Columbia Funds Series Trust NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-09645

Columbia Funds Series Trust
(Exact name of registrant as specified in charter)

One Financial Center, Boston, Massachusetts					02111
(Address of principal executive offices)					(Zip code)

James R. Bordewick, Jr., Esq. Columbia Management Advisors, LLC One Financial Center Boston, MA 02111
(Name and address of agent for service)

Registrant’s telephone number, including area code:				1-617-426-3750

Date of fiscal year end:	February 28

Date of reporting period:		February 28, 2010

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

Columbia Management^®

Annual Report

February 28, 2010

Columbia Overseas Value Fund

NOT FDIC INSURED				May Lose Value

NOT BANK ISSUED				No Bank Guarantee

Table of Contents

Fund Profile					1

Economic Update					2

Performance Information					4

Understanding Your Expenses					5

Portfolio Managers' Report					6

Financial Statements

Investment Portfolio					8

Statement of Assets and Liabilities					12

Statement of Operations					13

Statement of Changes in Net Assets					14

Financial Highlights					16

Notes to Financial Statements					17

Report of Independent Registered Public Accounting Firm					28

Federal Income Tax Information					29

Fund Governance					30

Board Consideration and Re-Approval of Current Investment Advisory Agreement					33

Board Consideration and Approval of Proposed Investment Advisory Agreement					37

Summary of Management Fee Evaluation by Independent Fee Consultant					44

Important Information About This Report					53

The views expressed in this report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Fund. References to specific securities should not be construed as a recommendation or investment advice.

President's Message

Dear Shareholder:

As we previously announced, Bank of America, N.A. has reached a definitive agreement to sell Columbia Management's long-term asset management business to Ameriprise Financial, Inc. This includes the management of its equity and fixed-income mutual funds.

This transaction combines two leading asset management firms and will create one entity that is expected to rank as one of the top asset managers. It is anticipated that the combined U.S. asset management business will operate under the well-regarded Columbia Management brand. The combined U.S. asset management business will be led by Ted Truscott, currently president, U.S. asset management, annuities and chief investment officer, Ameriprise Financial. Michael A. Jones, currently president of Columbia Management, will serve as president, U.S. asset management. Colin Moore, chief investment officer at Columbia Management, will continue to serve in that role for the combined organization. I will also continue in my role as head of mutual funds, responsible for the delivery of mutual fund products and services to investors.

As a valued investor in Columbia funds, please know that our goal is to ensure a smooth transition and provide you with the highest quality products and services. We will work closely with colleagues at Ameriprise Financial to seek a seamless transition for our clients and to keep you informed as the transition progresses and key decisions are made. We want to assure you that the funds' portfolio managers continue to focus on providing uninterrupted service to Columbia fund shareholders. Columbia Management and Ameriprise Financial will operate independently until all required approvals, including fund board, fund shareholder and other client approvals, have been received and the transaction closes, which is expected to occur in the spring of this year.

Meanwhile, transition teams across the company have been formed to oversee integration efforts including rebranding initiatives, vendor and system consolidations and client communications. Throughout the transition, we seek to build on best practices from both legacy organizations with enhancements to productivity, quality and the delivery of world-class customer experiences.

Clearly, we have a lot of work ahead of us in 2010. We look forward to introducing our combined business with an even wider breadth of products and capabilities. Everyone at Columbia Management and Ameriprise Financial is excited about the opportunities for this combined organization. I share this optimism and believe it will position us as a best-in-class asset management business with the ability to deliver more for clients than ever before.

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

Past performance is no guarantee of future results.

Fund Profile – Columbia Overseas Value Fund

Summary

^g For the 12-month period that ended February 28, 2010, the fund's Class Z shares returned 62.60% without sales charge.

^g The fund outperformed its benchmark, the MSCI EAFE Value Index¹, which returned 60.15%. Its return was also higher than the 57.28% average return of funds in its peer group, the Lipper International Multi-Cap Value Funds Classification.²

^g Investments in China, which is not represented in the index, and an overweight in Switzerland helped the fund outperform its benchmark, as did stock selection in the financials sector.

Portfolio Management

Fred Copper has co-managed the fund since March 2008 and has been associated with the advisor or its predecessors since 2005.

Jasmine (Weili) Huang has co-managed the fund since March 2008 and has been associated with the advisor or its predecessors since 2003.

Timothy R. Anderson has co-managed the fund since March 2008 and has been associated with the advisor or its predecessors since 2006.

Paul J. DiGiacomo has co-managed the fund since March 2008 and has been associated with the advisor or its predecessors since 2006.

Daisuke Nomoto has co-managed the fund since March 2008 and has been associated with the advisor or its predecessors since 2005.

Subject to satisfying various conditions to closing, effective on or about May 1, 2010, RiverSource Investments, LLC, a subsidiary of Ameriprise Financial, Inc., is expected to become the investment advisor to the fund and change its name to Columbia Management Investment Advisers, LLC. Please see the fund's prospectus dated July 1, 2009, including the supplements thereto, for more information regarding the expected change in investment advisor and any related changes to the portfolio management of the fund.

¹The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Value Index is a subset of the MSCI EAFE Index, and constituents of the index include securities from Europe, Australasia and the Far East. The index generally represents approximately 50% of the free float-adjusted market capitalization of the underlying MSCI EAFE Index, and consists of those securities classified by Morgan Stanley Capital International, Inc. (MSCI) as most representing the value style, such as higher book value-to-price ratios, higher forward earnings-to-price ratios, higher dividend yields and lower forecasted growth rates than securities representing the growth style. Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the fund may not match those in an index.

²Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please call 1-800-426-3750 for daily and most recent month-end performance updates.

Summary

1-year return as of 02/28/10

				+62.60%

				Class Z shares (without sales charge)

				+60.15%

				MSCI EAFE Value Index

Morningstar Style Box^TM

The Morningstar Style Box^TM reveals a fund's investment strategy. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend or growth). Information shown is based on the most recent data provided by Morningstar.

Economic Update – Columbia Overseas Value Fund

Summary

For the 12-month period that ended February 28, 2010

^g After a sharp decline, stock markets rebounded around the world, as measured by the S&P 500 Index, the MSCI EAFE Index and the MSCI Emerging Markets Index.

S&P Index				MSCI EAFE Index



MSCI EM Index

After a deep and difficult recession, the World Bank estimates that global gross domestic product (GDP) declined 2.2% in 2009. However, many economies began to regain their footing midway through the year. Growth turned positive in the second half of 2009 in the United States, Japan, the United Kingdom, Germany and France. In some smaller euro zone countries, such as Spain and Italy, recession continued through the year, and debt problems remain a problem for Greece, Spain, Portugal and Italy. For 2010, global economic growth is expected to rise at a rate of 2.7%.

Stimulus spending aided recovery

Growth around the world was aided by government stimulus spending, but the emerging markets of China, India and Brazil were notable for their use of stimulus to help jumpstart the global recovery. All three countries have capitalized on policies put in place over the past decade to stimulate domestic demand and succeeded through a combination of spending, tax cuts and other incentives.

Hopes for a sustained recovery around the world now depend on a rebound in consumer spending, an increase in revenues to keep business profits moving higher and a turnaround in the export markets, the latter of which appears to be underway. According to Moodys.com, surveys of manufacturers across the world show export orders up after the steepest decline in trade since the 1930s. The employment picture in developed countries is also improving, in the sense that job losses have slowed. However, it could take until 2011 for job growth to accelerate in a meaningful way, raising concerns about the sustainability of recovery where unemployment remains stubbornly high.

Manufacturing activity has picked up around the world, and the technology sector has been a significant beneficiary. Demand for both hardware and software has increased after a sharp decline in 2008 and 2009. India reports that its outsourcing pipeline is filling again. In the United States, an upturn in the manufacturing sector was one of the first signs that the economy was on the mend. In Asia and South America, stimulus spending, strong domestic demand and a rebound in trade have driven manufacturing activity sharply higher. However, manufacturing in eurozone countries continue to lag the rest of the world.

Stocks bottomed, then rebounded

Against a strengthening economic backdrop, a stock market rally that began in mid-March 2009 continued throughout the period. The U.S. stock market returned 53.62% for the 12-month period, as measured by the S&P 500 Index.¹ Outside the U.S., stock market returns were even stronger. The MSCI EAFE Index,² a broad gauge of stock market performance in foreign developed markets, gained 54.58% (net of dividends, in U.S. dollars) for the period. Emerging stock markets were caught in last year's

¹The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

²The Morgan Stanley Capital International Europe, Australia, Far East (MSCI EAFE) Index is a capitalization-weighted index that tracks the total return of common stocks in 21 developed-market countries within Europe, Australia and the Far East.

Economic Update (continued) – Columbia Overseas Value Fund

downdraft, but they bounced back stronger than domestic or developed world markets in 2009 as their economic growth generally outpaced the developed world. The MSCI Emerging Markets Index³ returned 91.63% (in U.S. dollars), led by strong performances from India and the regions of Eastern Europe and South America.

Past performance is no guarantee of future results.

³The Morgan Stanley Capital International Emerging Markets Index (MSCI EMI) is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. As of June 2009, the MSCI Emerging Markets Index consisted of the following 22 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the fund may not match those in an index.

Performance Information – Columbia Overseas Value Fund

Annual operating expense ratio (%)*

Class Z

3.99

*The annual operating expense ratio is as stated in the fund's prospectus that is current as of the date of this report. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios.

Performance of a $10,000 investment 03/31/08 – 02/28/10

The chart above shows the change in value of a hypothetical $10,000 investment in Class Z shares of Columbia Overseas Value Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

Performance of a $10,000 investment 03/31/08 – 02/28/10 ($)

Sales charge				without				with
Class Z					7,576				n/a

Average annual total return as of 02/28/10 (%)

Share class	Z
Inception	03/31/08
Sales charge	without
1-year		62.60
Life		–13.49

Average annual total return as of 03/31/10 (%)

Share class	Z
Sales charge	without
1-year		59.30
Life		–10.62

The fund commenced operations on March 31, 2008. The returns shown do not reflect any sales charges and have not been adjusted to reflect differences in expenses. If difference in expenses were reflected, the return shown would have been lower.

All results shown assume reinvestment of distributions. Class Z shares are sold at net asset value with no distribution and service (Rule 12b-1) fees. Class Z shares have limited eligibility and the investment minimum requirements may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The tables do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

Understanding Your Expenses – Columbia Overseas Value Fund

As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees or exchange fees. There are also ongoing costs, which generally include investment advisory fees, distribution and service (Rule 12b-1) fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "Actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "Hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund and do not reflect any transaction costs, such as sales charges, redemption fees or exchange fees.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

^g For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available by calling Shareholder Services at 800.426.3750.

^g For shareholders who receive their account statements from their financial intermediary, contact your financial intermediary to obtain your account balance.

1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2. In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "Actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

If the value of your account falls below the minimum initial investment requirement applicable to you, your account generally will be subject to a $20 annual fee. This fee is not included in the accompanying table. If you are subject to the fee, keep it in mind when you are estimating the ongoing expenses of investing in the fund and when comparing the expenses of this fund with other funds.

09/01/09 – 02/28/10

Account value at the
beginning of the period ($)

Account value at the
end of the period ($)

Expenses paid
during the period ($)

Fund's annualized
expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

Class Z

1,000.00

976.00

1,019.09

5.63

5.76

1.15

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 365.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, the account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption fees or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Portfolio Managers' Report – Columbia Overseas Value Fund

Net asset value per share

as of 02/28/10 ($)

Class Z

6.98

Distributions declared per share

03/01/09 – 02/28/10 ($)

Class Z

0.28

For the 12-month period that ended February 28, 2010, the fund's Class Z shares returned 62.60% without sales charge. The fund outperformed the MSCI EAFE Value Index, which returned 60.15% over the same period. Its return was also higher than the 57.28% average return for its peer group, the Lipper International Multi-Cap Value Funds Classification. Investments in China, which is not represented in the index, and an overweight in Switzerland also contributed to the fund's outperformance. Stock selection in the financials sector contributed to positive performance.

Positioning the fund for an economic recovery

After reaching their lowest levels of the financial crisis in early March 2009, global stock markets began moving higher. With the rise in stock prices—along with evidence that a severe credit crisis was easing—we began to reposition the portfolio away from defensive companies and toward those that we believe are positioned to benefit from to an economic recovery. For example, in Switzerland, we added to a position in Tecan Group (0.5% of net assets), a manufacturer of laboratory automation equipment. Even though Tecan is a health care stock, its revenues are driven by capital spending. Its share price declined during the pullback in capital spending, but it produced substantial gains as the outlook for spending improved. In the same vein, Clariant, a Swiss specialty chemical manufacturer, did well. and we were able to take a profit from the sale of the stock. Shares of Eastern Platinum (0.4% of net assets) in Canada r ose in the face of rising global demand for raw materials. We added Turkish airline Turk Hava Yollari (0.4% of net assets) to the portfolio based on expectations that air traffic in the Middle East would improve as the economy strengthened. The stock provided a strong boost to the fund's performance.

A focus on China

As the Chinese government began unwinding its economic stimulus programs, China's stock market declined. However, we believe that the government's actions were a step in the right to direction to help prevent China's growth from overheating. We used the market downturn to add to the fund's exposure to China, especially to companies that are linked to domestic growth. For example, we added to the fund's investment in Yanzhou Coal Mining (0.7% of net assets), one of China's biggest coal producers. Coal is the main source of energy in China. The company expanded its operations by purchasing Felix Resources in Australia and was among the best performers in the fund's portfolio.

Financial stocks made a comeback

Financial stocks, which are the largest sector weight in the portfolio, rebounded after being hit hard by the recent financial crisis. We made a timely addition to the fund's position in UK-based Barclays (1.9% of net assets), which did not take bailout money and maintained a solid balance sheet throughout the crisis. Barclays shares dropped along with other big banks during the crisis. During the subsequent rebound, it was one of the strongest performers—and made a strong contribution to the fund's return.

Portfolio Managers' Report (continued) – Columbia Overseas Value Fund

Defensive stocks disappointed

Certain defensive consumer stocks fell short of expectations. OPAP, the Greek lottery, did not participate in the global upturn in stocks because it is not particularly sensitive to the economic cycle. OPAP also suffered because of concerns that gaming will be taxed and because its monopoly status has been the subject of anti-competitive allegations by the European Union. We sold the stock. Game Group (0.7% of net assets), a UK-based hardware and software retailer, did poorly. A trough in the hardware cycle hurt unit growth. It remains in the portfolio.

A positive outlook

Looking ahead, we believe that reasonable valuations, combined with low interest rates, could more than offset the negative impact of Europe's debt problems on investor confidence. Greece, which has been the primary focus of concern, has developed an austerity plan that we believe will be supported by the European Union. As a result, we have added to the portfolio's positions in European financials, namely the National Bank of Greece and Banco Santander in Spain (0.7% and 3.3% of net assets, respectively), which we believe may benefit as debt problems are resolved. We are also boosting investment in Japan, where valuations are compelling and where the market has lagged for the past several years.

Portfolio holdings and characteristics are subject to change periodically and may not be representative of current holdings and characteristics. The outlook for the fund may differ from those presented for other Columbia Funds.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

International investing may involve certain risks, including currency fluctuations, risks associated with possible differences in financial accounting standards and other monetary and political risk. Significant levels of foreign taxes, including potentially confiscatory levels of taxation and withholding taxes, may also apply to some foreign investments.

Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility.

Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor. The price of the company's stock may not approach the value the advisor has placed on it.

Top 5 sectors

as of 02/28/10 (%)

Financials					35.7
Energy					12.6
Industrials					10.9
Utilities					9.1
Telecommunication Services					7.8

Top 10 holdings

as of 02/28/10 (%)

Banco Santander					3.3
HSBC Holdings					3.3
BP					2.7
Total					2.7
Royal Dutch Shell					2.6
Sanofi-Aventis					2.4
Barclays PLC					1.9
Banco Bilbao Vizcaya Argentaria					1.8
Zurich Financial Services AG					1.8
RWE AG					1.8

The fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets.

Investment Portfolio – Columbia Overseas Value Fund

February 28, 2010

Common Stocks – 100.8%
	Shares		Value ($)
Consumer Discretionary – 7.6%
Auto Components – 0.6%
Nippon Seiki Co., Ltd.		4,000		43,356
Auto Components Total				43,356
Automobiles – 2.6%
Dongfeng Motor Group Co., Ltd., Class H		18,000		26,158
Nissan Motor Co., Ltd. (a)		6,300		49,992
Toyota Motor Corp.		3,300		123,687
Automobiles Total				199,837
Leisure Equipment & Products – 0.5%
Altek Corp.		23,000		36,932
Leisure Equipment & Products Total				36,932
Media – 1.7%
Daiichikosho Co., Ltd.		5,700		76,924
Vivendi		2,067		52,069
Media Total				128,993
Specialty Retail – 1.4%
Game Group PLC		40,928		51,174
USS Co., Ltd.		890		57,700
Specialty Retail Total				108,874
Textiles, Apparel & Luxury Goods – 0.8%
LG Fashion Corp.		1,120		27,906
Polo Ralph Lauren Corp. (b)		395		31,572
Textiles, Apparel & Luxury Goods Total				59,478
Consumer Discretionary Total				577,470
Consumer Staples – 2.7%
Food & Staples Retailing – 2.2%
FamilyMart Co., Ltd.		2,096		67,166
Koninklijke Ahold NV		3,979		48,762
Matsumotokiyoshi Holdings Co., Ltd.		2,200		48,385
Food & Staples Retailing Total				164,313
Food Products – 0.5%
Toyo Suisan Kaisha Ltd.		1,400		39,016
Food Products Total				39,016
Consumer Staples Total				203,329
Energy – 12.6%
Energy Equipment & Services – 1.3%
Noble Corp.		854		36,090
Shinko Plantech Co., Ltd.		6,000		59,294
Energy Equipment & Services Total				95,384
Oil, Gas & Consumable Fuels – 11.3%
AWE Ltd. (a)		28,657		64,720
BP PLC		23,423		206,685

	Shares		Value ($)
ENI SpA		4,118		92,912
Repsol YPF SA		1,798		40,727
Royal Dutch Shell PLC, Class B		7,447		194,912
Total SA		3,686		205,680
Yanzhou Coal Mining Co., Ltd., Class H		24,000		50,955
Oil, Gas & Consumable Fuels Total				856,591
Energy Total				951,975
Financials – 35.7%
Capital Markets – 1.6%
Intermediate Capital Group PLC		14,737		54,469
Tokai Tokyo Financial Holdings		17,000		65,440
Capital Markets Total				119,909
Commercial Banks – 20.8%
Australia & New Zealand Banking Group Ltd.		5,779		119,845
Banco Bilbao Vizcaya Argentaria SA		10,387		135,070
Banco Santander SA		19,158		249,100
Bangkok Bank PCL, Foreign Registered Shares		11,800		41,576
Bank of China Ltd., Class H		89,000		43,112
Governor & Co. of the Bank of Ireland (a)		13,779		18,762
Barclays PLC		30,358		144,656
BNP Paribas		1,263		91,371
Commonwealth Bank of Australia		1,511		73,016
DBS Group Holdings Ltd.		11,000		109,554
HSBC Holdings PLC		22,533		247,242
National Australia Bank Ltd.		1,760		40,127
National Bank of Greece SA (a)		2,885		53,818
National Bank of Pakistan		37,615		39,120
Sumitomo Mitsui Financial Group, Inc.		1,900		61,077
Svenska Handelsbanken AB, Class A		1,322		36,064
Toronto-Dominion Bank		1,100		70,295
Commercial Banks Total				1,573,805
Consumer Finance – 0.7%
Hitachi Capital Corp.		3,900		53,686
Consumer Finance Total				53,686
Diversified Financial Services – 1.1%
ING Groep NV (a)		9,159		81,874
Diversified Financial Services Total				81,874
Insurance – 7.4%
Allianz SE, Registered Shares		351		40,529
Baloise Holding AG, Registered Shares		917		78,874

See Accompanying Notes to Financial Statements.

Columbia Overseas Value Fund

February 28, 2010

Common Stocks (continued)
	Shares		Value ($)
Brit Insurance Holdings NV		5,168		60,603
Lincoln National Corp.		1,755		44,191
Muenchener Rueckversicherungs- Gesellschaft AG, Registered Shares		616		95,327
Sampo Oyj, Class A		2,581		62,557
XL Capital Ltd., Class A		2,578		47,100
Zurich Financial Services AG, Registered Shares		557		134,292
Insurance Total				563,473
Real Estate Investment Trusts (REITs) – 1.7%
Japan Retail Fund Investment Corp.		68		80,671
Wereldhave NV		520		46,824
Real Estate Investment Trusts (REITs) Total				127,495
Real Estate Management & Development – 2.4%
Cheung Kong Holdings Ltd.		5,700		69,688
Hongkong Land Holdings Ltd.		14,000		64,400
Sinolink Worldwide Holdings Ltd.		304,000		50,914
Real Estate Management & Development Total				185,002
Financials Total				2,705,244
Health Care – 5.2%
Health Care Equipment & Supplies – 0.7%
Miraca Holdings, Inc.		1,800		54,499
Health Care Equipment & Supplies Total				54,499
Life Sciences Tools & Services – 0.5%
Tecan Group AG, Registered Shares		576		39,946
Life Sciences Tools & Services Total				39,946
Pharmaceuticals – 4.0%
AstraZeneca PLC		1,428		62,786
Sanofi-Aventis SA		2,496		182,577
Santen Pharmaceutical Co., Ltd.		1,700		54,629
Pharmaceuticals Total				299,992
Health Care Total				394,437
Industrials – 10.9%
Aerospace & Defense – 0.7%
BAE Systems PLC		9,847		56,200
Aerospace & Defense Total				56,200
Airlines – 0.4%
Turk Hava Yollari A.O.		10,766		34,111
Airlines Total				34,111
Commercial Services & Supplies – 0.8%
Aeon Delight Co., Ltd.		4,300		58,853
Commercial Services & Supplies Total				58,853
Construction & Engineering – 2.5%
Macmahon Holdings Ltd.		78,818		46,973
Maire Tecnimont SpA		14,623		45,398

	Shares		Value ($)
Toyo Engineering Corp.		16,000		53,667
Vinci SA		859		44,973
Construction & Engineering Total				191,011
Electrical Equipment – 0.9%
Schneider Electric SA		648		69,203
Electrical Equipment Total				69,203
Industrial Conglomerates – 1.9%
DCC PLC		1,769		46,369
Siemens AG, Registered Shares		603		51,720
Tyco International Ltd.		1,189		42,875
Industrial Conglomerates Total				140,964
Machinery – 0.6%
Demag Cranes AG		1,266		41,717
Machinery Total				41,717
Professional Services – 1.4%
Atkins WS PLC		6,972		61,287
Teleperformance		1,322		42,141
Professional Services Total				103,428
Trading Companies & Distributors – 1.7%
ITOCHU Corp.		4,000		32,236
Mitsui & Co., Ltd.		6,300		97,785
Trading Companies & Distributors Total				130,021
Industrials Total				825,508
Information Technology – 3.9%
Electronic Equipment, Instruments & Components – 0.6%
FUJIFILM Holdings Corp.		1,400		44,531
Electronic Equipment, Instruments & Components Total				44,531
IT Services – 0.8%
Groupe Steria SCA		1,373		38,588
Redecard SA		1,300		18,919
IT Services Total				57,507
Office Electronics – 0.7%
Canon, Inc.		1,300		54,066
Office Electronics Total				54,066
Semiconductors & Semiconductor Equipment – 1.1%
Macronix International		99,267		53,236
United Microelectronics Corp., ADR (a)		8,463		29,028
Semiconductors & Semiconductor Equipment Total				82,264
Software – 0.7%
NSD Co., Ltd.		4,800		54,081
Software Total				54,081
Information Technology Total				292,449

See Accompanying Notes to Financial Statements.

Columbia Overseas Value Fund

February 28, 2010

Common Stocks (continued)
	Shares		Value ($)
Materials – 5.3%
Chemicals – 2.9%
BASF SE		763		42,846
Capro Corp. (a)		6,740		51,426
Kansai Paint Co., Ltd.		9,000		72,936
Makhteshim-Agan Industries Ltd.		9,737		49,860
Chemicals Total				217,068
Metals & Mining – 1.6%
BlueScope Steel Ltd.		11,086		24,043
Eastern Platinum Ltd. (a)		25,700		31,997
First Quantum Minerals Ltd.		446		34,758
Yamato Kogyo Co., Ltd.		1,000		31,594
Metals & Mining Total				122,392
Paper & Forest Products – 0.8%
Svenska Cellulosa AB, Class B		4,419		65,326
Paper & Forest Products Total				65,326
Materials Total				404,786
Telecommunication Services – 7.8%
Diversified Telecommunication Services – 5.2%
BCE, Inc.		2,520		69,934
France Telecom SA		1,298		30,444
Nippon Telegraph & Telephone Corp.		2,300		100,186
Tele2 AB, Class B		4,665		69,355
Telefonica O2 Czech Republic AS		3,048		71,924
Telenor ASA (a)		4,000		50,565
Diversified Telecommunication Services Total				392,408
Wireless Telecommunication Services – 2.6%
Softbank Corp.		2,400		62,860
Vodafone Group PLC		61,432		132,498
Wireless Telecommunication Services Total				195,358
Telecommunication Services Total				587,766
Utilities – 9.1%
Electric Utilities – 4.2%
E.ON AG		1,891		67,346
Enel SpA		19,680		106,720
Fortum Oyj		3,141		80,022
Okinawa Electric Power Co., Inc.		1,200		66,318
Electric Utilities Total				320,406
Independent Power Producers & Energy Traders – 1.4%
Drax Group PLC		9,551		58,239
Energy Development Corp.		445,000		46,309
Independent Power Producers & Energy Traders Total				104,548

	Shares		Value ($)
Multi-Utilities – 2.7%
AGL Energy Ltd.		5,077		65,383
RWE AG		1,579		133,905
Multi-Utilities Total				199,288
Water Utilities – 0.8%
Cia de Saneamento Basico do Estado de Sao Paulo		1,800		30,230
Guangdong Investment Ltd.		62,000		31,151
Water Utilities Total				61,381
Utilities Total				685,623
Total Common Stocks (cost of $7,812,249)				7,628,587
Total Investments – 100.8% (cost of $7,812,249) (c)				7,628,587
Other Assets & Liabilities, Net – (0.8)%				(57,062	)
Net Assets – 100.0%				7,571,525

Notes to Investment Portfolio:

(a) Non-income producing security.

(b) All or a portion of this security is pledged as collateral for open written option contracts.

The following table summarizes the inputs used, as of February 28, 2010, in valuing the Fund's assets:

Description	Quoted Prices (Level 1)			Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Common Stocks
Consumer Discretionary	$	31,572		$	545,898		$	—	$	577,470
Consumer Staples		—			203,329			—		203,329
Energy		36,090			915,885			—		951,975
Financials		225,986			2,479,258			—		2,705,244
Health Care		—			394,437			—		394,437
Industrials		42,875			782,633			—		825,508
Information Technology		47,947			244,502			—		292,449
Materials		66,755			338,031			—		404,786
Telecommunication Services		69,934			517,832			—		587,766
Utilities		30,230			655,393			—		685,623
Total Common Stocks		551,389			7,077,198			—		7,628,587
Total Investments		551,389			7,077,198			—		7,628,587
Value of Written Call Option Contracts		(81	)		—			—		(81	)
Unrealized Appreciation (Depreciation) on Forward Foreign Currency Exchange Contracts		—			(44,692	)		—		(44,692	)
Total	$	551,308		$	7,032,506		$	—	$	7,583,814

The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

For more information on valuation inputs, and their aggregation into the levels used in the table above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See Accompanying Notes to Financial Statements.

Columbia Overseas Value Fund

February 28, 2010

Forward foreign currency exchange contracts outstanding on February 28, 2010, are:

Foreign Exchange Rate Risk

Forward Foreign Currency Exchange Contracts to Buy	Value		Aggregate Face Value		Settlement Date	Unrealized Appreciation (Depreciation)
AUD	$	240,854	$	239,811	03/11/10	$	1,043
EUR		665,838		705,634	03/11/10		(39,796	)
GBP		240,903		257,006	03/11/10		(16,103	)
JPY		129,534		126,899	03/11/10		2,635
NOK		31,801		32,472	03/11/10		(671	)
NZD		23,726		25,122	03/11/10		(1,396	)
						$	(54,288	)
Forward Foreign Currency Exchange Contracts to Sell	Value		Aggregate Face Value		Settlement Date	Unrealized Appreciation (Depreciation)
CAD	$	194,827	$	193,286	03/11/10	$	(1,541	)
CHF		155,465		160,762	03/11/10		5,297
CZK		76,402		80,451	03/11/10		4,049
EUR		69,443		71,817	03/11/10		2,374
GBP		36,593		37,228	03/11/10		635
ILS		60,324		60,440	03/11/10		116
JPY		49,594		48,332	03/11/10		(1,262	)
KRW		97,039		96,399	03/11/10		(640	)
NZD		31,402		32,197	03/11/10		795
SEK		15,428		15,089	03/11/10		(339	)
THB		56,457		56,225	03/11/10		(232	)
TWD		136,378		136,722	03/11/10		344
						$	9,596

For the year ended February 28, 2010, transactions in written option contracts were as follows:

	Number of contracts			Premium received
Options outstanding at February 28, 2009		–		$	–
Options written		90			3,817
Options terminated in closing purchase transactions		(12	)		(540	)
Options exercised		(29	)		(1,618	)
Options expired		(46	)		(1,467	)
Options outstanding at February 28, 2010		3		$	192

At February 28, 2010, the Fund held the following written call option contracts:

Equity Risk

Name of Issuer	Strike Price		Number of Contracts		Expiration Date		Premium		Value
Polo Ralph Lauren Corp.	$	85		3		03/20/10	$	192	$	(81	)
Total written call options (proceeds $192)

The Fund was invested in the following countries at February 28, 2010:

Summary of Securities by Country (Unaudited)	Value		% of Total Investments
Japan	$	1,664,635		21.8
United Kingdom		1,330,751		17.5
France		757,045		9.9
Germany		473,390		6.2
Australia		434,108		5.7
Spain		424,897		5.6
Switzerland		253,112		3.3
Italy		245,031		3.2
Canada		206,982		2.7
United States		201,829		2.7
Hong Kong		185,002		2.4
Netherlands		177,460		2.3
Sweden		170,746		2.2
China		151,376		2.0
Finland		142,578		1.9
Taiwan		119,195		1.6
Singapore		109,554		1.4
South Korea		79,332		1.0
Czech Republic		71,924		1.0
Ireland		65,131		0.9
Greece		53,819		0.7
Norway		50,565		0.7
Israel		49,860		0.7
Brazil		49,149		0.6
Philippines		46,309		0.6
Thailand		41,576		0.5
Pakistan		39,120		0.5
Turkey		34,111		0.4
	$	7,628,587		100.0

Certain securities are listed by country of underlying exposure but may trade predominantly on another exchange.

Acronym				Name
ADR				American Depositary Receipt

AUD				Australian Dollar

CAD				Canadian Dollar

CHF				Swiss Franc

CZK				Czech Koruna

EUR				Euro

GBP				Pound Sterling

ILS				Israeli Shekel

JPY				Japanese Yen

KRW				South Korean Won

NOK				Norwegian Krone

NZD				New Zealand Dollar

SEK				Swedish Krona

THB				Thailand Baht

TWD				New Taiwan Dollar

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities – Columbia Overseas Value Fund
February 28, 2010

		($)
Assets	Investments, at cost		7,812,249
	Investments, at value		7,628,587
	Cash		28,778
	Foreign currency (cost of $2,968)		2,994
	Unrealized appreciation on forward foreign currency exchange contracts		17,288
	Receivable for:
	Dividends		16,854
	Foreign tax reclaims		13,329
	Expense reimbursement due from investment advisor		10,235
	Prepaid expenses		90
	Total Assets		7,718,155
Liabilities	Written options, at value (premium of $192)		81
	Unrealized depreciation on forward foreign currency exchange contracts		61,980
	Payable for:
	Foreign capital gains taxes withheld		12
	Investment advisory fee		4,961
	Administration fee		—
	Pricing and bookkeeping fees		2,274
	Transfer agent fee		137
	Trustees' fees		9,208
	Audit fee		35,000
	Legal fee		10,015
	Custody fee		4,913
	Chief compliance officer expenses		94
	Reports to shareholders		13,353
	Other liabilities		4,602
	Total Liabilities		146,630
	Net Assets		7,571,525
Net Assets Consist of	Paid-in capital		10,529,305
	Overdistributed net investment income		(51,714	)
	Accumulated net realized loss		(2,677,098	)
	Net unrealized appreciation (depreciation) on:
	Investments		(183,662	)
	Foreign currency translations and forward foreign currency exchange contracts		(45,405	)
	Written options		111
	Foreign capital gains tax		(12	)
	Net Assets		7,571,525
Class Z	Net assets	$	7,571,525
	Shares outstanding		1,085,397
	Net asset value, offering and redemption price per share	$	6.98

See Accompanying Notes to Financial Statements.

Statement of Operations – Columbia Overseas Value Fund
For the Year Ended February 28, 2010

		($)
Investment Income	Dividends		278,641
	Interest		4
	Foreign taxes withheld		(23,212	)
	Total Investment Income		255,433
Expenses	Investment advisory fee		58,138
	Administration fee		—
	Transfer agent fee		106
	Pricing and bookkeeping fees		15,682
	Trustees' fees		20,663
	Custody fee		38,282
	Audit fee		28,330
	Legal fees		35,105
	Reports to shareholders		13,478
	Chief compliance officer expenses		585
	Other expenses		4,190
	Total Expenses		214,559
	Fees waived or expenses reimbursed by investment advisor		(133,414	)
	Expense reductions		(2	)
	Net Expenses		81,143
	Net Investment Income		174,290
Net Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Written Options, Foreign Capital Gains Tax and Foreign Currency	Net realized gain (loss) on:
	Investments		(425,753	)
	Foreign currency transactions and forward foreign currency exchange contracts		67,741
	Foreign capital gains tax		(6,285	)
	Futures contracts		7,611
	Written options		1,949
	Net realized loss		(354,737	)
	Net change in unrealized appreciation (depreciation) on:
	Investments		3,121,847
	Foreign currency transactions and forward foreign currency exchange contracts		(34,316	)
	Written options		111
	Foreign capital gains tax		(12	)
	Net change in unrealized appreciation (depreciation)		3,087,630
	Net Gain		2,732,893
	Net Increase Resulting from Operations		2,907,183

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets – Columbia Overseas Value Fund

Increase (Decrease) in Net Assets		Year Ended February 28, 2010 ($)			Period Ended February 28, 2009 ($)(a)
Operations	Net investment income		174,290			268,191
	Net realized loss on investments, futures contracts, written options, foreign currency transactions and forward foreign currency exchange contracts		(354,737	)		(2,287,251	)
	Net change in unrealized appreciation (depreciation) on investments, written options, foreign capital gains tax, foreign currency translations and forward foreign currency exchange contracts		3,087,630			(3,316,598	)
	Net increase (decrease) resulting from operations		2,907,183			(5,335,658	)
Distributions to Shareholders	From net investment income		(293,672	)		(235,633	)
	From return of capital		—			(14,367	)
	Total distributions to shareholders		(293,672	)		(250,000	)
	Net Capital Stock Transactions		293,672			10,250,000
	Total increase in net assets		2,907,183			4,664,342
Net Assets	Beginning of period		4,664,342			—
	End of period		7,571,525			4,664,342
	Overdistributed (Accumulated) net investment income (loss) at end of period		(51,714	)		(3,584	)

(a) The Fund commenced operations on March 31, 2008.

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets (continued) – Columbia Overseas Value Fund

	Capital Stock Activity
	Year Ended February 28, 2010				Period Ended February 28, 2009 (a)
	Shares		Dollars ($)		Shares		Dollars ($)
Class Z
Subscriptions		—		—		1,000,000		10,000,000
Distributions reinvested		40,674		293,672		44,723		250,000
Net increase		40,674		293,672		1,044,723		10,250,000

(a) The Fund commenced operations on March 31, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Overseas Value Fund

Selected data for a share outstanding throughout each period is as follows:

Class Z Shares	Year Ended February 28, 2010			Period Ended February 28, 2009 (a)
Net Asset Value, Beginning of Period	$	4.46		$	10.00
Income from Investment Operations:
Net investment income (b)		0.17			0.27
Net realized and unrealized gain (loss) on investments, futures contracts, written options, foreign capital gains tax and foreign currency		2.63			(5.56	)
Total from investment operations		2.80			(5.29	)
Less Distributions to Shareholders:
From net investment income		(0.28	)		(0.23	)
From return of capital		—			(0.02	)
Total distributions to shareholders		(0.28	)		(0.25	)
Net Asset Value, End of Period	$	6.98		$	4.46
Total return (c)(d)		62.60	%		(53.41	)%(e)
Ratios to Average Net Assets/Supplemental Data:
Net expenses (f)		1.14	%		1.10	%(g)
Waiver/Reimbursement		1.88	%		2.89	%(g)
Net investment income (f)		2.46	%		3.72	%(g)
Portfolio turnover rate		62	%		66	%(e)
Net assets, end of period (000s)	$	7,572		$	4,664

(a) The Fund commenced operations on March 31, 2008. Per share data and total return reflect activity from that date.

(b) Per share data was calculated using the average shares outstanding during the period.

(d) Had the investment advisor not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(e) Not annualized.

(f) The benefits derived from custody credits had an impact of less than 0.01%.

(g) Annualized.

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Columbia Overseas Value Fund
February 28, 2010

Note 1. Organization

Columbia Overseas Value Fund (the "Fund"), a series of Columbia Funds Series Trust (the "Trust"), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Delaware statutory trust.

Investment Objective

The Fund seeks long-term capital appreciation.

Fund Shares

The Trust may issue an unlimited number of shares, and may offer four classes of shares: Class A, Class C, Class R and Class Z shares. At February 28, 2010, only Class Z shares were offered. At February 28, 2010, shares of the Fund were not publicly offered.

Class A shares are subject to a maximum front-end sales charge of 5.75% based on the amount of initial investment. 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 one year after purchase. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class R and Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class R and Class Z shares, as described in the Fund's prospectuses.

Note 2. Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("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

Equity securities are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ, 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 closing bid price on such exchanges or over-the-counter markets.

Short-term investments maturing in 60 days or less are valued at amortized cost, which approximates market value.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Purchased options are valued at the last reported sales price, or in the absence of a sale, and the last quoted bid price. Written options are valued at the last reported sale price, or in the absence of a sale, at the last quoted ask price.

Forward foreign currency exchange contracts are valued at the prevailing forward exchange rate of the underlying currencies.

Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Fund's shares are determined as of such times. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Occasionally, events affecting the values of such foreign securities may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Fund's net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees.

The Fund may use a systematic fair valuation model provided by an independent third party to value securities principally traded in foreign markets in order to adjust for possible stale

Columbia Overseas Value Fund, February 28, 2010

pricing that may occur between the close of the foreign exchanges and the time for valuation.

Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. If a security is valued at fair value, such value is likely to be different from the last quoted market price for the security. The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine value.

GAAP establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value giving the highest priority to unadjusted quoted prices in active markets for identical securities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the fair value hierarchy are described below:

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others)

• Level 3 – prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or less reliable, unobservable inputs may be used. Unobservable inputs may include management's own assumptions about the factors market participants would use in pricing an investment.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

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.

Management is required to provide disclosures regarding the Fund's derivative instruments and hedging activities, by providing qualitative disclosures about the objectives and strategies for using derivatives, quantitative data about the fair value of and gains and losses on derivative contracts, and details of credit-risk-related contingent features in their derivative contracts. For additional information on derivative instruments, please see Note 6.

Repurchase Agreements

The Fund may engage in repurchase agreement transactions with institutions that Columbia Management Advisors, LLC ("Columbia"), the Fund's investment advisor, has determined are creditworthy. The Fund, through its custodian, receives delivery of the underlying securities collateralizing a repurchase agreement. Columbia 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 the 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.

Foreign Currency Transactions and Translations

The values of all assets and liabilities quoted 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 on the Statement of Operations.

Columbia Overseas Value Fund, February 28, 2010

Income Recognition

Interest income is recorded on the accrual basis.

Corporate actions and dividend income are recorded on the ex-date except for certain foreign securities which are recorded as soon after the ex-date as the Fund becomes aware of such, net of any non-reclaimable tax withholdings.

Expenses

General expenses of the Trust are allocated to the Fund and other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund.

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, if any, for its tax year, and as such will 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 Capital Gains Taxes

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 accrues for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction.

Distributions to Shareholders

Distributions from net investment income, if any, are declared and paid annually. The Fund may, however, declare and pay distributions from net investment income more frequently. The Fund will distribute net realized capital gains (including net short-term capital gains) at least annually after the fiscal year in which the capital gains were earned, unless offset by any available capital loss carryforward. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations which may differ from GAAP.

Indemnification

In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund's maximum exposure under these arrangements is unknown because this would involve future claims against the Fund. Also, under the Trust's organizational documents and by contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Fund expects the risk of loss due to these representations, warranties and indemnities to be minimal.

Note 3. 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 February 28, 2010, permanent book and tax basis differences resulting primarily from differing treatments for foreign currency transactions were identified and reclassified among the components of the Fund's net assets as follows:

Overdistributed Net Investment Income				Accumulated Net Realized Loss				Paid-In Capital
$	71,252			$	(71,252	)		$	—

Net investment income and net realized gains (losses), as disclosed on the Statement of Operations, and net assets were not affected by this reclassification.

Columbia Overseas Value Fund, February 28, 2010

The tax character of distributions paid during the year ended February 28, 2010 and the period ended February 28, 2009 was as follows:

Distributions paid from:	February 28, 2010		February 28, 2009
Ordinary Income*	$	293,672	$	253,633
Long-Term Capital Gains		—		—
Tax Return of Capital		—		14,367

* For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of February 28, 2010, the components of distributable earnings on a tax basis were as follows:

Undistributed Ordinary Income				Undistributed Long-Term Capital Gains				Net Unrealized Depreciation*
$	11,492			$	—			$	(240,668	)

* The differences between book-basis and tax-basis net unrealized depreciation are primarily due to deferral of losses from wash sales.

Unrealized appreciation and depreciation at February 28, 2010, based on cost of investments for federal income tax purposes and excluding any unrealized appreciation and depreciation from changes in the value of other assets and liabilities resulting from changes in exchange rates, were:

Unrealized appreciation	$	855,107
Unrealized depreciation		(1,095,775	)
Net unrealized depreciation	$	(240,668	)

The following capital loss carryforwards may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

Year of Expiration	Capital Loss Carryforwards
2017	$	584,061
2018		2,028,503
	$	2,612,564

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of February 28, 2010, post-October currency losses of $82,333 and capital losses of $33,204 attributed to security transactions were deferred to March 1, 2010.

