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)

50606 Ameriprise Financial Center, Minneapolis, Minnesota					55474
(Address of principal executive offices)					(Zip code)

Scott R. Plummer 5228 Ameriprise Financial Center One Financial Center Minneapolis, MN 55474
(Name and address of agent for service)

Registrant’s telephone number, including area code:				1-612-671-1947

Date of fiscal year end:	March 31

Date of reporting period:		March 31, 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

March 31, 2010

Columbia Asset Allocation Fund II

Not FDIC Insured ⁿ May Lose Value ⁿ 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					8

Report of Independent Registered Public Accounting Firm					38

Federal Income Tax Information					39

Fund Governance					40

Board Consideration and Re-Approval of Previous Investment Advisory Agreement					44

Board Consideration and Approval of New Investment Advisory Agreement					47

Summary of Management Fee Evaluation by Independent Fee Consultant (Columbia Management Advisors, LLC)					54

Summary of Management Fee Evaluation by Independent Fee Consultant (RiverSource Investments, LLC)					60

Proxy Voting Results					62

Important Information About This Report					65

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:

On May 3, 2010, Ameriprise Financial, Inc. announced that it had completed the acquisition of the long-term asset management business of Columbia Management from Bank of America. This includes the business of managing its equity and fixed-income mutual funds. Ameriprise Financial has combined its current U.S. asset management business, RiverSource Investments, LLC, with Columbia Management. This transaction puts together two leading asset management firms to create one entity that ranks as the eighth largest manager of long-term mutual fund assets in the United States.¹ This combined business will operate under the well-regarded Columbia Management brand, where we will build on the strengths of our combined investment capabilities and talent, our broad and diversified product lineup and exceptional service.

Our combined business has a new breadth and depth of investment choices. William "Ted" Truscott, CEO, U.S. asset management and president of annuities for Ameriprise Financial, leads the combined U.S. asset management business. Michael Jones serves as president, U.S. asset management. Colin Moore continues to serve as chief investment officer. I am also continuing in my role as head of mutual funds, responsible for the delivery of mutual fund products and services to investors. The Columbia funds' advisers, distributor and transfer agent are now subsidiaries of our parent company, Ameriprise Financial but operate under the Columbia Management name. You will begin to see these names used in communications and statements going forward.

				Service provider name
Advisers				Columbia Management Investment Advisers, LLC Columbia Wanger Asset Management, LLC

Distributor				Columbia Management Investment Distributors, Inc.

Transfer Agent				Columbia Management Investment Services Corp.

As a valued investor in Columbia funds, please know that our goal is to ensure a smooth transition and provide the highest quality products and services. Transition teams across the organization continue their efforts to build on best practices from both legacy organizations with integration efforts including rebranding, vendor and system consolidations and client communications. Additionally, we want to assure you that the funds' portfolio managers also continue to focus on providing uninterrupted service to all fund shareholders.

Although we have a lot of work ahead of us in 2010, Columbia Management and Ameriprise Financial are excited about the opportunities for our combined organization. I share this optimism and believe it positions us as a best-in-class asset management business with the ability to deliver more for our clients than ever before.

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

¹Source: Ameriprise Financial, Inc., based on March 31, 2010 data from the Investment Company Institute

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about the funds, visit columbiamanagement.com. Read the prospectus carefully before investing.

Securities products offered through Columbia Management Investment Distributors, Inc. (formerly known as RiverSource Fund Distributors, Inc.), member FINRA. Advisory services provided by Columbia Management Investment Advisers, LLC (formerly known as RiverSource Investments, LLC).

Fund Profile – Columbia Asset Allocation Fund II

Summary

^g For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 35.54% without sales charge.

^g The fund's equity portfolio performed in line with its benchmark, the Russell 1000 Index¹, which returned 51.60%. The fund's fixed-income portfolio beat its benchmark, the Barclays Capital Aggregate Bond Index², which returned 7.69%. The average return for funds in the peer group, the Lipper Mixed-Asset Target Allocation Growth Classification³, was 40.02%.

