at fair value; however, Small Cap Advantage Fund’s cost of investments was carried forward to align ongoing reporting of Smaller-Cap Value Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The components of Small Cap Advantage Fund’s net assets after adjustments for any permanent book-to-tax differences at the merger date were as follows:


Total net assets	$	171,397,484
Capital stock		257,591,206
Excess of distributions over net investment income		(2,694	)
Accumulated net realized loss		(142,209,802	)
Unrealized appreciation		56,018,774

The financial statements reflect the operations of Smaller-Cap Value Fund for the period prior to the acquisition and the combined fund for the period subsequent

78 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

to the acquisition. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Small Cap Advantage Fund that have been included in the combined Fund’s Statement of Operations since the acquisition was completed. Assuming the acquisition had been completed on Jan. 1, 2009, Smaller-Cap Value Fund’s pro-forma net investment loss, net loss on investments, and net increase in net assets from operations for the year ended Dec. 31, 2009 would have been $2.9 million, $5.2 million, and $90.5 million, respectively.


11.	FEDERAL TAX INFORMATION

Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sales. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains were recorded by each Fund.

In the Statements of Assets and Liabilities, as a result of permanent book-to-tax differences, undistributed net investment income/accumulated net investment loss and accumulated net realized gain (loss) have been increased (decreased), resulting in net reclassification adjustments to additional paid-in capital by the following:


	Undistributed
	net investment			Accumulated		Additional
	income/accumulated			net realized		paid-in-capital
Fund	net investment loss			gain (loss)		reduction (increase)
Large-Cap Value Fund	$	12,528		$	—	$	12,528
Smaller-Cap Value Fund		(4,053,852	)		—		4,053,852

The tax character of distributions paid for the years indicated was as follows:


	2010				2009
Year ended Dec. 31,	Ordinary		Long-term		Ordinary		Long-term
Fund	income		capital gain		income		capital gain
Large-Cap Value Fund	$	1,300,621	$	1,458,444	$	125,985	$	40,378
Smaller-Cap Value Fund		—		—		—		—

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 79

Notes to Financial Statements (continued)

At Dec. 31, 2010, the components of distributable earnings on a tax basis for each Fund were as follows:


	Undistributed		Undistributed		Accumulated			Unrealized
	ordinary		accumulated		realized			appreciation
Fund	income		long-term gain		loss			(depreciation)
Large-Cap Value Fund	$	2,839,189	$	3,435,100	$	—		$	71,113,049
Smaller-Cap Value Fund		2		9,553,675		(178,764,371	)		177,615,318

For federal income tax purposes, capital loss carry-overs at Dec. 31, 2010, were as follows:


Large-Cap Value Fund	$	—
Smaller-Cap Value Fund		178,764,371

At Dec. 31, 2010, if the capital loss carry-overs are not offset by capital gains, they will expire as follows:


Fund	2015		2016		2017
Large-Cap Value Fund		N/A		N/A		N/A
Smaller-Cap Value Fund	$	16,240,577	$	119,073,494	$	43,450,300

For the year ended Dec. 31, 2010, the capital loss carry-over was utilized and expired as follows:


Fund	Utilized		Expired
Large-Cap Value Fund		N/A		N/A
Smaller-Cap Value Fund	$	26,441,221	$	—

Smaller-Cap Value Fund acquired $51,862,379 of capital loss carry-overs in connection with the Partners Small Cap Equity Fund merger (Note 10). In addition to the acquired capital loss carry-overs, the Fund also acquired unrealized capital gains as a result of the merger. The yearly utilization of the acquired capital losses as well as the utilization of the acquired unrealized gains is limited by the Internal Revenue Code.

It is unlikely the Board will authorize a distribution of any net realized capital gains until the available capital loss carry-overs have been offset or expire. There is no assurance that each Fund will be able to utilize all of its capital loss carry-over before it expires.


12.	SUBSEQUENT EVENTS

Management has evaluated Fund related events and transactions that occurred during the period from the date of the Statements of Assets and Liabilities through the date of issuance of each Fund’s financial statements. There were no

80 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

events or transactions that occurred during the period that materially impacted the amounts or disclosures in each Fund’s financial statements.


13.	INFORMATION REGARDING PENDING AND SETTLED LEGAL PROCEEDINGS

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 81

Notes to Financial Statements (continued)

the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the funds’ Boards of Directors/Trustees.

82 COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of
Columbia Select Large-Cap Value Fund and Columbia Select Smaller-Cap Value Fund:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Columbia Select Large-Cap Value Fund (formerly known as Seligman Large-Cap Value Fund) and Columbia Select Smaller-Cap Value Fund (formerly known as Seligman Smaller-Cap Value Fund) (the Funds) (the two portfolios constituting the Seligman Value Fund Series, Inc.) as of December 31, 2010, and the related statements of operations for the year then ended, and the statements of changes in net assets and financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Funds for the periods presented through December 31, 2008, were audited by other auditors whose report dated February 27, 2009, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

COLUMBIA SELECT VALUE FUNDS — 2010 ANNUAL REPORT 83

Portfolio of Investments

Columbia Seligman Communications and Information Fund

December 31, 2010

(Percentages represent value of investments compared to net assets)


Issuer	Shares		Value

Common Stocks (98.2%)


CONSUMER DISCRETIONARY (1.0%)

Internet & Catalog Retail (0.4%)
Amazon.com, Inc.(a)(b)		91,500	$	16,470,000


Media (0.6%)
Virgin Media, Inc.(a)		837,400		22,810,776

TOTAL CONSUMER DISCRETIONARY				39,280,776


HEALTH CARE (2.8%)

Biotechnology (0.7%)
Gilead Sciences, Inc.(b)		729,800		26,447,952


Health Care Equipment & Supplies (1.3%)
Baxter International, Inc.		877,900		44,439,298
Thoratec Corp.(a)(b)		264,300		7,484,976

Total				51,924,274


Life Sciences Tools & Services (0.8%)
Life Technologies Corp.(b)		155,565		8,633,858
Thermo Fisher Scientific, Inc.(b)		451,000		24,967,360

Total				33,601,218


TOTAL HEALTH CARE				111,973,444


INDUSTRIALS (2.5%)

Aerospace & Defense (2.0%)
General Dynamics Corp.		1,123,700		79,737,752


Electrical Equipment (0.5%)
Nidec Corp.		218,300		22,020,229

TOTAL INDUSTRIALS				101,757,981


INFORMATION TECHNOLOGY (91.4%)

Communications Equipment (6.0%)
Cisco Systems, Inc.(a)(b)		3,854,000		77,966,420
Nortel Networks Corp.(b)		819		11
QUALCOMM, Inc.		3,300,200		163,326,898

Total				241,293,329


Computers & Peripherals (11.3%)
Apple, Inc.(b)		628,700		202,793,472
Electronics for Imaging, Inc.(a)(b)(c)		4,784,000		68,459,040
Hewlett-Packard Co.		3,883,502		163,495,434
Toshiba Corp.		3,861,600		20,965,750

Total				455,713,696


Electronic Equipment, Instruments & Components (2.3%)
Avnet, Inc.(b)		1,743,900		57,601,017
Elster Group SE, ADR(a)(b)		582,480		9,843,912
Jabil Circuit, Inc.		1,299,900		26,114,991

Total				93,559,920


Internet Software & Services (6.0%)
Equinix, Inc.(b)		186,165		15,127,768
Google, Inc., Class A(a)(b)		243,700		144,750,489
Open Text Corp.(b)(c)		1,363,954		62,823,721
SciQuest, Inc.(b)		184,358		2,398,498
VeriSign, Inc.(a)		548,100		17,906,427

Total				243,006,903


IT Services (5.1%)
Amdocs Ltd.(b)		6,937,095		190,561,999
Rolta India Ltd.		2,927,900		10,133,023
Teradata Corp.(b)		189,300		7,791,588

Total				208,486,610


Office Electronics (2.1%)
Xerox Corp.		7,325,000		84,384,000


Semiconductors & Semiconductor Equipment (17.9%)
Advanced Micro Devices, Inc.(a)(b)		4,441,665		36,332,820
Amkor Technology, Inc.(a)(b)		7,388,938		54,604,252
ASML Holding NV(a)		2,626,600		100,703,844
Intel Corp.		7,420,200		156,046,806
KLA-Tencor Corp.		3,088,200		119,328,048
Lam Research Corp.(a)(b)		555,500		28,763,790
Marvell Technology Group Ltd.(b)		5,521,375		102,421,506
Novellus Systems, Inc.(b)		2,612,200		84,426,304
ON Semiconductor Corp.(a)(b)		1,272,900		12,576,252
Spansion, Inc., Class A(b)		686,923		14,219,306
Teradyne, Inc.(a)(b)		1,005,700		14,120,028

Total				723,542,956


Software (40.7%)
Aspen Technology, Inc.(b)		2,741,344		34,815,069
BMC Software, Inc.(b)		4,918,164		231,842,251
Check Point Software Technologies Ltd.(a)(b)		2,872,549		132,884,117
JDA Software Group, Inc.(a)(b)(c)		2,699,600		75,588,800
McAfee, Inc.(b)		220,500		10,211,355
Mentor Graphics Corp.(a)(b)(c)		678,222		8,138,664
Micro Focus International PLC		1,303,927		7,903,105
Microsoft Corp.		6,715,800		187,505,136

See accompanying Notes to Financial Statements.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 17

Portfolio of Investments (continued)


Issuer	Shares		Value

Common Stocks (continued)

INFORMATION TECHNOLOGY (cont.)

Software (cont.)
Nuance Communications, Inc.(a)(b)		8,331,600		$151,468,488
Oracle Corp.		5,339,500		167,126,350
Parametric Technology Corp.(a)(b)(c)		6,352,470		143,121,149
Symantec Corp.(a)(b)		12,351,800		206,769,132
Synopsys, Inc.(b)(c)		10,760,103		289,554,372

Total				1,646,927,988


TOTAL INFORMATION TECHNOLOGY				3,696,915,402


TELECOMMUNICATION SERVICES (0.4%)

Wireless Telecommunication Services (0.4%)
China Mobile Ltd.		1,636,500		16,255,507

TOTAL TELECOMMUNICATION SERVICES				16,255,507


UTILITIES (0.1%)

Independent Power Producers & Energy Traders (0.1%)
Miasole(b)(d)		805,620		3,486,723

TOTAL UTILITIES				3,486,723


Total Common Stocks
(Cost: $3,519,777,868)			$	3,969,669,833


Preferred Stocks (0.1%)


INFORMATION TECHNOLOGY (0.1%)

Communications Equipment (—%)
Flashpoint Technology, Inc. Convertible(b)(d)(e)(h)		246,914		$—


Computers & Peripherals (0.1%)
Silver Peak Systems, Inc. Convertible(b)(d)(h)		2,620,545		2,568,134

TOTAL INFORMATION TECHNOLOGY				2,568,134


UTILITIES (—%)

Independent Power Producers & Energy Traders (—%)
Miasole Convertible(d)(h)		62,288		269,583

TOTAL UTILITIES				269,583


Total Preferred Stocks
(Cost: $11,311,308)			$	2,837,717


Warrants (—%)


UTILITIES (—%)