Management is required to determine whether a tax position of the Fund is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized by the Fund is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, management's conclusions 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 year s remain subject to examination by the Internal Revenue Service.

Note 4. Fees and Compensation Paid to Affiliates

Investment Advisory Fee

Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides investment advisory services to the Fund. In rendering investment advisory services to the Fund, Columbia may use the portfolio management and research resources of Columbia Management Pte. Ltd, an affiliate of Columbia. Columbia receives a monthly investment advisory fee at the annual rate of 0.82% of the Fund's average daily net assets.

Columbia Overseas Value Fund, February 28, 2010

other conditions to closing, and is currently expected to close on or about May 1, 2010 (the "Closing"). In connection with the Closing, certain changes will occur, including a change in the entities serving as the investment advisor, administrator, distributor and transfer agent of the Fund. RiverSource Investments, LLC (the "New Advisor"), a subsidiary of Ameriprise Financial, will become the investment advisor of the Fund upon the Closing. The New Advisor will serve as investment advisor under a new investment management services agreement effective upon the closing. The New Advisor expects to change its name to Columbia Management Investment Advisers, LLC upon or shortly after the Closing. Effective upon the Closing, as the context requires, references to Columbia shall be deemed to refer to the New Advisor.

Administration Fee

Columbia provides administrative and other services to the Fund for a monthly administration fee at the annual rate of 0.05% of the Fund's average daily net assets, less the fees payable by the Fund as described under the Pricing and Bookkeeping Fees note below.

The New Advisor will become the administrator of the Fund under a new administrative services agreement effective upon the Closing.

Pricing and Bookkeeping Fees

The Fund has entered into a Financial Reporting Services Agreement (the "Financial Reporting Services Agreement") with State Street Bank and Trust Company ("State Street") and Columbia pursuant to which State Street provides financial reporting services to the Fund. The Fund has also entered into an Accounting Services Agreement (collectively with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Fund. Under the State Street Agreements, the Fund pays State Street an annual fee of $38,000 paid monthly plus an additional monthly fee based on an annualized percentage rate of average daily net assets of the Fund for the month. The aggregate fee will not exceed $140,000 per year (exclusive of out-of-pocket expenses and charges). The Fund also reimburses State Street for certain out-of-pocket expenses and charges.

Among other updates to the State Street Agreements, Columbia will assign and delegate its rights and obligations thereunder to the New Advisor upon the Closing.

The Fund has entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Fund expenses and the requirements of the Sarbanes-Oxley Act of 2002, and provides oversight of the accounting and financial reporting services provided by State Street. Under the Services Agreement, the Fund reimburses Columbia for out-of-pocket expenses and charges, including fees payable to third parties, such as for pricing the Fund's portfolio securities, incurred by Columbia in the performance of services under the Services Agreement.

The Services Agreement will be terminated upon the Closing, and the services provided thereunder will be covered under the administrative services agreement with the New Advisor.

Transfer Agent Fee

Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Fund and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. Effective January 1, 2010, the Transfer Agent is entitled to receive a fee for its services, paid monthly, at the annual rate of $22.36 per account plus reimbursement of certain sub-transfer agent fees paid by the Transfer Agent (exclusive of BFDS fees), calculated based on assets held in omnibus accounts and intended to recover the cost of payments to other parties (including affiliates of BOA) for services to those accounts. Prior to January 1, 2010, the annual rate was $17.34 per account. 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 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. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.

Columbia Overseas Value Fund, February 28, 2010

An annual minimum account balance fee of $20 may apply to certain accounts with a value below the Fund's initial minimum investment requirements to reduce the impact of small accounts on transfer agent fees. These minimum account balance fees are recorded as part of expense reductions on the Statement of Operations. For the year ended February 28, 2010, no minimum account balance fees were charged by the Fund.

RiverSource Service Corporation (the "New Transfer Agent"), a subsidiary of Ameriprise Financial, will become the transfer agent of the Fund upon the Closing. The New Transfer Agent expects to change its name to Columbia Management Investment Services Corp. upon or shortly after the Closing.

Underwriting Discounts, Service and Distribution Fees

Columbia Management Distributors, Inc. (the "Distributor"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, is the principal underwriter of the Fund's shares.

RiverSource Fund Distributors, Inc. (the "New Distributor"), a subsidiary of Ameriprise Financial, will become the distributor of the Fund upon the Closing. The New Distributor expects to change its name to Columbia Management Investment Distributors, Inc. upon or shortly after the Closing.

The Trust has adopted shareholder servicing plans ("Servicing Plans") for the Class A and Class C shares of the Fund and distribution plans ("Distribution Plans") for the Class C and Class R shares of the Fund. The shareholder servicing plans permit the Fund to compensate or reimburse servicing agents for the shareholder services they have provided. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940 Act, permit the Fund to compensate or reimburse the Distributor and/or selling agents for activities or expenses primarily intended to result in the sale of the classes' shares. Payments are made at an annual rate and paid monthly, as a percentage of average daily net assets, set from time to time by the Board of Trustees, and are charged as expenses of the Fund directly to the applicable share class. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of BOA and the Distrib utor.

The annual rates in effect and plan limits, as a percentage of average daily net assets are as follows:

	Current Rate			Plan Limit
Class A Shareholder Servicing Plan		0.25	%		0.25	%
Class C Shareholder Servicing Plan		0.25	%		0.25	%
Class C Distribution Plan		0.75	%		0.75	%
Class R Distribution Plan		0.50	%		0.50	%

Class A, Class C and Class R shares were not offered during the period.

Expense Limits and Fee Waivers

Columbia has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, do not exceed 1.15% annually of the Fund's average daily net assets. Columbia, in its discretion, may revise or discontinue this arrangement at any time.

Prior to May 1, 2009, Columbia and/or some of the Fund's other service providers voluntarily waived fees and/or reimbursed the Fund for certain expenses so that total expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, did not exceed 1.10% annually of the Fund's average daily net assets.

Fees Paid to Officers and Trustees

All officers of the Fund are employees of Columbia or its affiliates and, with the exception of the Fund's Chief Compliance Officer, receive no compensation from the Fund. The Board of Trustees has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund, along with other affiliated funds, pays its pro-rata share of the expenses associated with the Chief Compliance Officer. The Fund's expenses for the Chief Compliance Officer will not exceed $15,000 per year.

Columbia Overseas Value Fund, February 28, 2010

Trustees are compensated for their services to the Fund, as set forth on the Statement of Operations. The Trust's eligible Trustees may participate in a non-qualified deferred compensation plan which may be terminated at any time. Any payments to plan participants are paid solely out of the Fund's assets. Income earned on the plan participant's deferral account is based on the rate of return of the eligible mutual funds selected by the participant or, if no funds are selected, on the rate of return of Columbia Treasury Reserves, another portfolio of the Trust. The expense for the deferred compensation plan, which includes trustees' fees deferred during the current period as well as any gains or losses on the trustees' deferred compensation balances as a result of market fluctuations, is included in "Trustees' fees" on the Statement of Operations. The liability for the deferred compensation plan is included in "Trustees' fees" on the Statement of Assets and Liabilities.

Note 5. Custody Credits

The Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as part of expense reductions on the Statement of Operations. The Fund could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement.

Note 6. Objectives and Strategies for Investing in Derivative Instruments

The Fund uses derivatives instruments including futures contracts, options and forward foreign currency exchange contracts in order to meet its investment objectives. The Fund employs strategies in differing combinations to permit it to increase, decrease or change the level of exposure to market risk factors. The achievement of any strategy relating to derivatives depends on an analysis of various risk factors, and if the strategies for the use of derivatives do not work as intended, the Fund may not achieve its investment objectives.

In pursuit of its investment objectives, the Fund is exposed to the following market risks:

Equity Risk: Equity risk relates to change in value of equity securities such as common stocks due to general market conditions such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, or adverse investor sentiment. Equity securities generally have greater price volatility than fixed income securities.

Foreign Exchange Rate Risk: Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign-currency-denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

The following notes provide more detailed information about each derivative type held by the Fund:

Forward Foreign Currency Exchange Contracts—The Fund entered into forward foreign currency exchange contracts to shift its investment exposure from one currency to another.

The Fund used forward foreign currency exchange contracts to shift its U.S. dollar exposure in order to achieve a representative weighted mix of major currencies in its benchmark and/or to recover an underweight country exposure in its portfolio.

Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between the trade and settlement dates of the contract. The Fund may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. The Fund may also enter into these contracts to reduce the exposure to adverse price movements in certain other foreign-currency-denominated assets. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are generally used to reduce the exposure to foreign exchange rate fluctuations. Forward foreign currency exchange contracts are valued daily at the current exchange rate of the underlying currency, resulting in unrealized gains (losses) which become reali zed at the time the forward foreign currency exchange contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Fund's portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars)

Columbia Overseas Value Fund, February 28, 2010

over the period it remains open. The Fund could also be exposed to risk that counterparties of the contracts may be unable to fulfill the terms of the contracts.

During the year ended February 28, 2010, the Fund entered into 264 forward foreign currency exchange contracts.

Futures Contracts—The Fund entered into stock index futures contracts to manage its exposure to the securities markets.

The use of futures contracts involves certain risks, which include, among these: (1) imperfect correlation between the price movement of the instruments and the underlying securities, (2) inability to close out positions due to differing trading hours, or the temporary absence of a liquid market, for either the instruments or the underlying securities, and (3) an inaccurate prediction of the future direction of interest rates by Columbia.

Upon entering into a futures contract, the Fund identifies within its portfolio of investments cash or securities in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Fund equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. The Fund recognizes a realized gain or loss when the contract is closed or expires.

Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statement of Assets and Liabilities.

During the year ended February 28, 2010, the Fund entered into 1 futures contract. The Fund did not have any open futures contracts at the end of the year.

Options—The Fund has written covered call and purchased put options to decrease the Fund's exposure to equity risk and to increase return on instruments. Written covered call and purchased put options become more profitable as the price of the underlying instruments depreciates relative to the strike price.

Writing put options tends to increase the Fund's exposure to the underlying instrument. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked-to-market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying security transaction to determine the realized gain or loss. The Fund, as a writer of an option, has no control over whether the underlying security may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. There is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid market. Th e Fund identifies within its portfolio of investments cash or liquid portfolio securities equal to the amount of the written options contract commitment.

The Fund may also purchase put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying instrument. The Fund may pay a premium, which is included in the Fund's Statement of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised are added to the amounts paid (call) or offset against the proceeds (put) on the underlying security to determine the realized gain or loss. If the Fund enters into a closing transaction, the Fund will realize a gain or loss, depending on whether the proceeds from the closing transaction ar e greater or less than the cost of the option.

During the year ended February 28, 2010, the Fund entered into 90 written option contracts.

The following table is a summary of the value of the Fund's derivative instruments as of February 28, 2010.

Fair Value of Derivative Instruments

Statement of Assets and Liabilities

Asset

Fair Value

Liability

Fair Value

Written call options

—

Written options, at value

Forward foreign currency exchange contracts

Unrealized appreciation

17,288

Unrealized depreciation

61,980

Columbia Overseas Value Fund, February 28, 2010

The effect of derivative instruments on the Fund's Statement of Operations for the year ended February 28, 2010:

	Amount of Realized Gain or (Loss) and Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
	Risk Exposure	Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)
Written call options	Equity	$	1,949	$	111
Forward foreign currency exchange contracts	Foreign Exchange Rate		72,662		(35,950	)
Futures contracts	Equity		7,611		—

Note 7. Portfolio Information

For the year ended February 28, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Fund were $4,459,420 and $4,320,382, respectively.

Note 8. Redemption Fees

The Fund may impose a 2.00% redemption fee on the proceeds of fund shares that are redeemed within 60 days of purchase. The redemption fee is designed to offset brokerage commissions and other costs associated with short term trading of fund shares. The redemption fees, which are retained by the Fund, are accounted for as an addition to paid-in capital and are allocated to each class based on the relative net assets at the time of the redemption. Effective March 1, 2010, the Fund will no longer assess the 2.00% redemption fee on the proceeds from Fund shares that are redeemed within 60 days of purchase. For the year ended February 28, 2010, the Fund received no redemption fees.

Note 9. Line of Credit

The Fund and other affiliated funds participate in a $280,000,000 committed, unsecured revolving line of credit provided by State Street. The maximum amount that may be borrowed by any fund is limited to the lesser of $200,000,000 and the Fund's borrowing limit set forth in the Fund's registration statement. Borrowings are available for short-term liquidity or temporary or emergency purposes.

Effective October 15, 2009, interest is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the greater of the Federal Funds Rate plus 1.25% or the overnight LIBOR Rate plus 1.25%. In addition, a commitment fee of 0.15% per annum is accrued and apportioned among the participating funds pro rata based on their relative net assets.

Prior to October 15, 2009, interest was charged to each participating fund based on the fund's borrowings at a rate per annum equal to the greater of the Federal Funds Rate plus 0.50% or the overnight LIBOR Rate plus 0.50%. In addition, an annual operations agency fee of $20,000, an amendment fee of 0.02% and a commitment fee of 0.12% per annum were accrued and apportioned among the participating funds pro rata based on their relative net assets.

For the year ended February 28, 2010, the Fund did not borrow under these arrangements.

Note 10. Shares of Beneficial Interest

As of February 28, 2010, one shareholder (which is an affiliate of BOA) held 100% of the Fund's shares outstanding.

Subscription and redemption activity of this account may have a significant effect on the operations of the Fund.

Note 11. Significant Risks and Contingencies

Foreign Securities Risk

There are certain additional risks involved when investing in foreign securities. These risks may involve foreign currency

Columbia Overseas Value Fund, February 28, 2010

exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities.

Investments in emerging market countries are subject to additional risk. The risk of foreign investments is typically increased in less developed countries. These countries are also more likely to experience high levels of inflation, deflation or currency devaluation which could hurt their economies and securities markets.

Legal Proceedings

Columbia Management Advisors, LLC and Columbia Management Distributors, Inc. (collectively, the "Columbia Group") are subject to a settlement agreement with the New York Attorney General ("NYAG") (the "NYAG Settlement") and a settlement order with the Securities and Exchange Commission ("SEC") (the "SEC Order") on matters relating to mutual fund trading, each dated February 9, 2005. Under the terms of the SEC Order, the Columbia Group (or predecessor or affiliated entities) agreed, among other things, to: pay disgorgement and civil money penalties collectively totaling $375 million; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; and retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures. The NYAG Settlement, a mong other things, requires Columbia Management Advisors, LLC and its affiliates to make certain disclosures to investors relating to expenses. In connection with the Columbia Group providing services to the Columbia Funds, the Columbia Funds have voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees and certain special consulting and compliance measures.

Pursuant to the SEC Order and related procedures, the $375 million in settlement amounts described above, of which approximately $90 million has been earmarked for certain Columbia Funds and their shareholders, is being distributed in accordance with a distribution plan developed by an independent distribution consultant and approved by the SEC on December 27, 2007. Distributions under the distribution plan began in mid-June 2008 and the distribution earmarked for the Columbia Funds and their shareholders has been substantially completed.

Civil Litigation

In connection with the events that resulted in the NYAG Settlement and SEC Order, various parties filed suits against Bank of America Corporation and certain of its affiliates, including Banc of America Capital Management, LLC ("BACAP," now known as Columbia Management Advisors, LLC) and BACAP Distributors, LLC (now known as Columbia Management Distributors, Inc.) (collectively "BAC"), Nations Funds Trust (now known as Columbia Funds Series Trust) and its Board of Trustees. On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Nations Funds Trust, the Trustees, BAC and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Nations Funds Trust against BAC and others that asserts claims under federal securities laws and state common law. Nations Funds Trust is a nominal defendant in this action.

On February 25, 2005, BAC and other defendants filed motions to dismiss the claims in the pending cases. On December 15, 2005, BAC and others entered into a Stipulation of Settlement of the direct and derivative claims brought on behalf of the Nations Funds shareholders. The settlement is subject to court approval. If the settlement is approved, BAC would pay settlement administration costs and fees to plaintiffs' counsel as approved by the court. The stipulation has not yet been presented to the court for approval.

Note 12. Subsequent Events

Columbia Overseas Value Fund, February 28, 2010

management for possible adjustment and/or disclosure. No subsequent events or transactions had occurred that would require adjustment of the financial statements as presented. On March 3, 2010, the Fund's shareholders approved, among other matters, a proposed investment management services agreement with the New Advisor, the effectiveness of which is conditioned on the Closing.

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Series Trust and the Shareholders of Columbia Overseas Value Fund

In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Overseas Value Fund (the "Fund") (a series of Columbia Funds Series Trust) at February 28, 2010, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year ended February 28, 2010 and the period March 31, 2008 (commencement of operations) through February 28, 2009 in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
April 21, 2010

Federal Income Tax Information (Unaudited)

Foreign taxes paid during the fiscal year ended February 28, 2010, of $23,212 are being passed through to shareholders. This represents $0.02 per share. Eligible shareholders may claim this amount as a foreign tax credit.

Gross income derived from sources within foreign countries was $275,962 ($0.25 per share) for the fiscal year ended February 28, 2010.

For non-corporate shareholders 77.11% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of the ordinary income distributed by the Fund for the fiscal year February 28, 2010 may represent qualified dividend income.

The Fund will notify shareholders in January 2011 of amounts for use in preparing 2010 income tax returns.

Fund Governance

The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds of Columbia Funds Series Trust, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of Funds overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.

Independent Trustees

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Edward J. Boudreau (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 64; no other directorships held.

William P. Carmichael (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired. Oversees 64; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—The Finish Line (sportswear).

William A. Hawkins (Born 1942)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				President and Chief Executive Officer—California General Bank, N.A., from January 2008 through current; oversees 64; no other directorships held.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Chairman and Chief Executive Officer—Hilliard Group LLC (investing and consulting), from April 2003 through current; Non-Executive Director & Chairman—Conseco, Inc. (insurance), September 2003 through current; Executive Chairman—Conseco, Inc. (insurance), August 2004 through September 2005; oversees 64; Director—Conseco, Inc. (insurance).

John J. Nagorniak (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Retired. President and Director—Foxstone Financial, Inc. (consulting), 2000 through December 2007; Director—Mellon Financial Corporation affiliates (investing), 2000 through 2007; Chairman—Franklin Portfolio Associates (investing—Mellon affiliate), 1982 through 2007; oversees 64; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee and Chairman—Research Foundation of CFA Institute.

Fund Governance (continued)

Independent Trustees (continued)

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Minor M. Shaw (Born 1947)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 64; Board Member—Piedmont Natural Gas.

Interested Trustee

Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 1972 through current; Senior Advisor—McKinsey & Company (consulting), July 2006 through January 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, July 2000 through April 2006; oversees 64; Director—Renaissance Reinsurance Ltd; Director—Penn Mutual Life Insurance Company; Director—Citigroup.

¹ The Columbia Funds currently treat Mr. Santomero as an "interested person" (as defined in the 1940 Act) of the Funds because he serves as a Director of Citigroup, Inc. and Citibank, N.A. Citigroup, Inc., through its subsidiaries and affiliates, including Citibank, N.A., may engage from time-to-time in brokerage execution, principal transactions and/or lending relationships with the Columbia Funds or other funds or accounts advised/managed by the Advisor and/or any sub-advisor.

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-426-3750.

Officers

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Managing Director of Columbia Management Advisors, LLC since December 2004; Senior Vice President and Chief Financial Officer—Columbia Funds, from June 2008 to January 2009; Treasurer—Columbia Funds, from October 2003 to May 2008; Treasurer—the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000—December 2006; Senior Vice President—Columbia Management Advisors, LLC, from April 2003 to December 2004; President—Columbia Funds, Liberty Funds and Stein Roe Funds, February 2004 to October 2004; Treasurer—Galaxy Funds, September 2002 to December 2005; Treasurer, December 2002 to December 2004, and President, February 2004 to December 2004—Columbia Management Multi-Strategy Hedge Fund, LLC; and a senior officer of various other Bank of America-affiliated entities, including other registered and unregistered funds

Fund Governance (continued)

Officers (continued)

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
James R. Bordewick, Jr. (Born 1959)

One Financial Center Boston, MA 02111 Senior Vice President, Secretary and Chief Legal Officer (since 2006)				Associate General Counsel, Bank of America since April 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April 2005.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Director (Columbia Management Group LLC and Investment Product Group Compliance), Bank of America since June 2005; Director of Corporate Compliance and Conflicts Officer, MFS Investment Management (investment management), August 2004 to May 2005; Managing Director, Deutsche Asset Management (investment management) prior to August 2004.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Director of Fund Administration of the Advisor since January 2006; Managing Director of the Advisor September 2004 to December 2005; Vice President Fund Administration June 2002 to September 2004.

Jeffrey R. Coleman (Born 1969)

One Financial Center Boston, MA 02111 Treasurer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Fund Controller of the Advisor from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August 2000 to September 2004.

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Chief Accounting Officer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Head of Tax/Compliance and Assistant Treasurer of the Advisor from November 2004 to December 2005; Director of Trustee Administration (Sarbanes-Oxley) of the Advisor from May 2003 to October 2004.

Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Senior Tax Manager of the Advisor since August 2006; Senior Compliance Manager of the Advisor from April 2002 to August 2006.

Barry S. Vallan (Born 1969)

One Financial Center Boston, MA 02111 Controller (since 2006)				Vice President—Fund Treasury of the Advisor since October 2004; Vice President—Trustee Reporting of the Advisor from April 2002 to October 2004.

Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 1996)				President, Columbia Management Services, Inc. since July 2004; Senior Vice President and Controller, Columbia Management Services, Inc. prior to July 2004.

Board Consideration and Re-Approval of Current Investment Advisory Agreement

Even though the following description of the Board's consideration of investment advisory and, as applicable, sub-advisory agreements covers multiple funds, for purposes of this shareholder report, the description is only relevant as to the Fund.

The Board of Trustees of Columbia Funds Series Trust (the "Board"), including a majority of the Trustees who have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not "interested persons" of the Trust, as defined in the Investment Company Act of 1940 (the "1940 Act") (the "Independent Trustees"), are required annually to review and re-approve the existing investment advisory and sub-advisory agreements and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six months covered by this report, (i) investment advisory agreements with Columbia Management Advisors, LLC ("CMA" or the "Adviser") for Columbia Convertible Securities Fund, Columbia Large Cap Value Fund, Columbia Mid Cap Value Fund, Columbia Small Cap Value Fund II, Columbia Marsico Growth Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico 21st Century Fund and Columbia Small Cap Growth Fund II; and (ii) investment sub-advisory agreements with Marsico Capital Management, LLC ("Marsico Capital" or the "Sub-Adviser") for Columbia Marsico Focused Equities Fund, Columbia Marsico 21st Century Fund and Columbia Marsico Growth Fund (the "Sub-Advised Funds"). The investment advisory agreements with CMA and the investment sub-advisory agreements with Marsico Capital are each referred to as an "Advisory Agreement" and collectively referred to as the "Advisory Agreements." The funds identified above are each referred to as a "Fund" and collectively referred to as the "Funds."

More specifically, at meetings held on November 5-6, 2009, the Board, including the Independent Trustees advised by their independent legal counsel, considered the factors and reached the conclusions described below relating to the selection of CMA and the Sub-Adviser and the re-approval of the Advisory Agreements. The Board also reviewed and considered a report prepared and provided by the Independent Fee Consultant (the "Fee Consultant") appointed by the Independent Trustees pursuant to an assurance of discontinuance entered into with the New York Attorney General ("NYAG") to settle a civil complaint filed by the NYAG relating to trading in mutual fund shares (the "NYAG Settlement"). The Fee Consultant's role was to manage the process by which management fees are negotiated so that they were negotiated in a manner that is at arms' length and reasonable. The Fee Consultant found that the fee negotiation process was, to the exte nt practicable, at arms' length and reasonable and consistent with the requirements of the NYAG Settlement. A summary of the Fee Consultant's report is available at http://www.columbiafunds.com.

In preparation for the November meetings, the Board met in August for review and discussion of the materials described below. The Investment Committee of the Board also met in June to discuss each Fund's performance with its respective portfolio manager(s). In addition to these meetings, the Investment Committee receives and discusses performance reports at its quarterly meetings. The Contracts Review Committee of the Board also provided support in managing and coordinating the process by which the Board reviewed the Advisory Agreements. The Board's review and conclusions are based on the comprehensive consideration of all information presented to it and are not the result of any single controlling factor. The Board evaluated all information available to it on a Fund-by-Fund basis, and its determinations were made separately in respect of each Fund.

Nature, Extent and Quality of Services. The Board received and considered various data and information regarding the nature, extent and quality of services provided to the Funds by CMA and the Sub-Adviser under the Advisory Agreements. The most recent investment adviser registration forms for CMA and the Sub-Adviser were made available to the Board, as were CMA's and the Sub-Adviser's responses to a detailed series of requests submitted by the Independent Trustees' independent legal counsel on behalf of such Trustees. The Board reviewed and analyzed those materials, which included, among other things, information about the background and experience of senior management and investment personnel of CMA and the Sub-Adviser.

In addition, the Board considered the investment and legal compliance programs of the Funds, CMA and the Sub-Adviser, including their compliance policies and procedures and reports of the Funds' Chief Compliance Officer.

The Board evaluated the ability of CMA and the Sub-Adviser, based on their resources, reputation and other attributes, to

attract and retain qualified investment professionals, including research, advisory and supervisory personnel. In this regard, the Board considered information regarding the nature of CMA's compensation structure applicable to portfolio managers and other key investment personnel.

Based on the above factors, together with those referenced below, the Board concluded that it was satisfied with the nature, extent and quality of the investment advisory services provided to each of the Funds by CMA and the Sub-Adviser.

The Board noted that Bank of America, N.A., the parent company of the Adviser, had entered into an agreement to sell a portion of the asset management business of the Adviser to Ameriprise Financial, Inc. (the "Transaction"). The Board noted that the Transaction was expected to close in the spring of 2010 and that its review of the Advisory Agreements was separate and distinct from any analysis regarding new advisory or sub-advisory arrangements that may result from the closing of the Transaction.

Investment Advisory and Sub-Advisory Fee Rates and Other Expenses. The Board reviewed and considered the proposed contractual investment advisory fee rates both separately and together with the administration fee rates payable by the Funds to CMA for investment advisory services (the "Contractual Management Rates"). The Board also reviewed and considered the proposed contractual investment sub-advisory fee rates (the "Sub-Advisory Agreement Rates") payable by CMA to the Sub-Adviser for investment sub-advisory services. In addition, the Board reviewed and considered the proposed fee waiver/cap arrangements applicable to the Contractual Management Rates and considered the Contractual Management Rates after taking the waivers/caps into account (the "Actual Management Rates"). The Board noted that, on a complex-wide basis, CMA had reduced annual managemen t fees by at least $32 million per year pursuant to the NYAG Settlement. The Board also noted reductions in net advisory rates and/or total expenses of certain funds across the fund complex. Additionally, the Board received and afforded specific attention to information comparing the Contractual Management Rates and Actual Management Rates with those of the other funds in their respective Peer Groups (as defined below).

The Board reviewed and considered statistical information regarding each Fund's total expense ratio and its various components, including contractual advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The Board also reviewed comparisons of these fees to the expense information for the group of Funds determined by Lipper Inc. ("Lipper") to be most similar to a given Fund (the "Peer Group") and to the performance of a broader universe of relevant funds as determined by Lipper (the "Universe"), which comparative data was provided by Lipper, an independent provider of investment company data. The Board was provided with a description of the methodology used by Lipper to select the mutual funds in each Fund's Peer Group and Universe and considered potential imprecision resulting from the selection methodology. For certain Funds, Lipper determined that the composition of the Peer Group and/or Universe for expenses would differ from the composition for performance to provide a more accurate basis of comparison. The Board also considered Lipper data that ranked each Fund based on: (i) each Fund's one- and three-year performance compared to actual management fees; and (ii) each Fund's one- and three-year performance compared to total expenses.

The Board concluded that the factors noted above supported the Contractual Management Rates and the Actual Management Rates, and the approval of the Advisory Agreements for all of the Funds.

With regard to the Sub-Advised Funds, the Board also reviewed the Sub-Advisory Agreement Rates, including comparative fee information provided by the Adviser and the Adviser's recommendation that the Board re-approve the Advisory Agreements with Marsico Capital. The Board also considered a breakpoint fee schedule charged by Marsico Capital for the Sub-Advised Funds, as well as a corresponding waiver of Contractual Management Rates, both of which were implemented on January 1, 2008. The Board concluded that the Sub-Advisory Agreement Rates are fair and equitable, based on its consideration of the factors described above.

The Fund-by-Fund discussion set forth below in "Fund-Specific Considerations for Certain Review Funds" provides additional information regarding those Funds highlighted as meeting agreed-upon criteria for warranting further review. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios and/or performance information, relative to a Fund's Peer Group and/or Universe.

Fund Performance. The Board considered the performance results for each of the Funds over multiple measurement periods. It also considered these results in comparison to the performance results of each Fund's Peer Group and Universe, as well as to each Fund's benchmark index. The Board also considered certain risk-adjusted performance data.

Profitability. The Board received and considered a detailed profitability analysis of CMA based on the Contractual Management Rates and the Actual Management Rates, as well as on other relationships between the Funds and other funds in the complex on the one hand and CMA affiliates on the other. The analysis included complex-wide and per-Fund information and a comparison of results using alternative allocation methodologies. The Board concluded that, in light of the costs of providing investment management and other services, the profits and other ancillary benefits that CMA and its affiliates received from providing these services were not unreasonable.

Economies of Scale. The Board received and considered information regarding whether there have been economies of scale with respect to the management of the Funds, whether the Funds have appropriately benefited from any economies of scale and whether there is potential for realization of any further economies of scale. Most particularly, CMA provided information showing that, as a percentage of fund assets, CMA's complex-wide revenues declined over a five-year period during which fund assets increased by 53% and the shareholder benefit over a four-year period has remained steady at approximately 33% of the Adviser's total profits. The Board concluded that any potential economies of scale are shared fairly with Fund shareholders, most particularly through breakpoints and fee waiver arrangements.

The Board acknowledged the inherent limitations of any analysis of an investment adviser's economies of scale, stemming largely from the Board's understanding that economies of scale are generally realized, if at all, by an investment adviser across a variety of products and services, not just with respect to a single fund.

Information About Services to Other Clients. The Board also received and considered information about the nature and extent of services and fee rates offered by CMA and the Sub-Adviser to their other clients, including separate accounts and institutional investors. In this regard, the Board concluded that, where the Contractual Management Rates, Sub-Advisory Agreement Rates and Actual Management Rates were appreciably above the range of the fee rates offered to other CMA and Sub-Adviser clients, based on information provided by CMA and the Sub-Adviser, the costs associated with managing and operating a registered investment company provided a justification for the higher fee rates charged to the Funds.

Other Benefits to CMA and the Sub-Adviser. The Board received and considered information regarding any "fall-out" or ancillary benefits received by CMA and its affiliates and the Sub-Adviser as a result of their relationship with the Funds. Such benefits could include, among others, benefits attributable to CMA's and the Sub-Adviser's relationships with the Funds (such as soft-dollar credits) and benefits potentially derived from an increase in CMA's and the Sub-Adviser's business as a result of their relationship with the Funds (such as the ability to market to shareholders other financial products offered by CMA and its affiliates or a Sub-Adviser).

The Board considered the effectiveness of the policies of the Funds in achieving the best execution of portfolio transactions, whether and to what extent soft dollar credits are sought and how any such credits are utilized, any benefits that may be realized by using an affiliated broker, the extent to which efforts are made to recapture transaction costs, and the controls applicable to brokerage allocation procedures. The Board also reviewed CMA's and the Sub-Adviser's methods for allocating portfolio investment opportunities among the Funds and other clients. The Board concluded that the benefits were not unreasonable.

throughout the year. In this regard, the Board and its Committees review reports of CMA and the Sub-Adviser at each of its quarterly meetings, which include, among other things, Fund performance reports and presentations relating to such reports. In addition, the Board and its Committees confer with portfolio managers at various times throughout the year including, most particularly, at the June Investment Committee meeting.

Fund-Specific Considerations for Certain "Review" Funds. For certain Funds highlighted as meeting agreed-upon criteria for warranting further review, the Board engaged in further analysis with regard to approval of the Funds' Advisory Agreements. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios, and/or performance information relative to a Fund's Peer Group and/or Universe. Columbia Overseas Value Fund was not highlighted as a review fund.

Conclusion. After an evaluation of the above-described factors, and based on its deliberations and analysis of the information provided and alternatives considered, the Board, including all of the Independent Trustees, concluded that the compensation payable to CMA and the Sub-Adviser under the Advisory Agreements is fair and equitable. Accordingly, the Board unanimously re-approved the Advisory Agreements.

Board Consideration and Approval of Proposed Investment Advisory Agreement

Even though the following description of the Board's consideration of investment advisory and, as applicable, sub-advisory agreements covers multiple funds and trusts, for purposes of this shareholder report, the description is only relevant as to the Fund.

At a meeting held on December 21, 2009, the Boards of Trustees (the "Boards") of Columbia Funds Series Trust, Columbia Funds Master Investment Trust, LLC and Columbia Funds Series Trust II (each a "Trust" and collectively the "Trusts") unanimously approved a new investment management services agreement with RiverSource Investments, LLC ("RiverSource") (the "Proposed Advisory Agreement") and new subadvisory agreements with Marsico Capital Management ("Marsico Capital"), MacKay Shields LLC ("Mackay Shields") and Brandes Investment Partners, L.P. ("Brandes") (each a "Proposed Subadvisory Agreement"), as applicable, for each Fund of the Trusts (each a "Fund" and collectively the "Funds"). As detailed below, the Trustees met on multiple occasions in advance of the December 21, 2009 meeting, held numerous discussions with the management teams of Columbia Management Advisors, LLC ("Columbia") and RiverSource, a subsidiary of Ameriprise Financial, Inc. ("Ameriprise") and reviewed and considered extensive materials in connection with the approval of the Proposed Advisory and Subadvisory Agreements.

Specifically, the Trustees of each Trust, including a majority of the Trustees who have no direct or indirect interest in the Proposed Advisory and Subadvisory Agreements and are not "interested persons" of the Trusts, as defined in the Investment Company Act of 1940, as amended (the "1940 Act") (the "Independent Trustees") reviewed and approved (i) the Proposed Advisory Agreement with RiverSource for each Fund and (ii) the Proposed Subadvisory Agreement for those Funds that currently have investment subadvisory agreements with Marsico Capital, Mackay Shields, and Brandes (the "Subadvised Funds") (Marsico Capital, MacKay Shields and Brandes are collectively referred to as the "Subadvisers"). Prior to approving the Proposed Advisory Agreements, the Trustees were presented with, and requested, received and evaluated, extensive materials about RiverSource, the sale of a portion of the asset management business of Columbia Managemen t Group, LLC to Ameriprise (the "Transaction") and related matters from RiverSource, Ameriprise and Columbia. In this regard, the Trustees reviewed RiverSource's responses to a series of detailed requests submitted by the Independent Trustees' independent legal counsel and by the Independent Fee Consultant (as defined below).

The Trustees also reviewed and considered information received in connection with their most recent consideration and reapproval in November 2009 of the current advisory agreement (the "Current Advisory Agreement") and current subadvisory agreement (the "Current Subadvisory Agreement"), as applicable, for each Fund, including information about the Subadvisers (the "Current Agreement Re-Approval Process"). Moreover, the Trustees and committees of the Boards met on several occasions, and received extensive materials, throughout the course of the year relating to the Current Agreement Re-Approval Process, which the Trustees considered relevant to their consideration and approval of the Proposed Advisory and Subadvisory Agreements. The Trustees also consulted with Fund counsel and with the Independent Trustees' independent legal counsel, who advised on the legal standards for consideration by the Trustees, and otherwise assisted the Trustees in their deliberations.

In advance of the meeting on December 21, 2009, the Trustees held several meetings, including meetings held in-person with representatives from RiverSource and Ameriprise on August 26, 2009, November 5-6, 2009, December 9-10, 2009 and December 14, 2009, and additional meetings with representatives of Columbia, to discuss the Transaction, RiverSource's plans and intentions regarding the Funds and various proposals that were being presented as a result of the Transaction, including the Proposed Advisory and Subadvisory Agreements. In addition to these meetings, telephonic meetings and discussions were held on several occasions between individual Trustees, members of the committees of the Boards, their independent legal counsel and representatives from RiverSource, Ameriprise and/or Columbia.

in a manner that is at arms' length and reasonable. The Fee Consultant found that the fee negotiation process was, to the extent practicable, at arms' length and reasonable and consistent with the requirements of the NYAG Settlement. A summary of the Fee Consultant's report is available at www.columbiafunds.com.

The following summarizes a number of the material factors considered by the Trustees in reaching their approvals and determinations with respect to the Proposed Advisory Agreements and Proposed Subadvisory Agreements. It is followed by a more detailed discussion of the Trustees' consideration of these and other factors considered relevant by the Trustees in their evaluation of the Proposed Advisory Agreements and Proposed Subadvisory Agreements. In voting to approve the Proposed Advisory and Subadvisory Agreements for each Fund, the Trustees also considered substantially the same factors, as relevant, and reached substantially the same conclusions in their approval of interim advisory and subadvisory agreements for each Fund.

(i) the terms and conditions of the Proposed Advisory Agreements compared to the terms and conditions of the Current Advisory Agreements, as described below;

(ii) the fact that each Fund's total advisory fees would remain the same;

(iii) the qualifications of the personnel of RiverSource, Ameriprise and the Subadvisers expected to provide advisory and administrative services to each Fund, including representations by Ameriprise regarding its retention of the same process for monitoring and evaluating portfolio management personnel for each Fund as currently used by Columbia;

(iv) the terms and conditions of the Proposed Subadvisory Agreements compared to the terms and conditions of the Current Subadvisory Agreements;

(v) the reputation, financial strength, regulatory and compliance histories and resources of RiverSource and Ameriprise, and the potential benefits to the Funds of the combination of RiverSource and Columbia, including that the Funds are expected to continue to have access to existing distribution channels and have the potential for expanded distribution of Fund shares, the expected depth and breadth of investment management capabilities, that there is not expected to be any diminution in the nature, quality and extent of services to be provided to the Funds under the Proposed Advisory Agreements and the potential for the realization of additional economies of scale over time and the potential of the Funds to share in, and benefit from, these economies, if any;

(vi) that Ameriprise has committed to refrain from imposing or seeking to impose, for a period of not less than two years after the closing of the Transaction (the "Closing"), any "unfair burden" (within the meaning of Section 15(f) of the 1940 Act) on any Fund;

(vii) the terms and conditions of certain other agreements and arrangements relating to the future operations of the Funds and their distribution channels, including the administrative services agreement and the new services and distribution agreement;

(viii) that the Trustees recently had completed the Current Agreement Re-Approval Process for each Fund and had determined that they were satisfied with the nature, extent and quality of services provided thereunder and that the management fee rates and (where applicable) subadvisory fee rates for each Fund were satisfactory;

(ix) that RiverSource was willing to commit to maintain net operating expense ratios at current levels for at least the period currently covered by Columbia's existing commitments;

(x) the capabilities of RiverSource and the Subadvisers with respect to compliance, including an assessment of RiverSource's compliance program by the Funds' Chief Compliance Officer;

(xi) that certain members of RiverSource's management and certain Columbia personnel that will be integrated into RiverSource and its affiliates as a result of the Transaction have substantial experience in integrating fund families; and

(xii) that Ameriprise and Bank of America Corporation would bear the costs of obtaining approvals of the Proposed Advisory and Subadvisory Agreements.

In their deliberations, the Trustees did not identify any single item that was paramount or controlling and individual Trustees may have attributed different weights to various factors. The Trustees also evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately in respect of each Fund.

Nature, Extent and Quality of Services to be Provided. The Trustees received and considered various data and information regarding the expected nature, extent and quality of services to be provided to the Funds by RiverSource and the Subadvisers under the Proposed Advisory and Subadvisory Agreements. The most recent investment adviser registration forms for RiverSource and each Subadviser were made available to the Boards, as well as extensive materials from RiverSource, Ameriprise and Columbia. The Trustees reviewed and analyzed these materials, which included, among other things, information about the background and experience of expected senior management of RiverSource and Ameriprise after the Closing. The Trustees considered RiverSource's ability to provide administrative services to the Funds, noting that while the aggregate scope of advisory an d administrative services was not expected to change following the Closing, the allocation of services was expected to shift, to a limited extent, such that administrative services will be provided under a new administrative services agreement. The Trustees considered, among other things, the capacity and quality of RiverSource's and the Subadvisers' investment management, research and trade execution capabilities and other resources that would be dedicated to performing services for the Funds. The Trustees also considered matters related to RiverSource's and the Subadvisers' compliance programs and compliance records, including RiverSource's portfolio transaction policies and procedures. The Trustees discussed with senior management personnel their ability to administer and oversee outside service providers to the Funds and their shareholders and were satisfied with management's processes for providing services and overseeing and reviewing services to be rendered by outside sources.

In evaluating the services to be provided under the Proposed Advisory and Subadvisory Agreements, the Trustees factored in their extensive discussions with representatives of Columbia, RiverSource and Ameriprise at the meetings referenced above regarding the management of each Fund. The Trustees considered representations by Ameriprise that it was expected that there will be no diminution in the nature and quality of services provided to the Funds. The Trustees noted that Columbia Management Group's current President, Columbia's current Chief Investment Officer and Columbia's current President, were expected to continue to serve the Funds in similar capacities after the Closing. With respect to portfolio management, the Trustees reviewed information regarding the deliberative process for selecting portfolio management personnel to continue servicing the Funds after the Closing, including the expected role of Columbia's Chief Inv estment Officer in evaluating and selecting portfolio management personnel for each Fund utilizing Columbia's current analytical model for evaluating portfolio managers. In this regard, the Trustees also weighed representations by Ameriprise that this investment management evaluative process was likely to result in a significant number of Columbia investment professionals and personnel currently responsible for management of the Funds to remain in place. The Trustees noted that the portfolio management evaluation and selection process was designed to optimize the portfolio management resources available to each Fund by having the ability to select investment personnel for the Funds from the combined organization. Similarly, the Trustees evaluated the ability of RiverSource and the Subadvisers, based on their respective resources, reputations and other attributes, to attract and retain qualified investment professionals. In this regard, the Trustees considered information regarding the nature of the compensat ion structure applicable to portfolio managers and other key investment personnel.

from Ameriprise and RiverSource regarding the expectation for rationalized or harmonized fees as part of the integration after the Closing in order to develop consistent service fee schedules across the combined fund family. The Trustees noted Ameriprise's representations that, to the extent any such proposals were recommended to the Board after the Closing, they would not result in an "unfair burden" (within the meaning of Section 15(f) of the 1940 Act) on any Fund.