^g Stock selection drove positive performance on the equity side of the fund, while sector allocations aided fixed-income results. We believe some untimely sales and a focus on higher-quality stocks hindered performance versus the peer group.

Portfolio Management

Anwiti Bahuguna, PhD, has co-managed the fund since 2009 and has been associated with the advisor or its predecessors since 2002.

Colin Moore has co-managed the fund since 2009 and has been associated with the advisor or its predecessors since 2002.

Kent M. Peterson, PhD has co-managed the fund since 2009 and has been associated with the advisor or its predecessors since 2006.

Marie M. Schofield has co-managed the fund since 2009 and has been associated with the advisor or its predecessors since 1990.

Effective May 1, 2010, David Joy will also co-manage the fund.

Effective May 1, 2010, RiverSource Investments, LLC, a subsidiary of Ameriprise Financial, Inc., became the investment advisor to the fund and changed its name to Columbia Management Investment Advisers, LLC. Please see the fund's prospectus, as supplemented, for more information regarding the change in investment advisor and certain other changes.

The recent growth in the stock market has helped to produce short-term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.

¹The Russell 1000 Index tracks the performance of 1000 of the largest U.S. companies, based on market capitalization.

²The 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.

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 03/31/10

				+35.54%

				Class A shares (without sales charge)

				+51.60%

				Russell 1000 Index

				+7.69%

				Barclays Capital Aggregate Bond Index

Economic Update – Columbia Asset Allocation Fund II

Summary

For the 12-month period that ended March 31, 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 outperformed stocks, as measured by the BofA Merrill Lynch U.S. High Yield Cash Pay Index.

Barclays Aggregate Index				BofA ML 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 a slowdown in inventory reduction and federal government stimulus spending. Hopes for a sustained recovery now depend on a variety of factors, including continued improvement 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 stabilizing, but stopped short of meaningful improvement during the period. Home sales moved higher in 2009 as new homebuyers took advantage of a federal tax credit. However, as the tax credit was set to expire in November 2009, sales slipped—and did not revive even though the tax credit was expanded and extended through April 2010. Housing prices remained relatively flat over the past year, but that was progress compared to 2008. The average home price fell sharply in 2008; and since then distressed properties, which account for approximately 40% of all housing sales, have held prices down because they are heavily discounted.

In the beleaguered labor market, there was some good news. While businesses continued to shed jobs through most of 2009, raising the unemployment rate at the end of the period,* job data turned positive in March 2010, buoyed by a swell of temporary workers hired to conduct the national once-in-a-decade census. Consumer spending also trended higher in the second half of the period. In fact, March year-over-year sales made a significant jump upward. Despite these improvements, consumer confidence, as measured monthly by The Conference Board, an independent research organization, failed to gain much ground during the year. Consumers surveyed continue to cite uncertain business conditions and still-weak labor prospects for their concerns.

On the business side of the economy, manufacturing activity gained momentum. A key measure of the nation's manufacturing situation—the Institute for Supply Management's Index—rose above 50 in July 2009 then rose for eight consecutive months to remain well above 50 for the remainder of the period. (An index value of 50+ indicates a growing economy.) Industrial production moved higher for eleven out of the past 12 months, and durable goods orders took off, with a big jump upward in January. Manufacturing capacity utilization inched upward to 72.7%.

Stocks staged a solid comeback

*Source: U.S. Bureau of Labor Statistics

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

Economic Update (continued) – Columbia Asset Allocation Fund II

Russell indices.² Outside the United States, stock market returns were slightly stronger. The MSCI EAFE Index,³ a broad gauge of stock market performance in foreign developed markets, gained 54.44% (net of dividends, in U.S. dollars) for the period. Emerging stock markets were caught in a downdraft in 2008, but they bounced back stronger than domestic or developed world markets as their economic growth generally outpaced the developed world. The MSCI Emerging Markets Index⁴ returned 81.08% (net of dividends, in U.S. dollars) for the 12-month period, after giving back some gains in the first quarter of 2010.