Independent Power Producers & Energy Traders (—%)
Miasole Promissory Note(d)(e)(h)		1		—

TOTAL UTILITIES				—


Total Warrants
(Cost: $21)			$	—


Money Market Fund (1.8%)

Columbia Short-Term Cash Fund, 0.229%(c)(f)		72,185,927		$72,185,927


Total Money Market Fund
(Cost: $72,185,927)			$	72,185,927


	Effective	Par/
Issuer	Yield	Principal		Value

Investments of Cash Collateral Received for Securities on Loan (9.4%)


Asset-Backed Commercial Paper (0.5%)
Grampian Funding LLC
01/13/11	0.280%	$	4,998,794	$	4,998,794
01/31/11	0.300%		6,998,192		6,998,192
Rhein-Main Securitisation Ltd.
01/12/11	0.551%		9,985,945		9,985,945

Total					21,982,931


Certificates of Deposit (4.8%)
Bank of Nova Scotia
05/12/11	0.280%		5,000,000		5,000,000
Bank of Tokyo Securities
01/20/11	0.320%		2,497,957		2,497,957
Canadian Imperial Bank
04/07/11	0.300%		5,000,000		5,000,000
Clydesdale Bank PLC
01/21/11	0.370%		5,500,000		5,500,000
Credit Agricole
04/21/11	0.400%		10,000,247		10,000,247
Credit Industrial et Commercial
02/22/11	0.395%		10,000,000		10,000,000
Credit Suisse
04/15/11	0.300%		6,000,000		6,000,000
Deutsche Bank AG
01/10/11	0.472%		4,999,980		4,999,980
Mitsubishi UFJ Trust and Banking Corp.
01/04/11	0.330%		4,996,427		4,996,427
02/22/11	0.320%		5,000,000		5,000,000

See accompanying Notes to Financial Statements.

18 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT


	Effective	Par/
Issuer	Yield	Principal		Value

Investments of Cash Collateral Received for Securities on Loan (continued)

Certificates of Deposit (cont.)
N.V. Bank Nederlandse Gemeenten
01/27/11	0.330%		$10,000,000		$10,000,000
02/04/11	0.330%		10,000,000		10,000,000
National Australia Bank Ltd.
03/17/11	0.311%		10,000,000		10,000,000
National Bank of Canada
03/21/11	0.400%		8,000,000		8,000,000
Natixis
03/07/11	0.440%		12,000,000		12,000,000
Norinchukin Bank
01/25/11	0.330%		15,000,000		15,000,000
Rabobank Group
04/27/11	0.311%		15,000,000		15,000,000
Societe Generale
02/01/11	0.315%		12,000,000		12,000,000
Sumitomo Trust & Banking Co., Ltd.
02/04/11	0.400%		5,000,000		5,000,000
04/21/11	0.510%		8,000,000		8,000,000
Union Bank of Switzerland
04/18/11	0.341%		6,000,000		6,000,000
United Overseas Bank Ltd.
01/18/11	0.330%		10,000,000		10,000,000
Westpac Banking Corp.
05/09/11	0.290%		15,000,000		15,000,000

Total					194,994,611


Commercial Paper (0.2%)
ASB Finance Limited
05/03/11	0.391%		2,994,345		2,994,345
Versailles Commercial Paper LLC
01/06/11	0.350%		4,996,840		4,996,840

Total					7,991,185


Other Short-Term Obligations (0.1%)
Natixis Financial Products LLC
01/03/11	0.500%		5,000,000		5,000,000


Repurchase Agreements (3.8%)
Barclays Capital, Inc. dated 11/04/10, matures 01/31/11, repurchase price $10,002,583(g)
	0.300%		10,000,000		10,000,000
Cantor Fitzgerald & Co. dated 12/31/10, matures 01/03/11, repurchase price $90,003,000(g)
	0.400%		90,000,000		90,000,000
Citigroup Global Markets, Inc. dated 12/31/10, matures 01/03/11, repurchase price $24,000,320(g)
	0.160%		24,000,000		24,000,000
Goldman Sachs & Co. dated 12/31/10, matures 01/03/11, repurchase price $8,011,480(g)
	0.170%		8,011,367		8,011,367
Mizuho Securities USA, Inc. dated 12/31/10, matures 01/03/11, repurchase price $10,000,417(g)
	0.500%		10,000,000		10,000,000
Nomura Securities dated 12/31/10, matures 01/03/11, repurchase price $10,000,417(g)
	0.500%		10,000,000		10,000,000

Total					152,011,367


Total Investments of Cash Collateral Received for Securities on Loan
(Cost: $381,980,094)				$	381,980,094


Total Investments
(Cost: $3,985,255,218)				$	4,426,673,571
Other Assets & Liabilities, Net					(384,065,422)


Net Assets				$	4,042,608,149

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.

See accompanying Notes to Financial Statements.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 19

Portfolio of Investments (continued)

Notes to Portfolio of Investments


(a)		At December 31, 2010, security was partially or fully on loan.

(b)		Non-income producing.

(c)		Investments in affiliates during the year ended December 31, 2010:


					Sales cost/								Dividends
	Beginning		Purchase		proceeds			Realized			Ending		or interest
Issuer	cost		cost		from sales			gain/loss			cost		income		Value
Columbia Short-Term Cash Fund		$220,333,806		$1,912,961,193		$(2,061,109,072	)		$—			$72,185,927		$318,744		$72,185,927
Electronics for Imaging, Inc.		115,098,517		—		(232,769	)		(106,039	)		114,865,748		—		68,459,040
JDA Software Group, Inc.*		—		63,348,353		—			—			63,348,353		—		75,588,800
Mentor Graphics Corp.*		73,338,974		5,599,708		(73,385,341	)		(1,996,923	)		5,553,341		—		8,138,664
Open Text Corp.*		131,362,445		46,242,864		(120,903,157	)		40,418,048			56,702,152		—		62,823,721
Parametric Technology Corp.*		115,731,182		14,487,870		(41,284,378	)		23,455,357			88,934,674		—		143,121,149
Synopsys, Inc.		274,666,837		—		(8,643,183	)		130,041			266,023,654		—		289,554,372

Total		$930,531,761		$2,042,639,988		$(2,305,557,900	)		$61,900,484			$667,613,849		$318,744		$719,871,673


		* Issuer was not an affiliate for the entire year ended December 31, 2010.

(d)		Identifies issues considered to be illiquid as to their marketability. The aggregate value of such securities at December 31, 2010 was $6,324,440, representing 0.16% of net assets. Information concerning such security holdings at December 31, 2010 was as follows:


	Acquisition
Security	Dates	Cost
Flashpoint Technology, Inc. Convertible	09-10-99		$1,000,844
Miasole	07-10-08		10,032,163
Miasole Convertible	09-10-10 thru 10-07-10		268,690
Miasole Promissory Note	09-10-10		21
Silver Peak Systems, Inc. Convertible	01-14-08		10,041,774


(e)		Negligible market value.

(f)		The rate shown is the seven-day current annualized yield at December 31, 2010.

(g)		The table below represents securities received as collateral for repurchase agreements. This collateral, which is generally high quality short-term obligations, is deposited with the Fund’s custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. The value of securities and/or cash held as collateral for repurchase agreements is monitored on a daily basis to ensure the existence of the proper level of collateral.

20 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Portfolio of Investments (continued)

Notes to Portfolio of Investments (continued)


Cantor Fitzgerald & Co. (0.400%) (continued)
Security description	Value
Freddie Mac Strips		$1,367,859
Ginnie Mae I Pool		884,120
Ginnie Mae II Pool		4,900,869
Government National Mortgage Association		1,971,811
United States Treasury Inflation Indexed Bonds		271,029
United States Treasury Note/Bond		21,537,445
United States Treasury Strip Coupon		6,437,448
United States Treasury Strip Principal		947,290

Total market value of collateral securities		$91,800,000



Citigroup Global Markets, Inc. (0.160%)
Security description	Value
Fannie Mae Benchmark REMIC		$119,229
Fannie Mae REMICS		8,063,959
Fannie Mae Whole Loan		205,141
Fannie Mae-Aces		15,664
Freddie Mac Reference REMIC		558,773
Freddie Mac REMICS		12,319,825
Government National Mortgage Association		3,197,409

Total market value of collateral securities		$24,480,000



Goldman Sachs & Co. (0.170%)
Security description	Value
Government National Mortgage Association		$8,171,594

Total market value of collateral securities		$8,171,594



Mizuho Securities USA, Inc. (0.500%)
Security description	Value
Fannie Mae Grantor Trust		$4,938
Fannie Mae Pool		4,149,551
Fannie Mae REMICS		428,238
Fannie Mae Whole Loan		11,634
Federal Farm Credit Bank		6,664
Federal Home Loan Banks		172,904
Federal Home Loan Mortgage Corp		26,630
FHLMC Structured Pass Through Securities		25,222
Freddie Mac Gold Pool		2,174,343
Freddie Mac Non Gold Pool		257,995
Freddie Mac REMICS		479,399

22 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Portfolio of Investments (continued)

Fair Value Measurements

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 (including NAV for open-end mutual funds). 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).

24 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund’s investments as of December 31, 2010:


	Fair value at December 31, 2010
	Level 1		Level 2
	quoted prices		other		Level 3
	in active		significant		significant
	markets for		observable		unobservable
Description(a)	identical assets		inputs(b)		inputs		Total
Equity Securities
Common Stocks
Consumer Discretionary		$39,280,776		$—		$—		$39,280,776
Health Care		111,973,444		—		—		111,973,444
Industrials		79,737,752		22,020,229		—		101,757,981
Information Technology		3,657,913,512		39,001,890		—		3,696,915,402
Telecommunication Services		—		16,255,507		—		16,255,507
Utilities		—		—		3,486,723		3,486,723
Preferred Stocks
Information Technology		—		—		2,568,134		2,568,134
Utilities		—		—		269,583		269,583

Total Equity Securities		3,888,905,484		77,277,626		6,324,440		3,972,507,550

Other
Affiliated Money Market Fund(c)		72,185,927		—		—		72,185,927
Investments of Cash Collateral Received for Securities on Loan		—		381,980,094		—		381,980,094

Total Other		72,185,927		381,980,094		—		454,166,021

Total		$3,961,091,411		$459,257,720		$6,324,440		$4,426,673,571


(a)		See the Portfolio of Investments for all investment classifications not indicated in the table.

(b)		The amount of securities transferred out of Level 1 into Level 2 during the period was $11,973,620.

(c)		Money market fund that is a sweep investment for cash balances in the Fund at December 31, 2010.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 25

Portfolio of Investments (continued)

Fair Value Measurements (continued)

The following table is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.


	Common		Preferred
	Stocks		Stocks		Total
Balance as of December 31, 2009		$1,611,240		$2,201,258		$3,812,498
Accrued discounts/premiums		—		—		—
Realized gain (loss)		—		—		—
Change in unrealized appreciation (depreciation)*		1,875,483		367,769		2,243,252
Sales		—		—		—
Purchases		—		268,690		268,690
Transfers into Level 3		—		—		—
Transfers out of Level 3		—		—		—

Balance as of December 31, 2010		$3,486,723		$2,837,717		$6,324,440


*		Change in unrealized appreciation (depreciation) relating to securities held at December 31, 2010 was $2,243,252, which is comprised of Common Stocks of $1,875,483 and Preferred Stocks of $367,769.