In addition, the Trustees reviewed and evaluated materials and information received regarding the investment and legal compliance programs of the Funds, RiverSource and the Subadvisors, including their compliance policies and procedures and reports of the Funds' Chief Compliance Officer. In this regard, the Trustees considered that Columbia's current Chief Compliance Officer was expected to serve in the same role after the Closing.

The Trustees also noted that Ameriprise and certain of its affiliates have 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 ordinary conduct of their business activities, and that Ameriprise indicated that neither Ameriprise 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 or its affiliates, including RiverSource to provide services to the Funds.

Based on the foregoing and other information considered relevant, the Trustees concluded that, overall, they were satisfied with assurances from Columbia, RiverSource, Ameriprise and the Subadvisers as to the expected nature, extent and quality of services to be provided to each Fund under the Proposed Advisory and Subadvisory Agreements.

Investment Advisory and Subadvisory Fee Rates and Other Expenses. The Trustees reviewed and considered the proposed contractual investment advisory fee rates to be paid by each Fund to RiverSource for investment management services both separately and together with the administration fee rates to be paid by the Funds to RiverSource (the "Contractual Management Rates"), which are the same as the separate and aggregate advisory and administrative fee rates currently paid by each Fund to Columbia. The Trustees also reviewed and considered the proposed subadvisory fee rates and the fee arrangements under the Proposed Subadvisory Agreements, respectively, which are also the same as those currently in effect under the Current Subadvisory Agreements. In addition to the materials provided by Columbia, RiverSource provided information regarding the current fee s for each of the RiverSource funds and other relevant institutional accounts. The Trustees reviewed and considered the proposed fee waiver/cap arrangements applicable to the Contractual Management Rates and considered the Contractual Management Rates after taking the waivers/caps into account (the "Actual Management Rates"). In this regard, the Trustees noted that RiverSource had committed to maintain the Funds' current expense limitation and waiver arrangements (both contractual and voluntary). The Trustees considered the potential that, after the Closing, RiverSource would propose a common fee and expense structure for the combined fund family, subject to the commitment that Ameriprise will not seek any change that would result in an "unfair burden" on any Fund. The Trustees also considered the report prepared and provided by the Fee Consultant. Additionally, the Trustees received and afforded specific attention to information provided in connection with the Current Agreement Re-Approval Process, comparin g the Contractual Management Rates and Actual Management Rates with those of other funds in each Fund's Peer Group (as defined below).

During the Current Agreement Re-Approval Process, the Trustees reviewed and considered statistical information regarding each Fund's total expense ratio and its various components, including contractual advisory fees, actual advisory fees, actual nonmanagement fees, Rule 12b-1 and non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The Trustees also reviewed comparisons of these fees to the expense information for the group of Funds that was determined by Lipper Inc. ("Lipper") to be the most similar to a given Fund (the "Peer Group") and to the performance of a broader universe of relevant funds as determined by Lipper (the "Universe"), which comparative data was provided by Lipper, an independent provider of investment company data.

certain Funds, Lipper determined that changing the composition of the Peer Group and/or Universe for expenses from that used for performance would provide a more accurate basis of comparison. The Trustees also considered Lipper data that ranked each Fund based on: (i) each Fund's one- and three-year performance compared to actual management fees; and (ii) each Fund's one- and three-year performance compared to total expenses.

For each Fund, except as otherwise described in the Fund-specific discussion below, the Trustees noted that they had concluded during the Current Agreement Re-Approval Process that the Contractual Management Rates, the Actual Management Rates and the total expense ratio were at acceptable levels in light of the quality of services provided to the Fund and in comparison to such Fund's Peer Group and Universe, as applicable; that the advisory fee rate would not be increased for any Fund; that Ameriprise and RiverSource had represented that the overall expenses for each Fund were not expected to be adversely affected by the Transaction; and that RiverSource had committed to maintain the Funds' current expense limitation or waiver arrangements (both contractual and voluntary).

Based on the foregoing, other relevant information received and the additional information described in the Fund-specific discussion below, as applicable, the Trustees concluded that the Contractual Management Rates, the Actual Management Rates and the total expense ratio were acceptable.

Fund Performance. The Trustees reviewed detailed performance information for each Fund at various Board and committee meetings during the year in addition to the additional performance information that they reviewed and evaluated in connection with the Transaction. The Trustees also reviewed and evaluated detailed performance information for each Fund in connection with the Current Agreement Re-Approval Process. The Trustees considered the performance results for each of the Funds over multiple measurement periods. They also considered these results in comparison to the performance results of each Fund's Peer Group and Universe, as well as to each Fund's benchmark index. The Boards also noted certain risk-adjusted performance data.

The Trustees also reviewed and evaluated information and data regarding the investment performance record of RiverSource in managing funds with investment strategies generally similar to those of the Funds, as applicable. Investment performance for such funds was provided for a wide range of periods.

The Trustees recognized that the investment performance record of RiverSource in managing funds with similar objectives may be less relevant to their deliberations in situations where the current portfolio managers of Columbia are expected to continue managing a particular Fund following the Closing. They also recognized that for each Fund, it is not possible to predict with certainty what effect, if any, consummation of the Transaction will have on the future performance of the Funds, noting in particular that past investment performance is no assurance of future results. The Fund-by-Fund discussion set forth below provides additional information regarding those Funds highlighted as meeting agreed-upon criteria for warranting further review. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios and/or performance information, relative to a Fund's Peer Group and/or Univ erse.

Costs of Services to be Provided and Profitability. In considering the costs of services to be provided by RiverSource and the Subadvisers under the Proposed Advisory Agreement and Proposed Subadvisory Agreement, as applicable for each Fund, and the projected range of profitability to RiverSource and the Subadvisers from their relationships with the Funds, the Trustees considered, among other things, that there would be no increase in advisory or subadvisory fee rates under the Proposed Advisory and Subadvisory Agreements. The Trustees further noted, with respect to RiverSource, that it was not possible to predict with certainty how RiverSource's profitability would be affected by becoming the investment adviser to the Funds but, as a general matter, they were satisfied, based on their review of RiverSource's projected range of profitability assuming completion of the Transaction, that this projected profitability from their relationship with the Funds would not be excessive. The Trustees based their review, in part, on information regarding RiverSource's current profitability in managing the RiverSource Funds and the information available to the Trustees with respect to RiverSource's expense budgeting process. The Trustees also noted that they would have ongoing opportunities to address RiverSource's profitability in the future based on actual results. The Trustees did not consider

separate profitability information with respect to the Subadvisers, as their profitability from their relationships with the Funds was not a material factor in determining whether to approve the Proposed Subadvisory Agreements. The Trustees also noted that the subadvisory fees paid to the Subadvisers, none of which is affiliated with Columbia, had previously been negotiated on an arms' length basis.

The Trustees also reviewed information about the financial condition of RiverSource and the Subadvisers and were satisfied that RiverSource and the Subadvisers have adequate resources to perform the services required under the Proposed Advisory and Proposed Subadvisory Agreements.

Subject to the limitations noted above, the Trustees concluded that they were satisfied that RiverSource's projected range of future profitability, and each Subadviser's historical profitability, from their relationship with each Fund, as relevant, were not excessive.

Economies of Scale. The Trustees received and evaluated information regarding the potential to realize economies of scale with respect to management of the Funds, whether the Funds would appropriately benefit from any economies of scale and whether there was any potential for realization of further economies of scale in connection with the Transaction. The Trustees noted that the current and proposed investment advisory fee rates for most of the Funds contain breakpoints that reduce the fee rate on assets above specified levels. The Trustees noted that RiverSource had indicated that no changes to the Funds' breakpoint arrangements were proposed to be made at this time. In light of these factors and noting that it was not possible to evaluate with certainty if and how the Transaction would produce any immediate opportunities for additional economies of scale, the Trustees concluded that each Fund's breakpoint arrangements were acceptable. The Trustees also recognized that the Funds may benefit from certain economies of scale over time from becoming a part of the larger RiverSource fund complex, based on potential future synergies of operations, potential fee harmonization/rationalization initiatives and potential future Fund mergers. The Trustees noted, in particular, RiverSource's acknowledgement of the principle that the Funds should share in certain economies of scale if realized by RiverSource. In addition, the Trustees evaluated the likelihood that there would be potential Fund mergers after the Closing. The Trustees noted that any such potential Fund mergers, if approved, could result in the achievement of additional breakpoints for Funds that have implemented breakpoint fee schedules. The Trustees also noted that they expect to consider economies of scale from time to time following the Closing and thus be in a position to evaluate any additional e conomies of scale.

The Trustees acknowledged the inherent limitations of any analysis of an investment adviser's economies of scale, stemming largely from the Trustees' understanding that economies of scale are generally realized, if at all, by an investment adviser across a variety of products and services, not just with respect to a single fund.

Information About Investment Management Services to Non-Mutual Fund Clients. The Trustees also received and reviewed information about the nature and extent of services and fee rates offered by Riversource and the Subadvisers to the Funds compared with other clients with similar accounts, including separate accounts and institutional investments. The Trustees noted that the Funds may receive services different from those offered to other clients of RiverSource and the Subadvisers and concluded that the advisory fee rates under the Proposed Advisory Agreements and the subadvisory fee rates under the Proposed Subadvisory Agreements were not excessive, given the nature and extent of services expected to be offered and other factors, including the Trustees' review of Lipper data.

Other Benefits to RiverSource and the Subadvisers. The Trustees received and reviewed information regarding any expected "fall-out" or ancillary benefits to be received by RiverSource and its affiliates and by the Subadvisers as a result of their relationships with the Funds.

(which will also become a subsidiary of RiverSource following the closing of the Transaction) retains a portion of the distribution related fees from the Funds and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Funds. The Trustees recognized that RiverSource's and the Subadvisers' profitability would be somewhat lower without these benefits. The Trustees concluded that RiverSource and the Subadvisers may derive reputational benefits from their association with the Funds. The Trustees also noted, however, that such benefits were difficult to quantify with certainty.

Fund-Specific Considerations for Certain "Review" Funds. During the Current Agreement Re-Approval Process, a limited number of Funds were highlighted as meeting agreed-upon criteria for warranting further review. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios and/or performance information, relative to a Fund's Peer Group and/or Universe. For such "review" Funds, the Trustees engaged in further analysis with regard to the approval of the Funds' Current Advisory Agreements. For each such Fund, the Trustees subsequently considered the impact of transitioning investment management responsibilities to RiverSource.

Columbia Overseas Value Fund was not highlighted as a review fund.

Conclusion. After an evaluation of the above-described factors and based on its deliberations and analysis of the information provided and alternatives considered, each Board, including all of the Independent Trustees, concluded that approval of the Proposed Advisory and Subadvisory Agreements was in the best interests of each of the Funds and its shareholders. Accordingly, the Boards unanimously approved the Proposed Advisory and Subadvisory Agreements.

Summary of Management Fee Evaluation by
Independent Fee Consultant

[EXPERPTS FROM:] REPORT OF INDEPENDENT FEE CONSULTANT TO THE FUNDS SUPERVISED BY THE COLUMBIA NATIONS BOARD

Prepared Pursuant to the February 9, 2005 Assurance of Discontinuance among the Office of Attorney General of New York State, Columbia Management Advisors, LLC, and Columbia Management Distributors, Inc.

November 12, 2009

I. Overview

On February 9, 2005, Columbia Management Advisors, LLC ("CMA") and Columbia Management Distributors, Inc.¹ ("CMD") agreed to the New York Attorney General's Assurance of Discontinuance ("AOD"). Among other things, the AOD stipulates that CMA may manage or advise a Columbia Fund ("Columbia Fund" and, together with some or all of such funds, the "Columbia Funds") only if the Independent Members of the Columbia Fund's Board of Trustees appoint a Senior Officer or retain an Independent Fee Consultant ("IFC") who is to manage the process by which proposed management fees are negotiated. The AOD further stipulates that the Senior Officer or IFC is to prepare a written annual evaluation of the fee negotiation process.

With effect from January 1, 2007, the Independent Members of the Board of Trustees for certain Columbia Funds known collectively as the "Nations Funds" (together with the other members of that Board, the "Trustees") retained me as IFC for the Nations Funds.² In this capacity, I have prepared the fifth annual written evaluation of the fee negotiation process. As was the case with the 2007 and 2008 reports, my immediate predecessor as IFC, John Rea, provided invaluable assistance in the preparation of this year's report.

A. Role of the Independent Fee Consultant

The AOD charges the IFC with "managing the process by which proposed management fees...to be charged the Columbia Fund are negotiated so that they are negotiated in a manner which is at arms' length and reasonable and consistent with this Assurance of Discontinuance." The AOD also provides that CMA "may manage or advise a Columbia Fund only if the reasonableness of the proposed management fees is determined by the Board of Trustees...using...an annual independent written evaluation prepared by or under the direction of...the Independent Fee Consultant." Therefore, the AOD makes clear that the IFC does not supplant the Trustees in negotiating management fees with CMA, nor does the IFC substitute his or her judgment for that of the Trustees with respect to the reasonableness of proposed fees or any other matter that is committed to the business judgment of the Trustees.

B. Elements Involved in Managing the Fee Negotiation Process

In preparing the report required by the AOD, the IFC must consider at least the following six factors set forth in the AOD:

1. The nature and quality of CMA's services, including the Fund's performance;

2. Management fees (including any components thereof) charged by other mutual fund companies for like services;

3. Possible economies of scale as the Fund grows larger;

4. Management fees (including any components thereof) charged to institutional and other clients of CMA for like services;

5. Costs to CMA and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit; and

6. Profit margins of CMA and its affiliates from supplying such services.

C. Organization of the Annual Evaluation

This report, like last year's, focuses on the six factors and contains a section for each factor except that CMA's costs and profits from managing the Funds are treated in a single section. In addition to a discussion of these factors, the report offers recommendations to improve the fee review process in future years. A review of the status of recommendations made in the 2008 Report is being provided separately with the materials for the November meeting.

¹ CMA and CMD are subsidiaries of Columbia Management Group, LLC ("CMG"), and are the successors to the entities named in the AOD.

² I have no material relationship with Bank of America, CMG or any of its affiliates, aside from serving as IFC, and I am aware of no material relationship with any of their affiliates. I retained John Rea, an independent economic consultant, to assist me with this report.

Unless otherwise stated or required by the context, this report covers only the Nations Funds, which are also referred as the "Funds."

II. Summary of Findings

A. General

1. Based upon my examination of the information supplied by CMG in the light of the six factors set forth in the AOD, I conclude that the Trustees have the relevant information necessary to evaluate the reasonableness of the proposed management fees for each Nations Fund, subject to the following: on September 30, 2009, Ameriprise Financial, Inc. ("Ameriprise") announced that it had agreed to purchase the investment management business of CMG with the exception of its cash and liquidity management business which includes the Nations money market Funds. As a result, the Trustees requested information from CMG as to the plans of CMG and its parent with respect to the provision of investment management services to those Funds after the consummation of the proposed transaction. As of the date of this report, that information has not yet been provided. However, as the transaction is not expected to close until the spring o f 2010, the Trustees concluded that they would have ample opportunity to take appropriate steps with respect to the investment management agreements of the money market Funds, including invoking the 60-day termination provisions of those agreements, in response to the information to be provided by CMG and reviewed by the IFC.

2. In my view, the process by which the proposed management fees of the Funds have been negotiated in 2009 thus far has been, to the extent practicable, at arms' length and reasonable and consistent with the AOD.

B. Nature and Quality of Services, Including Performance

3. The performance of the Funds was relatively strong for the measuring periods ending March 31, 2009. Between one-third and nearly one-half of the Funds were ranked in either the first or second quintiles in the one-, three-, five-, and 10-year periods, and no more than 8% were in the fifth quintile for these periods. Overall, the performance was stronger in the two longer periods.

4. The strongest performing groups over the one-, three-, and five-year periods were active equity, quantitative strategies, and, to a lesser extent, money market Funds. Sub-advised Funds were the weakest performers, with over 60% of the Funds in the bottom two quintiles in the one- and three-year periods. For the same two periods, no more than 15% percent of the sub-advised Funds were in the top two quintiles. Almost half of fixed-income Funds ranked in the bottom two quintiles in the one- and three-year periods.

5. Overall performance of the Funds was less robust in 2009 than in 2008 and 2007 for the one- and three-year performance periods. For example, 62% of the Funds were in the top two quintiles in 2007 for the one-year period compared with 33% in 2009. The ranks of those in the bottom two quintiles rose significantly between 2007 and 2009, led by money market and fixed-income Funds in the one- and three-year periods. For the three-year period, there was a similar trend with respect to sub-advised Funds.

6. The performance of the active equity Funds against their benchmarks was strong for the one-, three-, and five-year performance periods. In contrast, more than half of the sub-advised Funds failed to beat their benchmarks on a net basis in the one- and three-year periods. The fixed-income Funds consistently produced gross returns below those of their benchmarks. Lipper quintile rankings of the actively managed equity Funds are highly correlated with their performance against their benchmarks in the sense that net returns in excess of the benchmark appear necessary to achieve a ranking in one of the top three quintiles. No such correlation was observed for fixed-income and quantitative strategies Funds.

7. The equity Funds' overall performance adjusted for risk was mixed. Based upon three-year returns, less than 40% of the equity Funds had a combination of risk-adjusted and unadjusted returns that placed them in the top half of their performance universes; 60% were in the bottom half of their universes. About 30% of the fixed income Funds posted high returns and low risk relative to comparable funds. Over 60% of the fixed-income Funds took on more risk than the typical fund in their performance universes.

8. The industry-standard procedure used by Lipper that includes all share classes in the performance universe tends to bias a Fund's ranking upward within that universe. The bias occurs because either no-12b-1 fee or low-12b-1 fee share classes of the Nations Funds are compared with funds in performance universes that

include all share classes of multi-class funds with 12b-1 fees of up to 100 basis points. Correcting this bias by limiting the performance universe to classes of comparable funds with low or no 12b-1 fees (a "filtered universe") lowers the relative performance for the Funds, but generally not to a material extent. The filtering process, however, did identify two Funds for further review that had not been so identified using unfiltered universes.

9. A small number of Funds have consistently underperformed over the past five years. The exact number depends on the criteria used to evaluate longer-term performance. For example, six different Funds have had below-median performance in at least four out of the five years between 2005 and 2009 for either the one- or three-year performance periods from 2005 to 2009. If the threshold were the 60th percentile, only two Funds would have satisfied the criteria.

10. The services performed by CMG professionals beyond portfolio management, such as compliance, legal, information technology, risk management, finance, and fund administration, are critical to the success of the Funds and appear to be of high quality.

C. Management Fees Charged by Other Mutual Fund Companies

11. The Funds' management fees and total expenses are generally low relative to those of their peers, with over half the Funds ranking in the most favorable two quintiles. For total expenses, slightly more than one-quarter are in the bottom two quintiles, while slightly less than two-fifths are in the bottom two quintiles for actual management fees. Fixed-income and quantitative strategies Funds have the lowest fees and expenses relative to their peers. The sub-advised Funds account for the majority of Funds in the fifth quintile for both management fees and total expenses.

12. The distribution of management fee rankings has changed little over the past three years, while the distribution of total expense rankings has moved in the direction of higher expenses. The most notable change involving total expenses has been a shift in the number of Funds from the first to the second quintile.

13. The management fees of the non-subadvised Funds are generally in line with those of Columbia Funds supervised by the Atlantic Board of Trustees (the "Atlantic Funds"). The sub-advised large cap equity, international equity, and high yield Funds, however, generally have higher management fees than those of comparable Atlantic and non-subadvised Funds.

14. The implementation of the new program of voluntary expense limits appears to have been associated, on balance, with less favorable expense rankings. This result reflects increases in expense limits for certain Funds, the removal of fee waivers, and the shift of certain expenses from CMA to the Funds. The decline in expense rankings is less significant, however, than CMA projected in December 2008.

D. Trustees' Advisory Contract Review Process

15. The Trustees' evaluation process identified 22 Funds in 2009 for further review based upon long-standing criteria relating to their relative performance or expenses or both. When compared in filtered universes, two more Funds met the criteria for further review. At the November meeting, CMG provided further information about each of those Funds to assist the Trustees in their evaluation.

E. Potential Economies of Scale

16. CMG presented to the Trustees its analysis of the sources and sharing of potential economies of scale. CMG views economies of scale as arising at the complex level and would regard estimates of scale economies for individual funds as unreliable. In its analysis, CMG did not identify specific sources of economies of scale or provide any estimates of any economies of scale that might arise from future asset growth. CMG's analysis included measures taken by the Trustees and CMG that seek to share any potential economies of scale through breakpoints in management fee schedules, the establishment of expense limits for each Fund, enhanced shareholder services, fund mergers, and operational consolidation.

17. An examination of the contractual fee schedules for five Nations Funds shows that the schedules for Small Cap II, Municipal Reserves, and Treasury Reserves compare favorably with those of their competitors, while the subadvised Marsico Growth and High Yield VS Funds have schedules generally above those of their peers, including

funds that do not have a sub-adviser. The group fee with breakpoints that characterizes the money market Fund schedules is not typically found among competitors, nearly all of which have flat fee schedules.

F. Management Fees Charged to Institutional Clients

18. CMG has provided Trustees with comparisons of mutual fund management fees and institutional fees based upon standardized fee schedules and upon actual fees. The results show that, consistent with industry practice, actual and scheduled institutional fees are generally, but not always, lower than the Funds' management fees. CMG provided additional data this year demonstrating that at small asset levels, the effective fee of certain Funds may be equal to or less than institutional fee levels at those asset levels, due to the effect of expense limits on small funds with high gross expenses. CMG also analyzed the differences between the services provided and risks borne on the one hand by a manager of mutual funds and on the other by institutional advisers, and suggested that these differences should be kept in mind when Trustees review the reasonableness of the Funds' management fees.

G. Revenues, Expenses, and Profits

19. The activity-based cost allocation methodology employed by CMG to allocate costs, both direct and indirect, for purposes of calculating Fund profitability is thoughtful and detailed. This year, CMG further refined the technique by allocating additional indirect expenses on an activity basis.

20. The materials provided on CMG's revenues and expenses with respect to the Funds and the methodology underlying their construction form a sufficient basis for Trustees to evaluate the expenses of and profitability to CMG arising out of its relationships with the Funds.

21. CMG provided a firm-wide pro forma 2009 income statement demonstrating the effect of market events beginning in the fourth quarter of 2008 on its revenues and profitability to provide an additional perspective on calendar 2008 profitability data.

22. In 2008, CMG's pre-tax pre- and post-distribution margins on the Nations Funds were above the industry mean and median, based on limited data available for publicly held mutual fund managers and excluding the costs of CMG's money market capital support programs. However, as is to be expected in a 63-Fund complex, some Nations Funds had relatively high pre-tax profit margins in 2008, when calculated solely with respect to management revenues and expenses, while other Nations Funds operated at a loss. There is a positive relationship between Fund size and profitability to CMG, with smaller Funds generally operating at a loss to CMG.

23. CMG pays a fixed percentage of its management fee revenues to an affiliate, U.S. Trust, Bank of America Private Wealth Management, with respect to assets of its clients invested in Nations Funds to compensate it for services it performs with respect to those client assets and for the effect of state law limitations on affiliates charging multiple fees. Based on our analysis of the services provided by this affiliate, we have concluded that all payments other than those for sub-transfer agent or sub-accounting services should be treated as a distribution expense.

III. Recommendations

1) Criteria for review. The Trustees may wish to consider modifying the criteria for identifying a Fund for further review (a "Review Fund") to include criteria that focus exclusively on performance. They may also wish to consider whether it would be useful to apply CMG's own internal monitoring standards for Fund performance to the contract review process, or whether such criteria are more relevant to their ongoing investment oversight.

2) Presentation of Review Fund discussion. CMG should consider whether it could more systematically present in one discussion all relevant information regarding each Review Fund, which is now split into several different portions of the 15(c) materials. For any Fund that has been a Review Fund in consecutive years, CMG should address under what circumstances it could reasonably be anticipated that the Fund would lose that status.

3) Refinement of tax-exempt performance data. Certain single-state tax-exempt Funds compete in extremely small universes and are compared to a multi-state benchmark of uncertain relevance. Notwithstanding the difficulties, CMG should work to improve the reliability of the calculation of relative performance of these Funds. If that is not possible,

CMG should provide guidance on how the Trustees should judge the quality of CMG's management of these Funds.

4) Development of risk metrics for asset-allocation, tax-exempt, and money market Funds. CMG has developed and shared with the Trustees quantitative risk metrics comparing equity and taxable fixed-income Funds against their peers. However, reliable risk metrics have not been developed for asset-allocation, tax-exempt fixed income, and money market Funds. We urge CMG to continue its efforts to provide reliable risk measures for these categories of Funds, especially in the cases of asset-allocation and money market funds, because their investors are likely to be motivated at least in part by a desire to manage risk.

5) Profitability data. For any period during which CMG is an affiliate of U.S. Trust, Bank of America Private Wealth Management, CMG should continue to present to the Trustees the profitability of each Fund, each investment style and each complex (of which Nations is one) calculated as follows:

a. Management-only profitability should be calculated without reference to any Private Bank expense.

b. Profitability excluding distribution (which essentially covers the management and transfer agency functions) should be adjusted by removing from the expense calculation any portion of the Private Bank payment not attributable to the performance by the Private Bank of sub-transfer agency or sub-accounting functions.

c. Total profitability, including distribution: No adjustment for Private Bank expenses should be made, because all such expenses represent legitimate fund expenses to be taken into account in calculating CMG's profit margin including distribution.

d. Distribution only: This should include all Private Bank expenses other than those attributable to sub-transfer agency services.

6) Contractual fee analysis. This year CMG presented a new Lipper report comparing the contractual management fees of Funds with those of competitors in similar investment styles. However, the reliability of the conclusion—that Fund management fee breakpoints compared favorably with competitive fee rates—was limited by the use of competitive funds at all asset levels. The sponsors of a $100 million mutual fund may not have given much thought to breakpoints at $5 billion; therefore, that fund's contractual fee at that level is unlikely to compare favorably with that of a $5 billion Fund. Limiting the competitors to the Lipper expense group, whose constituents are similar in size to the rele vant Fund, would make the results more meaningful. In addition, the breakpoints of a select group of Nations Funds (which would differ each year) should continue to be compared to those of industry rivals to ensure that the Funds' breakpoint schedules remain within industry norms. As breakpoint schedules change relatively little each year, performing such a comparison for each Nations Fund each year would not be an efficient use of Trustee and CMG resources.

7) Pro forma profitability data. In any year in which CMG or the Trustees believe that the prior year's profitability is unlikely to be representative of current business results due to changes in markets or for any other reason, CMG should, consistent with this year's practice, prepare a pro forma income statement based on year-to-date actual data and reasonable projections used for its own business planning purposes.

8) Additional institutional data and analysis. While CMG provided a substantial amount of information on its institutional business, we suggest some additional items for future years: (a) profitability data for the institutional business in the format, and based upon the same allocation methodologies, used to present Fund profitability, (b) an explanation of how CMA sets institutional fee breakpoints, which normally begin at asset levels far lower than those found in Fund management fee breakpoints, and (c) distinguishing in all institutional fee materials fees of accounts acquired prior to the development of current fee schedules (so-called "legacy" accounts) from the fees of accounts launched after that time.

9) Management fee disparities. In any future study of management fees, CMG and the Nations Trustees should analyze the differences in management fee schedules. As

part of that analysis, CMG should provide an explanation for any significant fee differences among comparable funds across fund families sponsored by CMG, such as differences in the management styles of different Funds included the same Lipper category. Finally, if CMG proposes a management fee change or an expense cap for any mutual fund managed by CMA that is comparable to any Nations Fund, CMG should provide the Trustees with sufficient information about the proposal to allow the Trustees to assess the applicability of the proposed change to the relevant Nations Fund or Funds.

10) Explanation of data supplied to Lipper. Each year, as part of the 15(c) process, CMG retains Lipper to compare the fees and expenses of each Fund to a group of competitors. In many cases, CMG, with the approval of the Trustees, adjusts the actual expense data, which is based on the most recent full fiscal year of the Fund (and each competitive fund) to reflect changes in fees or expense limits that occurred during or after the relevant fiscal year. This improves the reliability and usefulness of the comparison. However, to ensure that the Trustees know when and how CMG adjusted the data, we recommend that CMG prepare a table listing for each Fund what adjustments were made, e.g., to reflect a new expense limitation of x basis points that commenced on y date.

11) Reduction of volume of paper documents submitted. The effort to streamline and better organize the data presented to the Trustees and the process by which that data was prepared and organized continued to be well-received by all parties. Notwithstanding past success, it is always appropriate to look for opportunities to reduce and simplify the presentation of 15(c) data. One possibility would be to remove the 127 pages of biographical data, most if not all of which the Trustees have previously seen as part of their ongoing investment oversight duties, from the paper volume and post it on the Internet-based document storage and retrieval system used by the Funds to provide reference data to Trustees.

Respectfully submitted,
Steven E. Asher

This page intentionally left blank.

Important Information About This Report

The fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 1-800-426-3750 and additional reports will be sent to you. This report has been prepared for shareholders of Columbia Overseas Value Fund.

A description of the policies and procedures that the fund uses to determine how to vote proxies and a copy of the fund's voting records are available (i) at www.columbiamanagement.com, (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available on the SEC's website. Information regarding how the fund voted proxies relating to portfolio securities is also available from the fund's website, www.columbiamanagement.com.

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the fund, contact your Columbia Management representative or financial advisor.

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Transfer Agent

Columbia Management Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081
1-800-426-3750

Distributor

Columbia Management
Distributors, Inc.
One Financial Center
Boston, MA 02111

Investment Advisor

Columbia Management Advisors, LLC
100 Federal Street
Boston, MA 02110

Columbia Management^®

One Financial Center
Boston, MA 02111-2621

PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20

Columbia Management^®

Columbia Overseas Value Fund

Annual Report, February 28, 2010

One Financial Center, Boston, MA 02111-2621

800-345-6611 www.columbiafunds.com

SHC-42/32194-0210 (04/10) 10/4472V0

Columbia Management^®

Annual Report

February 28, 2010

Columbia Convertible Securities Fund

NOT FDIC INSURED				May Lose Value

NOT BANK ISSUED				No Bank Guarantee

Table of Contents

Fund Profile					1

Economic Update					2

Performance Information					4

Understanding Your Expenses					5

Investment Portfolio					8

Statement of Assets and Liabilities					14

Statement of Operations					15

Statement of Changes in Net Assets					16

Financial Highlights					18

Notes to Financial Statements					22

Report of Independent Registered Public Accounting Firm					30

Federal Income Tax Information					31

Fund Governance					32

Board Consideration and Re-Approval of Current Investment Advisory Agreement					36

Board Consideration and Approval of Proposed Investment Advisory Agreement					40

Summary of Management Fee Evaluation by Independent Fee Consultant					47

Important Information About This Report					53

President's Message

Dear Shareholder:

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

Fund Profile – Columbia Convertible Securities Fund

Summary

^g For the 12-month period that ended February 28, 2010, the fund's Class A shares returned 33.91% without sales charge.

^g This period's strongest returns occurred among issues and sectors that are more speculative than those the fund emphasizes. For that reason, the fund's return was well below those of its benchmark, the Merrill Lynch All Convertibles All Qualities Index¹ and the average return of its peer group, the Lipper Convertible Securities Funds Classification.²

^g The same measured approach that aided relative returns during the market's most tumultuous stretch held back results over this period.

Portfolio Management

Yanfang (Emma) Yan, lead manager, has co-managed the fund since July 2001 and has been associated with the advisor or its predecessors since 2001.

Richard E. Dahlberg has co-managed the fund since May 2004 and has been associated with the advisor or its predecessors since 2003.

Yan Jin has co-managed the fund since March 2006 and has been associated with the advisor or its predecessors since 2002.

Effective April 6, 2010, David L. King will be replacing Yanfang Yan as lead manager of the Fund and Richard E. Dahlberg will no longer co-manage the fund.

¹The Merrill Lynch All Convertibles All Qualities Index is a widely used index that measures convertible securities performance. It measures the performance of U.S. dollar-denominated convertible securities not currently in bankruptcy with a total market value greater than $50 million at issuance. Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the fund may not match those in an index.

Merrill Lynch & Co., Inc. is a wholly-owned subsidiary of Bank of America Corporation and an affiliate of Columbia Management.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Summary

1-year return as of 02/28/10

				+33.91%

				Class A shares (without sales charge)

				+54.42%

				Merrill Lynch All Convertibles All Qualities Index

Economic Update – Columbia Convertible Securities Fund

Summary

For the 12-month period that ended February 28, 2010

^g After a sharp decline, stock markets rebounded around the world, as measured by the S&P 500 Index and the MSCI EAFE Index.

S&P Index				MSCI Index

^g As investors grew more comfortable with risk, non-Treasury sectors of the bond market rebounded. The Barclays Capital Aggregate Bond Index delivered solid results. High-yield bonds were strong performers, as measured by the JPMorgan Developed BB High Yield Index.

Barclays Aggregate Index				JPMorgan Index

After a deep and difficult recession, the U.S. economy regained its footing midway through calendar year 2009. Gross domestic product (GDP) turned positive in the third quarter of 2009, rising 2.2%, and then gained 5.6% in the fourth quarter according to the estimate released by the Bureau of Economic Analysis. Growth was primarily the result of federal government stimulus spending and a slowdown in inventory reductions. Hopes for a sustained recovery now depend on a variety of factors, including a rebound in consumer spending, an increase in revenues to keep business profits moving higher and a turnaround in the labor market.

The housing market showed some signs of improvement. Existing home sales fell late in the period, but remained above levels of one year ago. According to the National Association of Realtors, the inventory of houses for sale fell over the course of 2009. Housing prices remained unchanged during the past year, but that was progress compared to 2008. The average home price fell in 2008 and since then distressed properties, which accounted for an estimated 38% of sales in January 2010, have weighed on prices because they were heavily discounted.

In the beleaguered labor market, the good news was that there was less bad news. Businesses continued to shed jobs throughout the period, raising the unemployment rate as high as 10.2% in October 2009. However, the pace of job losses slowed markedly by the period's end. Compared to six figure losses of one year ago, 14,000 jobs were added to the labor market in January 2010 and only 14,000 were lost in February 2010.* The rate of unemployment at the end of the period was 9.7%.* Nevertheless, prospects for a quick recovery in the labor markets are dim. In fact, consumer confidence, as measured monthly by The Conference Board, an independent resear ch organization, took a sharp dive in February. Consumers surveyed cited worsening business conditions and a bleaker outlook for the labor markets and income for their pessimism.

Manufacturing activity remained slow during the first few months of the period. However, a key measure—the Institute for Supply Management's Index—rose above 50 in July and remained well above 50 for the remainder of the period. A value above 50 tends to indicate that the economy is growing. Industrial production turned positive in January 2010, and durable goods orders took a big jump forward. Manufacturing capacity utilization inched upward to 72.6%.

Consumer spending registered both ups and downs during the 12-month period, but the trend at the end of the period was upward, even though personal income decreased in January 2010. In light of uncertainty about the economy and pressure on consumers from a number of sectors, the Federal Reserve Board (the Fed) kept a key short-term interest rate—the federal funds rate—close to zero throughout the period.

Stocks bottomed, then rebounded

Against a strengthening economic backdrop, a stock market rally that began in mid-March 2009 continued throughout the period. The U.S. stock market returned 53.62%

*Source: U.S. Bureau of Labor Statistics

Economic Update (continued) – Columbia Convertible Securities Fund

for the 12-month period, as measured by the S&P 500 Index.¹ Mid-cap stocks outperformed large and small-cap stocks and value stocks outperformed growth stocks by a solid margin, as measured by their respective Russell indices.² Outside the U.S., stock market returns were even stronger. The MSCI EAFE Index,³ a broad gauge of stock market performance in foreign developed markets, gained 54.58% (net of dividends, in U.S. dollars) for the period. Emerging stock markets were caught in last year's downdraft, but they bounced back stronger than domestic or developed world markets in 2009 as their economic growth generally outpaced the developed world. The MSCI Emerging Markets Index⁴ returned 91.63% (net of dividends, in U.S. dollars).

Bond returns ranged from solid to strong

As hopes for a recovery materialized, bonds from non-Treasury sectors delivered solid returns. The Barclays Capital Aggregate Bond Index⁵ returned 9.32%. Municipal bonds delivered returns that were in line with taxable investment-grade bonds even without factoring in potential tax advantages to investors in higher income tax brackets. The Barclays Capital Municipal Bond Index⁶ returned 9.98%. High-yield bond prices rebounded strongly in 2009. For the 12-month period covered by this report, the JPMorgan Developed BB High Yield Index⁷ returned 32.79%.

Past performance is no guarantee of future results.

¹The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

²The Russell 1000 Index tracks the performance of 1,000 of the largest U.S. companies, based on market capitalization. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes. The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lo wer forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.

³The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index is a capitalization-weighted index that tracks the total return of common stocks in 21 developed-market countries within Europe, Australasia and the Far East.

⁴The Morgan Stanley Capital International Emerging Markets Index (MSCI EMI) is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. As of June 2009, the MSCI Emerging Markets Index consisted of the following 22 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

⁵The Barclays Capital Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs and total return performance of fixed-rate, publicly placed, dollar-denominated and non-convertible investment grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity.

⁶The Barclays Capital Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year.

⁷The JPMorgan Developed BB High Yield Index is an unmanaged index designed to mirror the investable universe of the U.S. dollar developed, BB-rated, high yield corporate debt market.

Performance Information – Columbia Convertible Securities Fund

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Annual operating expense ratio (%)*

Class A					1.24
Class B					1.99
Class C					1.99
Class Z					0.99

*The annual operating expense ratio is as stated in the fund's prospectus that is current as of the date of this report. Differences in expense ratios disclosed elsewhere in this report may result from the inclusion of fee waivers and expense reimbursements as well as the use of different time periods used in calculating the ratios.

Performance of a $10,000 investment 03/01/00 – 02/28/10

The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Convertible Securities Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

Performance of a $10,000 investment 03/01/00 – 02/28/10 ($)

Sales charge	without		with
Class A		12,985		12,241
Class B		12,035		12,035
Class C		12,035		12,035
Class Z		13,306		n/a

Average annual total return as of 02/28/10 (%)

Share class	A				B				C				Z
Inception	09/25/87				07/15/98				10/21/96				05/21/99
Sales charge	without		with		without		with		without		with		without
1-year		33.91		26.16		32.86		27.86		32.80		31.80		34.20
5-year		1.64		0.44		0.89		0.60		0.87		0.87		1.91
10-year		2.65		2.04		1.87		1.87		1.87		1.87		2.90

Average annual total return as of 03/31/10 (%)

Share class	A				B				C				Z
Sales charge	without		with		without		with		without		with		without
1-year		33.74		26.04		32.79		27.79		32.70		31.70		34.03
5-year		2.90		1.69		2.14		1.85		2.13		2.13		3.17
10-year		2.76		2.15		1.99		1.99		1.98		1.98		3.02

The "with sales charge" returns include the maximum initial sales charge of 5.75% for Class A shares, the applicable contingent deferred sales charge of 5.00% in the first year, declining to 1.00% in the sixth year, and eliminated thereafter for Class B shares and 1.00% for Class C shares for the first year only. The "without sales charge" returns do not include the effect of sales charges. If they had, returns would be lower.

All results shown assume the reinvestment of distributions. Class Z shares are sold at net asset value with no distribution and service (Rule 12b-1) fees. Class Z shares have limited eligibility and the investment minimum requirements may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class.

The tables do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

Understanding Your Expenses – Columbia Convertible Securities Fund

Analyzing your fund's expenses by share class

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund and do not reflect any transaction costs, such as sales charges, redemption fees or exchange fees.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

^g For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

^g For shareholders who receive their account statements from their financial intermediary, contact your financial intermediary to obtain your account balance.

1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

09/01/09 – 02/28/10

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)				Fund's annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Class A		1,000.00		1,000.00		1,085.00		1,018.89		6.15		5.96		1.19
Class B		1,000.00		1,000.00		1,080.70		1,015.17		10.01		9.69		1.94
Class C		1,000.00		1,000.00		1,080.40		1,015.17		10.01		9.69		1.94
Class Z		1,000.00		1,000.00		1,085.40		1,020.13		4.86		4.71		0.94

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

Portfolio Managers' Report – Columbia Convertible Securities Fund

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Net asset value per share

as of 02/28/10 ($)

Class A					12.92
Class B					12.70
Class C					12.88
Class Z					12.93

Distributions declared per share

03/01/09 – 02/28/10 ($)

Class A					0.34
Class B					0.25
Class C					0.25
Class Z					0.37

For the 12-month period that ended February 28, 2010, the fund's Class A shares returned 33.91% without sales charge. Its benchmark, the Merrill Lynch All Convertibles All Qualities Index, returned 54.42%. The average return of funds in its peer group, the Lipper Convertible Securities Funds Classification, was 47.56%. As investor confidence returned, issues of lower quality, which we underweighted, led the market.

Good results from well-timed purchases

Anticipating a business turnaround for technology and airlines, we built overweight positions in both sectors, a decision that proved beneficial to the fund's return. We realized solid gains from selling the fund's position in Continental Airlines, while EMC Corp. (2.8% of net assets) a leader in data storage and long-time fund holding, rose sharply. Credit concerns pressured bonds of Advanced Micro Devices (2.3% of net assets), presenting an attractive investment opportunity. These bonds, which featured put options that would allow us to sell at favorable prices, later rebounded significantly. We took stakes in some companies whose bonds were trading at depressed levels despite good balance sheets, solid cash flows and minimal exposure to bad assets. For example, we accumulated a large position in Wells Fargo (1.5% of net assets) when our research confirmed that it was fundamentally stronger than the deeply troubled institution s it was grouped with. This decision was rewarded when Wells Fargo's bonds rose dramatically, helping make financials the period's best-performing sector. The fear of automaker bankruptcies held down the price of a new convertible issued by parts maker Johnson Controls. Johnson is much more than an auto supply company, and the terms of the deal were attractive. We built a large position that we later sold at a sizeable gain.

Absence of speculative holdings held back returns

The period's underperformance was largely the result of two factors: 1) what we did not own and 2) our practice of avoiding speculative issues. The resulting underweight in lower-quality issues and sectors penalized performance relative to the benchmark, which holds issues of varied quality. Within the index, speculative issues nearly doubled the performance of investment-grade holdings. Our concern about the viability of major automakers helped us avoid the collapse of General Motors. However, we took a modest position in Ford (1.0% of net assets) based on its debt restructuring and well-received products. Although these bonds doubled in value, our small commitment hurt comparative results. Underexposure to the strong-performing consumer discretionary and financial sectors also limited performance. We were skeptical about the balance

Portfolio characteristics and holdings are subject to change periodically and may not be representative of current characteristics and holdings. The outlook for this fund may differ from those presented for other Columbia Funds.

Most convertible securities are not investment grade and are therefore more speculative in nature than securities with higher ratings.