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 7.69%. Municipal bonds gained more than 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 9.69%. The high-yield bond market was even stronger than the broad stock market during the period. For the 12 months covered by this report, the BofA Merrill Lynch U.S. High Yield Cash Pay Index⁷ returned 55.67%.

The yield on the 10-year U.S. Treasury, a common bellwether for the bond market, rose from 2.7% to 3.8% during the 12-month period. Yet despite the pickup in economic activity, the Federal Reserve Board (the Fed) kept a key short-term interest rate—the federal funds rate—close to zero throughout the period.

Past performance is no guarantee of future results.

²The Russell 1000 Index tracks the performance of 1000 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 lower 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 in the global 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 BofA Merrill Lynch U.S. High Yield Cash Pay Index tracks the performance of non-investment-grade corporate bonds.

Performance Information – Columbia Asset Allocation Fund II

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					1.35
Class B					2.10
Class C					2.10
Class Z					1.10

* 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 04/01/00 – 03/31/10

The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Asset Allocation Fund II 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 $10,000 investment 04/01/00 – 03/31/10 ($)

Sales charge	without		with
Class A		11,061		10,423
Class B		10,247		10,247
Class C		10,251		10,251
Class Z		11,319		n/a

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

Share class	A				B				C				Z
Inception	01/18/94				07/15/98				11/11/96				05/21/99
Sales charge	without		with		without		with		without		with		without
1-year		35.54		27.77		34.52		29.52		34.63		33.63		35.90
5-year		2.31		1.11		1.56		1.18		1.57		1.57		2.55
10-year		1.01		0.42		0.24		0.24		0.25		0.25		1.25

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.

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.

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.

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 Asset Allocation Fund II

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 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.

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.

10/01/09 – 03/31/10

	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		1,082.40		1,018.95		6.23		6.04		1.20
Class B		1,000.00		1,000.00		1,078.10		1,015.21		10.10		9.80		1.95
Class C		1,000.00		1,000.00		1,078.10		1,015.21		10.10		9.80		1.95
Class Z		1,000.00		1,000.00		1,083.40		1,020.19		4.93		4.78		0.95

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, 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 Asset Allocation Fund II

Net asset value per share

as of 03/31/10 ($)

Class A					21.14
Class B					20.96
Class C					20.95
Class Z					21.09

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.42
Class B					0.28
Class C					0.28
Class Z					0.47

For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 35.54% without sales charge. Over the same period, the fund's benchmarks, the Russell 1000 Index and the Barclays Capital Aggregate Bond Index, returned 51.60% and 7.69%, respectively. The fund invested 60% of its assets in stocks, which performed in line with the Russell index, with the balance in fixed-income assets that nicely outpaced the Barclays benchmark. The fund outperformed a blended benchmark divided 60/40 between its two benchmarks, which gained 32.65%. The average return of the fund's peer group, the Lipper Mixed Asset Target Allocation Growth Classification, was 40.02%. We believe some untimely sales and a focus on higher-quality stocks issued by companies with strong balance sheets hindered results versus the peer group.

Stocks rebounded on improving economic news

Stocks rallied sharply, buoyed by signs that the economy was healing and the financial crisis was easing. All 10 equity sectors in the Russell index produced positive returns, with the biggest gains coming from low-quality stocks in sectors that were the weakest performers in the 2008 downturn. Financials climbed 79% as the threat of a financial system collapse subsided. Standouts in the fund included Wells Fargo, one of the largest banks in the United States; JPMorgan Chase, a diversified financial services company, and insurer Genworth Financial (0.6%, 0.8%, and 0.2% of net assets, respectively). Sectors leveraged to an economic recovery, including information technology, materials, and industrials, also led the market's charge. Overweights in several of the period's strongest performers aided relative returns. These included well-known tech companies such as Apple and Microsoft, specialty chemicals company Ashland and R.R. Do nnelley & Sons, a full-service printing company (1.2%, 1.4%, 0.3% and 0.3% of net assets, respectively).