Transfers in and/or out of Level 3 are determined based on the fair value at the beginning of the period for security positions held throughout the period.

How to find information about the Fund’s quarterly portfolio holdings


(i)		The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q;

(ii)		The Fund’s Forms N-Q are available on the Commission’s website at http://www.sec.gov;

(iii)		The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330); and

(iv)		The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can be obtained without charge, upon request, by calling 800.345.6611.

26 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Statements of Changes in Net Assets


Year ended December 31,	2010			2009
Operations
Net investment loss	$	(32,462,223	)	$	(39,028,308	)
Net realized gain (loss)		362,871,942			(51,544,929	)
Net change in unrealized appreciation		195,130,629			1,412,780,368

Net increase in net assets resulting from operations		525,540,348			1,322,207,131

Increase (decrease) in net assets from capital share transactions		(165,455,770	)		128,096,146

Proceeds from regulatory settlement (see Note 5)		757,126			7,971,302

Total increase in net assets		360,841,704			1,458,274,579
Net assets at beginning of year		3,681,766,445			2,223,491,866

Net assets at end of year	$	4,042,608,149		$	3,681,766,445

Excess of distributions over net investment income	$	(104,314	)	$	(72,743	)


	2010						2009
Year ended December 31,	Shares			Dollars ($)			Shares			Dollars ($)
Capital stock activity
Class A shares
Subscriptions		10,314,932			409,233,551			16,217,513			513,854,272
Conversions from Class B		399,151			15,518,761			687,488			20,508,952
Redemptions		(14,038,919	)		(550,381,508	)		(12,729,267	)		(391,795,379	)

Net increase (decrease)		(3,324,836	)		(125,629,196	)		4,175,734			142,567,845

Class B shares
Subscriptions		200,962			6,537,769			463,755			12,141,432
Conversions to Class A		(478,994	)		(15,518,761	)		(812,029	)		(20,508,952	)
Redemptions		(695,361	)		(22,697,329	)		(968,789	)		(25,038,254	)

Net decrease		(973,393	)		(31,678,321	)		(1,317,063	)		(33,405,774	)

Class C shares
Subscriptions		2,457,500			81,336,688			3,054,623			81,075,171
Redemptions		(3,191,183	)		(104,894,885	)		(3,514,832	)		(89,519,549	)

Net decrease		(733,683	)		(23,558,197	)		(460,209	)		(8,444,378	)

Class I shares
Subscriptions		367,545			15,361,697			993,229			35,623,554
Redemptions		(155,955	)		(6,874,997	)		(12,541	)		(478,828	)

Net increase		211,590			8,486,700			980,688			35,144,726

Class R shares
Subscriptions		500,547			19,456,130			521,139			16,237,775
Redemptions		(385,493	)		(14,821,311	)		(373,741	)		(11,225,467	)

Net increase		115,054			4,634,819			147,398			5,012,308

Class R3 shares
Subscriptions		2,377			89,462			431			15,000
Redemptions		(613	)		(23,177	)		—			—

Net increase		1,764			66,285			431			15,000

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 31

Financial Highlights


	Year ended December 31,
	2010			2009			2008			2007			2006
Class A
Per share data
Net asset value, beginning of period		$38.78			$24.25			$38.20			$33.24			$27.29

Income from investment operations:
Net investment loss		(.29	)		(.37	)		(.36	)		(.32	)		(.27	)
Net realized and unrealized gain (loss) on investments		6.20			14.81			(13.59	)		5.28			6.22
Increase from payments by affiliate		.01			—			—			—			—

Total from investment operations		5.92			14.44			(13.95	)		4.96			5.95

Proceeds from regulatory settlement		.01			.09			—			—			—

Net asset value, end of period		$44.71			$38.78			$24.25			$38.20			$33.24

Total return		15.29%	^(a),(b)		59.92%	^(a)		(36.52%	)		14.92%			21.80%

Ratios to average net assets ^(c)
Expenses prior to fees waived or expenses reimbursed		1.36%			1.61%			1.52%			1.46%			1.51%

Net expenses after fees waived or expenses reimbursed ^(d)		1.36%			1.61%			1.52%			1.46%			1.49%

Net investment loss		(0.72%	)		(1.18%	)		(1.12%	)		(0.89%	)		(0.88%	)

Supplemental data
Net assets, end of period (in thousands)		$3,066,071			$2,788,834			$1,642,388			$2,907,051			$2,612,744

Portfolio turnover		105%			150%			133%			206%			187%

See accompanying Notes to Financial Highlights.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 33


	Year ended
	December 31,
	2010 ^(h)
Class Z
Per share data
Net asset value, beginning of period		$41.62

Income from investment operations:
Net investment loss		(.06	)
Net realized and unrealized gain on investments		5.05
Increase from payments by affiliate		.01

Total from investment operations		5.00

Net asset value, end of period		$46.62

Total return		12.01%	^(b)

Ratios to average net assets ^(c)
Expenses prior to fees waived or expenses reimbursed		1.13%	^(f)

Net expenses after fees waived or expenses reimbursed ^(d)		1.13%	^(f)

Net investment loss		(0.50%	) ^(f)

Supplemental data
Net assets, end of period (in thousands)		$679

Portfolio turnover		105%

Notes to Financial Highlights


^(a)		During the years ended December 31, 2010 and 2009, the Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total returns would have been lower by 0.02% and 0.36%, respectively.
^(b)		During the year ended December 31, 2010, the Fund received a payment by an affiliate. Had the Fund not received this payment, the total return would have been lower by 0.03%.
^(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)		The Investment Manager and its affiliates agreed to waive/reimburse certain fees and expenses (excluding fees and expenses of acquired funds).
^(e)		For the period from August 3, 2009 (when shares became available) to December 31, 2009.
^(f)		Annualized.
^(g)		Effective September 7, 2010, Class R2 shares were renamed Class R shares.
^(h)		For the period from September 27, 2010 (when shares became available) to December 31, 2010.

The accompanying Notes to Financial Statements are an integral part of this statement.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 41

Notes to Financial Statements

December 31, 2010


Note 1.	Organization

Columbia Seligman Communications and Information Fund, Inc. (formerly known as Seligman Communications and Information Fund, Inc.) (the Fund), is a diversified fund. The Fund is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company.

Fund Shares

The Fund has one billion authorized shares of capital stock (with a $0.10 par value per share). The Fund offers Class A, Class B, Class C, Class I, Class R, Class R3, Class R4, Class R5 and Class Z shares. All share classes have identical voting, dividend and liquidation rights. Each share class has its own expense structure and sales charges, as applicable.

Class A shares are subject to a maximum front-end sales charge of 5.75% based on the investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million at the time of purchase are subject to a 1.00% contingent deferred sales charge (CDSC) if the shares are sold 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.

The Fund no longer accepts investments by new or existing investors in the Fund’s Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of the Fund and exchanges by existing Class B shareholders of certain other funds within the Columbia Family of Funds. Class B shares may be subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will generally convert to Class A shares eight years after purchase.

Class C shares are subject to a 1.00% CDSC on shares redeemed within one year of purchase.

Class I shares are not subject to sales charges and are available only to the Columbia Family of Funds.

Class R shares are not subject to sales charges and are available to qualifying institutional investors. Effective September 7, 2010, Class R2 shares were renamed Class R shares.

Class R3 shares are not subject to sales charges; however, the class was closed to new investors effective December 31, 2010.

42 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Class R4 shares are not subject to sales charges; however, the class was closed to new investors effective December 31, 2010.

Class R5 shares are not subject to sales charges; however, the class was closed to new investors effective December 31, 2010.

Class Z shares are not subject to sales charges and are available only to certain investors, as described in the Fund’s prospectus. Class Z shares became effective September 27, 2010.


Note 2.	Summary of Significant Accounting Policies

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.

Security Valuation

All securities are valued at the close of business of the New York Stock Exchange (NYSE). Equity securities are valued at the last quoted sales price on the principal exchange or market on which they trade, except for securities traded on the NASDAQ Stock Market, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the mean of the latest quoted bid and asked prices on such exchanges or markets.

Foreign securities are valued based on quotations from the principal market in which such securities are normally traded. However, many securities markets and exchanges outside the U.S. close prior to the close of the NYSE; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the NYSE. In those situations, foreign securities will be fair valued pursuant to the policy adopted by the Fund’s Board of Directors (the Board), including utilizing a third party pricing service to determine these fair values. The third party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange, to determine a good faith estimate that reasonably reflects the current market conditions as of the close of the NYSE. The fair value

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 43

Notes to Financial Statements (continued)

of a security is likely to be different from the quoted or published price, if available.

Investments in other open-end investment companies, including money market funds, are valued at net asset value.

Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par upon reaching 60 days to maturity. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates.

Foreign currency exchange contracts are marked-to-market daily based upon foreign currency exchange rates provided by a pricing service.

Option contracts are valued daily at the mean of the latest quoted bid and asked prices on their primary exchanges. Option contracts, including over-the-counter option contracts, with no readily available market value are valued using quotations obtained from independent brokers as of the close of the NYSE.

The policy adopted by the Board generally contemplates the use of fair valuation in the event that price quotations or valuations are not readily available, price quotations or valuations from other sources are not reflective of market value and thus deemed unreliable, or a significant event has occurred in relation to a security or class of securities (such as foreign securities) that is not reflected in price quotations or valuations from other sources. A fair value price is a good faith estimate of the value of a security at a given point in time.

Foreign Currency Transactions and Translation

The values of all assets and liabilities denominated in foreign currencies are translated into U.S. dollars at that day’s exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.

For financial statement purposes, the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.

44 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Derivative Instruments

The Fund invests in certain derivative instruments as detailed below to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to maintain cash reserves while maintaining exposure to certain other assets, to offset anticipated declines in values of investments, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligation under the terms of the contract, the potential for an illiquid secondary market and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities.

The Fund and any counterparty are required to maintain an agreement that requires the Fund and that counterparty to monitor (on a daily basis) the net fair value of all derivatives entered into pursuant to the contract between the Fund and such counterparty. If the net fair value of such derivatives between the Fund and that counterparty exceeds a certain threshold (as defined in the agreement), the Fund or the counterparty (as the case may be) is required to post cash and/or securities as collateral. Fair values of derivatives presented in the financial statements are not netted with the fair value of other derivatives or with any collateral amounts posted by the Fund or any counterparty.

Forward Foreign Currency Exchange Contracts

Forward foreign currency exchange contracts are agreements between two parties to buy and sell a currency at a set price on a future date. These contracts are intended to be used to minimize the exposure to foreign exchange rate fluctuations during the period between the trade and settlement dates of the contract. The Fund utilized forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities.

The values of forward foreign currency exchange contracts fluctuate with changes in foreign currency exchange rates. The Fund will record a realized gain or loss when the forward foreign currency exchange contract is closed.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Fund’s portfolio securities. The risks of forward foreign currency contracts include movement in the values of the foreign currencies relative to the U.S. dollar (or other foreign currencies) and the possibility that counterparties will not complete their contractual obligations,

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 45

Notes to Financial Statements (continued)

which may be in excess of the amount reflected, if any, in the Statement of Assets and Liabilities.