Portfolio Managers' Report (continued) – Columbia Convertible Securities Fund

sheets of some major financial institutions and unsure of the impact of proposed government regulations. In particular, the absence from the portfolio of some strong-performing regional banks and rebounding REITs undercut returns. Continued high unemployment and weak consumer spending clouded the consumer discretionary sector in our view, and we were aware of the short-term benefit of corporate earnings increases that relied on cost cutting without increasing revenues. We exited some new issues prematurely when valuations appeared stretched. But market momentum and the shortage of new offerings carried many of these issues higher.

Looking ahead

Convertible securities surged along with equities and other bonds during the last 12 months, moving quickly from extremely cheap value levels to what now appear to be fair valuations. We think the momentum-driven, low-quality rally is largely over, and the market appears ready to focus on quality and valuation. In this environment, we plan to emphasize balanced convertibles, those whose prices may be influenced by equity moves as well as interest rates, in companies with good cash flows, healthy balance sheets, advanced technologies, dominant market shares and proven management. Increased interest in mergers and acquisitions may signal a new level of investor optimism, as some recent buyouts have occurred at substantial premiums to the market.

Top 5 sectors

as of 02/28/10 (%)

Health Care					28.1
Information Technology					21.2
Financials					13.5
Energy					7.2
Consumer Discretionary					7.2

Top 10 holdings

as of 02/28/10 (%)

Gilead Sciences					2.5
Citigroup					2.5
Fisher Scientific					2.4
Invitrogen					2.3
Peabody Energy					2.0
Advanced Micro Devices					2.3
Interpublic Group of Companies					1.8
EMC					1.8
Dole Food Automatic					1.7
Mylan					1.6

The fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets.

Investment Portfolio – Columbia Convertible Securities Fund

February 28, 2010

Convertible Bonds – 75.2%
	Par ($)		Value ($)
Consumer Discretionary – 6.8%
Apparel – 0.6%
Iconix Brand Group, Inc. 1.875% 06/30/12		2,800,000		2,499,000
Apparel Total				2,499,000
Auto Components – 0.9%
BorgWarner, Inc. 3.500% 04/15/12		2,880,000		3,733,200
Auto Components Total				3,733,200
Automobiles – 0.6%
Ford Motor Co. 4.250% 12/15/36		1,800,000		2,540,250
Automobile Total				2,540,250
Diversified Consumer Services – 0.5%
Coinstar, Inc. 4.000% 09/01/14		2,300,000		2,328,750
Diversified Consumer Services Total				2,328,750
Hotels, Restaurants & Leisure – 0.3%
International Game Technology 3.250% 05/01/14 (a)		1,000,000		1,170,000
Hotels, Restaurants & Leisure Total				1,170,000
Household Durables – 0.5%
DR Horton, Inc. 2.000% 05/15/14		1,900,000		2,225,375
Household Durables Total				2,225,375
Leisure Equipment & Products – 0.2%
Eastman Kodak Co.
7.000% 04/01/17 (a)		1,000,000		1,096,250
Leisure Equipment & Products Total				1,096,250
Media – 2.6%
Interpublic Group of Companies, Inc. 4.250% 03/15/23		7,690,000		7,814,962
Liberty Global, Inc. 4.500% 11/15/16 (a)		3,000,000		3,581,250
Media Total				11,396,212
Specialty Retail – 0.6%
Best Buy Co., Inc. 2.250% 01/15/22		2,425,000		2,546,250
Specialty Retail Total				2,546,250
Consumer Discretionary Total				29,535,287

	Par ($)		Value ($)
Consumer Staples – 1.2%
Beverages – 0.5%
Molson Coors Brewing Co. 2.500% 07/30/13		1,850,000		1,967,938
Beverages Total				1,967,938
Tobacco – 0.7%
Vector Group Ltd. (b) 06/15/26 (c)		2,900,000		2,983,375
Tobacco Total				2,983,375
Consumer Staples Total				4,951,313
Energy – 6.2%
Energy Equipment & Services – 2.4%
Cameron International Corp. 2.500% 06/15/26		2,840,000		3,709,750
Exterran Holdings, Inc. 4.250% 06/15/14		1,930,000		2,313,587
Hornbeck Offshore Services, Inc. 1.625% 11/15/26 (a)(d) (1.375% 11/15/13)		5,000,000		4,081,500
1.625% 11/15/26 (d) (1.375% 11/15/13)		680,000		555,084
Energy Equipment & Services Total				10,659,921
Oil, Gas & Consumable Fuels – 3.8%
Alpha Natural Resources, Inc. 2.375% 04/15/15		1,910,000		2,148,750
Bill Barrett Corp. 5.000% 03/15/28		3,895,000		3,807,362
Chesapeake Energy Corp. 2.750% 11/15/35		1,910,000		1,878,963
Peabody Energy Corp. 4.750% 12/15/41		8,294,000		8,501,350
Oil, Gas & Consumable Fuels Total				16,336,425
Energy Total				26,996,346
Financials – 6.9%
Capital Markets – 0.5%
Janus Capital Group, Inc. 3.250% 07/15/14		1,950,000		2,247,375
Capital Markets Total				2,247,375
Real Estate Investment Trusts (REITs) – 6.4%
Alexandria Real Estate Equities, Inc. 3.700% 01/15/27 (a)		6,000,000		5,722,500
BioMed Realty LP 3.750% 01/15/30 (a)		5,500,000		5,445,000
Boston Properties LP 3.750% 05/15/36		3,893,000		3,970,860

See Accompanying Notes to Financial Statements.

Columbia Convertible Securities Fund

February 28, 2010

Convertible Bonds (continued)
	Par ($)		Value ($)
Digital Realty Trust LP 5.500% 04/15/29 (a)		4,000,000		5,247,500
Hospitality Properties Trust 3.800% 03/15/27		2,480,000		2,402,500
Prologis 2.250% 04/01/37 (a)		830,000		781,238
2.250% 04/01/37		2,170,000		2,042,512
Rayonier TRS Holdings, Inc. 3.750% 10/15/12 (a)		2,000,000		2,107,500
Real Estate Investment Trusts (REITs) Total				27,719,610
Financials Total				29,966,985
Health Care – 26.1%
Biotechnology – 9.8%
Amgen, Inc. 0.375% 02/01/13		3,625,000		3,625,000
Amylin Pharmaceuticals, Inc. 3.000% 06/15/14		1,800,000		1,471,500
BioMarin Pharmaceuticals, Inc. 1.875% 04/23/17		1,925,000		2,136,750
Cephalon, Inc. 2.500% 05/01/14		3,600,000		4,198,500
Gilead Sciences, Inc. 0.500% 05/01/11		8,490,000		10,708,013
Invitrogen Corp. 3.250% 06/15/25		8,536,000		9,987,120
Isis Pharmaceuticals, Inc. 2.625% 02/15/27		4,685,000		4,316,056
2.625% 02/15/27 (a)		1,000,000		921,250
OSI Pharmaceuticals, Inc. 3.000% 01/15/38		3,500,000		3,307,500
PDL BioPharma, Inc. 2.000% 02/15/12		1,875,000		1,788,281
Biotechnology Total				42,459,970
Health Care Equipment & Supplies – 6.5%
Beckman Coulter, Inc. 2.500% 12/15/36		3,835,000		4,319,169
2.500% 12/15/36 (a)		220,000		247,775
China Medical Technologies, Inc. 4.000% 08/15/13		950,000		568,812
Fisher Scientific International, Inc. 3.250% 03/01/24		8,127,000		10,554,941
Medtronic, Inc. 1.500% 04/15/11 (a)		5,975,000		6,034,750
1.500% 04/15/11		1,860,000		1,878,600
1.625% 04/15/13		4,400,000		4,565,000
Health Care Equipment & Supplies Total				28,169,047

	Par ($)		Value ($)
Health Care Providers & Services – 3.1%
Chemed Corp. 1.875% 05/15/14 (a)		2,250,000		2,036,250
Henry Schein, Inc. 3.000% 08/15/34 (a)		3,980,000		4,989,925
HLTH Corp. 1.750% 06/15/23		1,920,000		2,378,400
3.125% 09/01/25		1,925,000		2,372,563
Omnicare, Inc. 3.250% 12/15/35		1,925,000		1,540,000
Health Care Providers & Services Total				13,317,138
Health Care Technology – 1.5%
Inverness Medical Innovations, Inc. 3.000% 05/15/16 (a)		6,000,000		6,637,500
Health Care Technology Total				6,637,500
Life Sciences Tool & Services – 0.9%
Millipore Corp. 3.750% 06/01/26		3,515,000		4,094,975
Life Sciences Tool & Services Total				4,094,975
Pharmaceuticals – 4.3%
Allergan, Inc. 1.500% 04/01/26 (a)		4,180,000		4,582,325
1.500% 04/01/26		2,035,000		2,230,869
King Pharmaceuticals, Inc. 1.250% 04/01/26		2,700,000		2,409,750
Mylan, Inc. 1.250% 03/15/12		6,664,000		7,063,840
Teva Pharmaceutical Finance Co., BV 1.750% 02/01/26		1,935,000		2,442,937
Pharmaceuticals Total				18,729,721
Health Care Total				113,408,351
Industrials – 5.1%
Aerospace & Defense – 0.7%
L-3 Communications Corp. 3.000% 08/01/35		2,850,000		2,974,688
Aerospace & Defense Total				2,974,688
Airlines – 0.9%
UAL Corp. 4.500% 06/30/21		4,090,000		3,803,700
Airlines Total				3,803,700
Commercial Services & Supplies – 1.0%
Covanta Holding Corp. 1.000% 02/01/27		4,950,000		4,498,313
Commercial Services & Supplies Total				4,498,313

See Accompanying Notes to Financial Statements.

Columbia Convertible Securities Fund

February 28, 2010

Convertible Bonds (continued)
	Par ($)		Value ($)
Electrical Equipment – 0.8%
General Cable Corp. 4.500% 11/15/29 (d) (2.250, 11/15/19)		3,700,000		3,311,500
Electrical Equipment Total				3,311,500
Machinery – 1.7%
Barnes Group, Inc. 3.750% 08/01/25		1,167,000		1,178,670
Navistar International Corp. 3.000% 10/15/14		4,335,000		4,432,537
Trinity Industries, Inc. 3.875% 06/01/36		2,320,000		1,711,000
Machinery Total				7,322,207
Industrials Total				21,910,408
Information Technology – 19.0%
Communications Equipment – 1.5%
Arris Group, Inc. 2.000% 11/15/26		2,435,000		2,278,430
CommScope, Inc. 3.250% 07/01/15		2,950,000		3,366,687
Lucent Technologies, Inc. 2.875% 06/15/25		800,000		674,000
Communications Equipment Total				6,319,117
Computers & Peripherals – 2.8%
EMC Corp. 1.750% 12/01/11		6,370,000		7,636,038
1.750% 12/01/13		3,750,000		4,640,625
Computers & Peripherals Total				12,276,663
Internet Software & Services – 3.4%
Deutsche Bank AG, 0.250% (a)(b)		5,000,000		4,789,500
Digital River, Inc. 1.250% 01/01/24		1,900,000		1,892,875
Equinix, Inc. 2.500% 04/15/12		3,540,000		3,712,575
SAVVIS, Inc. 3.000% 05/15/12		4,720,000		4,242,100
Internet Software & Services Total				14,637,050
IT Services – 1.5%
DST Systems, Inc. 4.125% 08/15/23 (a)		3,930,000		3,979,125
VeriFone Holdings, Inc. 1.375% 06/15/12 (a)		3,000,000		2,673,750
IT Services Total				6,652,875

	Par ($)		Value ($)
Semiconductors & Semiconductor Equipment – 5.6%
Advanced Micro Devices, Inc. 5.750% 08/15/12		2,036,000		2,013,095
6.000% 05/01/15		8,480,000		7,833,400
Intel Corp. 3.250% 08/01/39 (a)		3,500,000		3,933,125
Micron Technology, Inc. 1.875% 06/01/14		5,560,000		4,962,300
ON Semiconductor Corp. 2.625% 12/15/26		2,015,000		2,050,262
Verigy Ltd. 5.250% 07/15/14 (a)		1,500,000		1,569,375
Xilinx, Inc. 3.125% 03/15/37		1,860,000		1,734,450
Semiconductors & Semiconductor Equipment Total				24,096,007
Software – 4.2%
Nuance Communications, Inc. 2.750% 08/15/27		1,925,000		1,968,312
Salesforce.com, Inc. 0.750% 01/15/15 (a)		4,600,000		4,548,250
Sybase, Inc. 3.500% 08/15/29 (a)		5,250,000		6,142,500
Symantec Corp. 0.750% 06/15/11		800,000		834,000
0.750% 06/15/11 (a)		2,100,000		2,189,250
Take-Two Interactive Software, Inc. 4.375% 06/01/14		1,450,000		1,651,188
TeleCommunication Systems, Inc. 4.500% 11/01/14 (a)		1,000,000		1,057,500
Software Total				18,391,000
Information Technology Total				82,372,712
Materials – 1.8%
Metals & Mining – 1.8%
Kinross Gold Corp. 1.750% 03/15/28 (a)		1,100,000		1,113,750
1.750% 03/15/28		700,000		708,750
Newmont Mining Corp. 3.000% 02/15/12		1,900,000		2,348,875
Sterlite Industries India Ltd. 4.000% 10/30/14		3,770,000		3,793,563
Metals & Mining Total				7,964,938
Materials Total				7,964,938

See Accompanying Notes to Financial Statements.

Columbia Convertible Securities Fund

February 28, 2010

Convertible Bonds (continued)
	Par ($)		Value ($)
Telecommunication Services – 1.6%
Diversified Telecommunication Services – 1.2%
Qwest Communications International, Inc. 3.500% 11/15/25		4,800,000		5,076,000
Diversified Telecommunication Services Total				5,076,000
Wireless Telecommunication Services – 0.4%
NII Holdings, Inc. 3.125% 06/15/12		1,800,000		1,665,000
Wireless Telecommunication Services Total				1,665,000
Telecommunication Services Total				6,741,000
Utilities – 0.5%
Multi-Utilities – 0.5%
CMS Energy Corp. 2.875% 12/01/24		1,940,000		2,335,275
Multi-Utilities Total				2,335,275
Utilities Total				2,335,275
Total Convertible Bonds (cost of $309,103,919)				326,182,615
Convertible Preferred Stocks – 18.9%
	Shares
Consumer Discretionary – 0.4%
Automobiles – 0.4%
Ford Motor Co. Capital Trust II, 6.500%		39,000		1,717,560
Automobiles Total				1,717,560
Consumer Discretionary Total				1,717,560
Consumer Staples – 3.6%
Food Products – 3.6%
Deutsche Bank AG, 7.200% (a)(b)		229,000		4,662,440
Deutsche Bank AG, 7.250% (a)(b)		90,000		3,590,100
Dole Food Automatic Common Exchange Security Trust, 7.000% (a)		640,000		7,480,000
Food Products Total				15,732,540
Consumer Staples Total				15,732,540
Energy – 1.0%
Oil, Gas & Consumable Fuels – 1.0%
El Paso Corp., 4.990% (a)		4,660		4,496,900
Oil, Gas & Consumable Fuels Total				4,496,900
Energy Total				4,496,900

	Shares ($)		Value ($)
Financials – 6.6%
Commercial Banks – 1.4%
Wells Fargo & Co., 7.500%		6,650		6,337,450
Commercial Banks Total				6,337,450
Diversified Financial Services – 2.5%
Citigroup, Inc., 7.500%		99,600		10,683,096
Diversified Financial Services Total				10,683,096
Insurance – 2.1%
American International Group, Inc., 8.500%		452,500		4,479,750
XL Capital Ltd., 10.750%		165,300		4,575,504
Insurance Total				9,055,254
Real Estate Investment Trusts (REITs) – 0.6%
Simon Property Group, Inc., 6.000%		38,000		2,521,680
Real Estate Investment Trusts (REITs) Total				2,521,680
Financials Total				28,597,480
Health Care – 1.2%
Biotechnology – 1.2%
Deutsche Bank AG, 7.200% (a)(b)		102,000		4,994,940
Biotechnology Total				4,994,940
Health Care Total				4,994,940
Information Technology – 1.7%
Communications Equipment – 0.5%
Lucent Technologies Capital Trust I, 7.750%		2,950		2,212,500
Communications Equipment Total				2,212,500
Internet Software & Services – 1.2%
Goldman Sachs Group, Inc., 7.000%		191,161		5,050,473
Internet Software & Services Total				5,050,473
Information Technology Total				7,262,973
Materials – 3.3%
Metals & Mining – 3.3%
Credit Suisse Securities USA LLC, 8.000%		58,686		4,440,770
Goldman Sachs Group, Inc., 3.100%		363,663		4,845,809
Vale Capital Ltd., 5.500%		96,000		4,992,000
Metals & Mining Total				14,278,579
Materials Total				14,278,579

See Accompanying Notes to Financial Statements.

Columbia Convertible Securities Fund

February 28, 2010

Convertible Preferred Stocks (continued)
	Shares		Value ($)
Utilities – 1.1%
Electric Utilities – 1.1%
FPL Group, Inc., 8.375%		101,600		4,944,872
Electric Utilities Total				4,944,872
Utilities Total				4,944,872
Total Convertible Preferred Stocks (cost of $82,289,173)				82,025,844
Common Stocks – 3.8%
Financials – 0.0%
Insurance – 0.0%
MetLife, Inc.		2		73
Insurance Total				73
Financials Total				73
Health Care – 0.8%
Pharmaceuticals – 0.8%
Merck & Co., Inc.		30,000		1,106,400
Teva Pharmaceutical Industries Ltd., ADR		40,000		2,400,400
Pharmaceuticals Total				3,506,800
Health Care Total				3,506,800
Industrials – 0.4%
Machinery – 0.4%
Ingersoll-Rand PLC		50,000		1,595,500
Machinery Total				1,595,500
Industrials Total				1,595,500
Information Technology – 0.5%
Software – 0.5%
Microsoft Corp.		80,000		2,292,800
Software Total				2,292,800
Information Technology Total				2,292,800
Materials – 0.9%
Chemicals – 0.5%
Monsanto Co.		31,054		2,193,965
Chemicals Total				2,193,965
Metals & Mining – 0.4%
Nucor Corp.		40,000		1,656,000
Metals & Mining Total				1,656,000
Materials Total				3,849,965

	Shares		Value ($)
Telecommunication Services – 1.2%
Diversified Telecommunication Services – 1.2%
AT&T, Inc.		100,000		2,481,000
Verizon Communications, Inc.		100,000		2,893,000
Diversified Telecommunication Services Total				5,374,000
Telecommunication Services Total				5,374,000
Total Common Stocks (cost of $17,139,907)				16,619,138
Short-Term Obligation – 1.8%
	Par ($)
Repurchase agreement with Fixed Income Clearing Corp., dated 02/26/10, due 03/01/10 at 0.050%, collateralized by U.S. Government Agency obligations with various maturities to 08/24/12, market value $8,001,801 (repurchase proceeds $7,841,033)		7,841,000		7,841,000
Total Short-Term Obligation (cost of $7,841,000)				7,841,000
Total Investments – 99.7% (cost of $416,373,999) (e)				432,668,597
Other Assets & Liabilities, Net – 0.3%				1,431,490
Net Assets – 100.0%				434,100,087

Notes to Investment Portfolio:

(a) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 28, 2010, these securities, which are not illiquid, amounted to $111,903,018, which represents 25.8% of net assets.

(b) Zero coupon bond.

(d) Step bond. Shown parenthetically is the next interest rate to be paid and the date the Fund will begin accruing at this rate.

(e) Cost for federal income tax purposes is $416,552,909.

See Accompanying Notes to Financial Statements.

Columbia Convertible Securities Fund

February 28, 2010

The following table summarizes the inputs used, as of February 28, 2010, in valuing the Fund's assets:

Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Convertible Bonds
Consumer Discretionary	$	—	$	29,535,287	$	—	$	29,535,287
Consumer Staples		—		4,951,313		—		4,951,313
Energy		—		26,996,346		—		26,996,346
Financials		—		29,966,985		—		29,966,985
Health Care		—		113,408,351		—		113,408,351
Industrials		—		21,910,408		—		21,910,408
Information Technology		—		77,583,212		4,789,500		82,372,712
Materials		—		7,964,938		—		7,964,938
Telecommunication Services		—		6,741,000		—		6,741,000
Utilities		—		2,335,275		—		2,335,275
Total Convertible Bonds		—		321,393,115		4,789,500		326,182,615
Convertible Preferred Stocks
Consumer Discretionary		1,717,560		—		—		1,717,560
Consumer Staples		4,662,440		11,070,100		—		15,732,540
Energy		—		4,496,900		—		4,496,900
Financials		28,597,480		—		—		28,597,480
Health Care		—		4,994,940		—		4,994,940
Information Technology		7,262,973		—		—		7,262,973
Materials		4,992,000		4,845,809		4,440,770		14,278,579
Utilities		—		4,944,872		—		4,944,872
Total Convertible Preferred Stocks		47,232,453		30,352,621		4,440,770		82,025,844
Total Common Stocks		16,619,138		—		—		16,619,138
Total Short-Term Obligation		—		7,841,000		—		7,841,000
Total Investments	$	63,851,591	$	359,586,736	$	9,230,270	$	432,668,597

The following table reconciles asset balances for the year ended February 28, 2010, in which significant unobservable inputs (Level 3) were used in determining value:

Investment in Securities	Balance as of February 28, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)		Net Transfers into (out of) Level 3		Balance as of February 28, 2010
Convertible Bonds	$	—	$	—	$	—	$	(210,500	)	$	5,000,000	$	—	$	4,789,500
Convertible Preferred Stocks		—		—		—		(559,277	)		5,000,047		—		4,440,770
Total	$	—	$	—	$	—	$	(769,777	)	$	10,000,047	$	—	$	9,230,270

The information in the above reconciliation represents fiscal year to date activity for any securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period.

The change in unrealized depreciation attributable to securities owned at February 28, 2010 which were valued using significant unobservable inputs (Level 3) amounted to $769,777. This amount is included in net changes in unrealized appreciation (depreciation) on the Statement of Changes in Net Assets.

For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

At February 28, 2010, the asset allocation of the Fund was as follows:

Asset Allocation (Unaudited)	% of Net Assets
Convertible Bonds		75.2
Convertible Preferred Stocks		18.9
Common Stocks		3.8
		97.9
Short-Term Obligation		1.8
Other Assets & Liabilities, Net		0.3
		100.0

Acronym				Name
ADR				American Depositary Receipt

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities – Columbia Convertible Securities Fund
February 28, 2010

Assets	Investments, at identified cost	$	416,373,999
	Investments, at value		432,668,597
	Cash		235
	Receivable for:
	Investments sold		5,356,477
	Fund shares sold		12,363
	Dividends		270,151
	Interest		2,333,960
	Expense reimbursement due from investment advisor		80,650
	Prepaid expenses		5,022
	Total Assets		440,727,455
Liabilities	Payable for:
	Investments purchased		5,025,030
	Fund shares repurchased		961,864
	Investment advisory fee		215,752
	Administration fee		48,299
	Pricing and bookkeeping fees		10,348
	Transfer agent fee		34,590
	Trustees' fees		65,359
	Custody fee		3,108
	Distribution and service fees		77,558
	Chief compliance officer expenses		143
	Reports to shareholders		137,790
	Other liabilities		47,527
	Total Liabilities		6,627,368
	Net Assets		434,100,087
Net Assets Consist of	Paid-in capital		529,402,023
	Undistributed net investment income		2,467,274
	Accumulated net realized loss		(114,063,808	)
	Net unrealized appreciation on investments		16,294,598
	Net Assets		434,100,087
Class A	Net assets	$	191,413,807
	Shares outstanding		14,820,577
	Net asset value per share	$	12.92	(a)
	Maximum sales charge		5.75	%
	Maximum offering price per share	$	13.71	(b)
Class B	Net assets	$	24,126,022
	Shares outstanding		1,900,118
	Net asset value and offering price per share	$	12.70	(a)
Class C	Net assets	$	20,103,430
	Shares outstanding		1,560,596
	Net asset value and offering price per share	$	12.88	(a)
Class Z	Net assets	$	198,456,828
	Shares outstanding		15,346,840
	Net asset value, offering and redemption price per share	$	12.93

(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

(b) On sales of $50,000 or more the offering price is reduced.

See Accompanying Notes to Financial Statements.

Statement of Operations – Columbia Convertible Securities Fund
For the Year Ended February 28, 2010

		($)
Investment Income	Dividends		5,059,690
	Interest		12,894,653
	Foreign taxes withheld		(4,145	)
	Total Investment Income		17,950,198
Expenses	Investment advisory fee		2,864,932
	Administration fee		645,345
	Distribution fee:
	Class B		217,252
	Class C		151,485
	Service fee:
	Class B		72,417
	Class C		50,495
	Distribution and service fees:
	Class A		452,015
	Transfer agent fee		421,301
	Pricing and bookkeeping fees		117,450
	Trustees' fees		45,294
	Custody fee		11,512
	Chief compliance officer expenses		759
	Other expenses		249,874
	Total Expenses		5,300,131
	Fees waived by transfer agent		(35,754	)
	Fees waived or expenses reimbursed by investment advisor		(143,358	)
	Expense reductions		(71	)
	Net Expenses		5,120,948
	Net Investment Income		12,829,250
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency	Net realized gain on:
	Investments		15,823,577
	Foreign currency transactions		2,901
	Net realized gain		15,826,478
	Net change in unrealized appreciation (depreciation) on investments		97,282,239
	Net Gain		113,108,717
	Net Increase Resulting from Operations		125,937,967

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets – Columbia Convertible Securities Fund

		Year Ended February 28,
Increase (Decrease) in Net Assets		2010 ($)			2009 ($)
Operations	Net investment income		12,829,250			13,499,152
	Net realized gain (loss) on investments, foreign currency transactions and written options		15,826,478			(129,036,267	)
	Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		97,282,239			(87,305,703	)
	Net increase (decrease) resulting from operations		125,937,967			(202,842,818	)
Distributions to Shareholders	From net investment income:
	Class A		(5,127,702	)		(5,270,952	)
	Class B		(632,843	)		(854,908	)
	Class C		(430,613	)		(458,548	)
	Class Z		(6,553,878	)		(7,466,421	)
	From net realized gains:
	Class A		—			(4,064,506	)
	Class B		—			(1,034,439	)
	Class C		—			(550,003	)
	Class Z		—			(5,220,906	)
	Total distributions to shareholders		(12,745,036	)		(24,920,683	)
	Net Capital Stock Transactions		(74,409,319	)		(152,638,001	)
	Increase from regulatory settlements		130,285			—
	Total increase (decrease) in net assets		38,913,897			(380,401,502	)
Net Assets	Beginning of period		395,186,190			775,587,692
	End of period		434,100,087			395,186,190
	Undistributed net investment income at end of period		2,467,274			2,244,719

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets (continued) – Columbia Convertible Securities Fund

	Capital Stock Activity
	Year Ended February 28, 2010						Year Ended February 28, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		1,675,265			19,386,163			1,537,088			19,225,058
Distributions reinvested		392,420			4,565,152			630,014			8,392,735
Redemptions		(2,848,283	)		(33,289,324	)		(4,976,825	)		(59,899,716	)
Net decrease		(780,598	)		(9,338,009	)		(2,809,723	)		(32,281,923	)
Class B
Subscriptions		72,049			795,052			43,091			520,935
Distributions reinvested		45,129			511,890			120,139			1,598,938
Redemptions		(1,470,640	)		(16,857,638	)		(1,962,040	)		(23,690,229	)
Net decrease		(1,353,462	)		(15,550,696	)		(1,798,810	)		(21,570,356	)
Class C
Subscriptions		94,067			1,070,843			181,821			2,206,238
Distributions reinvested		21,390			248,054			40,032			537,080
Redemptions		(395,254	)		(4,679,053	)		(959,617	)		(11,363,854	)
Net decrease		(279,797	)		(3,360,156	)		(737,764	)		(8,620,536	)
Class Z
Subscriptions		3,210,315			37,132,745			3,541,043			41,202,000
Distributions reinvested		157,678			1,840,625			251,496			3,377,945
Redemptions		(7,156,420	)		(85,133,828	)		(10,738,824	)		(134,745,131	)
Net decrease		(3,788,427	)		(46,160,458	)		(6,946,285	)		(90,165,186	)

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Convertible Securities Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class A Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	9.93		$	14.90		$	16.62		$	17.59		$	17.35		$	17.33
Income from Investment Operations:
Net investment income (c)		0.34			0.29			0.32			0.35			0.41			0.43
Net realized and unrealized gain (loss) on investments, foreign currency and written options		2.99			(4.73	)		(0.27	)		0.91			1.32			0.24
Total from investment operations		3.33			(4.44	)		0.05			1.26			1.73			0.67
Less Distributions to Shareholders:
From net investment income		(0.34	)		(0.30	)		(0.38	)		(0.43	)		(0.42	)		(0.50	)
From net realized gains		—			(0.23	)		(1.39	)		(1.80	)		(1.07	)		(0.15	)
Total distributions to shareholders		(0.34	)		(0.53	)		(1.77	)		(2.23	)		(1.49	)		(0.65	)
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	12.92		$	9.93		$	14.90		$	16.62		$	17.59		$	17.35
Total return (e)(f)		33.91	%		(30.64	)%		(0.22	)%		7.96	%(g)		10.54	%		3.87	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		1.20	%		1.21	%		1.18	%		1.16	%(i)		1.09	%		1.16	%
Interest expense		—			—	%(j)		—	%(j)		—	%(i)(j)		—	%(j)		—	%(j)
Net expenses (h)		1.20	%		1.21	%		1.18	%		1.16	%(i)		1.09	%		1.16	%
Waiver/Reimbursement		0.04	%		0.03	%		0.01	%		0.01	%(i)		0.06	%(k)		0.03	%(k)
Net investment income (h)		2.88	%		2.33	%		1.91	%		2.25	%(i)		2.39	%		2.50	%
Portfolio turnover rate		117	%		92	%		77	%		44	%(g)		40	%		37	%
Net assets, end of period (000s)	$	191,414		$	154,987		$	274,370		$	328,023		$	352,010		$	373,390

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor A shares were renamed Class A shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

(k) Bank of America Corporation assumed certain non-recurring costs. Absent these non-recurring costs, the waiver/reimbursement ratio would have been -% and -% for the years ended March 31, 2006 and March 31, 2005, respectively.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Convertible Securities Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class B Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	9.77		$	14.66		$	16.37		$	17.38		$	17.16		$	17.15
Income from Investment Operations:
Net investment income (c)		0.24			0.19			0.19			0.23			0.28			0.30
Net realized and unrealized gain (loss) on investments, foreign currency and written options		2.94			(4.65	)		(0.26	)		0.90			1.30			0.23
Total from investment operations		3.18			(4.46	)		(0.07	)		1.13			1.58			0.53
Less Distributions to Shareholders:
From net investment income		(0.25	)		(0.20	)		(0.25	)		(0.34	)		(0.29	)		(0.37	)
From net realized gains		—			(0.23	)		(1.39	)		(1.80	)		(1.07	)		(0.15	)
Total distributions to shareholders		(0.25	)		(0.43	)		(1.64	)		(2.14	)		(1.36	)		(0.52	)
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	12.70		$	9.77		$	14.66		$	16.37		$	17.38		$	17.16
Total return (e)(f)		32.86	%		(31.14	)%		(0.92	)%		7.19	%(g)		9.72	%		3.08	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		1.95	%		1.96	%		1.93	%		1.91	%(i)		1.84	%		1.91	%
Interest expense		—			—	%(j)		—	%(j)		—	%(i)(j)		—	%(j)		—	%(j)
Net expenses (h)		1.95	%		1.96	%		1.93	%		1.91	%(i)		1.84	%		1.91	%
Waiver/Reimbursement		0.04	%		0.03	%		0.01	%		0.01	%(i)		0.06	%(k)		0.03	%(k)
Net investment income (h)		2.10	%		1.53	%		1.16	%		1.50	%(i)		1.64	%		1.75	%
Portfolio turnover rate		117	%		92	%		77	%		44	%(g)		40	%		37	%
Net assets, end of period (000s)	$	24,126		$	31,792		$	74,074		$	99,360		$	116,566		$	143,194

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor B shares were renamed Class B shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Convertible Securities Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class C Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	9.91		$	14.86		$	16.58		$	17.57		$	17.34		$	17.31
Income from Investment Operations:
Net investment income (c)		0.25			0.20			0.19			0.23			0.28			0.30
Net realized and unrealized gain (loss) on investments, foreign currency and written options		2.97			(4.72	)		(0.27	)		0.92			1.31			0.25
Total from investment operations		3.22			(4.52	)		(0.08	)		1.15			1.59			0.55
Less Distributions to Shareholders:
From net investment income		(0.25	)		(0.20	)		(0.25	)		(0.34	)		(0.29	)		(0.37	)
From net realized gains		—			(0.23	)		(1.39	)		(1.80	)		(1.07	)		(0.15	)
Total distributions to shareholders		(0.25	)		(0.43	)		(1.64	)		(2.14	)		(1.36	)		(0.52	)
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	12.88		$	9.91		$	14.86		$	16.58		$	17.57		$	17.34
Total return (e)(f)		32.80	%		(31.13	)%		(0.97	)%		7.23	%(g)		9.68	%		3.16	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		1.95	%		1.96	%		1.93	%		1.91	%(i)		1.84	%		1.91	%
Interest expense		—			—	%(j)		—	%(j)		—	%(i)(j)		—	%(j)		—	%(j)
Net expenses (h)		1.95	%		1.96	%		1.93	%		1.91	%(i)		1.84	%		1.91	%
Waiver/Reimbursement		0.04	%		0.03	%		0.01	%		0.01	%(i)		0.06	%(k)		0.03	%(k)
Net investment income (h)		2.12	%		1.54	%		1.16	%		1.50	%(i)		1.64	%		1.75	%
Portfolio turnover rate		117	%		92	%		77	%		44	%(g)		40	%		37	%
Net assets, end of period (000s)	$	20,103		$	18,239		$	38,320		$	52,794		$	57,193		$	66,844

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor C shares were renamed Class C shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Convertible Securities Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class Z Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	9.94		$	14.91		$	16.62		$	17.59		$	17.35		$	17.32
Income from Investment Operations:
Net investment income (c)		0.37			0.33			0.36			0.39			0.46			0.48
Net realized and unrealized gain (loss) on investments, foreign currency and written options		2.99			(4.73	)		(0.26	)		0.91			1.31			0.24
Total from investment operations		3.36			(4.40	)		0.10			1.30			1.77			0.72
Less Distributions to Shareholders:
From net investment income		(0.37	)		(0.34	)		(0.42	)		(0.47	)		(0.46	)		(0.54	)
From net realized gains		—			(0.23	)		(1.39	)		(1.80	)		(1.07	)		(0.15	)
Total distributions to shareholders		(0.37	)		(0.57	)		(1.81	)		(2.27	)		(1.53	)		(0.69	)
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	12.93		$	9.94		$	14.91		$	16.62		$	17.59		$	17.35
Total return (e)(f)		34.20	%		(30.43	)%		0.10	%		8.16	%(g)		10.81	%		4.18	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		0.95	%		0.96	%		0.93	%		0.91	%(i)		0.84	%		0.91	%
Interest expense		—			—	%(j)		—	%(j)		—	%(i)(j)		—	%(j)		—	%(j)
Net expenses (h)		0.95	%		0.96	%		0.93	%		0.91	%(i)		0.84	%		0.91	%
Waiver/Reimbursement		0.04	%		0.03	%		0.01	%		0.01	%(i)		0.06	%(k)		0.03	%(k)
Net investment income (h)		3.12	%		2.56	%		2.16	%		2.50	%(i)		2.64	%		2.75	%
Portfolio turnover rate		117	%		92	%		77	%		44	%(g)		40	%		37	%
Net assets, end of period (000s)	$	198,457		$	190,168		$	388,824		$	611,157		$	775,758		$	924,893

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor Z shares were renamed Class Z shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Columbia Convertible Securities Fund
February 28, 2010

Note 1. Organization

Columbia Convertible Securities Fund (the "Fund"), a series of Columbia Funds Series Trust (the "Trust"), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Delaware statutory trust.

Investment Objective

The Fund seeks total return, consisting of capital appreciation and current income.

Fund Shares

The Trust may issue an unlimited number of shares, and the Fund offers four classes of shares: Class A, Class B, Class C and Class Z. Each share class has its own expense structure and sales charges, as applicable. Effective June 22, 2009, the Fund no longer accepts investments from 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 the other Columbia Funds.

Class A shares are subject to a maximum front-end sales charge of 5.75% based on the amount of initial investment. 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 one year after purchase. Class B shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will convert to Class A shares eight years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class Z shares, as described in the Fund's prospectus.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.

Security Valuation

Debt securities generally are valued by pricing services approved by the Trust's Board of Trustees, based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available are valued at an over-the-counter or exchange bid quotation.

Equity securities and exchange-traded funds are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ, 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 closing bid price on such exchanges or over-the-counter markets.

Short-term investments maturing in 60 days or less are valued at amortized cost, which approximates market value.

Investments in other open-end investment companies are valued at net asset value.

GAAP establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value giving the

Columbia Convertible Securities Fund, February 28, 2010

highest priority to unadjusted quoted prices in active markets for identical securities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the fair value hierarchy are described below:

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Security Transactions

Repurchase Agreements

Income Recognition

Corporate actions and dividend income are recorded on the ex-date.

Distributions received from real estate investment trusts (REITs) in excess of their income are recorded as a reduction of the cost of the related investments. If the Fund no longer owns the applicable securities, any distributions received in excess of income are recorded as realized gains.

Interest income is recorded on the accrual basis. Premium and discount are amortized and accreted, respectively, on all debt securities except for premiums attributable to the conversion feature on convertible securities.

Expenses

Determination of Class Net Asset Value

All income, expenses (other than class-specific expenses, as shown on the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis for purposes of determining the net asset value of each class. Income and expenses are allocated to each class based on the settled shares method, while realized and unrealized gains (losses) are allocated based on the relative net assets 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, if any, for its tax year, and as such will 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 provision is made for federal income or excise taxes.

Columbia Convertible Securities Fund, February 28, 2010

Distributions to Shareholders

Distributions from net investment income are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations which may differ from GAAP.

Indemnification

Note 3. Federal Tax Information

For the year ended February 28, 2010, permanent book and tax basis differences resulting primarily from differing treatments for foreign currency transactions, adjustments on certain convertible preferred securities and proceeds received from litigation settlements were identified and reclassified among the components of the Fund's net assets as follows:

Undistributed Net Investment Income				Accumulated Net Realized Loss				Paid-In Capital
$	138,341			$	(8,055	)		$	(130,286	)

Net investment income and net realized gains (losses), as disclosed on the Statement of Operations, and net assets were not affected by this reclassification.

The tax character of distributions paid during the years ended February 28, 2010 and February 28, 2009 was as follows:

	February 28,
Distributions paid from	2010		2009
Ordinary Income*	$	12,745,036	$	14,240,428
Long-Term Capital Gains		—		10,680,255

* For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of February 28, 2010, the components of distributable earnings on a tax basis were as follows:

Undistributed Ordinary Income				Undistributed Long-Term Capital Gains				Net Unrealized Appreciation*
$	2,455,127			$	—			$	16,115,688

* The differences between book-basis and tax-basis net unrealized appreciation are primarily due to deferral of losses from wash sales.

Unrealized appreciation and depreciation at February 28, 2010, based on cost of investments for federal income tax purposes were:

Unrealized appreciation	$	30,039,644
Unrealized depreciation		(13,923,956	)
Net unrealized appreciation	$	16,115,688

The following capital loss carryforwards may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

Year of Expiration	Capital Loss Carryforwards
2017	$	71,063,081
2018		39,523,679
	$	110,586,760

Columbia Convertible Securities Fund, February 28, 2010

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of February 28, 2010, post-October capital losses of $3,417,368 attributed to security transactions were deferred to March 1, 2010.

Note 4. Fees and Compensation Paid to Affiliates

Investment Advisory Fee

Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides investment advisory services to the Fund. In rendering investment advisory services to the Fund, Columbia may use the portfolio management and research resources of Columbia Management Pte. Ltd, an affiliate of Columbia. Columbia receives a monthly investment advisory fee based on the Fund's average daily net assets at the following annual rates:

Average Daily Net Assets	Annual Fee Rate
First $500 million		0.65	%
$500 million to $1 billion		0.60	%
$1 billion to $1.5 billion		0.55	%
Over $1.5 billion		0.50	%

For the year ended February 28, 2010, the Fund's effective investment advisory fee rate was 0.65% of the Fund's average daily net assets.

Bank of America, N.A., an indirect parent company of Columbia, entered into an agreement dated September 29, 2009, to sell a portion of the asset management business of Columbia Management Group, LLC to Ameriprise Financial, Inc. ("Ameriprise Financial"). The transaction ("Transaction") includes the sale of the part of the asset management business that advises long-term mutual funds, including the Fund. The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close on or about May 1, 2010 (the "Closing"). In connection with the Closing, certain changes will occur, including a change in the entities serving as the investment advisor, administrator, distributor and transfer agent of the Fund. RiverSource Investments, LLC (the "New Advisor"), a subsidiary of Ameriprise Financial, will become the investment advisor of the Fund upon the Closing. The New Advisor will serve as inves tment advisor under a new investment management services agreement effective upon the closing. The New Advisor expects to change its name to Columbia Management Investment Advisers, LLC upon or shortly after the Closing. Effective upon the Closing, as the context requires, references to Columbia shall be deemed to refer to the New Advisor.

Administration Fee

Columbia provides administrative and other services to the Fund for a monthly administration fee at the annual rate of 0.17% of the Fund's average daily net assets, less the fees payable by the Fund as described under the Pricing and Bookkeeping Fees note below.

The New Advisor will become the administrator of the Fund under a new administrative services agreement effective upon the Closing.

Pricing and Bookkeeping Fees

Columbia Convertible Securities Fund, February 28, 2010

with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Fund. Under the State Street Agreements, the Fund pays State Street an annual fee of $38,000 paid monthly plus an additional monthly fee based on an annualized percentage rate of average daily net assets of the Fund for the month. The aggregate fee will not exceed $140,000 per year (exclusive of out-of-pocket expenses and charges). The Fund also reimburses State Street for certain out-of-pocket expenses and charges.

Among other updates to the State Street Agreements, Columbia will assign and delegate its rights and obligations thereunder to the New Advisor upon the Closing.

The Services Agreement will be terminated upon the Closing, and the services provided thereunder will be covered under the administrative services agreement with the New Advisor.

Transfer Agent Fee

Prior to May 1, 2009, the Transfer Agent voluntarily waived a portion of its fees for accounts other than omnibus accounts, so that transfer agent fees (exclusive of out-of-pocket expenses and sub-transfer agent fees) did not exceed 0.02% annually of the Fund's average daily net assets.