The fund lost some ground within the consumer discretionary sector because it did not own lower-quality companies with heavy debt levels, which were among the sector's best performers. The premature sale of some lagging stocks further hindered results. Chipotle Mexican Grill, the fast food restaurant chain; Big Lots, a closeout retailer, and Carnival, the world's largest cruise operator, all scored big gains after we sold them. In industrials, the untimely sale of express delivery company FedEx further hurt performance.

Lower-quality led fixed-income rally

As the global financial crisis eased and interest rates stayed near historical lows, investors became more willing to take on added risk, shifting toward higher-yielding, lower-quality assets. The fund benefited from an underweight in Treasuries, the highest-quality and weakest-performing sector, and an increased stake in corporate bonds, which outperformed Treasuries by a wide margin. Within the corporate sector, our exposure to financial bonds was particularly helpful. Investments in certain sectors that had been very weak performers in 2008 further aided results. Standouts included commercial mortgage-backed securities (CMBS), which are bonds backed by mortgages on commercial real estate, such as shopping malls and office buildings. CMBS rallied nicely, benefiting, in part, from their inclusion in the U.S. government stimulus

Portfolio Managers' Report (continued) – Columbia Asset Allocation Fund II

programs. The fund also benefited from a small stake in collateralized mortgage obligations (CMOs), high-quality structured mortgage products that did quite well.

Opportunity ahead

The past 12 months were challenging for investors seeking higher-quality stocks selling at attractive valuations. Going forward, we believe the fund is well positioned for a shift in focus toward individual stock characteristics rather than macroeconomic factors. On the fixed-income side, we're optimistic that bonds will benefit as the Federal Reserve's concern for sustained economic growth helps keep inflation in check. Among the areas that interest us most are shorter-maturity CMBS, whose yields relative to Treasuries are above historical averages, and certain areas of the investment-grade corporate bond market that remain in strong demand. Conversely, we expect to keep an underweight in Treasuries, with reduced allocations to mortgage-backed securities, CMOs and government agency debt.

Portfolio characteristics and holdings are subject to change periodically and may not be representative of current characteristics and holdings. The outlook for this portfolio may differ from that 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.

Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa.

Top 10 equity holdings

as of 03/31/10 (%)

Microsoft					1.4
Exxon Mobil					1.4
Apple					1.2
General Electric					1.2
International Business Machines					1.2
Hewlett-Packard					1.1
Chevron					1.0
Intel					1.0
Procter & Gamble					1.0
Johnson & Johnson					0.9

Top 5 equity sectors

as of 03/31/10 (%)

Information Technology					11.2
Financials					9.3
Health Care					7.3
Industrials					6.5
Consumer Discretionary					6.5

Portfolio structure

as of 03/31/10 (%)

Common Stocks					59.9
Corporate Fixed-Income Bonds & Notes					11.0
Government & Agency Obligations					10.8
Mortgage-Backed Securities					10.0
Commercial Mortgage-Backed Securities					5.0
Collateralized Mortgage Obligations					2.0
Asset-Backed Securities					1.0
Short-Term Obligation					1.3
Other Assets & Liabilities, Net					(1.0)

This 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 Asset Allocation Fund II