Options

Options are contracts which entitle the holder to purchase or sell securities or other identified assets at a specified price, or in the case of index options, to receive or pay the difference between the index value and the strike price of the index option. The Fund bought and wrote options traded on U.S. and foreign decrease the Fund’s exposure to equity risk and to increase return investments and exchanges or in the over-the-counter (OTC) markets to decrease the Fund’s exposure to equity risk and to increase return on investments and protect gains. Completion of transactions for options traded in the OTC market depends upon the performance of the other party. Cash collateral may be collected or posted by the Fund to secure certain OTC options trades. Cash collateral held or posted by the Fund for such option trades must be returned to the counterparty or the Fund upon closure, exercise or expiration of the contract.

Option contracts purchased are recorded as investments and options contracts written are recorded as liabilities of the Fund. The Fund will realize a gain or loss when the option transaction expires or is exercised. When options on debt securities or futures are exercised, the Fund will realize a gain or loss. When other options are exercised, the proceeds on sales for a written call or purchased put option, or the purchase cost for a written put or purchased call option, is adjusted by the amount of premium received or paid.

The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of being unable to enter into a closing transaction if a liquid secondary market does not exist. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The Fund’s maximum payout in the case of written put option contracts represents the maximum potential amount of future payments (undiscounted) that the Fund could be required to make under the contract. For OTC options contracts, the transaction is also subject to counterparty credit risk. The maximum payout amount may be offset by the subsequent sale, if any, of assets obtained upon the exercise of the put options by holders of the option contracts or proceeds received upon entering into the contracts.

46 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Contracts and premiums associated with options contracts written for the year ended December 31, 2010 are as follows:


	Calls
	Contracts			Premiums
Balance December 31, 2009		—		$	—
Opened		1,138			1,448,649
Closed		(1,138	)		(1,448,649	)

Balance December 31, 2010		—		$	—

Effects of Derivative Transactions in the Financial Statements

The following tables are intended to provide additional information about the effect of derivatives on the financial statements of the Fund including: the fair value of derivatives by risk category and the location of those fair values in the Statement of Assets and Liabilities; the impact of derivative transactions on the Fund’s operations over the period including realized gains or losses and unrealized gains or losses. The derivative schedules following the Portfolio of Investments present additional information regarding derivatives outstanding at the end of the period, if any.

Fair values of derivative instruments at December 31, 2010

At December 31, 2010, the Fund had no outstanding derivatives.

Effect of derivative instruments in the Statement of Operations for the year ended December 31, 2010


Amount of realized gain (loss) on derivatives recognized in income
	Forward foreign
	currency exchange
Risk exposure category	contracts			Options			Total
Equity contracts	$	—		$	(385,807	)	$	(385,807	)

Foreign exchange contracts		(282,764	)		—		$	(282,764	)

Total	$	(282,764	)	$	(385,807	)	$	(668,571	)

Change in unrealized appreciation (depreciation) on derivatives recognized in income

Forward foreign

currency exchange

Risk exposure category

contracts

Options

Total

Equity contracts

—

Foreign exchange contracts

—

Total

—

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 47

Notes to Financial Statements (continued)

Volume of Derivative Activity

Foreign Forward Currency Exchange Contracts

At December 31, 2010, the Fund had no outstanding forward foreign currency exchange contracts. The average gross notional amount of forward foreign currency exchange contracts opened, and subsequently closed, was $4.1 million for the year ended December 31, 2010.

Options

At December 31, 2010, the Fund had no outstanding options contracts. During the year ended December 31, 2010, the Fund entered into and closed 1,138 option contracts, of which, the average gross notional amount was $33,000.

Repurchase Agreements

The Fund may engage in repurchase agreement transactions with institutions that Columbia Management Investment Advisers, LLC (the Investment Manager) has determined are creditworthy. The Fund, through the custodian, receives delivery of the underlying securities collateralizing a repurchase agreement. The Investment Manager is responsible for determining that the collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays in or restrictions on a Fund’s ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights.

Security Transactions

Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

Income Recognition

Corporate actions and dividend income are recorded on the ex-dividend date. Interest income is recorded on the accrual basis.

Determination of Class Net Asset Value

All income, expenses (other than class-specific expenses which are charged directly to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.

Federal Income Tax Status

The Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income for its tax year, and as such will

48 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Foreign Taxes

The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Realized gains in certain countries may be subject to foreign taxes at the Fund level, at rates ranging from approximately 10% to 15%. The Fund pays such foreign taxes on net realized gains at the appropriate rate for each jurisdiction.

Distributions to Shareholders

Distributions from net investment income are declared and paid annually. Net realized capital gains, if any, are distributed along with the income dividend. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations which may differ from GAAP.

Guarantees and Indemnifications


Note 3.	Fees and Compensation Paid to Affiliates

Investment Management Fees

Under an Investment Management Services Agreement the Investment Manager determines which securities will be purchased, held or sold. The management fee is an annual fee that is equal to a percentage of the Fund’s average daily net assets that declines from 0.855% to 0.725% as the Fund’s net assets increase. The management fee for the year ended December 31, 2010 was 0.85% of the Fund’s average daily net assets.

Administration Fees

Under an Administrative Services Agreement, the Fund pays the Fund Administrator an annual fee for administration and accounting services equal to a

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 49

Notes to Financial Statements (continued)

percentage of the Fund’s average daily net assets that declines from 0.06% to 0.03% as the Fund’s net assets increase. The fee for the year ended December 31, 2010 was 0.05% of the Fund’s average daily net assets. Prior to January 1, 2011, Ameriprise Financial, Inc. served as the Fund Administrator. Since Jan. 1, 2011, Columbia Management Investment Advisers, LLC has served as the Fund Administrator.

Other Fees

Other expenses are for, among other things, certain expenses of the Fund or the Board including: Fund boardroom and office expense, employee compensation, employee health and retirement benefits, and certain other expenses. Payment of these Fund and Board expenses is facilitated by a company providing limited administrative services to the Fund and the Board. For the year ended December 31, 2010, other expenses paid to this company were $4,533.

Compensation of Board Members

Transfer Agent Fees

Under a Transfer Agency Agreement, Columbia Management Investment Services Corp. (the Transfer Agent) is responsible for providing transfer agency services to the Fund.

Prior to September 7, 2010, the Transfer Agent received annual account-based service fees for Class A, Class B and Class C shares which amount varied by class and annual asset-based service fees based on the Fund’s average daily net assets attributable to Class R, Class R3, Class R4 and Class R5 shares. In addition, the Transfer Agent charged an annual fee per inactive account and received reimbursement from the Fund for certain out-of-pocket expenses.

Under a new Transfer Agency Agreement effective September 7, 2010, the Transfer Agent has contracted with Boston Financial Data Services (BFDS) to serve as sub-transfer agent. The Transfer Agent receives monthly account-based service fees based on the number of open accounts and is reimbursed by the Fund for the fees and expenses the Transfer Agent pays to financial intermediaries that maintain omnibus accounts with the Fund subject to an annual limitation (that varies by class) that is a percentage of the average aggregate value of the Fund’s shares maintained in each such omnibus account (other than

50 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

omnibus accounts for which American Enterprise Investment Services Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc., which are paid a per account fee). The Transfer Agent also pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Fund.

For the year ended December 31, 2010, the Fund’s effective transfer agent fee rates as a percentage of average daily net assets of each class were as follows:


Class A	0.15	%
Class B	0.16
Class C	0.16
Class R	0.08
Class R3	0.05
Class R4	0.05
Class R5	0.05
Class Z	0.05	*

Class I shares do not pay transfer agent fees.


*		Annualized

The Fund and certain other associated investment companies (together, the Guarantors), have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), including the payment of rent by SDC (the Guaranty). The lease and the Guaranty expire in January 2019. At December 31, 2010, the Fund’s total potential future obligation over the life of the Guaranty is $3,620,511. The liability remaining at December 31, 2010 for non-recurring charges associated with the lease amounted to $2,447,179 and is included within other accrued expenses in the Statement of Assets and Liabilities.

Plan Administration Fees

Under a Plan Administration Services Agreement with the Transfer Agent, the Fund pays an annual fee at a rate of 0.25% of the Fund’s average daily net assets attributable to Class R3 and Class R4 shares for the provision of various administrative, recordkeeping, communication and educational services. Prior to

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 51

Notes to Financial Statements (continued)

September 7, 2010, the Fund also paid an annual fee at a rate of 0.25% of the Fund’s average daily net assets attributable to Class R shares for such services.

Distribution Fees

The Fund has an agreement with Columbia Management Investment Distributors, Inc. (the Distributor) for distribution and shareholder services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, the Fund pays a fee at an annual rate of up to 0.25% of the Fund’s average daily net assets attributable to Class A and Class R3 shares, a fee at an annual rate of up to 0.50% of the Fund’s average daily net assets attributable to Class R shares (of which up to 0.25% may be used for shareholder services) and a fee at an annual rate of up to 1.00% of the Fund’s average daily net assets attributable to Class B and Class C shares. For Class B and Class C shares, of the 1.00% fee, up to 0.75% is reimbursed for distribution expenses.

The amount of distribution expenses incurred by the Distributor and not yet reimbursed (unreimbursed expense) was approximately $723,000 and $20,474,000 for Class B and Class C shares, respectively. These amounts are based on the most recent information available as of October 31, 2010, and may be recovered from future payments under the distribution plan or CDSCs. To the extent the unreimbursed expense has been fully recovered, the distribution fee is reduced.

Sales Charges

Sales charges, including front-end and CDSCs, received by the Distributor for distributing Fund shares were $2,929,726 for Class A, $172,855 for Class B and $60,642 for Class C for the year ended December 31, 2010.

Note 4. Portfolio Information

The cost of purchases and proceeds from sales of securities, excluding short-term obligations, aggregated to $3,719,435,458 and $3,788,581,466, respectively, for the year ended December 31, 2010.

Note 5. Regulatory Settlements

During the year ended December 31, 2010, the Fund received $757,126 as a result of a settlement of an administrative proceeding brought by the Securities and Exchange Commission against an unaffiliated third party relating to market timing and/or late trading of mutual funds. This amount represented the Fund’s portion of the proceeds from the settlement (the Fund was not a party to the proceeding). The proceeds received by the Fund were recorded as an increase to additional paid-in capital.

52 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

In May 2009, as a result of a settlement of an administrative proceeding brought by the Securities and Exchange Commission against an unaffiliated third party relating to market timing and/or late trading of mutual funds, the Fund received $271,302, which represented the Fund’s portion of the proceeds from the settlement (the Fund was not a party to the proceeding). The proceeds received by the Fund were recorded as an increase to additional paid-in capital.

In March 2009, without admitting or denying any violations of law or wrongdoing, J&W Seligman & Co., Incorporated (Seligman), Seligman Advisors, Inc., Seligman Data Corp. and Brian T. Zino entered into a stipulation of settlement with the Office of the Attorney General of the State of New York (NYAG) and settled the claims made by the NYAG. Under the terms of the settlement, Seligman paid $7.7 million to the Fund. The proceeds received by the Fund were recorded as an increase to additional paid-in capital.