Underwriting Discounts, Service and Distribution Fees

Columbia Management Distributors, Inc. (the "Distributor"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, is the principal underwriter of the Fund's shares. For the year ended February 28, 2010, the Distributor has retained net underwriting discounts of $6,663 on sales of the Fund's Class A shares and received net CDSC fees of $15,863 and $141 on Class B and Class C share redemptions, respectively.

RiverSource Fund Distributors, Inc. (the "New Distributor"), a subsidiary of Ameriprise Financial, will become the distributor of the Fund upon the Closing. The New Distributor expects to

Columbia Convertible Securities Fund, February 28, 2010

change its name to Columbia Management Investment Distributors, Inc. upon or shortly after the Closing.

The Trust has adopted shareholder servicing plans and distribution plans for the Class B and Class C shares of the Fund and a combined distribution and shareholder servicing plan for the Class A shares of the Fund. The shareholder servicing plans permit the Fund to compensate or reimburse servicing agents for the shareholder services they have provided. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940 Act, permit the Fund to compensate or reimburse the Distributor and/or selling agents for activities or expenses primarily intended to result in the sale of the classes' shares. Payments are made at an annual rate and paid monthly, as a percentage of average daily net assets, set from time to time by the Board of Trustees, and are charged as expenses of the Fund directly to the applicable share class. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of BOA and the Dis tributor.

The annual rates in effect and plan limits, as a percentage of average daily net assets are as follows:

	Current Rate			Plan Limit
Class A Combined Distribution and Shareholder Servicing Plan		0.25	%		0.25	%
Class B and Class C Shareholder Servicing Plans		0.25	%		0.25	%
Class B and Class C Distribution Plans		0.75	%		0.75	%

Expense Limits and Fee Waivers

Effective November 9, 2009, Columbia has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any) after giving effect to any balance credits from the Fund's custodian, do not exceed the annual rate of 0.90% of the Fund's average daily net assets. Columbia, in its discretion, may revise or discontinue this arrangement at any time.

For the period May 1, 2009 through November 9, 2009, Columbia voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any) after giving effect to any balance credits from the Fund's custodian, did not exceed the annual rate of 0.95% of the Fund's average daily net assets.

Fees Paid to Officers and Trustees

Other Related Party Transactions

In connection with the purchase and sale of its securities during the year, the Fund used one or more brokers that are affiliates of BOA. Total brokerage commissions paid to affiliated brokers for the year ended February 28, 2010 was $2,375.

Columbia Convertible Securities Fund, February 28, 2010

Note 5. Custody Credits

Note 6. Portfolio Information

For the year ended February 28, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Fund were $491,588,846 and $536,109,841, respectively.

Note 7. Regulatory Settlements

During the year ended February 28, 2010, the Fund received payments totaling $130,285 relating to certain regulatory settlements with third parties that the Fund had participated in during the year. The payments have been included in "Increase from regulatory settlements" on the Statement of Changes in Net Assets.

Note 8. Line of Credit

For the year ended February 28, 2010, the Fund did not borrow under these arrangements.

Note 9. Securities Lending

The Fund may lend its securities to certain approved brokers, dealers and other financial institutions. Each loan is collateralized by cash, in an amount at least equal to the market value of the securities loaned plus accrued income from the investment of collateral. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The collateral received is invested and the income generated by the investment of the collateral, net of any fees remitted to State Street as the lending agent and borrower rebates, is paid to the Fund. Generally, in the event of borrower default, the Fund has the right to use the collateral to offset any losses incurred. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a potential loss to the Fund. The Fund bears the ri sk of loss with respect to the investment of collateral.

For the year ended February 28, 2010, the Fund did not participate in the securities lending program.

Note 10. Shares of Beneficial Interest

As of February 28, 2010, 32.9% of the Fund's shares outstanding were beneficially owned by two participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion.

As of February 28, 2010, no other shareholder owned more than 5% of the outstanding shares of the Fund.

Subscription and redemption activity of this account may have a significant effect on the operations of the Fund.

Columbia Convertible Securities Fund, February 28, 2010

Note 11. Significant Risks and Contingencies

Legal Proceedings

Civil Litigation

Note 12. Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended February 28, 2010, events and transactions through the date the financial statements were issued have been evaluated by the Fund's management for possible adjustment and/or disclosure. No subsequent events or transactions had occurred that would require adjustment of the financial statements as presented. On March 3, 2010, the Fund's shareholders approved, among other matters, a proposed investment management services agreement with the New Advisor, the effectiveness of which is conditioned on the Closing.

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Series Trust and the Shareholders of Columbia Convertible Securities Fund

In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statement of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Convertible Securities Fund (the "Fund") (a series of Columbia Funds Series Trust) at February 28, 2010, the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of th e 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 are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
April 21, 2010

Federal Income Tax Information (Unaudited)

For non-corporate shareholders, 32.57% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of the ordinary income distributed by the Fund for the fiscal year ended February 28, 2010 may represent qualified dividend income.

35.41% of the ordinary income distributed by the Fund for the fiscal year ended February 28, 2010, qualifies for the corporate dividends received deduction.

The Fund will notify shareholders in January 2011 of amounts for use in preparing 2010 income tax returns.

Fund Governance

Independent Trustees

Name, Address and Age, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Edward J. Boudreau (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 64; no other directorships held.

William P. Carmichael (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired. Oversees 64; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—The Finish Line (sportswear).

William A. Hawkins (Born 1942)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				President and Chief Executive Officer—California General Bank, N.A., from January 2008 through current; oversees 64; no other directorships held.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Chairman and Chief Executive Officer—Hilliard Group LLC (investing and consulting), from April 2003 through current; Non-Executive Director & Chairman—Conseco, Inc. (insurance), September 2003 through current; Executive Chairman—Conseco, Inc. (insurance), August 2004 through September 2005; oversees 64; Director—Conseco, Inc. (insurance).

John J. Nagorniak (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)`				Retired. President and Director—Foxstone Financial, Inc. (consulting), 2000 through December 2007; Director—Mellon Financial Corporation affiliates (investing), 2000 through 2007; Chairman—Franklin Portfolio Associates (investing—Mellon affiliate), 1982 through 2007; oversees 64; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee and Chairman—Research Foundation of CFA Institute.

Fund Governance (continued)

Independent Trustees (continued)

Name, Address and Age, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Minor M. Shaw (Born 1947)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 64; Board Member—Piedmont Natural Gas.

Interested Trustee

Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 1972 through current; Senior Advisor—McKinsey & Company (consulting), July 2006 through January 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, July 2000 through April 2006; oversees 64; Director—Renaissance Reinsurance Ltd; Director—Penn Mutual Life Insurance Company; Director—Citigroup.

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-345-6611.

Fund Governance (continued)

Officers

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Managing Director of Columbia Management Advisors, LLC since December 2004; Senior Vice President and Chief Financial Officer—Columbia Funds, from June 2008 to January 2009; Treasurer—Columbia Funds, from October 2003 to May 2008; Treasurer—the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000—December 2006; Senior Vice President—Columbia Management Advisors, LLC, from April 2003 to December 2004; President—Columbia Funds, Liberty Funds and Stein Roe Funds, February 2004 to October 2004; Treasurer—Galaxy Funds, September 2002 to December 2005; Treasurer, December 2002 to December 2004, and President, February 2004 to December 2004—Columbia Management Multi-Strategy Hedge Fund, LLC; and a senior officer of various other Bank of America-affiliated entities, including other registered and unregistered funds

James R. Bordewick, Jr. (Born 1959)

One Financial Center Boston, MA 02111 Senior Vice President, Secretary and Chief Legal Officer (since 2006)				Associate General Counsel, Bank of America since April 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April 2005.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Director (Columbia Management Group LLC and Investment Product Group Compliance), Bank of America since June 2005; Director of Corporate Compliance and Conflicts Officer, MFS Investment Management (investment management), August 2004 to May 2005; Managing Director, Deutsche Asset Management (investment management) prior to August 2004.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Director of Fund Administration of the Advisor since January 2006; Managing Director of the Advisor September 2004 to December 2005; Vice President Fund Administration June 2002 to September 2004.

Jeffrey R. Coleman (Born 1969)

One Financial Center Boston, MA 02111 Treasurer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Fund Controller of the Advisor from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August 2000 to September 2004.

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Chief Accounting Officer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Head of Tax/Compliance and Assistant Treasurer of the Advisor from November 2004 to December 2005; Director of Trustee Administration (Sarbanes-Oxley) of the Advisor from May 2003 to October 2004.

Fund Governance (continued)

Officers (continued)

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Senior Tax Manager of the Advisor since August 2006; Senior Compliance Manager of the Advisor from April 2002 to August 2006.

Barry S. Vallan (Born 1969)

One Financial Center Boston, MA 02111 Controller (since 2006)				Vice President—Fund Treasury of the Advisor since October 2004; Vice President—Trustee Reporting of the Advisor from April 2002 to October 2004.

Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 1996)				President, Columbia Management Services, Inc. since July 2004; Senior Vice President and Controller, Columbia Management Services, Inc. prior to July 2004.

Board Consideration and Re-Approval of Current Investment Advisory Agreement

More specifically, at meetings held on November 5-6, 2009, the Board, including the Independent Trustees advised by their independent legal counsel, considered the factors and reached the conclusions described below relating to the selection of CMA and the Sub-Adviser and the re-approval of the Advisory Agreements. The Board also reviewed and considered a report prepared and provided by the Independent Fee Consultant (the "Fee Consultant") appointed by the Independent Trustees pursuant to an assurance of discontinuance entered into with the New York Attorney General ("NYAG") to settle a civil complaint filed by the NYAG relating to trading in mutual fund shares (the "NYAG Settlement"). The Fee Consultant's role was to manage the process by which management fees are negotiated so that they were negotiated in a manner that is at arms' length and reasonable. Th e Fee Consultant found that the fee negotiation process was, to the extent practicable, at arms' length and reasonable and consistent with the requirements of the NYAG Settlement. A summary of the Fee Consultant's report is available at http://www.columbiafunds.com.

Nature, Extent and Quality of Services

The Board received and considered various data and information regarding the nature, extent and quality of services provided to the Funds by CMA and the Sub-Adviser under the Advisory Agreements. The most recent investment adviser registration forms for CMA and the Sub-Adviser were made available to the Board, as were CMA's and the Sub-Adviser's responses to a detailed series of requests submitted by the Independent Trustees' independent legal counsel on behalf of such Trustees. The Board reviewed and analyzed those materials, which included, among other things, information about the background and experience of senior management and investment personnel of CMA and the Sub-Adviser.

The Board evaluated the ability of CMA and the Sub-Adviser, based on their resources, reputation and other attributes, to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. In this regard, the Board considered information regarding the nature of CMA's compensation structure applicable to portfolio managers and other key investment personnel.

Investment Advisory and Sub-Advisory Fee Rates and Other Expenses

The Board reviewed and considered the proposed contractual investment advisory fee rates both separately and together with the administration fee rates payable by the Funds to CMA for investment advisory services (the "Contractual Management Rates"). The Board also reviewed and considered the proposed contractual investment sub-advisory fee rates (the "Sub-Advisory Agreement Rates") payable by CMA to the Sub-Adviser for investment sub-advisory services. In addition, the Board reviewed and considered the proposed fee waiver/cap arrangements applicable to the Contractual Management Rates and considered the Contractual Management Rates after taking the waivers/caps into account (the "Actual Management Rates"). The Board noted that, on a complex-wide basis, CMA had reduced annual management fees by at least $32 million per year pursuant to the NYAG Settlement. The Board also noted reductions in net advisory rates and/or total expens es of certain funds across the fund complex. Additionally, the Board received and afforded specific attention to information comparing the Contractual Management Rates and Actual Management Rates with those of the other funds in their respective Peer Groups (as defined below).

The Board concluded that the factors noted above supported the Contractual Management Rates and the Actual Management Rates, and the approval of the Advisory Agreements for all of the Funds.

The Fund-by-Fund discussion set forth below in "Fund-Specific Considerations for Certain Review Funds" provides additional

information regarding those Funds highlighted as meeting agreed-upon criteria for warranting further review. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios and/or performance information, relative to a Fund's Peer Group and/or Universe.

Fund Performance

The Board considered the performance results for each of the Funds over multiple measurement periods. It also considered these results in comparison to the performance results of each Fund's Peer Group and Universe, as well as to each Fund's benchmark index. The Board also considered certain risk-adjusted performance data.

Profitability

The Board received and considered a detailed profitability analysis of CMA based on the Contractual Management Rates and the Actual Management Rates, as well as on other relationships between the Funds and other funds in the complex on the one hand and CMA affiliates on the other. The analysis included complex-wide and per-Fund information and a comparison of results using alternative allocation methodologies. The Board concluded that, in light of the costs of providing investment management and other services, the profits and other ancillary benefits that CMA and its affiliates received from providing these services were not unreasonable.

Economies of Scale

The Board received and considered information regarding whether there have been economies of scale with respect to the management of the Funds, whether the Funds have appropriately benefited from any economies of scale and whether there is potential for realization of any further economies of scale. Most particularly, CMA provided information showing that, as a percentage of fund assets, CMA's complex-wide revenues declined over a five-year period during which fund assets increased by 53% and the shareholder benefit over a four-year period has remained steady at approximately 33% of the Adviser's total profits. The Board concluded that any potential economies of scale are shared fairly with Fund shareholders, most particularly through breakpoints and fee waiver arrangements.

Information About Services to Other Clients

The Board also received and considered information about the nature and extent of services and fee rates offered by CMA and the Sub-Adviser to their other clients, including separate accounts and institutional investors. In this regard, the Board concluded that, where the Contractual Management Rates, Sub-Advisory Agreement Rates and Actual Management Rates were appreciably above the range of the fee rates offered to other CMA and Sub-Adviser clients, based on information provided by CMA and the Sub-Adviser, the costs associated with managing and operating a registered investment company provided a justification for the higher fee rates charged to the Funds.

Other Benefits to CMA and the Sub-Adviser

The Board received and considered information regarding any "fall-out" or ancillary benefits received by CMA and its affiliates and the Sub-Adviser as a result of their relationship with the Funds. Such benefits could include, among others, benefits attributable to CMA's and the Sub-Adviser's relationships with the Funds (such as soft-dollar credits) and benefits potentially derived from an increase in CMA's and the Sub-Adviser's business as a result of their relationship with the Funds (such as the ability to market to shareholders other financial products offered by CMA and its affiliates or a Sub-Adviser).

which efforts are made to recapture transaction costs, and the controls applicable to brokerage allocation procedures. The Board also reviewed CMA's and the Sub-Adviser's methods for allocating portfolio investment opportunities among the Funds and other clients. The Board concluded that the benefits were not unreasonable.

Other Factors and Broader Review

As discussed above, the Board reviews materials received from CMA and the Sub-Adviser annually as part of the re-approval process under Section 15(c) of the 1940 Act. The Board also reviews and assesses the quality of the services the Funds receives throughout the year. In this regard, the Board and its Committees review reports of CMA and the Sub-Adviser at each of its quarterly meetings, which include, among other things, Fund performance reports and presentations relating to such reports. In addition, the Board and its Committees confer with portfolio managers at various times throughout the year including, most particularly, at the June Investment Committee meeting.

Fund-Specific Considerations for Certain "Review" Funds

For certain Funds highlighted as meeting agreed-upon criteria for warranting further review, the Board engaged in further analysis with regard to approval of the Funds' Advisory Agreements. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios, and/or performance information relative to a Fund's Peer Group and/or Universe.

The Board engaged in further review of Columbia Convertible Securities Fund because its Actual Management Rate and total expense ratio were appreciably above the median range of its Peer Group. Although the Fund's performance over certain periods was not appreciably above the median of its Universe, the Board noted other factors such as improved performance rankings over the previous year and the impact of voluntary expense limitations on the Fund's Actual Management Rate and total expense ratio. The Board also noted the implementation of a revised voluntary reimbursement arrangement in November 2009 for the Fund. Taking into account these matters and other factors considered, the Board concluded that the Actual Management Rate and total expense ratio were acceptable.

Conclusion

After an evaluation of the above-described factors, and based on its deliberations and analysis of the information provided and alternatives considered, the Board, including all of the Independent Trustees, concluded that the compensation payable to CMA and the Sub-Adviser under the Advisory Agreements is fair and equitable. Accordingly, the Board unanimously re-approved the Advisory Agreements.

Board Consideration and Approval of Proposed Investment Advisory Agreement

(i) the terms and conditions of the Proposed Advisory Agreements compared to the terms and conditions of the Current Advisory Agreements, as described below;

(ii) the fact that each Fund's total advisory fees would remain the same;

(iv) the terms and conditions of the Proposed Subadvisory Agreements compared to the terms and conditions of the Current Subadvisory Agreements;

(ix) that RiverSource was willing to commit to maintain net operating expense ratios at current levels for at least the period currently covered by Columbia's existing commitments;

(x) the capabilities of RiverSource and the Subadvisers with respect to compliance, including an assessment of RiverSource's compliance program by the Funds' Chief Compliance Officer;

(xii) that Ameriprise and Bank of America Corporation would bear the costs of obtaining approvals of the Proposed Advisory and Subadvisory Agreements.

In their deliberations, the Trustees did not identify any single item that was paramount or controlling and individual

Trustees may have attributed different weights to various factors. The Trustees also evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately in respect of each Fund.

Nature, Extent and Quality of Services to be Provided

The Trustees received and considered various data and information regarding the expected nature, extent and quality of services to be provided to the Funds by RiverSource and the Subadvisers under the Proposed Advisory and Subadvisory Agreements. The most recent investment adviser registration forms for RiverSource and each Subadviser were made available to the Boards, as well as extensive materials from RiverSource, Ameriprise and Columbia. The Trustees reviewed and analyzed these materials, which included, among other things, information about the background and experience of expected senior management of RiverSource and Ameriprise after the Closing. The Trustees considered RiverSource's ability to provide administrative services to the Funds, noting that while the aggregate scope of advisory and administrative services was not expected to change following the Closing, the allocation of services was expected to shift, to a lim ited extent, such that administrative services will be provided under a new administrative services agreement. The Trustees considered, among other things, the capacity and quality of RiverSource's and the Subadvisers' investment management, research and trade execution capabilities and other resources that would be dedicated to performing services for the Funds. The Trustees also considered matters related to RiverSource's and the Subadvisers' compliance programs and compliance records, including RiverSource's portfolio transaction policies and procedures. The Trustees discussed with senior management personnel their ability to administer and oversee outside service providers to the Funds and their shareholders and were satisfied with management's processes for providing services and overseeing and reviewing services to be rendered by outside sources.

In evaluating the services to be provided under the Proposed Advisory and Subadvisory Agreements, the Trustees factored in their extensive discussions with representatives of Columbia, RiverSource and Ameriprise at the meetings referenced above regarding the management of each Fund. The Trustees considered representations by Ameriprise that it was expected that there will be no diminution in the nature and quality of services provided to the Funds. The Trustees noted that Columbia Management Group's current President, Columbia's current Chief Investment Officer and Columbia's current President, were expected to continue to serve the Funds in similar capacities after the Closing. With respect to portfolio management, the Trustees reviewed information regarding the deliberative process for selecting portfolio management personnel to continue servicing the Fund s after the Closing, including the expected role of Columbia's Chief Investment Officer in evaluating and selecting portfolio management personnel for each Fund utilizing Columbia's current analytical model for evaluating portfolio managers. In this regard, the Trustees also weighed representations by Ameriprise that this investment management evaluative process was likely to result in a significant number of Columbia investment professionals and personnel currently responsible for management of the Funds to remain in place. The Trustees noted that the portfolio management evaluation and selection process was designed to optimize the portfolio management resources available to each Fund by having the ability to select investment personnel for the Funds from the combined organization. Similarly, the Trustees evaluated the ability of RiverSource and the Subadvisers, based on their respective resources, reputations and other attributes, to attract and retain qualified investment professionals. In this regard, t he Trustees considered information regarding the nature of the compensation structure applicable to portfolio managers and other key investment personnel.

The Trustees reviewed and considered information from Ameriprise and RiverSource regarding various contemplated service provider arrangements, including information regarding both immediate and potential future plans in respect of these arrangements. In this regard, the Trustees considered information regarding potential distribution, transfer agency and custody arrangements and the evaluation of fund accounting, financial reporting and valuation service model options, noting certain differences between Columbia's and RiverSource's current approaches, including that RiverSource has historically utilized services provided "in-house" or by its affiliates for fund accounting, financial reporting and valuation. The Trustees reviewed information from Ameriprise and RiverSource regarding the expectation for rationalized or harmonized fees as part of the integration after the Closing in order to develop consistent service fee schedules across the combined fund family. The Trustees noted Ameriprise's representations that, to the extent any

such proposals were recommended to the Board after the Closing, they would not result in an "unfair burden" (within the meaning of Section 15(f) of the 1940 Act) on any Fund.

Investment Advisory and Subadvisory Fee Rates and Other Expenses

The Trustees reviewed and considered the proposed contractual investment advisory fee rates to be paid by each Fund to RiverSource for investment management services both separately and together with the administration fee rates to be paid by the Funds to RiverSource (the "Contractual Management Rates"), which are the same as the separate and aggregate advisory and administrative fee rates currently paid by each Fund to Columbia. The Trustees also reviewed and considered the proposed subadvisory fee rates and the fee arrangements under the Proposed Subadvisory Agreements, respectively, which are also the same as those currently in effect under the Current Subadvisory Agreements. In addition to the materials provided by Columbia, RiverSource provided information regarding the current fees for each of the RiverSource funds and other relevant institutional acco unts. The Trustees reviewed and considered the proposed fee waiver/cap arrangements applicable to the Contractual Management Rates and considered the Contractual Management Rates after taking the waivers/caps into account (the "Actual Management Rates"). In this regard, the Trustees noted that RiverSource had committed to maintain the Funds' current expense limitation and waiver arrangements (both contractual and voluntary). The Trustees considered the potential that, after the Closing, RiverSource would propose a common fee and expense structure for the combined fund family, subject to the commitment that Ameriprise will not seek any change that would result in an "unfair burden" on any Fund. The Trustees also considered the report prepared and provided by the Fee Consultant. Additionally, the Trustees received and afforded specific attention to information provided in connection with the Current Agreement Re-Approval Process, comparing the Contractual Management Rates and Actual Management Rates with those of other funds in each Fund's Peer Group (as defined below).

The Trustees were provided with a description of the methodology used by Lipper to select the mutual funds in each Fund's Peer Group and Universe and reviewed the degree of comparability resulting from the selection methodology. For certain Funds, Lipper determined that changing the composition of the Peer Group and/or Universe for expenses from that used for performance would provide a more accurate basis of comparison. The Trustees also considered Lipper data that ranked each Fund based on: (i) each Fund's one- and

three-year performance compared to actual management fees; and (ii) each Fund's one- and three-year performance compared to total expenses.

Fund Performance

The Trustees reviewed detailed performance information for each Fund at various Board and committee meetings during the year in addition to the additional performance information that they reviewed and evaluated in connection with the Transaction. The Trustees also reviewed and evaluated detailed performance information for each Fund in connection with the Current Agreement Re-Approval Process. The Trustees considered the performance results for each of the Funds over multiple measurement periods. They also considered these results in comparison to the performance results of each Fund's Peer Group and Universe, as well as to each Fund's benchmark index. The Boards also noted certain risk-adjusted performance data.

Costs of Services to be Provided and Profitability

In considering the costs of services to be provided by RiverSource and the Subadvisers under the Proposed Advisory Agreement and Proposed Subadvisory Agreement, as applicable for each Fund, and the projected range of profitability to RiverSource and the Subadvisers from their relationships with the Funds, the Trustees considered, among other things, that there would be no increase in advisory or subadvisory fee rates under the Proposed Advisory and Subadvisory Agreements. The Trustees further noted, with respect to RiverSource, that it was not possible to predict with certainty how RiverSource's profitability would be affected by becoming the investment adviser to the Funds but, as a general matter, they were satisfied, based on their review of RiverSource's projected range of profitability assuming completion of the Transaction, that this projected profitability from their relationship with the Funds would not be excessive. The Trustees based their review, in part, on information regarding RiverSource's current profitability in managing the RiverSource Funds and the information available to the Trustees with respect to RiverSource's expense budgeting process. The Trustees also noted that they would have ongoing opportunities to address RiverSource's profitability in the future based on actual results. The Trustees did not consider separate profitability information with respect to the Subadvisers, as their profitability from their relationships with the Funds was not a material factor in determining whether to

approve the Proposed Subadvisory Agreements. The Trustees also noted that the subadvisory fees paid to the Subadvisers, none of which is affiliated with Columbia, had previously been negotiated on an arms' length basis.

Economies of Scale

The Trustees received and evaluated information regarding the potential to realize economies of scale with respect to management of the Funds, whether the Funds would appropriately benefit from any economies of scale and whether there was any potential for realization of further economies of scale in connection with the Transaction. The Trustees noted that the current and proposed investment advisory fee rates for most of the Funds contain breakpoints that reduce the fee rate on assets above specified levels. The Trustees noted that RiverSource had indicated that no changes to the Funds' breakpoint arrangements were proposed to be made at this time. In light of these factors and noting that it was not possible to evaluate with certainty if and how the Transaction would produce any immediate opportunities for additional economies of scale, the Trustees concluded that each Fund's breakpoint arrangements were acceptable. The Truste es also recognized that the Funds may benefit from certain economies of scale over time from becoming a part of the larger RiverSource fund complex, based on potential future synergies of operations, potential fee harmonization/rationalization initiatives and potential future Fund mergers. The Trustees noted, in particular, RiverSource's acknowledgement of the principle that the Funds should share in certain economies of scale if realized by RiverSource. In addition, the Trustees evaluated the likelihood that there would be potential Fund mergers after the Closing. The Trustees noted that any such potential Fund mergers, if approved, could result in the achievement of additional breakpoints for Funds that have implemented breakpoint fee schedules. The Trustees also noted that they expect to consider economies of scale from time to time following the Closing and thus be in a position to evaluate any additional economies of scale.

Information About Investment Management Services to Non-Mutual Fund Clients

The Trustees also received and reviewed information about the nature and extent of services and fee rates offered by Riversource and the Subadvisers to the Funds compared with other clients with similar accounts, including separate accounts and institutional investments. The Trustees noted that the Funds may receive services different from those offered to other clients of RiverSource and the Subadvisers and concluded that the advisory fee rates under the Proposed Advisory Agreements and the subadvisory fee rates under the Proposed Subadvisory Agreements were not excessive, given the nature and extent of services expected to be offered and other factors, including the Trustees' review of Lipper data.

Other Benefits to RiverSource and the Subadvisers

The Trustees received and reviewed information regarding any expected "fall-out" or ancillary benefits to be received by RiverSource and its affiliates and by the Subadvisers as a result of their relationships with the Funds.

Fund-Specific Considerations for Certain "Review" Funds

During the Current Agreement Re-Approval Process, a limited number of Funds were highlighted as meeting agreed-upon criteria for warranting further review. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios and/or performance information, relative to a Fund's Peer Group and/or Universe. For such "review" Funds, the Trustees engaged in further analysis with regard to the approval of the Funds' Current Advisory Agreements. For each such Fund, the Trustees subsequently considered the impact of transitioning investment management responsibilities to RiverSource.

The Trustees engaged in further review of Columbia Convertible Securities Fund because its Actual Management Rate and total expense ratio were appreciably above the median range of its Peer Group. Although the Fund's performance over certain periods was not appreciably above the median of its Universe, the Trustees noted other factors such as improved performance rankings over the previous year and the impact of voluntary expense limitations on the Fund's Actual Management Rate and total expense ratio. The Trustees also noted the implementation of a revised voluntary reimbursement arrangement in November 2009 for the Fund. Taking into account these matters and other factors considered, the Trustees concluded that the Actual Management Rate and total expense ratio were, at this time, acceptable, under the circumstances.

Conclusion

After an evaluation of the above-described factors and based on its deliberations and analysis of the information provided and alternatives considered, each Board, including all of the Independent Trustees, concluded that approval of the Proposed Advisory and Subadvisory Agreements was in the best interests of each of the Funds and its shareholders. Accordingly, the Boards unanimously approved the Proposed Advisory and Subadvisory Agreements.

Summary of Management Fee Evaluation by
Independent Fee Consultant

REPORT OF INDEPENDENT FEE CONSULTANT TO THE FUNDS SUPERVISED BY THE COLUMBIA NATIONS BOARD

Prepared Pursuant to the February 9, 2005
Assurance of Discontinuance among the
Office of Attorney General of New York State,
Columbia Management Advisors, LLC, and
Columbia Management Distributors, Inc.

November 12, 2009

I. Overview

A. Role of the Independent Fee Consultant

The AOD charges the IFC with "managing the process by which proposed management fees ... to be charged the Columbia Fund are negotiated so that they are negotiated in a manner which is at arms' length and reasonable and consistent with this Assurance of Discontinuance." The AOD also provides that CMA "may manage or advise a Columbia Fund only if the reasonableness of the proposed management fees is determined by the Board of Trustees ... using ... an annual independent written evaluation prepared by or under the direction of ... the Independent Fee Consultant." Therefore, the AOD makes clear that the IFC does not supplant the Trustees in negotiating management fees with CMA, nor does the IFC substitute his or her judgment for that of the Trustees with respect to the reasonableness of proposed fees or any other matter that is committed to the business judgmen t of the Trustees.

B. Elements Involved in Managing the Fee Negotiation Process

In preparing the report required by the AOD, the IFC must consider at least the following six factors set forth in the AOD:

1. The nature and quality of CMA's services, including the Fund's performance;

2. Management fees (including any components thereof) charged by other mutual fund companies for like services;

3. Possible economies of scale as the Fund grows larger;

4. Management fees (including any components thereof) charged to institutional and other clients of CMA for like services;

5. Costs to CMA and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit; and

6. Profit margins of CMA and its affiliates from supplying such services.

C. Organization of the Annual Evaluation

¹ CMA and CMD are subsidiaries of Columbia Management Group, LLC ("CMG"), and are the successors to the entities named in the AOD.

Unless otherwise stated or required by the context, this report covers only the Nations Funds, which are also referred as the "Funds."

II. Summary of Findings

A. General

1. Based upon my examination of the information supplied by CMG in the light of the six factors set forth in the AOD, I conclude that the Trustees have the relevant information necessary to evaluate the reasonableness of the proposed management fees for each Nations Fund, subject to the following: on September 30, 2009, Ameriprise Financial, Inc. ("Ameriprise") announced that it had agreed to purchase the investment management business of CMG with the exception of its cash and liquidity management business which includes the Nations money market Funds. As a result, the Trustees requested information from CMG as to the plans of CMG and its parent with respect to the provision of investment management services to those Funds after the consummation of the proposed transaction. As of the date of this report, that in formation has not yet been provided. However, as the transaction is not expected to close until the spring of 2010, the Trustees concluded that they would have ample opportunity to take appropriate steps with respect to the investment management agreements of the money market Funds, including invoking the 60-day termination provisions of those agreements, in response to the information to be provided by CMG and reviewed by the IFC.

In my view, the process by which the proposed management fees of the Funds have been negotiated in 2009 thus far has been, to the extent practicable, at arms' length and reasonable and consistent with the AOD.

B. Nature and Quality of Services, Including Performance

C. Management Fees Charged by Other Mutual Fund Companies

D. Trustees' Advisory Contract Review Process

E. Potential Economies of Scale

breakpoints that characterizes the money market Fund schedules is not typically found among competitors, nearly all of which have flat fee schedules.

F. Management Fees Charged to Institutional Clients

G. Revenues, Expenses, and Profits

III. Recommendations

1) Criteria for review. The Trustees may wish to consider modifying the criteria for identifying a Fund for further review (a "Review Fund") to include criteria that focus exclusively on performance. They may also wish to consider whether it would be useful to apply CMG's own internal monitoring standards for Fund performance to the contract review process, or whether such criteria are more relevant to their ongoing investment oversight.

2) Presentation of Review Fund discussion. CMG should consider whether it could more systematically present in one discussion all relevant information regarding each Review Fund, which is now split into several different portions of the 15(c) materials. For any Fund that has been a Review Fund in consecutive years, CMG should address under what circumstances it could reasonably be anticipated that the Fund would lose that status.

3) Refinement of tax-exempt performance data. Certain single-state tax-exempt Funds compete in extremely small universes and are compared to a multi-state benchmark of uncertain relevance. Notwithstanding the difficulties, CMG should work to improve the reliability of the calculation of relative performance of these Funds. If that is not possible, CMG should provide guidance on how the Trustees should judge the quality of CMG's management of these Funds.

4) Development of risk metrics for asset-allocation, tax-exempt, and money market Funds. CMG has developed and shared with the Trustees quantitative risk metrics comparing equity and taxable fixed-income Funds against their peers. However, reliable risk metrics have not been developed for asset-allocation, tax-exempt fixed income, and money market Funds. We urge CMG to continue its efforts to provide reliable risk measures for these categories of Funds, especially in the cases of asset-allocation and money market funds, because their investors are likely to be motivated at least in part by a desire to manage risk.

5) Profitability data. For any period during which CMG is an affiliate of U.S. Trust, Bank of America Private Wealth Management, CMG should continue to present to the Trustees the profitability of each Fund, each investment style and each complex (of which Nations is one) calculated as follows:

a. Management-only profitability should be calculated without reference to any Private Bank expense.

d. Distribution only: This should include all Private Bank expenses other than those attributable to sub-transfer agency services.

6) Contractual fee analysis. This year CMG presented a new Lipper report comparing the contractual management fees of Funds with those of competitors in similar investment styles. However, the reliability of the conclusion—that Fund management fee breakpoints compared favorably with competitive fee rates—was limited by the use of competitive funds at all asset levels. The sponsors of a $100 million mutual fund may not have given much thought to breakpoints at $5 billion; therefore, that fund's contractual fee at that level is unlikely to compare favorably with that of a $5 billion Fund. Limiting the competitors to the Lipper expense group, whose constituents are similar in size to the rele vant Fund, would make the results more meaningful. In addition, the breakpoints of a select group of Nations Funds (which would differ each year) should continue to be compared to those of industry rivals to ensure that the Funds' breakpoint schedules remain within industry norms. As breakpoint schedules change relatively little each year, performing such a comparison for each Nations Fund each year would not be an efficient use of Trustee and CMG resources.

7) Pro forma profitability data. In any year in which CMG or the Trustees believe that the prior year's profitability is unlikely to be representative of current business results due to changes in markets or for any other reason, CMG should, consistent with this year's practice, prepare a pro forma income statement based on year-to-date actual data and reasonable projections used for its own business planning purposes.

8) Additional institutional data and analysis. While CMG provided a substantial amount of information on its institutional business, we suggest some additional items for future years: (a) profitability data for the institutional business in the format, and based upon the same allocation methodologies, used to present Fund profitability, (b) an explanation of how CMA sets institutional fee breakpoints, which normally begin at asset levels far lower than those found in Fund management fee breakpoints, and (c) distinguishing in all institutional fee materials fees of accounts acquired prior to the development of current fee schedules (so-called "legacy" accounts) from the fees of accounts launched after that time.

9) Management fee disparities. In any future study of management fees, CMG and the Nations Trustees should analyze the differences in management fee schedules. As part of that analysis, CMG should provide an explanation for any significant fee differences among comparable funds across fund families sponsored by CMG, such as differences in the management styles of different Funds included the same Lipper category. Finally, if CMG proposes a management fee change or an expense cap for

any mutual fund managed by CMA that is comparable to any Nations Fund, CMG should provide the Trustees with sufficient information about the proposal to allow the Trustees to assess the applicability of the proposed change to the relevant Nations Fund or Funds.

10) Explanation of data supplied to Lipper. Each year, as part of the 15(c) process, CMG retains Lipper to compare the fees and expenses of each Fund to a group of competitors. In many cases, CMG, with the approval of the Trustees, adjusts the actual expense data, which is based on the most recent full fiscal year of the Fund (and each competitive fund) to reflect changes in fees or expense limits that occurred during or after the relevant fiscal year. This improves the reliability and usefulness of the comparison. However, to ensure that the Trustees know when and how CMG adjusted the data, we recommend that CMG prepare a table listing for each Fund what adjustments were made, e.g., to reflect a new expense limitation of x basis points that commenced on y date.

11) Reduction of volume of paper documents submitted. The effort to streamline and better organize the data presented to the Trustees and the process by which that data was prepared and organized continued to be well-received by all parties. Notwithstanding past success, it is always appropriate to look for opportunities to reduce and simplify the presentation of 15(c) data. One possibility would be to remove the 127 pages of biographical data, most if not all of which the Trustees have previously seen as part of their ongoing investment oversight duties, from the paper volume and post it on the Internet-based document storage and retrieval system used by the Funds to provide reference data to Trustees.

Respectfully submitted,
Steven E. Asher

Important Information About This Report

The fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 1-800-345-6611 and additional reports will be sent to you. This report has been prepared for shareholders of Columbia Convertible Securities Fund.

A description of the policies and procedures that the fund uses to determine how to vote proxies and a copy of the fund's voting records are available (i) at www.columbiamanagement.com, (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the fund voted proxies relating to portfolio securities is also available from the fund's website, www.columbiamanagement.com.

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Transfer Agent

Columbia Management Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081
1-800-345-6611

Distributor

Columbia Management
Distributors, Inc.
One Financial Center
Boston, MA 02111

Investment Advisor

Columbia Management Advisors, LLC
100 Federal Street
Boston, MA 02110

Columbia Management^®

One Financial Center
Boston, MA 02111-2621

PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20

Columbia Management^®

Columbia Convertible Securities Fund

Annual Report, February 28, 2010

One Financial Center, Boston, MA 02111-2621

800-345-6611 www.columbiafunds.com

SHC-42/32310-0210 (04/10) 10-J346V6

Columbia Management^®

Annual Report

February 28, 2010

Columbia Large Cap Value Fund

NOT FDIC INSURED				May Lose Value

NOT BANK ISSUED				No Bank Guarantee

Table of Contents

Fund Profile					1

Economic Update					2

Performance Information					4

Understanding Your Expenses					5

Investment Portfolio					8

Statement of Assets and Liabilities					12

Statement of Operations					14

Statement of Changes in Net Assets					15

Financial Highlights					17

Notes to Financial Statements					23

Report of Independent Registered Public Accounting Firm					32

Federal Income Tax Information					33

Fund Governance					34

Board Consideration and Re-Approval of Current Investment Advisory Agreement					38

Board Consideration and Approval of Proposed Investment Advisory Agreement					42

Summary of Management Fee Evaluation by Independent Fee Consultant					49

Important Information About This Report					57

President's Message

Dear Shareholder:

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

Fund Profile – Columbia Large Cap Value Fund

Summary

^g For the 12-month period that ended February 28, 2010, the fund's Class A shares returned 45.49% without sales charge.

^g The fund trailed its benchmark, the Russell 1000 Value Index¹, and the average return of its peer group, the Lipper Large-Cap Value Funds Classification.²

^g A focus on higher-quality companies with strong balance sheets hampered relative performance as lower-quality stocks led the market recovery.

Portfolio Management

Lori J. Ensinger has co-managed the fund since August 2001 and has been associated with the advisor or its predecessors since 2001.

Diane L. Sobin has co-managed the fund since August 2001 and has been associated with the advisor or its predecessors since 2001.

David I. Hoffman has co-managed the fund since April 2004 and has been associated with the advisor or its predecessors since 2001.

Noah J. Petrucci has co-managed the fund since February 2002 and has been associated with the advisor or its predecessors since 2002.

¹The Russell 1000 Value Index measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the fund may not match those in an index.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Summary

1-year return as of 02/28/10

				45.49%

				Class A shares (without sales charge)

				56.50%

				Russell 1000 Value Index

Morningstar Style Box^TM

The Morningstar Style Box^TM reveals a fund's investment strategy. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). Information shown is based on the most recent data provided by Morningstar.

Economic Update – Columbia Large Cap Value Fund

Summary

For the 12-month period that ended February 28, 2010

^g After a sharp decline, stock markets rebounded around the world, as measured by the S&P 500 Index and the MSCI EAFE Index.

S&P Index				MSCI Index

Barclays Aggregate Index				JPMorgan Index

In the beleaguered labor market, the good news was that there was less bad news. Businesses continued to shed jobs throughout the period, raising the unemployment rate as high as 10.2% in October 2009. However, the pace of job losses slowed markedly by the period's end. Compared to six figure losses of one year ago, 14,000 jobs were added to the labor market in January 2010 and only 14,000 were lost in February 2010.* The rate of unemployment at the end of the period was 9.7%.* Nevertheless, prospects for a quick recovery in the labor markets are dim. In fact, consumer confidence, as measured monthly by The Conference Board, an independent research organization, took a sharp dive in February. Consumers surveyed cited worsening business conditions and a bleaker outlook for the labor markets and income for their pessimism.

*Source: U.S. Bureau of Labor Statistic

Economic Update (continued) – Columbia Large Cap Value Fund

Stocks bottomed, then rebounded

Against a strengthening economic backdrop, a stock market rally that began in mid-March 2009 continued throughout the period. The U.S. stock market returned 53.62% for the 12-month period, as measured by the S&P 500 Index.¹ Mid-cap stocks outperformed large and small-cap stocks and value stocks outperformed growth stocks by a solid margin, as measured by their respective Russell indices.² Outside the U.S., stock market returns were even stronger. The MSCI EAFE Index,³ a broad gauge of stock market performance in foreign developed markets, gained 54.58% (net of dividends, in U.S. dollars) for the period. Emerging stock markets were caught in last year's downdraft, but they bounced back stronger than domestic or developed world markets in 2009 as their economic growth generally outpaced the developed world. The MSCI Emerging Markets Index⁴ returned 91.63% (net of dividends, in U.S. d ollars).

Bond returns ranged from solid to strong

Past performance is no guarantee of future results.

¹The Standard & Poors (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

⁶The Barclays Capital Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with maturity of at least one year.

⁷The JPMorgan Developed BB High Yield Index is an unmanaged index designed to mirror the investable universe of the U.S. dollar developed, BB-rated, high yield corporate debt market.

Performance Information – Columbia Large Cap Value Fund

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Annual operating expense ratio (%)*

Class A					1.10
Class B					1.85
Class C					1.85
Class R					1.35
Class Y					0.69
Class Z					0.85

*The annual operating expense ratio is as stated in the fund's prospectus that is current as of the date of this report. Differences in expense ratios disclosed elsewhere in this report may result from the inclusion of fee waivers and expense reimbursements as well as the use of different time periods used in calculating the ratios.