March 31, 2010

Common Stocks – 59.9%
	Shares		Value ($)
Consumer Discretionary – 6.5%
Automobiles – 0.2%
Ford Motor Co. (a)		16,000		201,120
Automobiles Total				201,120
Diversified Consumer Services – 0.0%
H&R Block, Inc.		1,800		32,040
Diversified Consumer Services Total				32,040
Hotels, Restaurants & Leisure – 0.5%
McDonald's Corp.		5,700		380,304
Starbucks Corp. (a)		4,400		106,788
Hotels, Restaurants & Leisure Total				487,092
Household Durables – 0.6%
Garmin Ltd.		8,700		334,776
Leggett & Platt, Inc.		5,200		112,528
Stanley Black & Decker, Inc.		2,700		155,007
Whirlpool Corp.		400		34,900
Household Durables Total				637,211
Internet & Catalog Retail – 0.3%
Amazon.com, Inc. (a)		1,400		190,022
NetFlix, Inc. (a)		200		14,748
Priceline.com, Inc. (a)		400		102,000
Internet & Catalog Retail Total				306,770
Leisure Equipment & Products – 0.2%
Mattel, Inc.		6,400		145,536
Leisure Equipment & Products Total				145,536
Media – 2.0%
CBS Corp., Class B		3,300		46,002
Comcast Corp., Class A		21,300		400,866
DIRECTV, Class A (a)		9,300		314,433
DISH Network Corp., Class A		3,600		74,952
Liberty Global, Inc., Class A (a)		600		17,496
News Corp., Class A		10,500		151,305
Time Warner, Inc.		15,200		475,304
Viacom, Inc., Class B (a)		2,900		99,702
Walt Disney Co.		10,600		370,046
Media Total				1,950,106
Multiline Retail – 1.0%
Dollar General Corp. (a)		9,500		239,875
Kohl's Corp. (a)		1,600		87,648
Macy's, Inc.		2,200		47,894
Nordstrom, Inc.		6,000		245,100
Sears Holdings Corp. (a)		300		32,529
Target Corp.		7,200		378,720
Multiline Retail Total				1,031,766

	Shares		Value ($)
Specialty Retail – 1.5%
Bed Bath & Beyond, Inc. (a)		600		26,256
Chico's FAS, Inc.		4,100		59,122
Gap, Inc.		15,900		367,449
Guess?, Inc.		700		32,886
Home Depot, Inc.		11,000		355,850
Limited Brands, Inc.		1,400		34,468
Ross Stores, Inc.		3,400		181,798
Sherwin-Williams Co.		200		13,536
Tiffany & Co.		700		33,243
TJX Companies, Inc.		8,000		340,160
Specialty Retail Total				1,444,768
Textiles, Apparel & Luxury Goods – 0.2%
Coach, Inc.		1,600		63,232
NIKE, Inc., Class B		900		66,150
Polo Ralph Lauren Corp.		300		25,512
V.F. Corp.		400		32,060
Textiles, Apparel & Luxury Goods Total				186,954
Consumer Discretionary Total				6,423,363
Consumer Staples – 6.4%
Beverages – 1.1%
Brown-Forman Corp., Class B		1,600		95,120
Coca-Cola Co.		8,500		467,500
PepsiCo, Inc.		7,500		496,200
Beverages Total				1,058,820
Food & Staples Retailing – 0.7%
Sysco Corp.		3,000		88,500
Wal-Mart Stores, Inc.		9,000		500,400
Walgreen Co.		3,900		144,651
Food & Staples Retailing Total				733,551
Food Products – 1.3%
Campbell Soup Co.		300		10,605
ConAgra Foods, Inc.		1,900		47,633
Del Monte Foods Co.		9,500		138,700
General Mills, Inc.		3,800		269,002
H.J. Heinz Co.		1,900		86,659
Hershey Co.		3,900		166,959
Kellogg Co.		1,100		58,773
Kraft Foods, Inc., Class A		3,900		117,936
Sara Lee Corp.		27,700		385,861
Food Products Total				1,282,128
Household Products – 1.3%
Colgate-Palmolive Co.		2,800		238,728
Kimberly-Clark Corp.		2,200		138,336
Procter & Gamble Co.		15,000		949,050
Household Products Total				1,326,114