Note 6. Payments by Affiliates

During the year ended December 31, 2010, the Investment Manager voluntarily reimbursed the Fund $1,219,315 for losses on a trading error.

Note 7. Lending of Portfolio Securities

The Fund has entered into a Master Securities Lending Agreement (the Agreement) with JPMorgan Chase Bank, National Association (JPMorgan). The Agreement authorizes JPMorgan as lending agent to lend securities to authorized borrowers in order to generate additional income on behalf of the Fund. Pursuant to the Agreement, the securities loaned are secured by cash or U.S. government securities equal to at least 100% of the market value of the loaned securities. Any additional collateral required to maintain those levels due to market fluctuations of the loaned securities is delivered the following business day. Cash collateral received is invested by the lending agent on behalf of the Fund into authorized investments pursuant to the Agreement. The investments made with the cash collateral are listed in the Portfolio of Investments. The values of such investments and any uninvested cash collateral are disclosed in the Statement of Assets and Liabilities along with the related obligation to return the collateral upon the return of the securities loaned. At December 31, 2010, securities valued at $372,764,813 were on loan, secured by cash collateral of $381,980,094 partially or fully invested in short-term securities or other cash equivalents.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 53

Notes to Financial Statements (continued)

indemnification does not extend to losses associated with declines in the value of cash collateral investments. The Investment Manager is not responsible for any losses incurred by the Fund in connection with the securities lending program. Loans are subject to termination by the Fund or the borrower at any time, and are, therefore, not considered to be illiquid investments.

Pursuant to the Agreement, the Fund received income for lending their securities either in the form of fees or by earning interest on invested cash collateral, net of negotiated rebates paid to borrowers and fees paid to the lending agent for services provided and any other securities lending expenses. Net income earned from securities lending for the year ended December 31, 2010 is disclosed in the Statement of Operations. The Fund continues to earn and accrue interest and dividends on the securities loaned.

Note 8. Affiliated Money Market Fund

The Fund may invest its daily cash balances in Columbia Short-Term Cash Fund (formerly known as RiverSource Short-Term Cash Fund), a money market fund established for the exclusive use by the Fund and other affiliated Funds. The income earned by the Fund from such investments is included as “Dividends from affiliates” in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of Columbia Short-Term Cash Fund.

Note 9. Shareholder Concentration

At December 31, 2010, the Investment Manager along with affiliated funds-of-funds owned 100% of Class I shares.

Note 10. Line of Credit

The Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A. (the Administrative Agent), whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility became effective on October 14, 2010, replacing a prior credit facility. The credit facility agreement, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $300 million. The borrowers shall have the right, upon written notice to the Administrative Agent, to request an increase of up to $200 million in the aggregate amount of the credit facility from new or existing lenders, provided that the aggregate amount of the credit facility shall at no time exceed $500 million. Participation in such increase by any existing lender shall be at such lender’s sole discretion. Interest is charged to each fund based on its

54 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

borrowings at a rate equal to the sum of the federal funds rate plus (i) 1.25% per annum plus (ii) if one-month LIBOR exceeds the federal funds rate, the amount of such excess. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum.

Prior to October 14, 2010, the credit facility agreement, which was a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permitted collective borrowings up to $300 million. The Fund also paid a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.10% per annum, in addition to an upfront fee equal to its pro rata share of 0.04% of the amount of the credit facility. The Fund had no borrowings for the year ended December 31, 2010.

Note 11. Federal Tax Information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the year ended December 31, 2010, permanent and timing book to tax differences resulting primarily from differing treatments for options contracts, foreign currency transactions and losses deferred due to wash sales were identified and permanent differences reclassed among the components of the Fund’s net assets in the Statement of Assets and Liabilities as follows:


Excess of distributions over net investment income	$	32,430,652
Accumulated net realized gain		(32,225,585	)
Paid-in capital		(205,067	)

Net investment income and net realized gains (losses), as described in the Statement of Operations, and net assets were not affected by this reclassification.

There were no distributions paid during the years ended December 31, 2010 and 2009.

At December 31, 2010, the components of distributable earnings on a tax basis were as follows:


Undistributed ordinary income	$	1
Undistributed accumulated long-term gain		118,085,117
Accumulated realized loss		—
Unrealized appreciation		424,239,467

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 55

Notes to Financial Statements (continued)

At December 31, 2010, the cost of investments for federal income tax purposes was $4,002,329,790 and the aggregate gross unrealized appreciation and depreciation based on that cost was:


Unrealized appreciation	$	580,046,069
Unrealized depreciation		(155,702,289	)

Net unrealized	$	424,343,780

For the year ended December 31, 2010, $207,308,543 of capital loss carryforward was utilized.

Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). The Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Note 12. Concentration Risk

The Fund concentrates its investments in companies in the communications, information and related industries. The market prices of these stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments. Therefore, the Fund’s net asset value may fluctuate more than a fund that invests in a wider range of industries. The rapid pace of change within many of these industries tends to create a more volatile operating environment than in other industries.

Note 13. Subsequent Events

Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.


Note 14.	Information Regarding Pending and Settled Legal Proceedings

56 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

including restitution and rescission of investment advisory and distribution agreements. The plaintiffs voluntarily agreed to transfer this case to the United States District Court for the District of Minnesota (the District Court). In response to defendants’ motion to dismiss the complaint, the District Court dismissed one of plaintiffs’ four claims and granted plaintiffs limited discovery. Defendants moved for summary judgment in April 2007. Summary judgment was granted in the defendants’ favor on July 9, 2007. The plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit) on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the District Court for further proceedings. On August 6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the Supreme Court), asking the Supreme Court to stay the District Court proceedings while the Supreme Court considers and rules in a case captioned Jones v. Harris Associates, which involves issues of law similar to those presented in the Gallus case. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit’s decision in the Gallus case and remanded the case to the Eighth Circuit for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates. On June 4, 2010, the Eighth Circuit remanded the Gallus case to the District Court for further consideration in light of the Supreme Court’s decision in Jones v. Harris Associates . On December 9, 2010, the District Court reinstated its July 9, 2007 summary judgment order in favor of the defendants. On January 10, 2010, plaintiffs filed a notice of appeal with the Eighth Circuit.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 57

Notes to Financial Statements (continued)

58 COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of
Columbia Seligman Communications and Information Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Seligman Communications and Information Fund, Inc. (formerly known as Seligman Communications and Information Fund, Inc.) (the Fund) as of December 31, 2010, and the related statement of operations for the year then ended, and the statements of changes in net assets and financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Fund for the periods presented through December 31, 2008, were audited by other auditors whose report dated February 27, 2009, expressed an unqualified opinion on those financial highlights.

COLUMBIA SELIGMAN COMMUNICATIONS AND INFORMATION FUND — 2010 ANNUAL REPORT 59

PART C. OTHER INFORMATION

Item 28. Exhibits


(a)(1)		Agreement and Declaration of Trust effective January 27, 2006, filed electronically on or about Feb. 8, 2006 as Exhibit (a) to Registrant’s Registration Statement is incorporated by reference.

(a)(2)		Amendment No. 1 to the Agreement and Declaration of Trust filed electronically on or about Oct. 2, 2007 as Exhibit (a)(2) to Registrant’s Post-Effective Amendment No. 5 to Registration Statement No. 333-131683 is incorporated by reference.

(a)(3)		Amendment No. 2 to the Agreement and Declaration of Trust, dated Jan. 8, 2009, filed electronically on or about Jan. 27, 2009 as Exhibit (a)(3) to Registrant’s Post-Effective Amendment No. 8 to Registration Statement No. 333-131683 is incorporated by reference.

(a)(4)		Amendment No. 3 to the Agreement and Declaration of Trust, dated Aug. 9, 2010, is filed electronically herewith as Exhibit (a)(4) to Registrant’s Post-Effective Amendment No. 19 to Registration Statement No. 333-131683.

(a)(5)		Amendment No. 4 to the Agreement and Declaration of Trust, dated Jan. 13, 2011, is filed electronically herewith as Exhibit (a)(5) to Registrant’s Post-Effective Amendment No. 19 to Registration Statement No. 333-131683.

(b)		By-laws filed electronically on or about April 21, 2006 as Exhibit (b) to Registrant’s Pre-Effective Amendment No. 1 to Registration Statement No. 333-131683 are incorporated by reference.

(c)		Stock Certificate: Not applicable.

(d)(1)		Investment Management Services Agreement, dated May 1, 2006, amended and restated April 9, 2009, between Registrant and RiverSource Investments, LLC, now known as Columbia Management Investment Advisers, LLC, filed electronically on or about April 29, 2010 as Exhibit (d) to Registrant’s Post-Effective Amendment No. 10 to Registration Statement No. 333-131683 is incorporated by reference.

(d)(2)		Investment Management Services Agreement, dated Sept. 22, 2010, between Registrant, on behalf of Columbia Marsico Flexible Capital Fund, and Columbia Management Investment Advisers, LLC, is filed electronically herewith as Exhibit (d)(2) to Registrant’s Post-Effective Amendment No. 19 to Registration Statement No. 333-131683.

(d)(3)		Form of the Subadvisory Agreement for Columbia Marsico Flexible Capital Fund to be filed by Amendment.

(e)(1)		Distribution Agreement, effective Nov. 7, 2008, amended and restated April 6, 2010, between Registrant and RiverSource Fund Distributors, Inc., now known as Columbia Management Investment Distributors, Inc., filed electronically on or about May 27, 2010 as Exhibit (e)(1) to RiverSource Strategy Series, Inc. Post-Effective Amendment No. 58 to Registration Statement No. 2-89288 is incorporated by reference.

(e)(2)		Form of Mutual Fund Sales Agreement filed electronically on or about July 9, 2010 as Exhibit (e)(2) to RiverSource Bond Series, Inc. Post-Effective Amendment No. 63 to Registration Statement No. 2-72174 is incorporated by reference.

(f)		Deferred Compensation Plan, amended and restated Jan. 1, 2010, filed electronically on or about Jan. 26, 2011 as Exhibit (f) to RiverSource Tax-Exempt Series, Inc. Post-Effective Amendment No. 62 to Registration Statement No. 2-57328 is incorporated by reference.


(g)		Form of Master Global Custody Agreement with JP Morgan Chase Bank, N.A. filed electronically on or about Dec. 23, 2008 as Exhibit (g) to RiverSource International Managers Series, Inc. Post-Effective Amendment No. 18 to Registration Statement No. 333-64010 is incorporated by reference.

(h)(1)		Administrative Services Agreement, dated Jan. 1, 2011, between Registrant and Columbia Management Investment Advisers, LLC is filed electronically herewith as Exhibit (h)(1) to Registrant’s Post-Effective Amendment No. 19 to Registration Statement No. 333-131683.

(h)(2)		Transfer and Dividend Disbursing Agent Agreement, dated Sept. 7, 2010, between Registrant and Columbia Management Investment Services Corp. filed electronically on or about Nov. 29, 2010 as Exhibit (h)(2) to Seligman Municipal Series Trust Post-Effective Amendment No. 44 to Registration Statement No. 2-92569 is incorporated by reference.