Performance of a $10,000 investment 03/01/00 – 02/28/10

The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Large Cap Value Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

Performance of a $10,000 investment 03/01/00 – 02/28/10 ($)

Sales charge	without		with
Class A		12,579		11,857
Class B		11,661		11,661
Class C		11,661		11,661
Class R		12,457		n/a
Class Y		12,916		n/a
Class Z		12,891		n/a

Average annual total return as of 02/28/10 (%)

Share class

Inception

12/06/89

06/07/93

06/17/92

01/23/06

07/15/09

09/19/89

Sales charge

without

with

without

with

without

with

without

1-year

45.49

37.07

44.59

39.59

44.59

43.59

45.34

46.20

45.93

5-year

–0.53

–1.70

–1.28

–1.60

–1.27

–0.72

–0.26

–0.29

10-year

2.32

1.72

1.55

2.22

2.59

2.57

Average annual total return as of 03/31/10 (%)

Share class	A				B				C				R		Y		Z
Sales charge	without		with		without		with		without		with		without		without		without
1- year		44.55		36.18		43.54		38.54		43.68		42.68		44.39		45.16		44.98
5-year		0.92		–0.27		0.15		–0.18		0.16		0.16		0.71		1.19		1.16
10-year		2.22		1.61		1.44		1.44		1.45		1.45		2.11		2.49		2.48

The "with sales charge" returns include the maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charge of 5.00% in the first year, declining to 1.00% in the sixth year and eliminated thereafter for Class B shares and 1.00% for Class C shares in the first year only. The "without sales charge" returns do not include the effect of sales charges. If they had, returns would be lower.

All results shown assume reinvestment of distributions. Class Y and Class Z shares are sold at net asset value with no distribution and service (Rule 12b-1) fees. Class R shares are sold at net asset value with distribution and service (Rule 12b-1) fees. Class R, Class Y and Class Z shares have limited eligibility and the investment minimum requirements may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class.

The tables do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The returns for Class R shares include the returns for Class A shares prior to January 23, 2006, the date on which Class R shares were initially offered by the fund. If differences in expenses had been reflected, the returns would have been lower, since Class R shares are subject to a higher Rule 12b-1 fee.

The returns for Class Y shares include the returns for Class Z shares prior to July 15, 2009, the date on which Class Y shares were initially offered by the fund. The returns shown have not been adjusted to reflect any differences in expenses between Class Y shares and Class Z shares.

Understanding Your Expenses – Columbia Large Cap Value Fund

Analyzing your fund's expenses by share class

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund and do not reflect any transaction costs, such as sales charges, redemption fees or exchange fees.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

^gFor shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

^gFor shareholders who receive their account statements from their financial intermediary, contact your financial intermediary to obtain your account balance.

1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

09/01/09 – 02/28/10

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)				Fund's annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Class A		1,000.00		1,000.00		1,062.50		1,019.25		5.71		5.59		1.12
Class B		1,000.00		1,000.00		1,058.70		1,015.53		9.54		9.34		1.87
Class C		1,000.00		1,000.00		1,057.50		1,015.53		9.53		9.34		1.87
Class R		1,000.00		1,000.00		1,060.20		1,018.02		6.98		6.84		1.37
Class Y		1,000.00		1,000.00		1,063.50		1,021.21		3.70		3.62		0.72
Class Z		1,000.00		1,000.00		1,062.70		1,020.49		4.43		4.34		0.87

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

Portfolio Managers' Report – Columbia Large Cap Value Fund

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Net asset value per share

as of 02/28/10 ($)

Class A					10.07
Class B					9.72
Class C					9.72
Class R					10.07
Class Y					10.10
Class Z					10.09

Distributions declared per share

03/01/09 – 02/28/10 ($)

Class A					0.10
Class B					0.04
Class C					0.04
Class R					0.08
Class Y					0.08
Class Z					0.12

For the 12-month period that ended February 28, 2010, the fund's Class A shares returned 45.49% without sales charge. The fund's benchmark, the Russell 1000 Value Index, returned 56.50%. The average return of the fund's peer group, the Lipper Large-Cap Value Funds Classification, was 53.99%. We believe that the fund's focus on higher-quality stocks accounted for its shortfall relative to the index as low-quality, higher-risk names—those with above-average levels of debt on their balance sheets that had fallen sharply in the market downturn—posted the steepest gains in the past year's market recovery. Although the rally was broad-based, value stocks ended the year ahead of growth stocks, and smaller-cap stocks outpaced larger-cap names.

Positive stock selection in energy and consumer staples

We sought out attractively-priced stocks issued by fundamentally sound companies that showed the potential to expand profit margins through revenue growth. Stock selection yielded strong returns in the energy and consumer staples sectors, which outpaced those in the Russell index. In energy, standouts included Williams Companies, a natural gas producer, and EOG Resources, an oil and gas exploration company (1.5% and 0.9% of net assets, respectively). Williams rallied after the company announced a restructuring of its pipeline and domestic distribution affiliates, while EOG climbed in anticipation of strong production growth. In the consumer staples sector, both J.M. Smucker Company, a food company whose brands include Smucker, Crisco and Pillsbury, and cosmetics company Avon Products (1.3% and 0.5% of net assets, respectively) aided performance. Smucker benefited from expectations that moderating input costs and the recent acqui sition of the Folgers coffee brand would boost profit margins. Avon experienced growing demand for its products in emerging markets, which helped drive strong revenue and earnings growth. Underweights in the telecommunications and utilities sectors, which delivered solid but relatively modest returns, further aided results.

Lost ground from financials and materials

Investments in the financials sector yielded strong absolute returns, but lagged results in the index, largely because the fund did not own the sector's lower-quality issuers. In addition, some holdings did not perform as expected. Detractors included AON Corp., an insurance brokerage company, and ACE Ltd. (0.7% of net assets), a property and casualty insurer that is not in the index. AON's shares fell sharply in the spring of 2009. In a persistently weak pricing environment, the company missed analysts' earnings estimates, leading us to sell the position. ACE posted solid gains, but underperformed the broader financials sector after reporting weaker-than-expected third quarter 2009 earnings. Disappointments within the materials sector included Nucor, a steel company, and Monsanto (1.0% and 1.2% of net assets, respectively), a fertilizer-and-chemicals company. Nucor struggled early in the year as lower steel prices and higher co sts crimped profit margins. Monsanto declined as competition pressured pricing and volumes in the chemicals business. The fund lost further ground from weak stock selection in the consumer discretionary and industrials sectors.

Portfolio Managers' Report (continued) – Columbia Large Cap Value Fund

Outlook and positioning ahead

Going forward, we believe that sustainable gains in the equity market will depend on permanent cost reductions by corporations accompanied by reaccelerating revenue growth. Regardless of what happens, we believe that the fund has the potential to benefit from focusing on individual stocks that meet our investment criteria. Currently, we are finding the best opportunities clustered by industry, particularly in economically-sensitive businesses, such as financials, materials and industrials. In financials, we have focused on banks that have strengthened their earnings power, balance sheets and long-term franchise values, particularly more consumer-oriented institutions. We also favor capital markets companies, which we believe can benefit from increased merger-and-acquisition activity. Elsewhere, we expect materials stocks to benefit from long-term emerging market demand growth as well as constrained supply. Within industrials, ou r emphasis is on attractively valued, early-cycle companies. We remain more cautious about the prospects for media and pharmaceuticals stocks, as we believe both industries face challenges that could lead to declining long-term earnings power.

Equity securities are subject to stock market fluctuations that occur in response to economic and business developments.

Value stocks are securities of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor. If the managers' assessment of a company's prospects is wrong, the price of the company's stock may not approach the value the manager has placed on it.

Top 5 sectors

as of 02/28/10 (%)

Financials					25.7
Energy					15.5
Industrials					11.6
Consumer Discretionary					9.5
Health Care					7.3

Top 10 holdings

as of 02/28/10 (%)

JPMorgan Chase					3.8
Chevron					3.4
Occidental Petroleum					3.1
Goldman Sachs Group					3.1
U.S. Bancorp					2.4
Wells Fargo					2.2
EMC					2.1
Apache					2.1
American Electric Power					2.1
American Express					2.0

The fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets.

Investment Portfolio – Columbia Large Cap Value Fund

February 28, 2010

Common Stocks – 95.7%
	Shares		Value ($)
Consumer Discretionary – 9.5%
Hotels, Restaurants & Leisure – 3.5%
Carnival Corp.		928,900		33,403,244
McDonald's Corp.		344,519		21,997,538
Starwood Hotels & Resorts Worldwide, Inc.		659,138		25,508,641
Hotels, Restaurants & Leisure Total				80,909,423
Household Durables – 0.5%
D.R. Horton, Inc.		831,300		10,274,868
Household Durables Total				10,274,868
Multiline Retail – 2.1%
J.C. Penney Co., Inc.		925,200		25,517,016
Nordstrom, Inc.		652,300		24,095,962
Multiline Retail Total				49,612,978
Specialty Retail – 2.9%
Lowe's Companies, Inc.		1,807,400		42,853,454
O'Reilly Automotive, Inc. (a)		641,800		25,222,740
Specialty Retail Total				68,076,194
Textiles, Apparel & Luxury Goods – 0.5%
NIKE, Inc., Class B		182,700		12,350,520
Textiles, Apparel & Luxury Goods Total				12,350,520
Consumer Discretionary Total				221,223,983
Consumer Staples – 6.2%
Beverages – 1.4%
Diageo PLC, ADR		491,398		32,078,461
Beverages Total				32,078,461
Food & Staples Retailing – 0.5%
Wal-Mart Stores, Inc.		223,200		12,068,424
Food & Staples Retailing Total				12,068,424
Food Products – 1.3%
J.M. Smucker Co.		493,800		29,469,984
Food Products Total				29,469,984
Household Products – 1.1%
Procter & Gamble Co.		403,000		25,501,840
Household Products Total				25,501,840
Personal Products – 0.5%
Avon Products, Inc.		390,597		11,889,773
Personal Products Total				11,889,773

	Shares		Value ($)
Tobacco – 1.4%
Philip Morris International, Inc.		662,077		32,428,532
Tobacco Total				32,428,532
Consumer Staples Total				143,437,014
Energy – 15.5%
Energy Equipment & Services – 2.9%
Halliburton Co.		1,212,398		36,553,800
Nabors Industries Ltd. (a)		1,440,200		31,742,008
Energy Equipment & Services Total				68,295,808
Oil, Gas & Consumable Fuels – 12.6%
Alpha Natural Resources, Inc. (a)		558,500		25,696,585
Apache Corp.		473,600		49,083,904
Chevron Corp.		1,081,200		78,170,760
EOG Resources, Inc.		220,400		20,728,620
Occidental Petroleum Corp.		917,600		73,270,360
Petroleo Brasileiro SA, ADR		290,200		12,377,030
Williams Companies, Inc.		1,577,400		33,977,196
Oil, Gas & Consumable Fuels Total				293,304,455
Energy Total				361,600,263
Financials – 24.7%
Capital Markets – 4.7%
Goldman Sachs Group, Inc.		457,400		71,514,490
Morgan Stanley		1,346,600		37,947,188
Capital Markets Total				109,461,678
Commercial Banks – 7.8%
BB&T Corp.		946,400		27,000,792
Fifth Third Bancorp.		1,182,200		14,434,662
PNC Financial Services Group, Inc.		468,079		25,163,927
U.S. Bancorp		2,243,282		55,207,170
Wells Fargo & Co.		1,911,614		52,263,527
Zions Bancorporation		467,600		8,669,304
Commercial Banks Total				182,739,382
Consumer Finance – 2.0%
American Express Co.		1,242,100		47,435,799
Consumer Finance Total				47,435,799
Diversified Financial Services – 3.8%
JPMorgan Chase & Co.		2,105,510		88,368,255
Diversified Financial Services Total				88,368,255

See Accompanying Notes to Financial Statements.

Columbia Large Cap Value Fund

February 28, 2010

Common Stocks (continued)
	Shares		Value ($)
Insurance – 3.7%
ACE Ltd. (a)		334,276		16,710,457
Axis Capital Holdings Ltd.		820,400		25,801,580
Prudential Financial, Inc.		820,115		42,982,227
Insurance Total				85,494,264
Real Estate Investment Trusts (REITs) – 2.7%
Equity Residential Property Trust		400,400		14,446,432
Plum Creek Timber Co., Inc.		271,166		9,688,761
Rayonier, Inc.		438,800		18,240,916
Simon Property Group, Inc.		257,473		20,157,561
Real Estate Investment Trusts (REITs) Total				62,533,670
Financials Total				576,033,048
Health Care – 7.3%
Health Care Providers & Services – 1.2%
Medco Health Solutions, Inc. (a)		444,400		28,103,856
Health Care Providers & Services Total				28,103,856
Life Sciences Tools & Services – 3.4%
Life Technologies Corp. (a)		716,600		36,374,616
Millipore Corp. (a)		66,600		6,287,706
Thermo Fisher Scientific, Inc. (a)		771,800		37,640,686
Life Sciences Tools & Services Total				80,303,008
Pharmaceuticals – 2.7%
Merck & Co., Inc.		704,635		25,986,939
Pfizer, Inc.		2,100,900		36,870,795
Pharmaceuticals Total				62,857,734
Health Care Total				171,264,598
Industrials – 11.6%
Aerospace & Defense – 4.4%
Goodrich Corp.		293,300		19,249,279
Honeywell International, Inc.		658,100		26,429,296
L-3 Communications Holdings, Inc.		180,500		16,501,310
United Technologies Corp.		585,380		40,186,337
Aerospace & Defense Total				102,366,222
Air Freight & Logistics – 0.5%
FedEx Corp.		142,700		12,095,252
Air Freight & Logistics Total				12,095,252

	Shares		Value ($)
Building Products – 0.5%
Masco Corp.		840,800		11,241,496
Building Products Total				11,241,496
Construction & Engineering – 0.9%
Fluor Corp.		263,900		11,294,920
Foster Wheeler AG (a)		387,900		9,546,219
Construction & Engineering Total				20,841,139
Industrial Conglomerates – 1.4%
General Electric Co.		1,978,816		31,779,785
Industrial Conglomerates Total				31,779,785
Machinery – 3.1%
Eaton Corp.		228,000		15,531,360
Illinois Tool Works, Inc.		382,800		17,425,056
Ingersoll-Rand PLC		483,900		15,441,249
Kennametal, Inc.		224,900		5,858,645
Navistar International Corp. (a)		340,902		13,349,722
PACCAR, Inc.		154,100		5,447,435
Machinery Total				73,053,467
Professional Services – 0.8%
Manpower, Inc.		348,100		17,934,112
Professional Services Total				17,934,112
Industrials Total				269,311,473
Information Technology – 6.6%
Computers & Peripherals – 4.1%
EMC Corp. (a)		2,827,600		49,454,724
Hewlett-Packard Co.		352,600		17,908,554
International Business Machines Corp.		222,100		28,242,236
Computers & Peripherals Total				95,605,514
IT Services – 0.4%
Western Union Co.		637,000		10,051,860
IT Services Total				10,051,860
Semiconductors & Semiconductor Equipment – 1.5%
Lam Research Corp. (a)		565,783		19,185,701
Texas Instruments, Inc.		586,800		14,306,184
Semiconductors & Semiconductor Equipment Total				33,491,885
Software – 0.6%
Nuance Communications, Inc. (a)		951,200		13,687,768
Software Total				13,687,768
Information Technology Total				152,837,027

See Accompanying Notes to Financial Statements.

Columbia Large Cap Value Fund

February 28, 2010

Common Stocks (continued)
	Shares		Value ($)
Materials – 6.2%
Chemicals – 2.2%
Monsanto Co.		405,200		28,627,380
Potash Corp. of Saskatchewan, Inc.		208,100		22,986,726
Chemicals Total				51,614,106
Metals & Mining – 3.1%
Allegheny Technologies, Inc.		545,300		23,807,798
Nucor Corp.		546,000		22,604,400
United States Steel Corp.		500,200		26,480,588
Metals & Mining Total				72,892,786
Paper & Forest Products – 0.9%
Weyerhaeuser Co.		482,700		19,501,080
Paper & Forest Products Total				19,501,080
Materials Total				144,007,972
Telecommunication Services – 2.4%
Diversified Telecommunication Services – 2.4%
AT&T, Inc.		1,659,051		41,161,055
Verizon Communications, Inc.		503,802		14,574,992
Diversified Telecommunication Services Total				55,736,047
Telecommunication Services Total				55,736,047
Utilities – 5.7%
Electric Utilities – 2.5%
American Electric Power Co., Inc.		1,442,900		48,510,298
Northeast Utilities		355,561		9,102,362
Electric Utilities Total				57,612,660
Multi-Utilities – 3.2%
PG&E Corp.		876,143		36,727,914
Sempra Energy		446,000		21,929,820
Wisconsin Energy Corp.		331,900		16,073,917
Multi-Utilities Total				74,731,651
Utilities Total				132,344,311
Total Common Stocks (cost of $1,881,296,854)				2,227,795,736

Convertible Preferred Stocks – 1.9%
	Shares		Value ($)
Financials – 1.0%
Diversified Financial Services – 1.0%
Citigroup, Inc., 7.500%		225,288		24,164,391
Diversified Financial Services Total				24,164,391
Financials Total				24,164,391
Materials – 0.9%
Metals & Mining – 0.9%
Freeport-McMoRan Copper & Gold, Inc., 6.750%		201,000		21,639,660
Metals & Mining Total				21,639,660
Materials Total				21,639,660
Total Convertible Preferred Stocks (cost of $31,852,224)				45,804,051
Short-Term Obligation – 2.3%
	Par ($)
Repurchase agreement with Fixed Income Clearing Corp., dated 02/26/10, due 03/01/10 at 0.050%, collateralized by U.S. Government Agency obligations with various maturities to 12/30/13, market value $54,214,413 (repurchase proceeds $53,151,221)		53,151,000		53,151,000
Total Short-Term Obligation (cost of $53,151,000)				53,151,000
Total Investments – 99.9% (cost of $1,966,300,078) (b)				2,326,750,787
Other Assets & Liabilities, Net – 0.1%				1,207,951
Net Assets – 100.0%				2,327,958,738

Notes to Investment Portfolio:

(a) Non-income producing security.

(b) Cost for federal income tax purposes is $1,978,100,516.

See Accompanying Notes to Financial Statements.

Columbia Large Cap Value Fund

February 28, 2010

The following table summarizes the inputs used, as of February 28, 2010, in valuing the Fund's assets:

Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Total Common Stocks	$	2,227,795,736	$	—	$	—	$	2,227,795,736
Total Convertible Preferred Stocks		45,804,051		—		—		45,804,051
Total Short-Term Obligation		—		53,151,000		—		53,151,000
Total Investments	$	2,273,599,787	$	53,151,000	$	—	$	2,326,750,787

At February 28, 2010, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Financials		25.7
Energy		15.5
Industrials		11.6
Consumer Discretionary		9.5
Health Care		7.3
Materials		7.1
Information Technology		6.6
Consumer Staples		6.2
Utilities		5.7
Telecommunication Services		2.4
		97.6
Short-Term Obligation		2.3
Other Assets & Liabilities, Net		0.1
		100.0

Acronym				Name
ADR				American Depositary Receipt

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities – Columbia Large Cap Value Fund
February 28, 2010

		($)
Assets	Investments, at cost		1,966,300,078
	Investments, at value		2,326,750,787
	Cash		3
	Receivable for:
	Investments sold		1,514,583
	Fund shares sold		1,936,289
	Dividends		4,203,863
	Interest		221
	Trustees' deferred compensation plan		64,230
	Prepaid expenses		26,358
	Total Assets		2,334,496,334
Liabilities	Payable for:
	Fund shares repurchased		4,037,692
	Investment advisory fee		896,572
	Administration fee		298,768
	Pricing and bookkeeping fees		11,856
	Transfer agent fee		505,895
	Trustees' fees		89,157
	Custody fee		9,142
	Distribution and service fees		288,324
	Chief compliance officer expenses		279
	Reports to shareholders		280,373
	Trustees' deferred compensation plan		64,230
	Other liabilities		55,308
	Total Liabilities		6,537,596
	Net Assets		2,327,958,738
Net Assets Consist of	Paid-in capital		2,838,831,474
	Undistributed net investment income		1,287,424
	Accumulated net realized loss		(872,610,869	)
	Net unrealized appreciation on investments		360,450,709
	Net Assets		2,327,958,738

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities – Columbia Large Cap Value Fund
February 28, 2010 (continued)

Class A	Net assets	$	891,893,695
	Shares outstanding		88,530,299
	Net asset value per share	$	10.07	(a)
	Maximum sales charge		5.75	%
	Maximum offering price per share	$	10.68	(b)
Class B	Net assets	$	96,523,638
	Shares outstanding		9,934,543
	Net asset value and offering price per share	$	9.72	(a)
Class C	Net assets	$	37,229,369
	Shares outstanding		3,831,275
	Net asset value and offering price per share	$	9.72	(a)
Class R	Net assets	$	252,290
	Shares outstanding		25,061
	Net asset value, offering and redemption price per share	$	10.07
Class Y (c)	Net assets	$	11,497,038
	Shares outstanding		1,138,501
	Net asset value, offering and redemption price per share	$	10.10
Class Z	Net assets	$	1,290,562,708
	Shares outstanding		127,856,817
	Net asset value, offering and redemption price per share	$	10.09

(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

(b) On sales of $50,000 or more the offering price is reduced.

See Accompanying Notes to Financial Statements.

Statement of Operations – Columbia Large Cap Value Fund
For the Year Ended February 28, 2010

		($)
Investment Income	Dividends		45,847,123
	Interest		426,365
	Foreign taxes withheld		(120,592	)
	Total Investment Income		46,152,896
Expenses	Investment advisory fee		11,014,155
	Administration fee		3,641,178
	Distribution fee:
	Class B		931,465
	Class C		278,193
	Class R		1,043
	Service fee:
	Class B		310,488
	Class C		92,731
	Distribution and service fees:
	Class A		2,116,593
	Transfer agent fee:
	Class A, Class B, Class C, Class R and Class Z		3,823,229
	Class Y (a)		24
	Pricing and bookkeeping fees		141,357
	Trustee's fees		50,365
	Custody fee		50,440
	Chief compliance officer expenses		1,424
	Other expenses		912,897
	Total Expenses		23,365,582
	Fees waived by transfer agent		(278,265	)
	Fees waived or expenses reimbursed by investment advisor and/or administrator		(66,850	)
	Expense reductions		(8	)
	Net Expenses		23,020,459
	Net Investment Income		23,132,437
Net Realized and Unrealized Gain (Loss) on Investments	Net realized loss on investments		(154,849,867	)
	Net change in unrealized appreciation (depreciation) on investments		918,811,164
	Net Gain		763,961,297
	Net Increase Resulting from Operations		787,093,734

(a) Class Y shares commenced operations on July 15, 2009.

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets – Columbia Large Cap Value Fund

		Year Ended February 28,
Increase (Decrease) in Net Assets		2010 ($)(a)			2009 ($)
Operations	Net investment income		23,132,437			49,270,249
	Net realized loss on investments and written options		(154,849,867	)		(612,666,044	)
	Net change in unrealized appreciation (depreciation) on investments		918,811,164			(812,203,175	)
	Net increase (decrease) resulting from operations		787,093,734			(1,375,598,970	)
Distributions to Shareholders	From net investment income:
	Class A		(9,326,644	)		(19,145,155	)
	Class B		(503,460	)		(2,456,302	)
	Class C		(148,010	)		(544,756	)
	Class R		(1,783	)		(3,471	)
	Class Y		(88,057	)		—
	Class Z		(16,140,284	)		(31,407,396	)
	Total distributions to shareholders		(26,208,238	)		(53,557,080	)
	Net Capital Stock Transactions		(171,434,011	)		(417,626,088	)
	Increase from regulatory settlements		1,763			—
	Total increase (decrease) in net assets		589,453,248			(1,846,782,138	)
Net Assets	Beginning of period		1,738,505,490			3,585,287,628
	End of period		2,327,958,738			1,738,505,490
	Undistributed net investment income at end of period		1,287,424			4,361,462

(a) Class Y shares commenced operations on July 15, 2009.

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets (continued) – Columbia Large Cap Value Fund

	Capital Stock Activity
	Year Ended February 28,
	2010						2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		14,418,748			127,246,912			21,665,197			223,674,367
Distributions reinvested		994,912			8,893,118			1,758,660			18,227,584
Redemptions		(22,943,831	)		(205,288,668	)		(29,409,824	)		(296,101,412	)
Net decrease		(7,530,171	)		(69,148,638	)		(5,985,967	)		(54,199,461	)
Class B
Subscriptions		173,524			1,441,614			326,080			3,333,007
Distributions reinvested		54,092			462,394			231,092			2,247,279
Redemptions		(9,174,195	)		(80,479,829	)		(10,677,747	)		(108,032,276	)
Net decrease		(8,946,579	)		(78,575,821	)		(10,120,575	)		(102,451,990	)
Class C
Subscriptions		248,296			2,150,151			364,182			3,317,906
Distributions reinvested		14,624			126,386			48,057			465,605
Redemptions		(1,035,282	)		(9,064,816	)		(1,703,376	)		(16,777,002	)
Net decrease		(772,362	)		(6,788,279	)		(1,291,137	)		(12,993,491	)
Class R
Subscriptions		8,096			73,330			6,275			66,917
Distributions reinvested		199			1,783			342			3,472
Redemptions		(4,316	)		(39,322	)		(4,602	)		(42,622	)
Net increase		3,979			35,791			2,015			27,767
Class Y (a)
Subscriptions		2,538,079			22,992,093			—			—
Distributions reinvested		9			89			—			—
Redemptions		(1,399,587	)		(13,030,304	)		—			—
Net increase		1,138,501			9,961,878			—			—
Class Z
Subscriptions		23,268,121			200,560,704			19,753,607			193,882,402
Distributions reinvested		1,061,174			9,540,775			1,620,276			17,041,733
Redemptions		(25,864,203	)		(237,020,421	)		(45,713,915	)		(458,933,048	)
Net decrease		(1,534,908	)		(26,918,942	)		(24,340,032	)		(248,008,913	)

(a) Class Y shares commenced operations on July 15, 2009.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Large Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class A Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	7.00		$	12.37		$	15.16		$	14.60		$	13.10		$	11.84
Income from Investment Operations:
Net investment income (c)		0.09			0.18			0.20		��	0.17			0.19			0.17
Net realized and unrealized gain (loss) on investments, foreign currency and written options		3.08			(5.36	)		(1.14	)		1.37			1.64			1.26
Total from investment operations		3.17			(5.18	)		(0.94	)		1.54			1.83			1.43
Less Distributions to Shareholders:
From net investment income		(0.10	)		(0.19	)		(0.22	)		(0.12	)		(0.16	)		(0.17	)
From net realized gains		—			—			(1.63	)		(0.86	)		(0.17	)		—
Total distributions to shareholders		(0.10	)		(0.19	)		(1.85	)		(0.98	)		(0.33	)		(0.17	)
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	10.07		$	7.00		$	12.37		$	15.16		$	14.60		$	13.10
Total return (e)(f)		45.49	%		(42.36	)%		(7.55	)%		11.09	%(g)		14.15	%		12.16	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		1.12	%		1.04	%		0.99	%		1.01	%(i)		0.96	%		1.02	%
Interest expense		—			—	%(j)		—			—			—			—
Net expenses (h)		1.12	%		1.04	%		0.99	%		1.01	%(i)		0.96	%		1.02	%
Waiver/Reimbursement		0.01	%		0.06	%		0.06	%		0.05	%(i)		0.09	%(k)		0.13	%(k)
Net investment income (h)		0.95	%		1.68	%		1.37	%		1.27	%(i)		1.36	%		1.41	%
Portfolio turnover rate		61	%		61	%		62	%		66	%(g)		59	%		52	%
Net assets, end of period (000s)	$	891,894		$	672,426		$	1,262,700		$	1,332,311		$	1,066,456		$	292,037

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor A shares were renamed Class A shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

(k) Bank of America Corporation assumed certain non-recurring costs. Absent these non-recurring costs, the waiver/reimbursement ratio would have been 0.03% and 0.10% for the years ended March 31, 2006 and March 31, 2005, respectively.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Large Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class B Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	6.75		$	11.94		$	14.69		$	14.19		$	12.75		$	11.53
Income from Investment Operations:
Net investment income (c)		0.02			0.09			0.09			0.07			0.08			0.08
Net realized and unrealized gain (loss) on investments, foreign currency and written options		2.99			(5.17	)		(1.10	)		1.34			1.59			1.22
Total from investment operations		3.01			(5.08	)		(1.01	)		1.41			1.67			1.30
Less Distributions to Shareholders:
From net investment income		(0.04	)		(0.11	)		(0.11	)		(0.05	)		(0.06	)		(0.08	)
From net realized gains		—			—			(1.63	)		(0.86	)		(0.17	)		—
Total distributions to shareholders		(0.04	)		(0.11	)		(1.74	)		(0.91	)		(0.23	)		(0.08	)
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	9.72		$	6.75		$	11.94		$	14.69		$	14.19		$	12.75
Total return (e)(f)		44.59	%		(42.84	)%		(8.24	)%		10.38	%(g)		13.22	%		11.31	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		1.87	%		1.79	%		1.74	%		1.76	%(i)		1.71	%		1.77	%
Interest expense		—			—	%(j)		—			—			—			—
Net expenses (h)		1.87	%		1.79	%		1.74	%		1.76	%(i)		1.71	%		1.77	%
Waiver/Reimbursement		0.01	%		0.06	%		0.06	%		0.05	%(i)		0.09	%(k)		0.13	%(k)
Net investment income (h)		0.23	%		0.89	%		0.60	%		0.52	%(i)		0.60	%		0.66	%
Portfolio turnover rate		61	%		61	%		62	%		66	%(g)		59	%		52	%
Net assets, end of period (000s)	$	96,524		$	127,489		$	346,218		$	557,033		$	693,558		$	84,756

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor B shares were renamed Class B shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Large Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class C Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	6.75		$	11.94		$	14.69		$	14.19		$	12.75		$	11.52
Income from Investment Operations:
Net investment income (c)		0.02			0.09			0.09			0.07			0.08			0.08
Net realized and unrealized gain (loss) on investments, foreign currency and written options		2.99			(5.17	)		(1.10	)		1.34			1.59			1.22
Total from investment operations		3.01			(5.08	)		(1.01	)		1.41			1.67			1.30
Less Distributions to Shareholders:
From net investment income		(0.04	)		(0.11	)		(0.11	)		(0.05	)		(0.06	)		(0.07	)
From net realized gains		—			—			(1.63	)		(0.86	)		(0.17	)		—
Total distributions to shareholders		(0.04	)		(0.11	)		(1.74	)		(0.91	)		(0.23	)		(0.07	)
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	9.72		$	6.75		$	11.94		$	14.69		$	14.19		$	12.75
Total return (e)(f)		44.59	%		(42.84	)%		(8.24	)%		10.38	%(g)		13.22	%		11.36	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		1.87	%		1.79	%		1.74	%		1.76	%(i)		1.71	%		1.77	%
Interest expense		—			—	%(j)		—			—			—			—
Net expenses (h)		1.87	%		1.79	%		1.74	%		1.76	%(i)		1.71	%		1.77	%
Waiver/Reimbursement		0.01	%		0.06	%		0.06	%		0.05	%(i)		0.09	%(k)		0.13	%(k)
Net investment income (h)		0.21	%		0.90	%		0.60	%		0.52	%(i)		0.60	%		0.66	%
Portfolio turnover rate		61	%		61	%		62	%		66	%(g)		59	%		52	%
Net assets, end of period (000s)	$	37,229		$	31,091		$	70,383		$	94,600		$	98,884		$	17,210

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor C shares were renamed Class C shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Large Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29			Period Ended February 28,			Period Ended March 31,
Class R Shares	2010			2009			2008			2007 (a)			2006 (b)
Net Asset Value, Beginning of Period	$	6.99		$	12.36		$	15.15		$	14.59		$	14.05
Income from Investment Operations:
Net investment income (c)		0.07			0.15			0.22			0.14			0.04
Net realized and unrealized gain (loss) on investments, foreign currency and written options		3.09			(5.36	)		(1.19	)		1.38			0.53
Total from investment operations		3.16			(5.21	)		(0.97	)		1.52			0.57
Less Distributions to Shareholders:
From net investment income		(0.08	)		(0.16	)		(0.19	)		(0.10	)		(0.03	)
From net realized gains		—			—			(1.63	)		(0.86	)		—
Total distributions to shareholders		(0.08	)		(0.16	)		(1.82	)		(0.96	)		(0.03	)
Increase from regulatory settlements		—	(d)		—			—			—			—
Net Asset Value, End of Period	$	10.07		$	6.99		$	12.36		$	15.15		$	14.59
Total return (e)(f)		45.34	%		(42.54	)%		(7.79	)%		10.90	%(g)		4.05	%(g)
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		1.37	%		1.29	%		1.24	%		1.26	%(i)		1.25	%(i)
Interest expense		—			—	%(j)		—			—			—
Net expenses (h)		1.37	%		1.29	%		1.24	%		1.26	%(i)		1.25	%(i)
Waiver/Reimbursement		0.01	%		0.06	%		0.06	%		0.05	%(i)		0.16	%(i)(k)
Net investment income (h)		0.71	%		1.45	%		1.63	%		1.02	%(i)		1.33	%(i)
Portfolio turnover rate		61	%		61	%		62	%		66	%(g)		59	%(g)
Net assets, end of period (000s)	$	252		$	147		$	236		$	11		$	10

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) Class R shares commenced operations on January 23, 2006. Per share data and total return reflect activity from that date.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

(k) Bank of America Corporation assumed certain non-recurring costs. Absent these non-recurring costs, the waiver/reimbursement ratio would have been 0.10% for the period ended March 31, 2006.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Large Cap Value Fund

Selected data for a share outstanding throughout the period is as follows:

Class Y Shares	Period Ended February 28, 2010 (a)
Net Asset Value, Beginning of Period	$	8.65
Income from Investment Operations:
Net investment income (b)		0.08
Net realized and unrealized gain on investments		1.45
Total from investment operations		1.53
Less Distributions to Shareholders:
From net investment income		(0.08	)
Net Asset Value, End of Period	$	10.10
Total return (c)(d)		17.67	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)(f)		0.72	%
Net investment income (e)(f)		1.36	%
Portfolio turnover rate (d)		61	%
Net assets, end of period (000s)	$	11,497

(a) Class Y shares commenced operations on July 15, 2009. Per share data and total return reflect activity from that date.

(b) Per share data was calculated using the average shares outstanding during the period.

(d) Not annualized.

(e) Annualized.

(f) The benefits derived from expense reductions had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Large Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class Z Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	7.01		$	12.40		$	15.19		$	14.61		$	13.12		$	11.85
Income from Investment Operations:
Net investment income (c)		0.11			0.20			0.24			0.21			0.22			0.20
Net realized and unrealized gain (loss) on investments, foreign currency and written options		3.09			(5.39	)		(1.14	)		1.38			1.63			1.27
Total from investment operations		3.20			(5.19	)		(0.90	)		1.59			1.85			1.47
Less Distributions to Shareholders:
From net investment income		(0.12	)		(0.22	)		(0.26	)		(0.15	)		(0.19	)		(0.20	)
From net realized gains		—			—			(1.63	)		(0.86	)		(0.17	)		—
Total distributions to shareholders		(0.12	)		(0.22	)		(1.89	)		(1.01	)		(0.36	)		(0.20	)
Increase from regulatory settlements		—	(d)		0.02			—			—			—			—
Net Asset Value, End of Period	$	10.09		$	7.01		$	12.40		$	15.19		$	14.61		$	13.12
Total return (e)(f)		45.93	%(g)		(42.27	)%		(7.29	)%		11.42	%(g)		14.33	%		12.51	%
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (h)		0.87	%		0.79	%		0.74	%		0.76	%(i)		0.71	%		0.77	%
Interest expense		—			—	%(j)		—			—			—			—
Net expenses (h)		0.87	%		0.79	%		0.74	%		0.76	%(i)		0.71	%		0.77	%
Waiver/Reimbursement		0.01	%		0.06	%		0.06	%		0.05	%(i)		0.09	%(k)		0.13	%(k)
Net investment income (h)		1.21	%		1.91	%		1.61	%		1.52	%(i)		1.60	%		1.66	%
Portfolio turnover rate		61	%		61	%		62	%		66	%(g)		59	%		52	%
Net assets, end of period (000s)	$	1,290,563		$	907,353		$	1,905,752		$	2,277,652		$	2,009,115		$	1,376,691

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Primary A shares were renamed Class Z shares.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested.

(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g) Not annualized.

(h) The benefits derived from expense reductions had an impact of less than 0.01%.

(i) Annualized.

(j) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Columbia Large Cap Value Fund
February 28, 2010

Note 1. Organization

Columbia Large Cap Value Fund (the "Fund"), a series of Columbia Funds Series Trust (the "Trust"), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Delaware statutory trust.

Investment Objective

The Fund seeks long-term capital appreciation.

Fund Shares

The Trust may issue an unlimited number of shares, and the Fund offers six classes of shares: Class A, Class B, Class C, Class R, Class Y and Class Z shares. Each share class has its own expense structure and sales charges, as applicable. Class Y shares commenced operations effective July 15, 2009. Effective June 22, 2009, the Fund no longer accepts investments from 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 the other Columbia Funds.

Class A shares are subject to a maximum front-end sales charge of 5.75% based on the amount of initial investment. 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 one year after purchase. Class B shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will convert to Class A shares eight years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class R, Class Y and Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class R, Class Y and Class Z shares, as described in the Fund's prospectuses.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.

Security Valuation

Short-term investments maturing in 60 days or less are valued at amortized cost, which approximates market value.

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – prices determined using other significant observable inputs (including quoted prices for similar

Columbia Large Cap Value Fund, February 28, 2010

securities, interest rates, prepayment speeds, credit risk and others)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Security Transactions

Repurchase Agreements

Income Recognition

Interest income is recorded on the accrual basis.

Corporate actions and dividend income are recorded on the ex-date.

Expenses

General expenses of the Trust are allocated to the Funds and other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a specific class of shares are charged to that share class. Expenses directly attributable to a Fund are charged to such Fund.

Determination of Class Net Asset Value

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, if any, for its tax year, and as such will 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 provision is made for federal income or excise taxes.

Distributions to Shareholders

Indemnification

Columbia Large Cap Value Fund, February 28, 2010

contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Fund expects the risk of loss due to these representations, warranties and indemnities to be minimal.

Note 3. Federal Tax Information

For the year ended February 28, 2010, permanent book and tax basis differences resulting primarily from differing treatments for proceeds received from litigation settlements were identified and reclassified among the components of the Fund's net assets as follows:

Undistributed Net Investment Income				Accumulated Net Realized Loss				Paid-In Capital
$	1,763			$	1			$	(1,764	)

Net investment income and net realized gains (losses), as disclosed on the Statement of Operations, and net assets were not affected by this reclassification.

The tax character of distributions paid during the years ended February 28, 2010 and February 28, 2009 was as follows:

	February 28,
Distributions paid from:	2010		2009
Ordinary Income*	$	26,208,238	$	53,557,080
Long-Term Capital Gains		—		—

* For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of February 28, 2010, the components of distributable earnings on a tax basis were as follows:

Undistributed Ordinary Income				Undistributed Long-Term Capital Gains				Net Unrealized Appreciation*
$	1,360,279			$	—			$	348,650,271

* The differences between book-basis and tax-basis net unrealized appreciation are primarily due to deferral of losses from wash sales.

Unrealized appreciation and depreciation at February 28, 2010, based on cost of investments for federal income tax purposes were:

Unrealized appreciation	$	411,085,405
Unrealized depreciation		(62,435,134	)
Net unrealized appreciation	$	348,650,271

The following capital loss carryforwards, determined as of February 28, 2010, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

Year of Expiration	Capital Loss Carryforwards
2011	$	4,189,476
2017		383,028,117
2018		473,592,838
	$	860,810,431

Columbia Large Cap Value Fund, February 28, 2010

conclusions 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 4. Fees and Compensation Paid to Affiliates

Investment Advisory Fee

Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides investment advisory services to the Fund. In rendering investment advisory services to the Fund, Columbia may use the portfolio management and research resources of Columbia Management Pte. Ltd, an affiliate of Columbia. Columbia receives a monthly investment advisory fee based on the Fund's average daily net assets at the following annual rates:

Average Daily Net Assets	Annual Fee Rate
First $500 million		0.60	%
$500 million to $1 billion		0.55	%
$1 billion to $6 billion		0.43	%
Over $6 billion		0.41	%

For the year ended February 28, 2010, the Fund's effective investment advisory fee rate was 0.49% of the Fund's average daily net assets.

Administration Fee

Prior to June 30, 2009, Columbia contractually agreed to waive a portion of its administration fee for the Fund, at an annual rate of 0.04% of the Fund's average daily net assets up to $500 million.

The New Advisor will become the administrator of the Fund under a new administrative services agreement effective upon the Closing.

Pricing and Bookkeeping Fees

Columbia Large Cap Value Fund, February 28, 2010

Among other updates to the State Street Agreements, Columbia will assign and delegate its rights and obligations thereunder to the New Advisor upon the Closing.

The Services Agreement will be terminated upon the Closing, and the services provided thereunder will be covered under the administrative services agreement with the New Advisor.

Transfer Agent Fee

The Fund pays a monthly fee to the Transfer Agent for its services. All share classes, with the exception of Class Y shares (the "Other Share Classes") pay a monthly service fee (the "aggregate fee") based on the following:

(i) Effective January 1, 2010, an annual rate of $22.36 is applied to the aggregate number of accounts for the Other Share Classes. Prior to January 1, 2010, the annual rate was $17.34 per account.

(ii) An allocated portion of 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. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.

The aggregate fee is allocated to the Other Share Classes based on the relative average daily net assets of each share class.

Class Y shares of the Fund pay a monthly service fee based on the following:

(i) Effective January 1, 2010, an annual rate of $22.36 is applied to the aggregate number of accounts for Class Y shares. Prior to January 1, 2010, the annual rate was $17.34 per account.

(ii) An allocated portion of fees for wire, telephone and redemption orders, 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. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.

The Transfer Agent is also entitled to receive reimbursement of certain sub-transfer agent fees paid by the Transfer Agent (exclusive of BFDS fees), calculated based on the combined assets held in the Other Share Classes in omnibus accounts and intended to recover the cost of payments to other parties (including affiliates of BOA) for services to those accounts. Such fees are allocated to the Other Share Classes based on the relative average daily net assets of each share class. 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.

Columbia Large Cap Value Fund, February 28, 2010

Underwriting Discounts, Service and Distribution Fees

Columbia Management Distributors, Inc. (the "Distributor"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, is the principal underwriter of the Fund's shares. For the year ended February 28, 2010, the Distributor has retained net underwriting discounts of $24,126 on sales of the Fund's Class A shares and received net CDSC fees of $955, $57,696 and $1,728 on Class A, Class B and Class C share redemptions, respectively.

The Trust has adopted shareholder servicing plans and distribution plans for the Class B and Class C shares of the Fund and a combined distribution and shareholder servicing plan for the Class A shares of the Fund. The Trust has also adopted a distribution plan for the Class R shares of the Fund. The shareholder servicing plans permit the Fund to compensate or reimburse servicing agents for the shareholder services they have provided. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940 Act, permit the Fund to compensate or reimburse the Distributor and/or selling agents for activities or expenses primarily intended to result in the sale of the classes' shares. Payments are made at an annual rate and paid monthly, as a percentage of average daily net assets, set from time to time by the Board of Trustees, and are charged as expenses of the Fund directly to the applicable share class. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of BOA and the Distributor.