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Common Stocks (continued)
	Shares		Value ($)
Personal Products – 0.6%
Estée Lauder Companies, Inc., Class A		5,700		369,759
Herbalife Ltd.		3,800		175,256
Personal Products Total				545,015
Tobacco – 1.4%
Altria Group, Inc.		12,400		254,448
Lorillard, Inc.		4,400		331,056
Philip Morris International, Inc.		14,400		751,104
Reynolds American, Inc.		900		48,582
Tobacco Total				1,385,190
Consumer Staples Total				6,330,818
Energy – 6.4%
Energy Equipment & Services – 0.6%
National Oilwell Varco, Inc.		2,100		85,218
Oil States International, Inc. (a)		1,700		77,078
Rowan Companies, Inc. (a)		9,100		264,901
Schlumberger Ltd.		1,800		114,228
Energy Equipment & Services Total				541,425
Oil, Gas & Consumable Fuels – 5.8%
Alpha Natural Resources, Inc. (a)		5,400		269,406
Anadarko Petroleum Corp.		2,600		189,358
Apache Corp.		5,500		558,250
Arch Coal, Inc.		900		20,565
Chevron Corp.		13,100		993,373
ConocoPhillips		10,600		542,402
CONSOL Energy, Inc.		900		38,394
Devon Energy Corp.		300		19,329
EOG Resources, Inc.		2,100		195,174
Exxon Mobil Corp.		21,000		1,406,580
Hess Corp.		500		31,275
Marathon Oil Corp.		3,600		113,904
Massey Energy Co.		1,400		73,206
Murphy Oil Corp.		1,000		56,190
Peabody Energy Corp.		7,600		347,320
Pioneer Natural Resources Co.		500		28,160
Tesoro Corp.		600		8,340
Valero Energy Corp.		10,400		204,880
Whiting Petroleum Corp. (a)		1,800		145,512
XTO Energy, Inc.		11,600		547,288
Oil, Gas & Consumable Fuels Total				5,788,906
Energy Total				6,330,331
Financials – 9.3%
Capital Markets – 1.5%
Ameriprise Financial, Inc.		3,100		140,616
Bank of New York Mellon Corp.		400		12,352

	Shares		Value ($)
Federated Investors, Inc., Class B		500		13,190
Franklin Resources, Inc.		2,300		255,070
Goldman Sachs Group, Inc.		3,100		528,953
Jefferies Group, Inc.		100		2,367
Morgan Stanley		6,100		178,669
Raymond James Financial, Inc.		3,800		101,612
T. Rowe Price Group, Inc.		5,100		280,143
Capital Markets Total				1,512,972
Commercial Banks – 1.4%
BB&T Corp.		300		9,717
Comerica, Inc.		800		30,432
Fifth Third Bancorp.		10,700		145,413
Fulton Financial Corp.		12,400		126,356
PNC Financial Services Group, Inc.		4,200		250,740
U.S. Bancorp		7,000		181,160
Wells Fargo & Co.		20,300		631,736
Commercial Banks Total				1,375,554
Consumer Finance – 1.2%
American Express Co.		5,400		222,804
AmeriCredit Corp. (a)		5,600		133,056
Capital One Financial Corp.		2,300		95,243
Discover Financial Services		24,500		365,050
SLM Corp. (a)		30,900		386,868
Consumer Finance Total				1,203,021
Diversified Financial Services – 1.3%
Citigroup, Inc. (a)		121,100		490,455
JPMorgan Chase & Co.		17,400		778,650
Diversified Financial Services Total				1,269,105
Insurance – 1.9%
AFLAC, Inc.		2,400		130,296
Allied World Assurance Holdings Ltd.		9,100		408,135
Allstate Corp.		6,100		197,091
Aspen Insurance Holdings Ltd.		400		11,536
Genworth Financial, Inc., Class A (a)		11,300		207,242
Hartford Financial Services Group, Inc.		2,000		56,840
Loews Corp.		2,400		89,472
MetLife, Inc.		3,000		130,020
Prudential Financial, Inc.		5,000		302,500
Reinsurance Group of America, Inc.		3,200		168,064
Transatlantic Holdings, Inc.		500		26,400
Travelers Companies, Inc.		2,600		140,244
Unum Group		1,900		47,063
Insurance Total				1,914,903