(h)(3)		Plan Administration Services Agreement, dated Dec. 1, 2006, amended and restated April 6, 2010, between Registrant and RiverSource Service Corporation, now known as Columbia Management Investment Services Corp., filed electronically on or about April 29, 2010 as Exhibit (h)(3) to Registrant’s Post-Effective Amendment No. 10 to Registration Statement No. 333-131683 is incorporated by reference.

(h)(4)		Master Fee Cap/Fee Waiver Agreement, dated Oct. 1, 2005, amended and restated April 6, 2010, between RiverSource Investments, LLC, now known as Columbia Management Investment Advisers, LLC, Ameriprise Financial, Inc., RiverSource Service Corporation, now known as Columbia Management Investment Services Corp., RiverSource Fund Distributors, Inc., now known as Columbia Management Investment Distributors, Inc. and the Registrant filed electronically on or about April 29, 2010 as Exhibit (h)(4) to Registrant’s Post-Effective Amendment No. 10 to Registration Statement No. 333-131683 is incorporated by reference.

(h)(5)		License Agreement, effective May 1, 2006, amended and restated as of Nov. 12, 2008, between Ameriprise Financial, Inc. and RiverSource Family of Funds filed electronically on or about Feb. 27, 2009 as Exhibit (h)(4) to RiverSource Variable Series Trust Post-Effective Amendment No. 4 to Registration Statement No. 333-146374 is incorporated by reference.

(i)		Opinion and consent of counsel as to the legality of the securities being registered is filed electronically herewith.

(j)		Consent of Independent Registered Public Accounting Firm is filed electronically herewith.

(k)		Omitted Financial Statements: Not Applicable.

(l)		Initial Capital Agreement: Not Applicable.

(m)		Plan of Distribution and Agreement of Distribution, effective Nov. 7, 2008, amended and restated April 6, 2010, between Registrant and RiverSource Fund Distributors, Inc., now known as Columbia Management Investment Distributors, Inc., filed electronically on or about April 29, 2010 as Exhibit (m) to Registrant’s Post-Effective Amendment No. 10 to Registration Statement No. 333-131683 is incorporated by reference.

(n)		Amended and Restated Rule 18f — 3 Multi-Class Plan as of Sept. 7, 2010, filed electronically on or about Nov. 29, 2010 as Exhibit (n) to Seligman Municipal Series Trust Post-Effective Amendment No. 44 to Registration Statement No. 2-92569 is incorporated by reference.

(o)		Reserved.


(p)(1)		Code of Ethics adopted under Rule 17j-1 for Registrant filed electronically on or about Feb. 27, 2009 as Exhibit (p)(1) to RiverSource Variable Series Trust Post-Effective Amendment No. 4 to Registration Statement No. 333-146374 is incorporated by reference.

(p)(2)		Code of Ethics adopted under Rule 17j-1 for Registrant’s investment adviser and principal underwriter, dated May 1, 2010, filed electronically on or about May 27, 2010 as Exhibit (p)(2) to RiverSource Strategy Series, Inc. Post-Effective Amendment No. 58 to Registration Statement No. 2-89288 is incorporated by reference.

(q)		Directors/Trustees Power of Attorney to sign Amendments to this Registration Statement, dated April 6, 2010, filed electronically on or about April 29, 2010 as Exhibit (q) to Registrant’s Post-Effective Amendment No. 10 to Registration Statement No. 333-131683 is incorporated by reference.

Item 29. Persons Controlled by or Under Common Control with Registrant:

Columbia Management Investment Advisers, LLC (the investment manager or Columbia Management), formerly RiverSource Investments, LLC, as sponsor of the funds in the fund family that includes the Columbia, RiverSource, Seligman and Threadneedle funds (the Fund Family), may make initial capital investments in funds in the Fund Family (seed accounts). Columbia Management also serves as investment manager of certain funds-of-funds in the Fund Family that invest primarily in shares of affiliated funds (the “underlying funds”). Columbia Management does not make initial capital investments or invest in underlying funds for the purpose of exercising control. However, since these ownership interests may be significant, in excess of 25%, such that Columbia Management may be deemed to control certain funds in the Fund Family, procedures have been put in place to assure that public shareholders determine the outcome of all actions taken at shareholder meetings. Specifically, Columbia Management (which votes proxies for the seed accounts) and the Boards of Directors or Trustees of the affiliated funds-of-funds (which votes proxies for the affiliated funds-of-funds) vote on each proposal in the same proportion that other shareholders vote on the proposal.

Item 30. Indemnification

The Declaration of Trust of the Registrant provides that the Registrant shall indemnify any person who was or is a party or is threatened to be made a party, by reason of the fact that she or he is or was a director/trustee, officer, employee or agent of the Registrant, or is or was serving at the request of the Registrant as a director/trustee, officer, employee or agent of another company, partnership, joint venture, trust or other enterprise, to any threatened, pending or completed action, suit or proceeding, wherever brought, and the Registrant may purchase liability insurance and advance legal expenses, all to the fullest extent permitted by the laws of the Commonwealth of Massachusetts, as now existing or hereafter amended. The By-laws of the Registrant provide that present or former directors/trustees or officers of the Registrant made or threatened to be made a party to or involved (including as a witness) in an actual or threatened action, suit or proceeding shall be indemnified by the Registrant to the full extent authorized by the Massachusetts Business Corporation Act, all as more fully set forth in the By-laws filed as an exhibit to this registration statement.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors/trustees, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director/trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director/trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate

jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Any indemnification hereunder shall not be exclusive of any other rights of indemnification to which the directors/trustees, officers, employees or agents might otherwise be entitled. No indemnification shall be made in violation of the Investment Company Act of 1940.

Item 31. Business and Other Connections of the Investment Adviser

To the knowledge of the Registrant, none of the directors or officers of Columbia Management Investment Advisers, LLC (Columbia Management), the Registrant’s investment adviser, or Marsico Capital Management, LLC, the subadviser to Columbia Marsico Flexible Capital Fund, except as set forth below, are or have been, at any time during the Registrant’s past two fiscal years, engaged in any other business, profession, vocation or employment of a substantial nature.

(a)

Columbia Management, a wholly owned subsidiary of Ameriprise Financial, Inc., performs investment advisory services for the Registrant and certain other clients. Information regarding the business of Columbia Management and the directors and principal officers of Columbia Management is also included in the Form ADV filed by Columbia Management (formerly, RiverSource Investments, LLC) with the SEC pursuant to the Investment Advisers Act of 1940 (File No. 801-25943), which is incorporated herein by reference. In addition to their position with Columbia Management, except that certain directors and officers of Columbia Management also hold various positions with, and engage in business for, Ameriprise Financial, Inc. or its other subsidiaries. Prior to May 1, 2010, when Ameriprise Financial, Inc. acquired the long-term asset management business of Columbia Management Group, LLC from Bank of America, N.A., certain current directors and officers of CMIA held various positions with, and engaged in business for, Columbia Management Group, LLC or other direct or indirect subsidiaries of Bank of America Corporation.

(b)

Marsico Capital Management, LLC performs investment management services for the Registrant and certain other clients. Information regarding the business of Marsico Capital Management, LLC is set forth in the Prospectuses and Statement of Additional Information of the Registrant’s series that are subadvised by Marsico Capital Management, LLC and is incorporated herein by reference. Information about the business of Marsico Capital Management, LLC and the directors and principal executive officers of Marsico Capital Management, LLC is also included in the Form ADV filed by Marsico Capital Management, LLC with the SEC pursuant to the Investment Advisers Act of 1940 (File No. 801-54914), which is incorporated herein by reference.

Item 32. Principal Underwriter

(a)		Columbia Management Investment Distributors, Inc. acts as principal underwriter for the following investment companies, including the Registrant:

		Columbia Acorn Trust; Columbia Funds Series Trust; Columbia Funds Series Trust I; Columbia Funds Series Trust II; Columbia Funds Variable Insurance Trust; Columbia Funds Variable Insurance Trust I; RiverSource Bond Series, Inc.; RiverSource California Tax-Exempt Trust; RiverSource Dimensions Series, Inc.; RiverSource Diversified Income Series, Inc.; RiverSource Equity Series, Inc.; RiverSource Global Series, Inc.; RiverSource Government Income Series, Inc.; Columbia Government Money Market Fund, Inc.; RiverSource High Yield Income Series, Inc.; RiverSource Income Series, Inc.; RiverSource International Managers Series, Inc.; RiverSource International Series, Inc.; RiverSource Investment Series, Inc.; RiverSource Large Cap Series, Inc.; RiverSource Managers Series, Inc.; RiverSource Market Advantage Series, Inc.; RiverSource Money Market Series, Inc.; RiverSource Sector Series, Inc.; RiverSource Selected Series, Inc.; RiverSource Series Trust; RiverSource Short Term Investments Series, Inc.; RiverSource Special Tax-Exempt Series Trust; RiverSource Strategic Allocation Series, Inc., RiverSource Strategy Series, Inc.; RiverSource Tax-Exempt Income Series, Inc.; RiverSource Tax-Exempt Series, Inc.; RiverSource Variable Series Trust; Seligman Capital Fund, Inc.; Columbia Seligman Communications and Information Fund, Inc.; Columbia Frontier Fund, Inc., Seligman Growth Fund, Inc.; Seligman Global Fund Series; Inc.;

Seligman LaSalle Real Estate Fund Series, Inc.; Seligman Municipal Fund Series, Inc.; Seligman Municipal Series Trust; Seligman Portfolios, Inc.; Seligman Value Fund Series, Inc., and Wanger Advisors Trust. Columbia Management Investment Distributors, Inc. acts as placement agent for Columbia Funds Master Investment Trust, LLC.

(b)

As to each director, principal officer or partner of Columbia Management Investment Distributors, Inc.


Name and Principal Business	Position and Offices	Positions and Offices
Address*	with Principal Underwriter	with Registrant
William F. Truscott	Director (Chairman)	Board Member, Vice President
Michael A. Jones	Director; President	Vice President
Beth Ann Brown	Director; Senior Vice President
Amy Unckless	Director; Chief Administrative Officer	None
Jeffrey F. Peters	Senior Vice President	None
Dave K. Stewart	Chief Financial Officer	None
Scott Roane Plummer	Vice President, Chief Counsel and Assistant Secretary	Vice President, Secretary and General Counsel
Stephen O. Buff	Vice President, Chief Compliance Officer	None
Christopher Thompson	Senior Vice President and Head of Investment Products and Marketing	None
Brian Walsh	Vice President, Strategic Relations	None
Frank Kimball	Vice President, Asset Management Distribution Operations and Governance	None
Thomas R. Moore	Secretary	None
Michael E. DeFao	Vice President and Assistant Secretary	None
Paul Goucher	Vice President and Assistant Secretary	Assistant Secretary
Tara Tilbury	Vice President and Assistant Secretary	Assistant Secretary
Nancy W. LeDonne	Vice President and Assistant Secretary	None
Ryan C. Larrenega	Vice President and Assistant Secretary	None
Joseph L. D’Alessandro	Vice President and Assistant Secretary	Assistant Secretary
Christopher O. Petersen	Vice President and Assistant Secretary	Assistant Secretary
Eric T. Brandt	Vice President and Assistant Secretary	None
Neysa Alecu	Anti-Money Laundering Officer and Identity Theft Prevention Officer	Money Laundering Prevention Officer and Identity Theft Prevention Officer


Name and Principal Business	Position and Offices	Positions and Offices
Address*	with Principal Underwriter	with Registrant
Kevin Wasp	Ombudsman	None
Lee Faria	Conflicts Officer	None


*		The principal business address of Columbia Management Investment Distributors, Inc. is 225 Franklin Street, Boston MA 02110.