The annual rates in effect and plan limits, as a percentage of average daily net assets are as follows:

	Current Rate			Plan Limit
Class A Combined Distribution and Shareholder Servicing Plan		0.25	%		0.25	%
Class B and Class C Shareholder Servicing Plans		0.25	%		0.25	%
Class B and Class C Distribution Plans		0.75	%		0.75	%
Class R Distribution Plan		0.50	%		0.50	%

Expense Limits and Fee Waivers

Effective May 1, 2009, Columbia has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any) after giving effect to any balance credits from the Fund's custodian, do not exceed the annual rate of 1.00% of the Fund's average daily net assets. Columbia, in its discretion, may revise or discontinue this arrangement at any time.

Fees Paid to Officers and Trustees

Columbia Large Cap Value Fund, February 28, 2010

on the rate of return of Columbia Treasury Reserves, another portfolio of the Trust. The expense for the deferred compensation plan, which includes trustees' fees deferred during the current period as well as any gains or losses on the trustees' deferred compensation balances as a result of market fluctuations, is included in "Trustees' fees" on the Statement of Operations. The liability for the deferred compensation plan is included in "Trustees' fees" on the Statement of Assets and Liabilities.

Other Related Party Transactions

Note 5. Custody Credits

Note 6. Portfolio Information

For the year ended February 28, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Fund were $1,324,882,565 and $1,527,366,150, respectively.

Note 7. Regulatory Settlements

During the year ended February 28, 2010, the Fund received payments totaling $1,763 relating to certain regulatory settlements with third parties that the Fund had participated in during the year. The payments have been included in "Increase from regulatory settlements" on the Statement of Changes in Net Assets.

Note 8. Line of Credit

For the year ended February 28, 2010, the Fund did not borrow under these arrangements.

Note 9. Securities Lending

Columbia Large Cap Value Fund, February 28, 2010

to the Fund. The Fund bears the risk of loss with respect to the investment of collateral.

For the year ended February 28, 2010, the Fund did not participate in the securities lending program.

Note 10. Shares of Beneficial Interest

As of February 28, 2010, 35.2% of the Fund's shares outstanding were beneficially owned by three participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion.

As of February 28, 2010, no other shareholders owned more than 5% of the outstanding shares of the Fund.

Subscription and redemption activity of these accounts may have a significant effect on the operations of the Fund.

Note 11. Significant Risks and Contingencies

Legal Proceedings

Civil Litigation

Columbia Large Cap Value Fund, February 28, 2010

Note 12. Subsequent Events

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Series Trust and the Shareholders of Columbia Large Cap Value Fund

In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Large Cap Value Fund (the "Fund") (a series of Columbia Funds Series Trust) at February 28, 2010, the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Publ ic 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 are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
April 21, 2010

Federal Income Tax Information (Unaudited)

For non-corporate shareholders, 100.00% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of the ordinary income distributed by the Fund for the fiscal year ended February 28, 2010 may represent qualified dividend income.

100.00% of the ordinary income distributed by the Fund for the fiscal year ended February 28, 2010, qualifies for the corporate dividends received deduction.

The Fund will notify shareholders in January 2011 of amounts for use in preparing 2010 income tax returns.

Fund Governance

Independent Trustees

Name, Address and Age, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Edward J. Boudreau (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 64; no other directorships held.

William P. Carmichael (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired. Oversees 64; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—The Finish Line (sportswear).

William A. Hawkins (Born 1942)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				President and Chief Executive Officer—California General Bank, N.A., from January 2008 through current; oversees 64; no other directorships held.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Chairman and Chief Executive Officer—Hilliard Group LLC (investing and consulting), from April 2003 through current; Non-Executive Director & Chairman—Conseco, Inc. (insurance), September 2003 through current; Executive Chairman—Conseco, Inc. (insurance), August 2004 through September 2005; oversees 64; Director—Conseco, Inc. (insurance).

John J. Nagorniak (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)`				Retired. President and Director—Foxstone Financial, Inc. (consulting), 2000 through December 2007; Director—Mellon Financial Corporation affiliates (investing), 2000 through 2007; Chairman—Franklin Portfolio Associates (investing—Mellon affiliate), 1982 through 2007; oversees 64; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee and Chairman—Research Foundation of CFA Institute.

Fund Governance (continued)

Independent Trustees (continued)

Name, Address and Age, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Minor M. Shaw (Born 1947)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 64; Board Member—Piedmont Natural Gas.

Interested Trustee

Name, Address and Age, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 1972 through current; Senior Advisor—McKinsey & Company (consulting), July 2006 through January 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, July 2000 through April 2006; oversees 64; Director—Renaissance Reinsurance Ltd; Director—Penn Mutual Life Insurance Company; Director—Citigroup.

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-345-6611.

Fund Governance (continued)

Officers

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Managing Director of Columbia Management Advisors, LLC since December 2004; Senior Vice President and Chief Financial Officer—Columbia Funds, from June 2008 to January 2009; Treasurer—Columbia Funds, from October 2003 to May 2008; Treasurer—the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000—December 2006; Senior Vice President—Columbia Management Advisors, LLC, from April 2003 to December 2004; President—Columbia Funds, Liberty Funds and Stein Roe Funds, February 2004 to October 2004; Treasurer—Galaxy Funds, September 2002 to December 2005; Treasurer, December 2002 to December 2004, and President, February 2004 to December 2004—Columbia Management Multi-Strategy Hedge Fund, LLC; and a senior officer of various other Bank of America-affiliated entities, including other registered and unregistered funds

James R. Bordewick, Jr. (Born 1959)

One Financial Center Boston, MA 02111 Senior Vice President, Secretary and Chief Legal Officer (since 2006)				Associate General Counsel, Bank of America since April 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April 2005.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Director (Columbia Management Group LLC and Investment Product Group Compliance), Bank of America since June 2005; Director of Corporate Compliance and Conflicts Officer, MFS Investment Management (investment management), August 2004 to May 2005; Managing Director, Deutsche Asset Management (investment management) prior to August 2004.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Director of Fund Administration of the Advisor since January 2006; Managing Director of the Advisor September 2004 to December 2005; Vice President Fund Administration June 2002 to September 2004.

Jeffrey R. Coleman (Born 1969)

One Financial Center Boston, MA 02111 Treasurer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Fund Controller of the Advisor from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August 2000 to September 2004.

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Chief Accounting Officer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Head of Tax/Compliance and Assistant Treasurer of the Advisor from November 2004 to December 2005; Director of Trustee Administration (Sarbanes-Oxley) of the Advisor from May 2003 to October 2004.

Fund Governance (continued)

Officers (continued)

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Senior Tax Manager of the Advisor since August 2006; Senior Compliance Manager of the Advisor from April 2002 to August 2006.

Barry S. Vallan (Born 1969)

One Financial Center Boston, MA 02111 Controller (since 2006)				Vice President—Fund Treasury of the Advisor since October 2004; Vice President—Trustee Reporting of the Advisor from April 2002 to October 2004.

Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 1996)				President, Columbia Management Services, Inc. since July 2004; Senior Vice President and Controller, Columbia Management Services, Inc. prior to July 2004.

Board Consideration and Re-Approval of Current
Investment Advisory Agreement

The Board of Trustees of Columbia Funds Series Trust (the "Board"), including a majority of the Trustees who have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not "interested persons" of the Trust, as defined in the Investment Company Act of 1940 (the "1940 Act") (the "Independent Trustees"), are required annually to review and re-approve the existing investment advisory and sub-advisory agreements and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six months covered by this report, (i) investment advisory agreements with Columbia Management Advisors, LLC ("CMA" or the "Adviser") for Columbia Convertible Securities Fund, Columbia Large Cap Value Fund, Columbia Mid Cap Value Fund, Columbia Small Cap Value Fund II, Columbia Marsico Growth Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico 21^st Century Fund and Columbia Small Cap Growth Fund II; and (ii) investment sub-advisory agreements with Marsico Capital Management, LLC ("Marsico Capital" or the "Sub-Adviser") for Columbia Marsico Focused Equities Fund, Columbia Marsico 21^st Century Fund and Columbia Marsico Growth Fund (the "Sub-Advised Funds"). The investment advisory agreements with CMA and the investment sub-advisory agreements with Marsico Capital are each referred to as an "Advisory Agreement" and collectively referred to as the "Advisory Agreements." The funds identified above are each referred to as a "Fund" and collectively referred to as the "Funds."

More specifically, at meetings held on November 5-6, 2009, the Board, including the Independent Trustees advised by their independent legal counsel, considered the factors and reached the conclusions described below relating to the selection of CMA and the Sub-Adviser and the re-approval of the Advisory Agreements. The Board also reviewed and considered a report prepared and provided by the Independent Fee Consultant (the "Fee Consultant") appointed by the Independent Trustees pursuant to an assurance of discontinuance entered into with the New York Attorney General ("NYAG") to settle a civil complaint filed by the NYAG relating to trading in mutual fund shares (the "NYAG Settlement"). The Fee Consultant's role was to manage the process by which management fees are negotiated so that they were negotiated in a manner that is at arms' length and reasonable. Th e Fee Consultant found that the fee negotiation process was, to the extent practicable, at arms' length and reasonable and consistent with the requirements of the NYAG Settlement. A summary of the Fee Consultant's report is available at http://www.columbiafunds.com.

this regard, the Board considered information regarding the nature of CMA's compensation structure applicable to portfolio managers and other key investment personnel.

The Board reviewed and considered statistical information regarding each Fund's total expense ratio and its various components, including contractual advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The Board also reviewed comparisons of these fees to the expense information for the group of Funds determined by Lipper Inc. ("Lipper") to be most similar to a given Fund (the "Peer Group") and to the performance of a broader universe of relevant funds as determined by Lipper (the "Universe"), which comparative data was provided by Lipper, an independent provider of investment company data. The Board was provided with a description of the methodology used by Lipper to select the mutual funds in each Fund's Peer Group and Universe and considered potential i mprecision resulting from the selection methodology. For certain Funds, Lipper determined that the composition of the Peer Group and/or Universe for expenses would differ from the composition for performance to provide a more accurate basis of comparison. The Board also considered Lipper data that ranked each Fund based on: (i) each Fund's one- and three-year performance compared to actual management fees; and (ii) each Fund's one- and three-year performance compared to total expenses.

The Board concluded that the factors noted above supported the Contractual Management Rates and the Actual Management Rates, and the approval of the Advisory Agreements for all of the Funds.

Fund Performance. The Board considered the performance results for each of the Funds over multiple measurement periods. It also considered these results in comparison to the

performance results of each Fund's Peer Group and Universe, as well as to each Fund's benchmark index. The Board also considered certain risk-adjusted performance data.

Other Factors and Broader Review. As discussed above, the Board reviews materials received from CMA and the Sub-Adviser annually as part of the re-approval process under Section 15(c) of the 1940 Act. The Board also reviews and assesses the quality of the services the Funds receives throughout the year. In this regard, the Board and its Committees review reports of CMA and the Sub-Adviser at each of its quarterly meetings, which include, among other things, Fund performance reports and presentations relating to such reports. In addition, the Board and its Committees

confer with portfolio managers at various times throughout the year including, most particularly, at the June Investment Committee meeting.

Fund-Specific Considerations for Certain "Review" Funds. For certain Funds highlighted as meeting agreed-upon criteria for warranting further review, the Board engaged in further analysis with regard to approval of the Funds' Advisory Agreements. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios, and/or performance information relative to a Fund's Peer Group and/or Universe. Columbia Large Cap Value Fund was not highlighted as a review fund.

Board Consideration and Approval of Proposed
Investment Advisory Agreement

Consultant found that the fee negotiation process was, to the extent practicable, at arms' length and reasonable and consistent with the requirements of the NYAG Settlement. A summary of the Fee Consultant's report is available at www.columbiafunds.com.

(i) the terms and conditions of the Proposed Advisory Agreements compared to the terms and conditions of the Current Advisory Agreements, as described below;

(ii) the fact that each Fund's total advisory fees would remain the same;

(iv) the terms and conditions of the Proposed Subadvisory Agreements compared to the terms and conditions of the Current Subadvisory Agreements;

(ix) that RiverSource was willing to commit to maintain net operating expense ratios at current levels for at least the period currently covered by Columbia's existing commitments;

(x) the capabilities of RiverSource and the Subadvisers with respect to compliance, including an assessment of RiverSource's compliance program by the Funds' Chief Compliance Officer;

(xii) that Ameriprise and Bank of America Corporation would bear the costs of obtaining approvals of the Proposed Advisory and Subadvisory Agreements.

In their deliberations, the Trustees did not identify any single item that was paramount or controlling and individual Trustees may have attributed different weights to various

factors. The Trustees also evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately in respect of each Fund.

In evaluating the services to be provided under the Proposed Advisory and Subadvisory Agreements, the Trustees factored in their extensive discussions with representatives of Columbia, RiverSource and Ameriprise at the meetings referenced above regarding the management of each Fund. The Trustees considered representations by Ameriprise that it was expected that there will be no diminution in the nature and quality of services provided to the Funds. The Trustees noted that Columbia Management Group's current President, Columbia's current Chief Investment Officer and Columbia's current President, were expected to continue to serve the Funds in similar capacities after the Closing. With respect to portfolio management, the Trustees reviewed information regarding the deliberative process for selecting portfolio management personnel to continue servicing the Fund s after the Closing, including the expected role of Columbia's Chief Investment Officer in evaluating and selecting portfolio management personnel for each Fund utilizing Columbia's current analytical model for evaluating portfolio managers. In this regard, the Trustees also weighed representations by Ameriprise that this investment management evaluative process was likely to result in a significant number of Columbia investment professionals and personnel currently responsible for management of the Funds to remain in place. The Trustees noted that the portfolio management evaluation and selection process was designed to optimize the portfolio management resources available to each Fund by having the ability to select investment personnel for the Funds from the combined organization. Similarly, the Trustees evaluated the ability of RiverSource and the Subadvisers, based on their respective resources, reputations and other attributes, to attract and retain qualified investment professionals. In this regard, t he Trustees considered information regarding the nature of the compensation structure applicable to portfolio managers and other key investment personnel.

Closing, they would not result in an "unfair burden" (within the meaning of Section 15(f) of the 1940 Act) on any Fund.

Investment Advisory and Subadvisory Fee Rates and Other Expenses. The Trustees reviewed and considered the proposed contractual investment advisory fee rates to be paid by each Fund to RiverSource for investment management services both separately and together with the administration fee rates to be paid by the Funds to RiverSource (the "Contractual Management Rates"), which are the same as the separate and aggregate advisory and administrative fee rates currently paid by each Fund to Columbia. The Trustees also reviewed and considered the proposed subadvisory fee rates and the fee arrangements under the Proposed Subadvisory Agreements, respectively, which are also the same as those currently in effect under the Current Subadvisory Agreements. In addition to the materials provided by Columbia, RiverSource provided information regarding the current fee s for each of the RiverSource funds and other relevant institutional accounts. The Trustees reviewed and considered the proposed fee waiver/cap arrangements applicable to the Contractual Management Rates and considered the Contractual Management Rates after taking the waivers/caps into account (the "Actual Management Rates"). In this regard, the Trustees noted that RiverSource had committed to maintain the Funds' current expense limitation and waiver arrangements (both contractual and voluntary). The Trustees considered the potential that, after the Closing, RiverSource would propose a common fee and expense structure for the combined fund family, subject to the commitment that Ameriprise will not seek any change that would result in an "unfair burden" on any Fund. The Trustees also considered the report prepared and provided by the Fee Consultant. Additionally, the Trustees received and afforded specific attention to information provide d in connection with the Current Agreement Re-Approval Process, comparing the Contractual Management Rates and Actual Management Rates with those of other funds in each Fund's Peer Group (as defined below).

The Trustees recognized that the investment performance record of RiverSource in managing funds with similar objectives may be less relevant to their deliberations in situations where the current portfolio managers of Columbia are expected to continue managing a particular Fund following the Closing. They also recognized that for each Fund, it is not possible to predict with certainty what effect, if any, consummation of the Transaction will have on the future performance of the Funds, noting in particular that past investment performance is no assurance of future results. The Fund-by-Fund discussion set forth below provides additional information regarding those Funds highlighted as meeting agreed-upon criteria for warranting further review. Such criteria included, among other things, information relating to Actual Management Rates, total expense ratios and /or performance information, relative to a Fund's Peer Group and/or Universe.

Among other things, the Trustees noted that RiverSource would benefit from soft dollar arrangements using portfolio brokerage of each Fund that invests in equity securities. The Trustees also noted that the Subadvisers also had benefited from, and expected to continue to benefit from, soft dollar arrangements using portfolio brokerage of the Subadvised Funds. The Trustees acknowledged RiverSource's representation that none of its affiliated broker dealers was expected to provide brokerage services to any Fund, but noted that broker-dealer affiliates of RiverSource will receive distribution related fees from the Funds in respect of shares held in certain accounts, and that such Funds' distributor (which will also become a subsidiary of RiverSource following the closing of the Transaction) retains a portion of the distribution related fees from the Funds and receives a portion of the sales charges on sales or redemptions of certai n classes of shares of the Funds. The Trustees recognized that RiverSource's and the Subadvisers' profitability would be somewhat lower without these benefits. The Trustees concluded that RiverSource and the Subadvisers may derive reputational benefits from their association with the Funds. The Trustees also noted, however, that such benefits were difficult to quantify with certainty.

Columbia Large Cap Value Fund was not highlighted as a review fund.

Summary of Management Fee Evaluation by
Independent Fee Consultant

REPORT OF INDEPENDENT FEE CONSULTANT TO THE FUNDS SUPERVISED BY THE COLUMBIA NATIONS BOARD

Prepared Pursuant to the February 9, 2005
Assurance of Discontinuance among the
Office of Attorney General of New York State,
Columbia Management Advisors, LLC, and
Columbia Management Distributors, Inc.

November 12, 2009

I. Overview

A. Role of the Independent Fee Consultant

The AOD charges the IFC with "managing the process by which proposed management fees ... to be charged the Columbia Fund are negotiated so that they are negotiated in a manner which is at arms' length and reasonable and consistent with this Assurance of Discontinuance." The AOD also provides that CMA "may manage or advise a Columbia Fund only if the reasonableness of the proposed management fees is determined by the Board of Trustees ... using ... an annual independent written evaluation prepared by or under the direction of ... the Independent Fee Consultant." Therefore, the AOD makes clear that the IFC does not supplant the Trustees in negotiating management fees with CMA, nor does the IFC substitute his or her judgment for that of the Trustees with respect to the reasonableness of proposed fees or any other matter that is committed to the business judgmen t of the Trustees.

B. Elements Involved in Managing the Fee Negotiation Process

In preparing the report required by the AOD, the IFC must consider at least the following six factors set forth in the AOD:

1. The nature and quality of CMA's services, including the Fund's performance;

2. Management fees (including any components thereof) charged by other mutual fund companies for like services;

3. Possible economies of scale as the Fund grows larger;

4. Management fees (including any components thereof) charged to institutional and other clients of CMA for like services;

5. Costs to CMA and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit; and

6. Profit margins of CMA and its affiliates from supplying such services.

C. Organization of the Annual Evaluation

¹ CMA and CMD are subsidiaries of Columbia Management Group, LLC ("CMG"), and are the successors to the entities named in the AOD.

Unless otherwise stated or required by the context, this report covers only the Nations Funds, which are also referred as the "Funds."

II. Summary of Findings

A. General

1. Based upon my examination of the information supplied by CMG in the light of the six factors set forth in the AOD, I conclude that the Trustees have the relevant information necessary to evaluate the reasonableness of the proposed management fees for each Nations Fund, subject to the following: on September 30, 2009, Ameriprise Financial, Inc. ("Ameriprise") announced that it had agreed to purchase the investment management business of CMG with the exception of its cash and liquidity management business which includes the Nations money market Funds. As a result, the Trustees requested information from CMG as to the plans of CMG and its parent with respect to the provision of investment management services to those Funds after the consummation of the proposed transaction. As of the date of this report, that in formation has not yet been provided. However, as the transaction is not expected to close until the spring of 2010, the Trustees concluded that they would have ample opportunity to take appropriate steps with respect to the investment management agreements of the money market Funds, including invoking the 60-day termination provisions of those agreements, in response to the information to be provided by CMG and reviewed by the IFC.

B. Nature and Quality of Services, Including Performance

C. Management Fees Charged by Other Mutual Fund Companies

D. Trustees' Advisory Contract Review Process

E. Potential Economies of Scale

breakpoints that characterizes the money market Fund schedules is not typically found among competitors, nearly all of which have flat fee schedules.

F. Management Fees Charged to Institutional Clients

G. Revenues, Expenses, and Profits

III. Recommendations

a. Management-only profitability should be calculated without reference to any Private Bank expense.

d. Distribution only: This should include all Private Bank expenses other than those attributable to sub-transfer agency services.

Respectfully submitted,
Steven E. Asher

This page intentionally left blank.

Important Information About This Report

A description of the policies and procedures that the fund uses to determine how to vote proxies and a copy of the fund's voting records are available (i) at www.columbiamanagement.com, (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the fund voted proxies relating to portfolio securities is also available from the fund's website, www.columbiamanagement.com.

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Transfer Agent

Columbia Management Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081
1-800-345-6611

Distributor

Columbia Management
Distributors, Inc.
One Financial Center
Boston, MA 02111

Investment Advisor

Columbia Management Advisors, LLC
100 Federal Street
Boston, MA 02110

Columbia Management^®

One Financial Center
Boston, MA 02111-2621

PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20

Columbia Management^®

Columbia Large Cap Value Fund

Annual Report, February 28, 2010

One Financial Center, Boston, MA 02111-2621

800-345-6611 www.columbiafunds.com

SHC-42/32224-0210 (04/10) 10-Y38516

Columbia Management^®

Annual Report

February 28, 2010

Columbia Mid Cap Value Fund

NOT FDIC INSURED				May Lose Value

NOT BANK ISSUED				No Bank Guarantee

Table of Contents

Fund Profile					1

Economic Update					2

Performance Information					4

Understanding Your Expenses					5

Financial Statements

Investment Portfolio					8

Statement of Assets and Liabilities					12

Statement of Operations					14

Statement of Changes in Net Assets					15

Financial Highlights					17

Notes to Financial Statements					23

Report of Independent Registered Public Accounting Firm					32

Federal Income Tax Information					33

Fund Governance					34

Board Consideration and Re-Approval of Current Investment Advisory Agreement					38

Board Consideration and Approval of Proposed Investment Advisory Agreement					42

Summary of Management Fee Evaluation by Independent Fee Consultant					49

Important Information About This Report					57

President's Message

Dear Shareholder:

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

Fund Profile – Columbia Mid Cap Value Fund

Summary

^g For the 12-month period that ended February 28, 2010, the fund's Class A shares returned 64.09% without sales charge.

^g The fund trailed its benchmark, the Russell Midcap Value Index,¹ and the average return of its peer group, the Lipper Mid-Cap Value Funds Classification.²

^g The fund delivered outstanding returns as the stock market rebounded. However, lower-quality stocks led the market recovery and the fund's higher-quality focus accounted for its shortfall relative to the benchmark.

Portfolio Management

Lori Ensinger has co-managed the fund since August 2001 and has been associated with the advisor or its predecessors since 2001.

Diane Sobin has co-managed the fund since August 2001 and has been associated with the advisor or its predecessors since 2001.

David Hoffman has co-managed the fund since April 2004 and has been associated with the advisor or its predecessors since 2001.

Noah Petrucci has co-managed the fund since February 2002 and has been associated with the advisor or its predecessors since 2002.

¹The Russell Midcap Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value Index. Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the fund may not match those in an index.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Summary

1-year return as of 02/28/10

				+64.09%

				Class A shares (without sales charge)

				+74.74%

				Russell Midcap Value Index

Morningstar Style Box^TM

Economic Update – Columbia Mid Cap Value Fund

Summary

For the 12-month period that ended February 28, 2010

^g After a sharp decline, stock markets rebounded around the world, as measured by the S&P 500 Index and the MSCI EAFE Index.

S&P Index				MSCI Index

Barclays Aggregate Index				JPMorgan Index

Stocks bottomed, then rebounded

Against a strengthening economic backdrop, a stock market rally that began in mid-March 2009 continued throughout the period. The U.S. stock market returned 53.62%

*Source: U.S. Bureau of Labor Statistics

Economic Update (continued) – Columbia Mid Cap Value Fund

Bond returns ranged from solid to strong

Past performance is no guarantee of future results.

¹The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

⁶The Barclays Capital Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year.

⁷The JPMorgan Developed BB High Yield Index is an unmanaged index designed to mirror the investable universe of the U.S. dollar developed, BB-rated, high yield corporate debt market.

Performance Information – Columbia Mid Cap Value Fund

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Annual operating expense ratio (%)*

Class A					1.17
Class B					1.92
Class C					1.92
Class R					1.42
Class Y					0.74
Class Z					0.92

*The annual operating expense ratio is as stated in the fund's prospectus that is current as of the date of this report. Differences in expense ratios disclosed elsewhere in this report may result from the inclusion of fee waivers and expense reimbursements as well as the use of different time periods used in calculating the ratios.

Performance of a $10,000 investment 11/20/01 – 02/28/10

The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Mid Cap Value Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

Performance of a $10,000 investment 11/20/01 – 02/28/10 ($)

Sales charge	without		with
Class A		16,980		16,003
Class B		15,959		15,959
Class C		15,966		15,966
Class R		16,811		n/a
Class Y		17,322		n/a
Class Z		17,334		n/a

Average annual total return as of 02/28/10 (%)

Share class	A				B				C				R		Y		Z
Inception	11/20/01				11/20/01				11/20/01				01/23/06		07/15/09		11/20/01
Sales charge	without		with		without		with		without		with		without		without		without
1-year		64.09		54.64		62.86		57.86		62.97		61.97		63.69		64.44		64.55
5-year		1.70		0.49		0.94		0.64		0.94		0.94		1.49		1.94		1.95
Life		6.61		5.85		5.81		5.81		5.82		5.82		6.48		6.87		6.87

Average annual total return as of 03/31/10 (%)

Share class	A				B				C				R		Y		Z
Sales charge	without		with		without		with		without		with		without		without		without
1-year		62.38		53.09		61.23		56.23		61.12		60.12		62.05		62.66		62.69
5-year		3.10		1.88		2.33		2.03		2.33		2.33		2.89		3.34		3.35
Life		7.40		6.65		6.60		6.60		6.61		6.61		7.27		7.66		7.66

The "with sales charge" returns include the maximum initial sales charge of 5.75% for Class A, the applicable contingent deferred sales charge of 5.00% in the first year, declining to 1.00% in the sixth year and eliminated thereafter for Class B shares and 1.00% for Class C shares for the first year only. The "without sales charge" returns do not include the effect of sales charges. If they had, returns would be lower.

All results shown assume reinvestment of distributions. Class Y and Class Z shares are sold at net asset value with no distribution and service (Rule 12b-1) fees. Class R shares are sold at net asset value with distribution and service (Rule 12b-1) fees. Class R, Class Y, and Class Z shares have limited eligibility and the investment minimum requirements may vary. Please see the fund's prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class.

The tables do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The returns for Class R shares include the returns of Class A shares prior to January 23, 2006, the date on which Class R shares were initially offered by the fund. If differences in expenses had been reflected, the returns shown would have been lower, since Class R shares are subject to higher distribution and service (Rule 12b-1) fees. The returns for Class Y shares include the returns for Class Z shares prior to July 15, 2009, the date on which Class Y shares were initially offered by the fund. The returns shown have not been adjusted to reflect any differences in expenses between Class Y shares and Class Z shares.

Understanding Your Expenses – Columbia Mid Cap Value Fund

Analyzing your fund's expenses by share class

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund and do not reflect any transaction costs, such as sales charges, redemption fees or exchange fees.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

^gFor shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

^gFor shareholders who receive their account statements from their financial intermediary, contact your financial intermediary to obtain your account balance.

1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

09/01/09 – 02/28/10

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)				Fund's annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Class A		1,000.00		1,000.00		1,124.90		1,019.09		6.06		5.76		1.15
Class B		1,000.00		1,000.00		1,120.50		1,015.37		9.99		9.49		1.90
Class C		1,000.00		1,000.00		1,121.20		1,015.37		9.99		9.49		1.90
Class R		1,000.00		1,000.00		1,123.60		1,017.85		7.37		7.00		1.40
Class Z		1,000.00		1,000.00		1,127.10		1,020.33		4.75		4.51		0.90
Class Y		1,000.00		1,000.00		1,125.30		1,020.98		4.06		3.86		0.77

Portfolio Managers' Report – Columbia Mid Cap Value Fund

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

Net asset value per share

as of 02/28/10 ($)

Class A					11.18
Class B					10.94
Class C					10.98
Class R					11.18
Class Y					11.18
Class Z					11.20

Distributions declared per share

03/01/09 – 02/28/10 ($)

Class A					0.08
Class B					0.02
Class C					0.02
Class R					0.06
Class Y					0.07
Class Z					0.10

For the 12-month period that ended February 28, 2010, the fund's Class A shares returned 64.09% without sales charge. Over the same period, the fund's benchmark, the Russell Midcap Value Index, returned 74.74%, while the fund's peer group, the Lipper Mid-Cap Value Funds Classification, gained 69.29%. Absolute results were strong as mid-cap value stocks outpaced mid-cap growth stocks, and mid-cap stocks outpaced both large and small-cap stocks. However, the fund's focus on higher-quality stocks hampered performance versus the benchmark as low-quality, higher-risk names fueled the market rally. Industry allocations benefited returns, led by underweights in the utilities and telecommunications sectors. Stock selection delivered mixed results.

Gains from stock selection in consumer staples

All sectors in the index and the fund posted very strong returns for the year. Relative to the benchmark, stock selection in consumer staples gave the fund an edge. Pepsi Bottling Group and Fomento Economico Mexicano SAB, or FEMSA (0.8% of net assets) were among the fund's top contributors in the sector. Pepsi Bottling rose after it was announced that the company would be acquired by Pepsi Co. We subsequently sold the position, locking in the market's positive reaction to the sale. Shares of FEMSA, a Mexican beverage company, climbed as the company considered selling its beer unit. Elsewhere in the portfolio, standouts included Newfield Exploration and Peabody Energy (0.9% and 1.3% of net assets, respectively). Newfield Exploration, an oil exploration and production company, posted solid earnings driven by sound cost containment and improving volume growth, while coal miner Peabody Energy benefited from increasing demand for met allurgical coal from China.

Underperformance from consumer discretionary, tech and materials

Despite very strong returns in the consumer discretionary, information technology and materials sectors, the fund's results lagged those of the benchmark. In consumer discretionary, the fund had little or no exposure to many of the benchmark's strongest-performing media stocks, which hampered relative performance. We avoided these names because we believe that they have limited potential to expand profit margins over the long term. As a result of advertising dollars trending away from traditional media outlets, such as television, radio and newspapers, and shifting to online sites. In technology, detractors included NCR and Diebold (0.9% of net assets), manufacturers of automated teller machines (ATMs), the stocks of each of which declined in value as a result of declining demand from financial services companies who were reluctant to invest in upgraded or new ATMs. NCR also suffered when it announced it was entering the DVD kio sk business, which many analysts believe has limited long-term growth potential. NCR was no longer in the portfolio at period end. In materials, an underweight in paper companies, which were strong performers in the rally, hindered results.

Opportunity ahead

While corporate cost cutting helped fuel a stock market rally in 2009, we believe that permanent cost reductions and reaccelerating revenue growth will be necessary to fuel a sustained rally going forward. Regardless of the environment, we continue to find numerous opportunities that meet the fund's investment criteria. Many of these

Portfolio Managers' Report (continued) – Columbia Mid Cap Value Fund

opportunities are clustered by industry, particularly more economically-sensitive ones. In financials, which represented over one-quarter of the fund's assets at period end, we expect financial service companies that have strengthened their earnings power, balance sheets and long-term franchise values to do well. We're particularly interested in opportunities presented by consumer-oriented lenders as well as in capital markets companies that could benefit from an increase in merger-and-acquisition activity. We also believe that growth in long-term demand of emerging markets bodes well for both the energy and materials sectors. Finally, we believe that early-cycle industrials, as well as certain consumer discretionary stocks—including selected department stores, home centers and travel/leisure companies—offer opportunity. We are more cautious about prospects for telecommunications and health care stocks, both of which w e believe face long-term challenges.

Portfolio characteristics and holdings are subject to change periodically and may not be representative of current characteristics and holdings. The outlook for the fund may differ from those presented for other Columbia Funds.

Equity securities are subject to stock market fluctuations that occur in response to economic and business developments.

Stocks of mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

Top 5 sectors

as of 02/28/10 (%)

Financials					27.8
Consumer Discretionary					15.1
Industrials					10.8
Energy					9.4
Information Technology					9.0

Top 10 holdings

as of 02/28/10 (%)

Reinsurance Group of America					2.0
Royal Caribbean Cruises					1.8
Starwood Hotels & Resorts Worldwide					1.6
Cullen/Frost Bankers					1.6
J.C. Penney					1.5
Discover Financial Services					1.5
Comerica					1.5
TCF Financial					1.5
Sempra Energy					1.4
Packaging Corporation of America					1.4

The fund is actively managed and the composition of its portfolio will change over time. Information provided is calculated as a percentage of net assets

Investment Portfolio – Columbia Mid Cap Value Fund

February 28, 2010

Common Stocks – 98.9%
	Shares		Value ($)
Consumer Discretionary – 15.1%
Auto Components – 1.7%
BorgWarner, Inc. (a)		1,440,300		53,953,638
Goodyear Tire & Rubber Co. (a)		1,709,100		22,201,209
Auto Components Total				76,154,847
Hotels, Restaurants & Leisure – 4.0%
International Game Technology		1,607,902		28,218,680
Royal Caribbean Cruises Ltd. (a)		2,712,300		76,676,721
Starwood Hotels & Resorts Worldwide, Inc.		1,778,600		68,831,820
Hotels, Restaurants & Leisure Total				173,727,221
Household Durables – 1.0%
D.R. Horton, Inc.		3,500,800		43,269,888
Household Durables Total				43,269,888
Leisure Equipment & Products – 1.2%
Hasbro, Inc.		1,412,800		50,549,984
Leisure Equipment & Products Total				50,549,984
Media – 1.1%
DISH Network Corp., Class A (a)		1,528,200		30,518,154
Gannett Co., Inc.		1,192,615		18,068,117
Media Total				48,586,271
Multiline Retail – 2.0%
J.C. Penney Co., Inc.		2,414,300		66,586,394
Nordstrom, Inc.		622,800		23,006,232
Multiline Retail Total				89,592,626
Specialty Retail – 2.6%
American Eagle Outfitters, Inc.		2,010,400		33,915,448
Foot Locker, Inc.		3,812,300		49,445,531
O'Reilly Automotive, Inc. (a)		832,500		32,717,250
Specialty Retail Total				116,078,229
Textiles, Apparel & Luxury Goods – 1.5%
Hanesbrands, Inc. (a)		1,224,600		31,753,878
Jones Apparel Group, Inc.		2,084,500		35,144,670
Textiles, Apparel & Luxury Goods Total				66,898,548
Consumer Discretionary Total				664,857,614
Consumer Staples – 4.9%
Beverages – 0.8%
Fomento Economico Mexicano SAB de CV, ADR		786,700		33,670,760
Beverages Total				33,670,760

	Shares		Value ($)
Food Products – 1.5%
Dean Foods Co. (a)		860,332		12,552,244
J.M. Smucker Co.		898,600		53,628,448
Food Products Total				66,180,692
Household Products – 0.7%
Clorox Co.		536,500		32,892,815
Household Products Total				32,892,815
Personal Products – 1.9%
Avon Products, Inc.		1,084,000		32,996,960
Estee Lauder Companies, Inc., Class A		813,000		48,885,690
Personal Products Total				81,882,650
Consumer Staples Total				214,626,917
Energy – 9.4%
Energy Equipment & Services – 3.3%
Nabors Industries Ltd. (a)		1,925,600		42,440,224
Noble Corp. (a)		1,278,800		54,042,088
Pride International, Inc. (a)		1,735,300		48,553,694
Energy Equipment & Services Total				145,036,006
Oil, Gas & Consumable Fuels – 6.1%
Cabot Oil & Gas Corp.		1,414,100		56,761,974
Newfield Exploration Co. (a)		750,600		38,333,142
Peabody Energy Corp.		1,243,178		57,148,893
Spectra Energy Corp.		2,491,000		54,303,800
Williams Companies, Inc.		2,918,400		62,862,336
Oil, Gas & Consumable Fuels Total				269,410,145
Energy Total				414,446,151
Financials – 27.8%
Capital Markets – 3.0%
Ameriprise Financial, Inc.		1,086,000		43,472,580
Raymond James Financial, Inc.		1,252,300		32,384,478
TD Ameritrade Holding Corp. (a)		3,130,300		54,748,947
Capital Markets Total				130,606,005
Commercial Banks – 9.4%
BB&T Corp.		1,590,200		45,368,406
City National Corp.		945,400		47,194,368
Comerica, Inc.		1,836,000		66,242,880
Cullen/Frost Bankers, Inc.		1,260,050		68,231,708
Fifth Third Bancorp.		3,382,600		41,301,546
SVB Financial Group (a)		1,133,311		50,500,338
TCF Financial Corp.		4,483,300		64,738,852

See Accompanying Notes to Financial Statements.

Columbia Mid Cap Value Fund

February 28, 2010

Common Stocks (continued)
	Shares		Value ($)
Zions Bancorporation		1,423,250		26,387,055
Commercial Banks Total				409,965,153
Consumer Finance – 1.5%
Discover Financial Services		4,860,299		66,343,081
Consumer Finance Total				66,343,081
Insurance – 5.4%
ACE Ltd. (a)		1,093,266		54,652,367
Assured Guaranty Ltd.		975,100		20,574,610
Axis Capital Holdings Ltd.		1,284,200		40,388,090
Genworth Financial, Inc., Class A (a)		2,260,400		36,030,776
Reinsurance Group of America, Inc.		1,822,000		86,599,660
Insurance Total				238,245,503
Real Estate Investment Trusts (REITs) – 8.5%
Alexandria Real Estate Equities, Inc.		719,400		44,329,428
Boston Properties, Inc.		661,300		44,922,109
Equity Residential Property Trust		1,427,600		51,507,808
Host Hotels & Resorts, Inc. (a)		2,898,297		33,939,058
Plum Creek Timber Co., Inc.		977,245		34,916,964
ProLogis		2,428,200		31,299,498
Rayonier, Inc.		1,444,500		60,047,865
Simon Property Group, Inc.		137,465		10,762,135
Taubman Centers, Inc.		640,492		24,806,255
Vornado Realty Trust		563,172		37,011,664
Real Estate Investment Trusts (REITs) Total				373,542,784
Financials Total				1,218,702,526
Health Care – 5.9%
Health Care Equipment & Supplies – 3.4%
Beckman Coulter, Inc.		606,900		39,788,364
Cooper Companies, Inc.		640,200		25,646,412
Hospira, Inc. (a)		668,000		34,956,440
Teleflex, Inc.		803,100		48,940,914
Health Care Equipment & Supplies Total				149,332,130
Health Care Providers & Services – 1.8%
AmerisourceBergen Corp.		1,496,700		41,967,468
Community Health Systems, Inc. (a)		1,083,800		37,141,826
Health Care Providers & Services Total				79,109,294

	Shares		Value ($)
Life Sciences Tools & Services – 0.7%
Mettler-Toledo International, Inc. (a)		291,500		28,978,015
Life Sciences Tools & Services Total				28,978,015
Health Care Total				257,419,439
Industrials – 10.8%
Aerospace & Defense – 2.6%
AerCap Holdings NV (a)		3,314,007		31,516,206
Alliant Techsystems, Inc. (a)		248,400		19,735,380
L-3 Communications Holdings, Inc.		678,500		62,028,470
Aerospace & Defense Total				113,280,056
Airlines – 0.5%
Delta Air Lines, Inc. (a)		1,811,100		23,399,412
Airlines Total				23,399,412
Construction & Engineering – 0.6%
Foster Wheeler AG (a)		1,029,600		25,338,456
Construction & Engineering Total				25,338,456
Electrical Equipment – 0.9%
Cooper Industries PLC, Class A		892,100		40,465,656
Electrical Equipment Total				40,465,656
Machinery – 5.0%
Ingersoll-Rand PLC		677,200		21,609,452
Kennametal, Inc.		1,726,900		44,985,745
Navistar International Corp. (a)		871,300		34,120,108
Parker Hannifin Corp.		892,700		53,838,737
Stanley Works		837,700		47,958,325
Terex Corp. (a)		963,200		18,753,504
Machinery Total				221,265,871
Marine – 0.2%
Alexander & Baldwin, Inc.		234,998		7,562,236
Marine Total				7,562,236
Professional Services – 1.0%
Manpower, Inc.		814,800		41,978,496
Professional Services Total				41,978,496
Industrials Total				473,290,183
Information Technology – 9.0%
Communications Equipment – 1.0%
Brocade Communications Systems, Inc. (a)		4,337,600		25,244,832
CommScope, Inc. (a)		706,000		17,995,940
Communications Equipment Total				43,240,772

See Accompanying Notes to Financial Statements.