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Common Stocks (continued)
	Shares		Value ($)
Real Estate Investment Trusts (REITs) – 1.7%
Annaly Capital Management, Inc.		8,400		144,312
Brandywine Realty Trust		6,400		78,144
Chimera Investment Corp.		15,900		61,851
Equity Residential		600		23,490
Hospitality Properties Trust		12,400		296,980
Host Hotels & Resorts, Inc.		200		2,930
HRPT Properties Trust		59,400		462,132
Macerich Co.		506		19,385
Public Storage		500		45,995
Simon Property Group, Inc.		3,900		327,210
SL Green Realty Corp.		400		22,908
Ventas, Inc.		3,800		180,424
Real Estate Investment Trusts (REITs) Total				1,665,761
Thrifts & Mortgage Finance – 0.3%
Hudson City Bancorp, Inc.		22,600		320,016
Thrifts & Mortgage Finance Total				320,016
Financials Total				9,261,332
Health Care – 7.3%
Biotechnology – 0.6%
Amgen, Inc. (a)		7,100		424,296
Biogen Idec, Inc. (a)		400		22,944
Gilead Sciences, Inc. (a)		3,900		177,372
Biotechnology Total				624,612
Health Care Equipment & Supplies – 0.8%
Baxter International, Inc.		400		23,280
CareFusion Corp. (a)		1,500		39,645
Hospira, Inc. (a)		3,400		192,610
Kinetic Concepts, Inc. (a)		3,700		176,897
Medtronic, Inc.		5,900		265,677
Stryker Corp.		1,100		62,942
Zimmer Holdings, Inc. (a)		1,100		65,120
Health Care Equipment & Supplies Total				826,171
Health Care Providers & Services – 2.9%
Aetna, Inc.		400		14,044
AmerisourceBergen Corp.		11,900		344,148
Cardinal Health, Inc.		14,400		518,832
Community Health Systems, Inc. (a)		100		3,693
Humana, Inc. (a)		5,600		261,912
Lincare Holdings, Inc. (a)		7,300		327,624
McKesson Corp.		2,500		164,300
Medco Health Solutions, Inc. (a)		8,500		548,760
Quest Diagnostics, Inc.		600		34,974

	Shares		Value ($)
Tenet Healthcare Corp. (a)		200		1,144
UnitedHealth Group, Inc. (a)		11,100		362,637
Universal Health Services, Inc., Class B		400		14,036
WellPoint, Inc. (a)		4,500		289,710
Health Care Providers & Services Total				2,885,814
Life Sciences Tools & Services – 0.1%
Thermo Fisher Scientific, Inc. (a)		2,300		118,312
Life Sciences Tools & Services Total				118,312
Pharmaceuticals – 2.9%
Abbott Laboratories		9,800		516,264
Bristol-Myers Squibb Co.		8,800		234,960
Eli Lilly & Co.		7,300		264,406
Forest Laboratories, Inc. (a)		3,300		103,488
Johnson & Johnson		13,700		893,240
Merck & Co., Inc.		9,400		351,090
Mylan, Inc. (a)		3,900		88,569
Pfizer, Inc.		23,300		399,595
Pharmaceuticals Total				2,851,612
Health Care Total				7,306,521
Industrials – 6.5%
Aerospace & Defense – 1.8%
General Dynamics Corp.		2,000		154,400
Honeywell International, Inc.		2,700		122,229
ITT Corp.		2,500		134,025
Lockheed Martin Corp.		2,400		199,728
Northrop Grumman Corp.		1,600		104,912
Raytheon Co.		9,600		548,352
United Technologies Corp.		7,500		552,075
Aerospace & Defense Total				1,815,721
Air Freight & Logistics – 0.3%
United Parcel Service, Inc., Class B		4,500		289,845
Air Freight & Logistics Total				289,845
Commercial Services & Supplies – 0.4%
R.R. Donnelley & Sons Co.		12,200		260,470
Waste Management, Inc.		4,600		158,378
Commercial Services & Supplies Total				418,848
Electrical Equipment – 0.7%
Emerson Electric Co.		12,300		619,182
Hubbell, Inc., Class B		900		45,387
Rockwell Automation, Inc.		300		16,908
Electrical Equipment Total				681,477