(c)

Not Applicable.

Item 33. Location of Accounts and Records

Persons maintaining physical possession of accounts, books and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder include:

•

Fund headquarters, 901 Marquette Avenue South, Suite 2810, Minneapolis, MN 55402;

•

Registrant’s investment adviser and administrator, Columbia Management Investment Advisers, LLC, 225 Franklin Street, Boston, MA 02110;

•

Registrant’s subadviser, Marsico Capital Management, LLC, 1200 17 ^th St., STE 1600, Denver, CO 80202;

•

Registrant’s principal underwriter, Columbia Management Investment Distributors, Inc., 225 Franklin Street, Boston, MA 02110;

•

Registrant’s transfer agent, Columbia Management Investment Services Corp., 225 Franklin Street, Boston, MA 02110; and

•

Registrant’s custodian, JPMorgan Chase Bank, N.A., 1 Chase Manhattan Plaza, New York, NY 10005.

In addition, Iron Mountain Records Management is an off-site storage facility housing historical records that are no longer required to be maintained on-site. Records stored at this facility include various trading and accounting records, as well as other miscellaneous records. The address for Iron Mountain Records Management is 920 & 950 Apollo Road, Eagan, MN 55121.

Item 34. Management Services

Not Applicable.

Item 35. Undertakings

Not Applicable.

SIGNATURES

Pursuant to the requirements of the Securities Act and the Investment Company Act, the Registrant, RIVERSOURCE SERIES TRUST, certifies that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement under Rule 485(b) and has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Minneapolis, and State of Minnesota, and in the City of Boston, and State of Massachusetts on the 4 ^th day of March, 2011.


RIVERSOURCE SERIES TRUST
By	/s/J. Kevin Connaughton
	J. Kevin Connaughton
	President

Pursuant to the requirements of the Securities Act, this Amendment to the Registration Statement has been signed below by the following persons in the capacities indicated on the 4 ^th day of March, 2011.


Signature		Capacity

/s/ J. Kevin Connaughton J. Kevin Connaughton		President (Principal Executive Officer)

/s/ Michael G. Clarke Michael G. Clarke		Chief Financial Officer (Principal Financial Officer)

/s/ Paul D. Pearson Paul D. Pearson		Chief Accounting Officer (Principal Accounting Officer)

/s/ Stephen R. Lewis, Jr.* Stephen R. Lewis, Jr.		Chair of the Board

/s/ Kathleen A. Blatz* Kathleen A. Blatz		Trustee

/s/ Pamela G. Carlton* Pamela G. Carlton		Trustee

/s/ Patricia M. Flynn* Patricia M. Flynn		Trustee

/s/ Anne P. Jones* Anne P. Jones		Trustee

/s/ John F. Maher* John F. Maher		Trustee

/s/ Catherine James Paglia* Catherine James Paglia		Trustee

/s/ Leroy C. Richie* Leroy C. Richie		Trustee

/s/ Alison Taunton-Rigby* Alison Taunton-Rigby		Trustee

/s/ William F. Truscott* William F. Truscott		Trustee


*		Signed pursuant to Directors/Trustees Power of Attorney, dated April 6, 2010, filed electronically on or about April 29, 2010 as Exhibit (q) to Registrant’s Post-Effective Amendment No. 10 to Registration Statement No. 333-131683, by:



/s/ Scott R. Plummer
Scott R. Plummer


Amendment		No. 21		(File No. 811-21852)		þ


Class		Ticker Symbol

Class A		SCMXX
Class B		SCBXX
Class C		SCCXX
Class R*		SMRXX
Class R5		SMIXX


Summary of the Fund
Investment Objective		3p
Fees and Expenses of the Fund		3p
Principal Investment Strategies of the Fund		4p
Principal Risks of Investing in the Fund		4p
Past Performance		5p
Fund Management		6p
Buying and Selling Shares		6p
Tax Information		7p
Financial Intermediary Compensation		7p
More Information about the Fund		8p
Investment Objective		8p
Principal Investment Strategies of the Fund		8p
Principal Risks of Investing in the Fund		9p
More about Annual Fund Operating Expenses		10p
Other Investment Strategies and Risks		11p
Fund Management and Compensation		11p
Financial Highlights		13p
Choosing a Share Class		S.1
Comparison of Share Classes		S.2
Sales Charges and Commissions		S.8
Reductions/Waivers of Sales Charges		S.24
Distribution and Service Fees		S.30
Selling and/or Servicing Agent Compensation		S.36
Buying, Selling and Exchanging Shares		S.38
Share Price Determination		S.38
Transaction Rules and Policies		S.40
Opening an Account and Placing Orders		S.48
Buying Shares		S.50
Selling Shares		S.60
Exchanging Shares		S.63
Distributions and Taxes		S.66
Additional Services and Compensation		S.71
Additional Management Information		S.71


•	The offering price per share is the net asset value per share plus any front-end sales charge that applies.

•	The net asset value (or NAV) per share is the price of a share calculated by the Fund every business day.


Number of Years Class F 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 E Shares


	Ticker Symbol
	Columbia		Columbia
	Select Large-Cap		Select Smaller-Cap
Class	Value Fund		Value Fund

Class A		SLVAX		SSCVX
Class B		SLVBX		SSCBX
Class C		SLVCX		SVMCX
Class I		—		—
Class R*		SLVRX		SSVRX
Class R4		SLVTX		SSLRX
Class R5		SLVIX		SSVIX
Class W		CSVWX		N/A


Summary of Columbia Select Large-Cap Value Fund		3p
Summary of Columbia Select Smaller-Cap Value Fund		11p
More Information about the Funds
Columbia Select Large-Cap Value Fund		19p
Investment Objective		19p
Principal Investment Strategies of the Fund		19p
Principal Risks of Investing in the Fund		20p
Columbia Select Smaller-Cap Value Fund		22p
Investment Objective		22p
Principal Investment Strategies of the Fund		22p
Principal Risks of Investing in the Fund		23p
More about Annual Fund Operating Expenses		25p
Other Investment Strategies and Risks		25p
Fund Management and Compensation		28p
Financial Highlights		30p
Choosing a Share Class		S.1
Comparison of Share Classes		S.2
Sales Charges and Commissions		S.8
Reductions/Waivers of Sales Charges		S.24
Distribution and Service Fees		S.30
Selling and/or Servicing Agent Compensation		S.36
Buying, Selling and Exchanging Shares		S.38
Share Price Determination		S.38
Transaction Rules and Policies		S.40
Opening an Account and Placing Orders		S.48
Buying Shares		S.50
Selling Shares		S.60
Exchanging Shares		S.63
Distributions and Taxes		S.66
Additional Services and Compensation		S.71
Additional Management Information		S.71


	Year ended December 31,
	2010			2009 ^(e)
Class I
Per share data
Net asset value, beginning of period		$40.29			$34.44

Income from investment operations:
Net investment loss		(.13	)		(.08	)
Net realized and unrealized gain on investments		6.44			5.93
Increase from payments by affiliate		.01			—

Total from investment operations		6.32			5.85

Proceeds from regulatory settlement		.01			—

Net asset value, end of period		$46.62			$40.29

Total return		15.71%	^(a),(b)		16.99%

Ratios to average net assets ^(c)
Total expenses		0.96%			1.00%	^(f)

Net investment loss		(0.31%	)		(0.50%	) ^(f)

Supplemental data
Net assets, end of period (in thousands)		$55,590			$39,507

Portfolio turnover		105%			150%


Fundamental and Nonfundamental Investment Policies		p. 5
Investment Strategies and Types of Investments		p. 13
Information Regarding Risks and Investment Strategies		p. 15
Securities Transactions		p. 42
Brokerage Commissions Paid to Brokers Affiliated with the Investment Manager		p. 57
Valuing Fund Shares		p. 62
Portfolio Holdings Disclosure		p. 74
Proxy Voting		p. 77
Investing in a Fund		p. 79
Selling Shares		p. 87
Pay-out Plans		p. 87
Capital Loss Carryover		p. 88
Taxes		p. 91
Service Providers		p. 96
Investment Management Services		p. 96
Administrative Services		p. 148
Transfer Agency Services		p. 153
Plan Administration Services		p. 153
Distribution Services		p. 153
Plan and Agreement of Distribution		p. 157
Payments to Financial Intermediaries		p. 162
Custodian Services		p. 165
Board Services Corporation		p. 165
Organizational Information		p. 165
Board Members and Officers		p. 172
Control Persons and Principal Holders of Securities		p. 190
Information Regarding Pending and Settled Legal Proceedings		p. 217
Independent Registered Public Accounting Firm		p. 218
Appendix A: Description of Ratings		p. A-1
Appendix B: State Risk Factors		p. B-1
Appendix C: Additional Information about the S&P 500 Index		p. C-1
Appendix D: Class A — Calculation of the Sales Charge		p. D-1
Appendix E: Legacy Columbia Funds		p. E-1
Appendix F: Legacy RiverSource Funds		p. F-1


1.	Fund Fiscal Year Ends, Prospectus Date and Investment Categories	p. 3
2.	Fundamental Policies	p. 5
3.	Investment Strategies and Types of Investments	p. 13
4.	Total Brokerage Commissions	p. 45
5.	Brokerage Directed for Research, and Turnover Rates	p. 48
6.	Securities of Regular Brokers or Dealers	p. 51
7.	Brokerage Commissions Paid to Investment Manager or Affiliates	p. 57
8.	Valuing Fund Shares	p. 62
9.	Class A — Initial Sales Charge	p. 79
10.	Public Offering Price	p. 80
11.	Capital Loss Carryover	p. 88
12.	Corporate Deduction and Qualified Dividend Income	p. 93
13.	Investment Management Services Agreement Fee Schedule	p. 97
14.	PIA Indexes	p. 106
15A.	Performance Incentive Adjustment Calculation	p. 108
15B.	Performance Incentive Adjustment Calculation	p. 109
16.	Management Fees and Nonadvisory Expenses	p. 110
17.	Subadvisers and Subadvisory Agreement Fee Schedules	p. 114
18.	Subadvisory Fees	p. 116
19.	Portfolio Managers	p. 118
20.	Administrative Services Agreement Fee Schedule	p. 148
21.	Administrative Fees	p. 150
22.	Sales Charges Paid to Distributor	p. 153
23.	12b-1 Fees	p. 158
24.	Unreimbursed Distribution Expenses	p. 161
25.	Fund History Table	p. 166
26.	Board Members	p. 172
27.	Fund Officers	p. 174
28.	Committee Meetings	p. 177
29.	Board Member Holdings	p. 178
30.	Board Member Compensation — All Funds	p. 184
31.	Board Member Compensation — Individual Funds	p. 185
32.	Control Persons and Principal Holders of Securities	p. 190


*		Subsequent to Aug. 31, 2008. Lehman Brothers Holdings filed a Chapter 11 bankruptcy petition.