Columbia Mid Cap Value Fund

February 28, 2010

Common Stocks (continued)
	Shares		Value ($)
Computers & Peripherals – 0.9%
Diebold, Inc.		1,385,700		40,129,872
Computers & Peripherals Total				40,129,872
Electronic Equipment, Instruments & Components – 2.6%
Agilent Technologies, Inc. (a)		894,200		28,131,532
Arrow Electronics, Inc. (a)		1,475,600		41,626,676
Molex, Inc.		2,085,700		42,652,565
Electronic Equipment, Instruments & Components Total				112,410,773
Internet Software & Services – 0.3%
VeriSign, Inc. (a)		635,500		15,836,660
Internet Software & Services Total				15,836,660
IT Services – 0.7%
Western Union Co.		1,919,600		30,291,288
IT Services Total				30,291,288
Semiconductors & Semiconductor Equipment – 1.4%
Advanced Micro Devices, Inc. (a)		1,777,400		14,059,234
Atmel Corp. (a)		4,224,800		19,053,848
Lam Research Corp. (a)		564,712		19,149,384
Varian Semiconductor Equipment Associates, Inc. (a)		325,800		9,800,064
Semiconductors & Semiconductor Equipment Total				62,062,530
Software – 2.1%
Citrix Systems, Inc. (a)		1,052,700		45,276,627
Nuance Communications, Inc. (a)		1,682,600		24,212,614
Synopsys, Inc. (a)		987,900		21,635,010
Software Total				91,124,251
Information Technology Total				395,096,146
Materials – 7.3%
Chemicals – 2.3%
Albemarle Corp.		1,210,600		45,385,394
PPG Industries, Inc.		901,800		55,496,772
Chemicals Total				100,882,166
Containers & Packaging – 2.5%
Crown Holdings, Inc. (a)		1,639,700		44,796,604
Packaging Corp. of America		2,647,000		62,998,600
Containers & Packaging Total				107,795,204

	Shares		Value ($)
Metals & Mining – 1.3%
Allegheny Technologies, Inc.		509,200		22,231,672
United States Steel Corp.		702,200		37,174,468
Metals & Mining Total				59,406,140
Paper & Forest Products – 1.2%
Weyerhaeuser Co.		1,261,200		50,952,480
Paper & Forest Products Total				50,952,480
Materials Total				319,035,990
Telecommunication Services – 0.6%
Diversified Telecommunication Services – 0.6%
Qwest Communications International, Inc.		5,622,100		25,636,776
Diversified Telecommunication Services Total				25,636,776
Telecommunication Services Total				25,636,776
Utilities – 8.1%
Electric Utilities – 2.0%
American Electric Power Co., Inc.		1,275,700		42,889,034
Northeast Utilities		856,600		21,928,960
PPL Corp.		729,800		20,784,704
Electric Utilities Total				85,602,698
Independent Power Producers & Energy Traders – 0.2%
AES Corp. (a)		784,155		9,166,772
Independent Power Producers & Energy Traders Total				9,166,772
Multi-Utilities – 5.9%
PG&E Corp.		1,286,200		53,917,504
Public Service Enterprise Group, Inc.		1,255,200		37,304,544
Sempra Energy		1,284,100		63,139,197
Wisconsin Energy Corp.		1,121,600		54,319,088
Xcel Energy, Inc.		2,503,800		52,104,078
Multi-Utilities Total				260,784,411
Utilities Total				355,553,881
Total Common Stocks (cost of $3,929,510,905)				4,338,665,623

See Accompanying Notes to Financial Statements.

Columbia Mid Cap Value Fund

February 28, 2010

Convertible Preferred Stock – 0.3%
	Shares		Value ($)
Materials – 0.3%
Metals & Mining – 0.3%
Freeport-McMoRan Copper & Gold, Inc., 6.750%		140,900		15,169,294
Metals & Mining Total				15,169,294
Materials Total				15,169,294
Total Convertible Preferred Stock (cost of $5,558,266)				15,169,294
Short-Term Obligation – 0.6%
	Par ($)
Repurchase agreement with Fixed Income Clearing Corp., dated 02/26/10, due 03/01/10 at 0.050%, collateralized by a U.S. Government Agency obligation maturing 02/25/13, market value $26,783,438 (repurchase proceeds $26,257,109)		26,257,000		26,257,000
Total Short-Term Obligation (cost of $26,257,000)				26,257,000
Total Investments – 99.8% (cost of $3,961,326,171) (b)				4,380,091,917
Other Assets & Liabilities, Net – 0.2%				6,711,474
Net Assets – 100.0%				4,386,803,391

Notes to Investment Portfolio:

(a) Non-income producing security.

(b) Cost for federal income tax purposes is $3,968,175,907.

The following table summarizes the inputs used, as of February 28, 2010 in valuing the Fund's assets:

Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Total Common Stocks	$	4,338,665,623	$	–	$	–	$	4,338,665,623
Total Convertible Preferred Stock		15,169,294		–		–		15,169,294
Total Short-Term Obligation		–		26,257,000		–		26,257,000
Total Investments	$	4,353,834,917	$	26,257,000	$	–	$	4,380,091,917

At February 28, 2010, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Financials		27.8
Consumer Discretionary		15.1
Industrials		10.8
Energy		9.4
Information Technology		9.0
Utilities		8.1
Materials		7.6
Health Care		5.9
Consumer Staples		4.9
Telecommunication Services		0.6
		99.2
Short-Term Obligation		0.6
Other Assets & Liabilities, Net		0.2
		100.0

Acronym				Name
ADR				American Depositary Receipt

The following table reconciles asset balances for the year ended February 28, 2010, in which significant unobservable inputs (Level 3) were used in determining value:

Investments in Securities				Balance as of February 28, 2009				Accrued Discounts/ (Premiums)				Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Net Purchases (Sales)				Net Transfers into (out of) Level 3				Balance as of February 28, 2010
Common Stocks				$	1,058			$	–			$	10,796			$	(1,058	)		$	(10,796	)		$	–			$	—

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities – Columbia Mid Cap Value Fund

February 28, 2010

		($)
Assets	Investments, at identified cost		3,961,326,171
	Investments, at value		4,380,091,917
	Cash		10,607,864
	Receivable for:
	Investments sold		105,542,030
	Fund shares sold		4,763,757
	Dividends		6,389,314
	Interest		109
	Trustees' deferred compensation plan		43,824
	Prepaid expenses		46,488
	Other assets		982
	Total Assets		4,507,486,285
Liabilities	Payable for:
	Investments purchased		108,343,711
	Fund shares repurchased		6,763,647
	Investment advisory fee		1,764,372
	Administration fee		549,096
	Pricing and bookkeeping fees		12,198
	Transfer agent fee		1,817,044
	Trustees' fees		36,201
	Custody fee		15,220
	Distribution and service fees		563,976
	Chief compliance officer expenses		418
	Reports to shareholders		715,379
	Trustees' deferred compensation plan		43,824
	Other liabilities		57,808
	Total Liabilities		120,682,894
	Net Assets		4,386,803,391
Net Assets Consist of	Paid-in capital		4,955,889,917
	Overdistributed net investment income		(48,094	)
	Accumulated net realized loss		(987,804,178	)
	Net unrealized appreciation on investments		418,765,746
	Net Assets		4,386,803,391

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities – Columbia Mid Cap Value Fund

February 28, 2010 (continued)

Class A	Net assets	$	1,441,388,094
	Shares outstanding		128,891,677
	Net asset value per share	$	11.18	(a)
	Maximum sales charge		5.75	%
	Maximum offering price per share	$	11.86	(b)
Class B	Net assets	$	68,110,149
	Shares outstanding		6,226,852
	Net asset value and offering price per share	$	10.94	(a)
Class C	Net assets	$	181,941,259
	Shares outstanding		16,572,694
	Net asset value and offering price per share	$	10.98	(a)
Class R	Net assets	$	276,045,748
	Shares outstanding		24,694,504
	Net asset value, offering and redemption price per share	$	11.18
Class Y (c)	Net assets	$	12,705
	Shares outstanding		1,136
	Net asset value, offering and redemption price per share	$	11.18
Class Z	Net assets	$	2,419,305,436
	Shares outstanding		216,054,038
	Net asset value, offering and redemption price per share	$	11.20

(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

(b) On sales of $50,000 or more the offering price is reduced.

See Accompanying Notes to Financial Statements.

Statement of Operations – Columbia Mid Cap Value Fund

For the Year Ended February 28, 2010

		($)
Investment Income	Dividends		72,354,507
	Interest		405,125
	Foreign taxes withheld		(34,214	)
	Total Investment Income		72,725,418
Expenses	Investment advisory fee		20,846,297
	Administration fee		6,437,740
	Distribution fee:
	Class B		555,246
	Class C		1,337,147
	Class R		1,054,475
	Service fee:
	Class B		183,887
	Class C		443,036
	Distribution and service fees:
	Class A		3,275,124
	Pricing and bookkeeping fees		141,991
	Transfer agent fee:
	Class A, Class B, Class C, Class R and Class Z		6,514,832
	Class Y (a)		24
	Trustees' fees		41,065
	Custody fee		91,112
	Chief compliance officer expenses		2,217
	Other expenses		1,662,053
	Total Expenses		42,586,246
	Expense reductions		(130	)
	Net Expenses		42,586,116
	Net Investment Income		30,139,302
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency	Net realized gain (loss) on:
	Investments		(299,154,368	)
	Foreign currency transactions		6,760
	Net realized loss		(299,147,608	)
	Net change in unrealized appreciation (depreciation) on investments		2,039,005,188
	Net Gain		1,739,857,580
	Net Increase Resulting from Operations		1,769,996,882

(a) Class Y commenced operations on July 15, 2009.

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets – Columbia Mid Cap Value Fund

Increase (Decrease) in Net Assets		Year Ended February 28, 2010 ($)			Year Ended February 28, 2009 ($)
Operations	Net investment income		30,139,302			41,960,085
	Net realized loss on investments and foreign currency transactions		(299,147,608	)		(603,360,021	)
	Net change in unrealized appreciation (depreciation) on investments		2,039,005,188			(1,841,821,869	)
	Net increase (decrease) resulting from operations		1,769,996,882			(2,403,221,805	)
Distributions to Shareholders	From net investment income:
	Class A		(9,486,273	)		(14,592,923	)
	Class B		(118,551	)		(342,482	)
	Class C		(283,569	)		(716,943	)
	Class R		(1,055,772	)		(1,302,697	)
	Class Y (a)		(1,968	)		—
	Class Z		(19,244,353	)		(24,983,415	)
	From return of capital:
	Class A		(1,179,530	)		(1,449,913	)
	Class B		(14,741	)		(124,768	)
	Class C		(35,259	)		(246,286	)
	Class R		(131,276	)		(118,045	)
	Class Y (a)		(245	)		—
	Class Z		(2,392,858	)		(1,910,378	)
	Total distributions to shareholders		(33,944,395	)		(45,787,850	)
	Net Capital Stock Transactions		(131,106,499	)		900,396,673
	Increase from regulatory settlements		44,425			—
	Total increase (decrease) in net assets		1,604,990,413			(1,548,612,982	)
Net Assets	Beginning of period		2,781,812,978			4,330,425,960
	End of period		4,386,803,391			2,781,812,978
	Overdistributed net investment income at end of period		(48,094	)		(48,094	)

(a) Class Y commenced operations on July 15, 2009.

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets (continued) – Columbia Mid Cap Value Fund

	Capital Stock Activity
	Year Ended February 28, 2010						Year Ended February 28, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		34,476,480			320,190,001			63,025,926			710,570,981
Distributions reinvested		1,021,407			9,544,277			1,381,260			13,959,126
Redemptions		(47,315,899	)		(451,182,983	)		(51,586,325	)		(543,348,700	)
Net increase (decrease)		(11,818,012	)		(121,448,705	)		12,820,861			181,181,407
Class B
Subscriptions		149,471			1,317,009			486,582			5,324,226
Distributions reinvested		13,472			120,734			49,269			424,638
Redemptions		(3,787,390	)		(35,177,085	)		(4,612,237	)		(49,295,036	)
Net decrease		(3,624,447	)		(33,739,342	)		(4,076,386	)		(43,546,172	)
Class C
Subscriptions		1,973,707			18,398,360			4,675,275			53,297,733
Distributions reinvested		26,638			240,612			80,247			692,328
Redemptions		(6,816,392	)		(63,647,129	)		(8,023,598	)		(84,629,721	)
Net decrease		(4,816,047	)		(45,008,157	)		(3,268,076	)		(30,639,660	)
Class R
Subscriptions		13,682,875			137,019,802			23,356,150			276,733,469
Distributions reinvested		123,314			1,166,143			149,023			1,389,675
Redemptions		(10,264,977	)		(99,055,533	)		(5,880,050	)		(57,901,376	)
Net increase		3,541,212			39,130,412			17,625,123			220,221,768
Class Y (a)
Subscriptions		207,937			1,954,982			—			—
Distributions reinvested		7			77			—			—
Redemptions		(206,808	)		(2,047,085	)		—			—
Net increase (decrease)		1,136			(92,026	)		—			—
Class Z
Subscriptions		73,875,293			704,601,659			103,345,236			1,106,675,936
Distributions reinvested		1,549,920			14,489,725			1,705,562			17,485,955
Redemptions		(71,601,663	)		(689,040,065	)		(53,426,936	)		(550,982,561	)
Net increase		3,823,550			30,051,319			51,623,862			573,179,330

(a) Class Y commenced operations on July 15, 2009.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Mid Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class A Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	6.87		$	13.12		$	15.21		$	15.01		$	14.02		$	12.77
Income from Investment Operations:
Net investment income (c)		0.07			0.11			0.13			0.10			0.11			0.13
Net realized and unrealized gain (loss) on investments, foreign currency and written options		4.32			(6.25	)		(1.19	)		1.67			2.47			2.23	(d)
Total from investment operations		4.39			(6.14	)		(1.06	)		1.77			2.58			2.36
Less Distributions to Shareholders:
From net investment income		(0.07	)		(0.10	)		(0.16	)		(0.06	)		(0.07	)		(0.12	)
From net realized gains		—			—			(0.87	)		(1.51	)		(1.52	)		(1.00	)
From return of capital		(0.01	)		(0.01	)		—			—			—			—
Total distributions to shareholders		(0.08	)		(0.11	)		(1.03	)		(1.57	)		(1.59	)		(1.12	)
Increase due to capital contributions		—			—			—			—			—			0.01
Increase from regulatory settlements		—	(e)		—			—			—			—			—
Net Asset Value, End of Period	$	11.18		$	6.87		$	13.12		$	15.21		$	15.01		$	14.02
Total return (f)		64.09	%		(47.05	)%		(7.88	)%		13.09	%(g)		20.24	%		19.90	%(h)
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (i)		1.17	%		1.17	%		1.10	%		1.12	%(j)		1.08	%		1.20	%
Interest expense		—			—			—			—			—			—	%(k)
Net expenses (i)		1.17	%		1.17	%		1.10	%		1.12	%(j)		1.08	%		1.20	%
Net investment income (i)		0.71	%		0.97	%		0.83	%		0.76	%(j)		0.80	%		0.99	%
Portfolio turnover rate		56	%		46	%		24	%		53	%(g)		41	%		61	%
Net assets, end of period (000s)	$	1,441,388		$	966,440		$	1,677,414		$	1,296,803		$	874,429		$	10,258

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor A shares were renamed Class A shares.

(d) The effect of the investment advisor's reimbursement for the Fund exceeding certain investment restrictions is included in the net realized and unrealized gain (loss) on investments (per share). The effect of this reimbursement was to increase net realized and unrealized gain (loss) on investments by $0.01.

(e) Rounds to less than $0.01 per share.

(f) Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(g) Not annualized.

(h) Without the effect of the investment advisor's reimbursement for the Fund exceeding certain investment restrictions, total return would have been 19.81%.

(i) The benefits derived from expense reductions had an impact of less than 0.01%.

(j) Annualized.

(k) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Mid Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class B Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	6.73		$	12.86		$	14.94		$	14.80		$	13.89		$	12.70
Income from Investment Operations:
Net investment income (c)		—	(d)		0.02			0.03			—	(d)		0.01			0.03
Net realized and unrealized gain (loss) on investments, foreign currency and written options		4.23			(6.11	)		(1.19	)		1.65			2.43			2.20	(e)
Total from investment operations		4.23			(6.09	)		(1.16	)		1.65			2.44			2.23
Less Distributions to Shareholders:
From net investment income		(0.02	)		(0.03	)		(0.05	)		—	(d)		(0.01	)		(0.05	)
From net realized gains		—			—			(0.87	)		(1.51	)		(1.52	)		(1.00	)
From return of capital		—	(d)		(0.01	)		—			—			—			—
Total distributions to shareholders		(0.02	)		(0.04	)		(0.92	)		(1.51	)		(1.53	)		(1.05	)
Increase due to capital contribution		—			—			—			—			—			0.01
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	10.94		$	6.73		$	12.86		$	14.94		$	14.80		$	13.89
Total return (f)		62.86	%		(47.41	)%		(8.61	)%		12.36	%(g)		19.32	%		18.91	%(h)
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (i)		1.92	%		1.92	%		1.85	%		1.87	%(j)		1.84	%		1.95	%
Interest expense		—			—			—			—			—			—	%(k)
Net expenses (i)		1.92	%		1.92	%		1.85	%		1.87	%(j)		1.84	%		1.95	%
Net investment income (loss) (i)		(0.01	)%		0.18	%		0.18	%		(0.02	)%(j)		0.05	%		0.24	%
Portfolio turnover rate		56	%		46	%		24	%		53	%(g)		41	%		61	%
Net assets, end of period (000s)	$	68,110		$	66,254		$	179,087		$	255,123		$	312,587		$	4,447

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor B shares were renamed Class B shares.

(d) Rounds to less than $0.01 per share.

(e) The effect of the investment advisor's reimbursement for the Fund exceeding certain investment restrictions is included in the net realized and unrealized gain (loss) on investments (per share). The effect of this reimbursement was to increase net realized and unrealized gain (loss) on investments by $0.01.

(f) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(g) Not annualized.

(h) Without the effect of the investment advisor's reimbursement for the Fund exceeding certain investment restrictions, total return would have been 18.82%.

(i) The benefits derived from expense reductions had an impact of less than 0.01%.

(j) Annualized.

(k) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Mid Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class C Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	6.75		$	12.90		$	14.99		$	14.84		$	13.93		$	12.73
Income from Investment Operations:
Net investment income (c)		—	(d)		0.02			0.01			—	(d)		0.01			0.05
Net realized and unrealized gain (loss) on investments, foreign currency and written options		4.25			(6.13	)		(1.18	)		1.66			2.43			2.19	(e)
Total from investment operations		4.25			(6.11	)		(1.17	)		1.66			2.44			2.24
Less Distributions to Shareholders:
From net investment income		(0.02	)		(0.03	)		(0.05	)		—	(d)		(0.01	)		(0.05	)
From net realized gains		—			—			(0.87	)		(1.51	)		(1.52	)		(1.00	)
From return of capital		—	(d)		(0.01	)		—			—			—			—
Total distributions to shareholders		(0.02	)		(0.04	)		(0.92	)		(1.51	)		(1.53	)		(1.05	)
Increase due to capital contributions		—			—			—			—			—			0.01
Increase from regulatory settlements		—	(d)		—			—			—			—			—
Net Asset Value, End of Period	$	10.98		$	6.75		$	12.90		$	14.99		$	14.84		$	13.93
Total return (f)		62.97	%		(47.42	)%		(8.65	)%		12.40	%(g)		19.25	%		18.97	%(h)
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (i)		1.92	%		1.92	%		1.85	%		1.87	%(j)		1.84	%		1.95	%
Interest expense		—			—			—			—			—			—	%(k)
Net expenses (i)		1.92	%		1.92	%		1.85	%		1.87	%(j)		1.84	%		1.95	%
Net investment income (loss) (i)		(0.03	)%		0.19	%		0.07	%		0.03	%(j)		0.05	%		0.36	%
Portfolio turnover rate		56	%		46	%		24	%		53	%(g)		41	%		61	%
Net assets, end of period (000s)	$	181,941		$	144,370		$	318,190		$	249,067		$	123,789		$	944

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Investor C shares were renamed Class C shares.

(d) Rounds to less than $0.01 per share.

(f) Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(g) Not annualized.

(h) Without the effect of the investment advisor's reimbursement for the Fund exceeding certain investment restrictions, total return would have been 18.88%.

(i) The benefits derived from expense reductions had an impact of less than 0.01%.

(j) Annualized.

(k) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Mid Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Period Ended March 31,
Class R Shares	2010			2009			2008			2007 (a)			2006 (b)
Net Asset Value, Beginning of Period	$	6.87		$	13.11		$	15.21		$	15.01		$	14.25
Income from Investment Operations:
Net investment income (c)		0.04			0.09			0.05			0.08			0.01
Net realized and unrealized gain (loss) on investments, foreign currency and written options		4.33			(6.24	)		(1.16	)		1.66			0.75
Total from investment operations		4.37			(6.15	)		(1.11	)		1.74			0.76
Less Distributions to Shareholders:
From net investment income		(0.05	)		(0.08	)		(0.12	)		(0.03	)		—	(d)
From net realized gains		—			—			(0.87	)		(1.51	)		—
From return of capital		(0.01	)		(0.01	)		—			—			—
Total distributions to shareholders		(0.06	)		(0.09	)		(0.99	)		(1.54	)		—	(d)
Increase from regulatory settlements		—	(d)		—			—			—			—
Net Asset Value, End of Period	$	11.18		$	6.87		$	13.11		$	15.21		$	15.01
Total return (e)		63.69	%		(47.13	)%		(8.17	)%		12.86	%(f)		5.36	%(f)
Ratios to Average Net Assets/ Supplemental Data:
Net expenses (g)		1.42	%		1.42	%		1.35	%		1.37	%(h)		1.44	%(h)
Net investment income (g)		0.44	%		0.94	%		0.35	%		0.61	%(h)		0.44	%(h)
Portfolio turnover rate		56	%		46	%		24	%		53	%(f)		41	%(f)
Net assets, end of period (000s)	$	276,046		$	145,227		$	46,252		$	7,337		$	10

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) The Fund's Class R shares commenced operations on January 23, 2006. Per share data and total return reflect activity from that date.

(d) Rounds to less than $0.01 per share.

(e) Total return at net asset value assuming all distributions reinvested.

(f) Not annualized.

(g) The benefits derived from expense reductions had an impact of less than 0.01%.

(h) Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Mid Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

Class Y Shares	Period Ended February 28, 2010 (a)
Net Asset Value, Beginning of Period	$	8.86
Income from Investment Operations:
Net investment income (b)		0.08
Net realized and unrealized gain on investments and foreign currency		2.31
Total from investment operations		2.39
Less Distributions to Shareholders:
From net investment income		(0.06	)
From return of capital		(0.01	)
Total distributions to shareholders		(0.07	)
Increase from regulatory settlements		—	(c)
Net Asset Value, End of Period	$	11.18
Total return (d)		27.00	%(e)
Ratios to Average Net Assets/Supplemental Data:
Net expenses (f)		0.76	%(g)
Net investment income (f)		1.28	%(g)
Portfolio turnover rate		56	%(e)
Net assets, end of period (000s)	$	13

(a) Class Y shares commenced operations on July 15, 2009. Per share data and total return reflect activity from that date.

(b) Per share data was calculated using the average shares outstanding during the period.

(d) Total return at net asset value assuming all distributions reinvested.

(e) Not annualized.

(f) The benefits derived from expense reductions had an impact of less than 0.01%.

(g) Annualized.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Mid Cap Value Fund

Selected data for a share outstanding throughout each period is as follows:

	Year Ended February 28,						Year Ended February 29,			Period Ended February 28,			Year Ended March 31,
Class Z Shares	2010			2009			2008			2007 (a)			2006 (b)			2005
Net Asset Value, Beginning of Period	$	6.88		$	13.13		$	15.23		$	15.03		$	14.04		$	12.79
Income from Investment Operations:
Net investment income (c)		0.09			0.14			0.17			0.13			0.13			0.16
Net realized and unrealized gain (loss) on investments, foreign currency and written options		4.33			(6.25	)		(1.21	)		1.68			2.49			2.23	(d)
Total from investment operations		4.42			(6.11	)		(1.04	)		1.81			2.62			2.39
Less Distributions to Shareholders:
From net investment income		(0.09	)		(0.13	)		(0.19	)		(0.10	)		(0.11	)		(0.15	)
From net realized gains		—			—			(0.87	)		(1.51	)		(1.52	)		(1.00	)
From return of capital		(0.01	)		(0.01	)		—			—			—			—
Total distributions to shareholders		(0.10	)		(0.14	)		(1.06	)		(1.61	)		(1.63	)		(1.15	)
Increase due to capital contributions		—			—			—			—			—			0.01
Increase from regulatory settlements		—	(e)		—			—			—			—			—
Net Asset Value, End of Period	$	11.20		$	6.88		$	13.13		$	15.23		$	15.03		$	14.04
Total return (f)		64.55	%		(46.87	)%		(7.70	)%		13.36	%(g)		20.49	%		20.16	%(h)
Ratios to Average Net Assets/ Supplemental Data:
Net expenses before interest expense (i)		0.92	%		0.92	%		0.85	%		0.87	%(j)		0.84	%		0.95	%
Interest expense		—			—			—			—			—			—	%(k)
Net expenses (i)		0.92	%		0.92	%		0.85	%		0.87	%(j)		0.84	%		0.95	%
Net investment income (i)		0.95	%		1.23	%		1.10	%		1.00	%(j)		0.94	%		1.24	%
Portfolio turnover rate		56	%		46	%		24	%		53	%(g)		41	%		61	%
Net assets, end of period (000s)	$	2,419,305		$	1,459,522		$	2,109,483		$	1,758,133		$	1,415,664		$	591,318

(a) The Fund changed its fiscal year end from March 31 to February 28. Per share data and total return reflect activity from April 1, 2006 through February 28, 2007.

(b) On August 22, 2005, the Fund's Primary A shares were renamed Class Z shares.

(e) Rounds to less than $0.01 per share.

(f) Total return at net asset value assuming all distributions reinvested.

(g) Not annualized.

(h) Without the effect of the investment advisor's reimbursement for the Fund exceeding certain investment restrictions, total return would have been 20.07%.

(i) The benefits derived from expense reductions had an impact of less than 0.01%.

(j) Annualized.

(k) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Columbia Mid Cap Value Fund
February 28, 2010

Note 1. Organization

Columbia Mid Cap Value Fund (the "Fund"), a series of Columbia Funds Series Trust (the "Trust"), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Delaware statutory trust.

Investment Objective

The Fund seeks long-term capital appreciation.

Fund Shares

Class A shares are subject to a maximum front-end sales charge of 5.75% based on the amount of initial investment. 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 one year after purchase. Class B shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will convert to Class A shares eight years after purchase. Class C shares are subject to a 1.00% CDSC on shares sold within one year after purchase. Class R, Class Y and Class Z shares are offered continuously at net asset value. There are certain restrictions on the purchase of Class R, Class Y and Class Z shares, as described in the Fund's prospectuses.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.

Security Valuation

Short-term investments maturing in 60 days or less are valued at amortized cost, which approximates market value.

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others)

Columbia Mid Cap Value Fund, February 28, 2010

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Security Transactions

Repurchase Agreements

Income Recognition

Interest income is recorded on the accrual basis. Premium and discount are amortized and accreted, respectively, on all debt securities, unless otherwise noted.

Corporate actions and dividend income are recorded on the ex-date.

Expenses

Determination of Class Net Asset Value

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, if any, for its tax year, and as such will 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 provision is made for federal income or excise taxes.

Distributions to Shareholders

Columbia Mid Cap Value Fund, February 28, 2010

Indemnification

Note 3. Federal Tax Information

For the year ended February 28, 2010, permanent book and tax basis differences resulting primarily from differing treatments for foreign currency transactions and proceeds received from litigation settlements were identified and reclassified among the components of the Fund's net assets as follows:

Undistributed Net Investment Income				Accumulated Net Realized Loss				Paid-In Capital
$	51,184			$	(6,761	)		$	(44,423	)

Net investment income and net realized gains (losses), as disclosed on the Statement of Operations, and net assets were not affected by this reclassification.

The tax character of distributions paid during the years ended February 28, 2010 and February 28, 2009 was as follows:

	February 28, 2010		February 28, 2009
Distributions paid from:
Ordinary Income*	$	30,190,486	$	41,938,460
Tax Return of Capital		3,753,909		3,849,390

* For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of February 28, 2010, the components of distributable earnings on a tax basis were as follows:

Undistributed Ordinary Income				Undistributed Long-Term Capital Gains				Net Unrealized Appreciation*
$	—			$	—			$	411,916,010

* The differences between book-basis and tax-basis net unrealized appreciation are primarily due to deferral of losses from wash sales.

Unrealized appreciation and depreciation at February 28, 2010, based on cost of investments for federal income tax purposes were:

Unrealized appreciation	$	710,430,792
Unrealized depreciation		(298,514,782	)
Net unrealized appreciation	$	411,916,010

The following capital loss carryforwards may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

Year of Expiration	Capital Loss Carryforwards
2017	$	311,073,387
2018		602,735,614
	$	913,809,001

Columbia Mid Cap Value Fund, February 28, 2010

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of February 28, 2010, post-October capital losses of $67,145,441 attributed to security transactions were deferred to March 1, 2010.

Note 4. Fees and Compensation Paid to Affiliates

Investment Advisory Fee

Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides investment advisory services to the Fund. Columbia receives a monthly investment advisory fee based on the Fund's average daily net assets at the following annual rates:

Average Daily Net Assets	Annual Fee Rate
First $500 million		0.65	%
$500 million to $1 billion		0.60	%
$1 billion to $1.5 billion		0.55	%
Over $1.5 billion		0.50	%

For the year ended February 28, 2010, the Fund's effective investment advisory fee rate was 0.54% of the Fund's average daily net assets.

Administration Fee

The New Advisor will become the administrator of the Fund under a new administrative services agreement effective upon the Closing.

Pricing and Bookkeeping Fees

Columbia Mid Cap Value Fund, February 28, 2010

Street an annual fee of $38,000 paid monthly plus an additional monthly fee based on an annualized percentage rate of average daily net assets of the Fund for the month. The aggregate fee will not exceed $140,000 per year (exclusive of out-of-pocket expenses and charges). The Fund also reimburses State Street for certain out-of-pocket expenses and charges.

Among other updates to the State Street Agreements, Columbia will assign and delegate its rights and obligations thereunder to the New Advisor upon the Closing.

The Services Agreement will be terminated upon the Closing, and the services provided thereunder will be covered under the administrative services agreement with the New Advisor.

Transfer Agent Fee

(i) Effective January 1, 2010, an annual rate of $22.36 is applied to the aggregate number of accounts for the Other Share Classes. Prior to January 1, 2010, the annual rate was $17.34 per account.

The aggregate fee is allocated to the Other Share Classes based on the relative average daily net assets of each share class.

Class Y shares of the Fund pay a monthly service fee based on the following:

(i) Effective January 1, 2010, an annual rate of $22.36 is applied to the aggregate number of accounts for Class Y shares. Prior to January 1, 2010, the annual rate was $17.34 per account.

Columbia Mid Cap Value Fund, February 28, 2010

Underwriting Discounts, Service and Distribution Fees

Columbia Management Distributors, Inc. (the "Distributor"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, is the principal underwriter of the Fund's shares. For the year ended February 28, 2010, the Distributor has retained net underwriting discounts of $41,302 on sales of the Fund's Class A shares and received net CDSC fees of $4,326, $88,854 and $20,739 on Class A, Class B and Class C share redemptions, respectively.

The Trust has adopted shareholder servicing plans and distribution plans for the Class B and Class C shares of the Fund and a combined distribution and shareholder servicing plan for the Class A shares of the Fund. The Trust has also adopted a distribution plan for the Class R shares of the Fund. The shareholder servicing plans permit the Fund to compensate or reimburse servicing agents for the shareholder services they have provided. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940 Act, permit the Fund to compensate or reimburse the Distributor and/or selling agents for activities or expenses primarily intended to result in the sale of the classes' shares. Payments are made at an annual rate and paid monthly, as a percentage of average daily net assets, set from time to time by the Board of Trustees, and are charged as expenses of the Fund directly to the applicable share class. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of BOA and the Distributor.

The annual rates in effect and plan limits, as a percentage of average daily net assets are as follows:

	Current Rate			Plan Limit
Class A Combined Distribution and Shareholder Servicing Plan		0.25	%		0.25	%
Class B and Class C Shareholder Servicing Plans		0.25	%		0.25	%
Class B and Class C Distribution Plans		0.75	%		0.75	%
Class R Distribution Plan		0.50	%		0.50	%

Expense Limits and Fee Waivers

Effective May 1, 2009, Columbia has voluntarily agreed to reimburse a portion of the Fund's expenses so that the Fund's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any) after giving effect to any balance credits from the Fund's custodian, do not exceed the annual rate of 1.05% of the Fund's average daily net assets. Columbia, in its discretion, may revise or discontinue this arrangement at any time.

Fees Paid to Officers and Trustees

Columbia Mid Cap Value Fund, February 28, 2010

account is based on the rate of return of the eligible mutual funds selected by the participant or, if no funds are selected, on the rate of return of Columbia Treasury Reserves, another portfolio of the Trust. The expense for the deferred compensation plan, which includes trustees' fees deferred during the current period as well as any gains or losses on the trustees' deferred compensation balances as a result of market fluctuations, is included in "Trustees' fees" on the Statement of Operations. The liability for the deferred compensation plan is included in "Trustees' fees" on the Statement of Assets and Liabilities.

Other Related Party Transactions

In connection with the purchase and sale of its securities during the period, the Fund used one or more brokers that are affiliates of BOA. Total brokerage commissions paid to affiliated brokers for the year ended February 28, 2010 was $31,459.

Note 5. Custody Credits

For the year ended February 28, 2010, these custody credits reduced total expenses by $130 for the Fund.

Note 6. Portfolio Information

For the year ended February 28, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Fund were $2,091,800,617 and $2,192,413,446, respectively.

Note 7. Regulatory Settlements

During the year ended February 28, 2010, the Fund received payments totaling $44,425 relating to certain regulatory settlements with third parties that the Fund had participated in during the year. The payments have been included in "Increase from regulatory settlements" on the Statement of Changes in Net Assets.

Note 8. Line of Credit

For the year ended February 28, 2010, the Fund did not borrow under these arrangements.

Note 9. Securities Lending

Columbia Mid Cap Value Fund, February 28, 2010

For the year ended February 28, 2010, the Fund did not participate in the securities lending program.

Note 10. Shares of Beneficial Interest

As of February 28, 2010, 18.2% of the Fund's shares outstanding were beneficially owned by two participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion.

As of February 28, 2010, the Fund had two shareholders that held 11.4% of the shares outstanding, over which BOA and/or any of its affiliates did not have investment discretion.

As of February 28, 2010, no other shareholders owned more than 5% of the outstanding shares of the Fund.

Subscription and redemption activity of these accounts may have a significant effect on the operations of the Fund.

Note 11. Significant Risks and Contingencies

Legal Proceedings

Civil Litigation

Columbia Mid Cap Value Fund, February 28, 2010

Note 12. Subsequent Events

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Series Trust and the Shareholders of Columbia Mid Cap Value Fund

In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Mid Cap Value Fund (the "Fund") (a series of Columbia Funds Series Trust) at February 28, 2010, the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
April 21, 2010

Federal Income Tax Information (Unaudited) – Columbia Mid Cap Value Fund

100.00% of the ordinary income distributed by the Fund for the fiscal year ended February 28, 2010, qualifies for the corporate dividends received deduction.

The Fund will notify shareholders in January 2011 of amounts for use in preparing 2010 income tax returns.

Fund Governance

Independent Trustees

Name, Address and Age, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Edward J. Boudreau (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 64; no other directorships held.

William P. Carmichael (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired. Oversees 64; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—Simmons Company (bedding); Director—The Finish Line (sportswear).

William A. Hawkins (Born 1942)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				President and Chief Executive Officer—California General Bank, N.A., from January 2008 through current; oversees 64; no other directorships held.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Chairman and Chief Executive Officer—Hilliard Group LLC (investing and consulting), from April 2003 through current; Non-Executive Director & Chairman—Conseco, Inc. (insurance), September 2003 through current; Executive Chairman—Conseco, Inc. (insurance), August 2004 through September 2005; oversees 64; Director—Conseco, Inc. (insurance).

John J. Nagorniak (Born 1944)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)`				Retired. President and Director—Foxstone Financial, Inc. (consulting), 2000 through December 2007; Director—Mellon Financial Corporation affiliates (investing), 2000 through 2007; Chairman—Franklin Portfolio Associates (investing—Mellon affiliate), 1982 through 2007; oversees 64; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee and Chairman—Research Foundation of CFA Institute.

Fund Governance (continued)

Independent Trustees (continued)

Name, Address and Age, Position with Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years, Number of Funds in the Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Minor M. Shaw (Born 1947)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 64; Board Member—Piedmont Natural Gas.

Interested Trustee

Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 1972 through current; Senior Advisor—McKinsey & Company (consulting), July 2006 through January 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, July 2000 through April 2006; oversees 64; Director—Renaissance Reinsurance Ltd; Trustee—Penn Mutual Life Insurance Company; Director—Citigroup

¹The Columbia Funds currently treat Mr. Santomero as an "interested person" (as defined in the 1940 Act) of the Funds because he serves as a Director of Citigroup, Inc. and Citibank, N.A. Citigroup, Inc., through its subsidiaries and affiliates, including Citibank, N.A., may engage from time-to-time in brokerage execution, principal transactions and/or lending relationships with the Columbia Funds or other funds or accounts advised/managed by the Advisor and/or any sub-advisor.

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-345-6611.

Fund Governance (continued)

Officers

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Managing Director of Columbia Management Advisors, LLC since December 2004; Senior Vice President and Chief Financial Officer—Columbia Funds, from June 2008 to January 2009; Treasurer—Columbia Funds, from October 2003 to May 2008; Treasurer—the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000—December 2006; Senior Vice President—Columbia Management Advisors, LLC, from April 2003 to December 2004; President—Columbia Funds, Liberty Funds and Stein Roe Funds, February 2004 to October 2004; Treasurer—Galaxy Funds, September 2002 to December 2005; Treasurer, December 2002 to December 2004, and President, February 2004 to December 2004—Columbia Management Multi-Strategy Hedge Fund, LLC; and a senior officer of various other Bank of America-affiliated entities, including other registered and unregistered funds

James R. Bordewick, Jr. (Born 1959)

One Financial Center Boston, MA 02111 Senior Vice President, Secretary and Chief Legal Officer (since 2006)				Associate General Counsel, Bank of America since April 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April 2005.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Director (Columbia Management Group LLC and Investment Product Group Compliance), Bank of America since June 2005; Director of Corporate Compliance and Conflicts Officer, MFS Investment Management (investment management), August 2004 to May 2005; Managing Director, Deutsche Asset Management (investment management) prior to August 2004.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Director of Fund Administration of the Advisor since January 2006; Managing Director of the Advisor September 2004 to December 2005; Vice President Fund Administration June 2002 to September 2004.

Jeffrey R. Coleman (Born 1969)

One Financial Center Boston, MA 02111 Treasurer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Fund Controller of the Advisor from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August 2000 to September 2004.

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Chief Accounting Officer (since 2008)				Director of Fund Administration of the Advisor since January 2006; Head of Tax/Compliance and Assistant Treasurer of the Advisor from November 2004 to December 2005; Director of Trustee Administration (Sarbanes-Oxley) of the Advisor from May 2003 to October 2004.

Fund Governance (continued)

Officers (continued)

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office				Principal Occupation(s) During Past Five Years
Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Senior Tax Manager of the Advisor since August 2006; Senior Compliance Manager of the Advisor from April 2002 to August 2006.

Barry S. Vallan (Born 1969)

One Financial Center Boston, MA 02111 Controller (since 2006)				Vice President—Fund Treasury of the Advisor since October 2004; Vice President—Trustee Reporting of the Advisor from April 2002 to October 2004.

Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 1996)				President, Columbia Management Services, Inc. since July 2004; Senior Vice President and Controller, Columbia Management Services, Inc. prior to July 2004.

Board Consideration and Re-Approval of Current Investment Advisory Agreement

The Board of Trustees of Columbia Funds Series Trust (the "Board"), including a majority of the Trustees who have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not "interested persons" of the Trust, as defined in the Investment Company Act of 1940 (the "1940 Act") (the "Independent Trustees"), are required annually to review and re-approve the existing investment advisory and sub-advisory agreements and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six months covered by this report, (i) investment advisory agreements with Columbia Management Advisors, LLC ("CMA" or the "Adviser") for Columbia Convertible Securities Fund, Columbia Large Cap Value Fund, Columbia Mid Cap Value Fund, Columbia Small Cap Value Fund II, Columbia Marsico Growth Fund, Columbia Large Cap Core Fund, Columbia Marsico Focused Equities Fund, Columbia Marsico 21^st Century Fund and Columbia Small Cap Growth Fund II; and (ii) investment sub-advisory agreements with Marsico Capital Management, LLC ("Marsico Capital" or the "Sub-Adviser") for Columbia Marsico Focused Equities Fund, Columbia Marsico 21^st Century Fund and Columbia Marsico Growth Fund (the "Sub-Advised Funds"). The investment advisory agreements with CMA and the investment sub-advisory agreements with Marsico Capital are each referred to as an "Advisory Agreement" and collectively referred to as the "Advisory Agreements." The funds identified above are each referred to as a "Fund" and collectively referred to as the "Funds."

More specifically, at meetings held on November 5-6, 2009, the Board, including the Independent Trustees advised by their independent legal counsel, considered the factors and reached the conclusions described below relating to the selection of CMA and the Sub-Adviser and the re-approval of the Advisory Agreements. The Board also reviewed and considered a report prepared and provided by the Independent Fee Consultant (the "Fee Consultant") appointed by the Independent Trustees pursuant to an assurance of discontinuance entered into with the New York Attorney General ("NYAG") to settle a civil complaint filed by the NYAG relating to trading in mutual fund shares (the "NYAG Settlement"). The Fee Consultant's role was to manage the process by which management fees are negotiated so that they were negotiated in a manner that is at arms' length and reasonable. Th e Fee Consultant found that the fee negotiation process was, to the extent practicable, at arms' length and reasonable and consistent with the requirements of the NYAG Settlement. A summary of the Fee Consultant's report is available at http://www.columbiafunds.com.

In this regard, the Board considered information regarding the nature of CMA's compensation structure applicable to portfolio managers and other key investment personnel.

The Board reviewed and considered statistical information regarding each Fund's total expense ratio and its various components, including contractual advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The Board also reviewed comparisons of these fees to the expense information for the group of Funds determined by Lipper Inc. ("Lipper") to be most similar to a given Fund (the "Peer Group") and to the performance of a broader universe of relevant funds as determined by Lipper (the "Universe"), which comparative data was provided by Lipper, an independent provider of investment company data. The Board was provided with a description of the methodology used by Lipper to select the mutual funds in each Fund's Peer Group and Universe and considered potential i mprecision resulting from the selection methodology. For certain Funds, Lipper determined that the composition of the Peer Group and/or Universe for expenses would differ from the composition for performance to provide a more accurate basis of comparison. The Board also considered Lipper data that ranked each Fund based on: (i) each Fund's one- and three-year performance compared to actual management fees; and (ii) each Fund's one- and three-year performance compared to total expenses.

The Board concluded that the factors noted above supported the Contractual Management Rates and the Actual Management Rates, and the approval of the Advisory Agreements for all of the Funds.

Committees review reports of CMA and the Sub-Adviser at each of its quarterly meetings, which include, among other things, Fund performance reports and presentations relating to such reports. In addition, the Board and its Committees confer with portfolio managers at various times throughout the year including, most particularly, at the June Investment Committee meeting.

The Board engaged in further review of Columbia Mid Cap Value Fund because its Actual Management Rate was above the median range of its Peer Group and its one-year performance ranking was below the median range of its Universe. However, the Board noted other factors such as a total expense ratio that was appreciably below the Fund's Peer Group and Universe and strong performance over other periods. Taking into account these matters and other factors considered, the Board concluded that the Fund's performance and Actual Management Rate were acceptable.