(a)		The subadviser did not begin managing the fund until after the fund’s fiscal year end.

(b)		For the fiscal period from June 1, 2008 to June 6, 2008.

(c)		For the fiscal period from June 1, 2009 to Feb. 19, 2010.

(d)		For the fiscal period from July 15, 2009 to Oct. 31, 2009.

(e)		For the fiscal period from Aug. 1, 2008 to Oct. 31, 2008.

(f)		For the fiscal period from Aug. 18, 2008 to Oct. 31, 2008.

(g)		For the fiscal period from Nov. 1, 2009 to May 6, 2010.

(h)		For the fiscal period from Aug. 10, 2009 to Oct. 31, 2009.

(i)		For the fiscal period from Nov. 1, 2009 to April 30, 2010.

(j)		For the fiscal period from Nov. 1, 2008 to Aug. 7, 2009.

(k)		The fund is new as of Sept. 28, 2010 and has not passed its fiscal period end; therefore no reporting is available.


(a)		Prior to Sept. 7, 2010, Class A for RiverSource S&P 500 Index Fund was known as Class D.


		Income Builder Fund II; RiverSource Income Builder Enhanced Fund changed its name to Columbia Income Builder Fund III; RiverSource Partners International Select Value Fund changed its name to Columbia Multi-Advisor International Value Fund; Threadneedle Asia Pacific Fund changed its name to Columbia Asia Pacific ex-Japan Fund; RiverSource Disciplined Large Cap Growth Fund changed its name to Columbia Large Growth Quantitative Fund; RiverSource Disciplined Large Cap Value Fund changed its name to Columbia Large Value Quantitative Fund; RiverSource Mid Cap Value Fund changed its name to Columbia Mid Cap Value Opportunity Fund; RiverSource Disciplined Equity Fund changed its name to Columbia Large Core Quantitative Fund; RiverSource Partners Small Cap Value Fund changed its name to Columbia Multi-Advisor Small Cap Value Fund; RiverSource Cash Management Fund changed its name to Columbia Money Market Fund; RiverSource Tax-Exempt Bond Fund changed its name to Columbia AMT-Free Tax-Exempt Bond Fund; Seligman Communications and Information Fund, Inc. changed its name to Columbia Seligman Communications and Information Fund, Inc.; Seligman Global Technology Fund changed its name to Columbia Seligman Global Technology Fund; Seligman Large-Cap Value Fund changed its name to Columbia Select Large-Cap Value Fund; and Seligman Smaller-Cap Value Fund changed its name to Columbia Select Smaller-Cap Value Fund.


(d)		Also represents the cost of securities for federal income tax purposes at Dec. 31, 2010.


Investment income
Income:
Interest		247,424
Income from securities lending — net		3,862

Total income		251,286

Expenses:
Investment management services fees		462,678
Distribution fees
Class A		27,456
Class B		32,268
Class C		30,841
Class R		2,423
Transfer agency fees
Class A		206,372
Class B		8,141
Class C		26,753
Class R		2,866
Class R5		143
Class Z		123
Administrative services fees		84,123
Plan administration services fees — Class R		6,280
Compensation of board members		4,137
Custodian fees		9,281
Printing and postage		68,050
Registration fees		111,980
Professional fees		37,996
Other		60,293

Total expenses		1,182,204
Expenses waived/reimbursed by the Investment Manager and its affiliates		(943,602	)

Total net expenses		238,602

Investment income (loss) — net		12,684

Realized and unrealized gain (loss) — net
Net realized gain (loss) on security transactions		384

Net increase (decrease) in net assets resulting from operations	$	13,068


Class A	0.17	%
Class B	0.18
Class C	0.17
Class R	0.18
Class R5	0.18
Class Z	0.18


Class A	$	232,135
Class B		40,134
Class C		57,593
Class R		11,293
Class R5		109
Class Z		106


Unrealized appreciation	$75,557,372
Unrealized depreciation	(4,435,570	)

Net unrealized appreciation	$71,121,802


Class A	1.45	%
Class B	2.20
Class C	2.20
Class I	1.00
Class R	1.70
Class R4	1.30
Class R5	1.05
Class Z	1.20


Barclays Capital, Inc. (0.300%)
Security description	Value
Arabella Ltd		$50,397
Archer Daniels		518,468
ASB Finance Ltd		614,243
Banco Bilbao Vizcaya		1,658,123
Banco Bilbao Vizcaya Argentaria/New York NY		24,519
BP Capital Markets		308,146
BPCE		221,541
Central American Bank		1,920
Commonwealth Bank of Australia		311,935
Credit Agricole NA		512
Danske Corp		767,411
Electricite De France		1,270,764
European Investment Bank		1,709,846
Gdz Suez		263,954
Golden Funding Corp		18,171
Ing (US) Funding LLC		80
Natexis Banques		197,337
Nationwide Building		1,230,262
Natixis NY		96,000
Natixis US Finance Co		1,600
Prudential PLC		371,140
Silver Tower US Fund		4,800
Skandin Ens Banken		48,037
Societe Gen No Amer		799,593
Societe Generale NY		10,400
UBS Ag Stamford		801

Total market value of collateral securities		$10,500,000



Cantor Fitzgerald & Co. (0.400%)
Security description	Value
Fannie Mae Interest Strip		$2,882,795
Fannie Mae Pool		7,873,088
Fannie Mae Principal Strip		94,153
Fannie Mae REMICS		5,277,569
Federal Farm Credit Bank		4,908,328
Federal Home Loan Banks		8,793,669
Federal Home Loan Mortgage Corp		659,754
Federal National Mortgage Association		7,624,729
FHLMC Structured Pass Through Securities		3,121,178
Freddie Mac Non Gold Pool		7,557,468
Freddie Mac Reference REMIC		50,863
Freddie Mac REMICS		4,638,535


Mizuho Securities USA, Inc. (0.500%) (continued)
Security description	Value
Ginnie Mae II Pool		$351,038
Government National Mortgage Association		651,145
United States Treasury Note/Bond		1,460,299

Total market value of collateral securities		$10,200,000



Nomura Securities (0.500%)
Security description	Value
Fannie Mae Pool		$4,566,830
Freddie Mac Gold Pool		5,633,170

Total market value of collateral securities		$10,200,000


(h)		Securities valued by management at fair value according to procedures approved, in good faith, by the board.


Assets
Investments, at value
Unaffiliated issuers* (identified cost $2,935,661,275)	$	3,324,821,804
Affiliated issuers (identified cost $667,613,849)		719,871,673
Investment of cash collateral received for securities on loan (identified cost $381,980,094)		381,980,094

Total investments (identified cost $3,985,255,218)		4,426,673,571
Receivable for:
Capital shares sold		4,322,628
Investments sold		15,849,403
Dividends		322,722
Interest		45,148

Total assets		4,447,213,472

Liabilities
Due upon return of securities on loan		381,980,094
Payable for:
Investments purchased		13,528,326
Capital shares purchased		5,210,613
Investment management fees		94,208
Distribution fees		45,231
Transfer agent fees		858,686
Administration fees		5,475
Plan administration fees		101
Other expenses		2,882,589

Total liabilities		404,605,323

Net assets applicable to outstanding capital stock	$	4,042,608,149


Represented by
Paid-in capital	$	3,500,283,564
Excess of distributions over net investment income		(104,314	)
Accumulated net realized gain		101,010,546
Unrealized appreciation (depreciation) on:
Investments		441,418,353

Total — representing net assets applicable to outstanding capital stock	$	4,042,608,149

*Value of securities on loan	$	372,764,813

Net assets
Class A	$	3,066,070,816
Class B	$	85,897,298
Class C	$	767,799,553
Class I	$	55,589,782
Class R	$	47,553,655
Class R3	$	96,339
Class R4	$	506,749
Class R5	$	18,414,461
Class Z	$	679,496
Shares outstanding
Class A		68,583,469
Class B		2,315,630
Class C		20,684,543
Class I		1,192,278
Class R		1,086,855
Class R3		2,195
Class R4		10,916
Class R5		395,196
Class Z		14,576
Net asset value per share
Class A ^(a)	$	44.71
Class B	$	37.09
Class C	$	37.12
Class I	$	46.62
Class R	$	43.75
Class R3	$	43.89
Class R4	$	46.42
Class R5	$	46.60
Class Z	$	46.62


Net investment income
Income:
Dividends	$	22,192,233
Interest		132,148
Dividends from affiliates		318,744
Income from securities lending — net		745,940
Foreign taxes withheld		(56,338	)

Total income		23,332,727

Expenses:
Investment management fees		31,300,872
Distribution fees
Class A		6,972,053
Class B		916,980
Class C		6,974,792
Class R		199,405
Class R3		135
Transfer agent fees
Class A		4,262,181
Class B		148,816
Class C		1,084,891
Class R		31,957
Class R3		25
Class R4		39
Class R5		8,491
Class Z		40
Administration fees		1,848,982
Plan administration fees
Class R		64,273
Class R3		135
Class R4		213
Compensation of board members		103,809
Custodian fees		75,046
Printing and postage fees		376,000
Registration fees		211,838
Professional fees		106,396
Other		1,107,581

Total expenses		55,794,950

Net investment loss		(32,462,223	)


Realized and unrealized gain (loss) — net
Net realized gain (loss) on:
Investments — unaffiliated issuers	$	300,015,205
Investments — affiliated issuers		61,900,484
Foreign currency transactions		405,509
Forward foreign currency exchange contracts		(282,764	)
Options contracts written		(385,807	)
Increase from payment by affiliate (see Note 6)		1,219,315

Net realized gain		362,871,942
Net change in unrealized appreciation (depreciation) on:
Investments		195,131,127
Foreign currency translations		(498	)

Net change in unrealized appreciation		195,130,629

Net realized and unrealized gain		558,002,571

Net increase in net assets resulting from operations	$	525,540,348

		Columbia Government Money Market Fund Multiple Share Class Prospectus. Columbia Government Money Market Fund Class Z Prospectus.

		Columbia Select Large-Cap Value Fund and Columbia Select Smaller-Cap Value Fund Multiple Share Class Prospectus. Columbia Select Large-Cap Value Fund and Columbia Select Smaller-Cap Value Fund Class Z Prospectus.


/s/ Kathleen A. Blatz Kathleen A. Blatz		/s/ Stephen R. Lewis, Jr. Stephen R. Lewis, Jr.

/s/ Arne H. Carlson		/s/ John F. Maher

Arne H. Carlson		John F. Maher

/s/ Pamela G. Carlton		/s/ Catherine James Paglia

Pamela G. Carlton		Catherine James Paglia

/s/ Patricia M. Flynn		/s/ Leroy C. Richie

Patricia M. Flynn		Leroy C. Richie

/s/ Anne P. Jones		/s/ Alison Taunton-Rigby

Anne P. Jones		Alison Taunton-Rigby

/s/ Jeffrey Laikind		/s/ William F. Truscott

Jeffrey Laikind		William F. Truscott


*		901 S. Marquette Avenue Minneapolis, MN 55402

**		53600 Ameriprise Financial Center Minneapolis, MN 55474