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Common Stocks (continued)
	Shares		Value ($)
Industrial Conglomerates – 1.9%
3M Co.		4,900		409,493
Carlisle Companies, Inc.		6,900		262,890
General Electric Co.		66,800		1,215,760
Industrial Conglomerates Total				1,888,143
Machinery – 0.8%
Caterpillar, Inc.		1,900		119,415
Danaher Corp.		1,100		87,901
Dover Corp.		4,700		219,725
Eaton Corp.		800		60,616
Illinois Tool Works, Inc.		2,700		127,872
Joy Global, Inc.		200		11,320
Parker Hannifin Corp.		2,800		181,272
Toro Co.		1,000		49,170
Machinery Total				857,291
Professional Services – 0.1%
Dun & Bradstreet Corp.		700		52,094
Professional Services Total				52,094
Road & Rail – 0.3%
Ryder System, Inc.		7,400		286,824
Road & Rail Total				286,824
Trading Companies & Distributors – 0.2%
W.W. Grainger, Inc.		1,500		162,180
Trading Companies & Distributors Total				162,180
Industrials Total				6,452,423
Information Technology – 11.2%
Communications Equipment – 0.8%
Cisco Systems, Inc. (a)		30,500		793,915
Harris Corp.		700		33,243
Communications Equipment Total				827,158
Computers & Peripherals – 4.3%
Apple, Inc. (a)		5,200		1,221,636
Dell, Inc. (a)		13,300		199,633
EMC Corp. (a)		11,600		209,264
Hewlett-Packard Co.		20,800		1,105,520
International Business Machines Corp.		9,100		1,167,075
QLogic Corp. (a)		500		10,150
SanDisk Corp. (a)		1,000		34,630
Teradata Corp. (a)		10,900		314,901
Western Digital Corp. (a)		1,100		42,889
Computers & Peripherals Total				4,305,698

	Shares		Value ($)
Electronic Equipment, Instruments & Components – 0.2%
Amphenol Corp., Class A		900		37,971
Corning, Inc.		1,900		38,399
Dolby Laboratories, Inc., Class A (a)		1,500		88,005
Vishay Intertechnology, Inc. (a)		2,700		27,621
Electronic Equipment, Instruments & Components Total				191,996
Internet Software & Services – 1.1%
eBay, Inc. (a)		14,600		393,470
Google, Inc., Class A (a)		1,300		737,113
Internet Software & Services Total				1,130,583
IT Services – 0.7%
Amdocs Ltd. (a)		1,800		54,198
Broadridge Financial Solutions, Inc.		1,200		25,656
Cognizant Technology Solutions Corp., Class A (a)		3,900		198,822
Computer Sciences Corp. (a)		800		43,592
Global Payments, Inc.		3,100		141,205
Hewitt Associates, Inc., Class A (a)		400		15,912
Lender Processing Services, Inc.		2,400		90,600
Western Union Co.		5,800		98,368
IT Services Total				668,353
Office Electronics – 0.2%
Xerox Corp.		18,600		181,350
Office Electronics Total				181,350
Semiconductors & Semiconductor Equipment – 1.6%
Intel Corp.		44,200		983,892
Micron Technology, Inc. (a)		5,200		54,028
Texas Instruments, Inc.		23,400		572,598
Semiconductors & Semiconductor Equipment Total				1,610,518
Software – 2.3%
BMC Software, Inc. (a)		900		34,200
CA, Inc.		136		3,192
Intuit, Inc. (a)		1,700		58,378
Microsoft Corp.		48,600		1,422,522
Oracle Corp.		20,800		534,352
Sybase, Inc. (a)		1,200		55,944
Symantec Corp. (a)		2,900		49,068
VMware, Inc., Class A (a)		1,600		85,280
Software Total				2,242,936
Information Technology Total				11,158,592

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Common Stocks (continued)
	Shares		Value ($)
Materials – 2.4%
Chemicals – 1.7%
Ashland, Inc.		5,700		300,789
Cabot Corp.		7,500		228,000
CF Industries Holdings, Inc.		200		18,236
Eastman Chemical Co.		7,400		471,232
Lubrizol Corp.		4,000		366,880
PPG Industries, Inc.		4,500		294,300
Chemicals Total				1,679,437
Metals & Mining – 0.3%
Cliffs Natural Resources, Inc.		200		14,190
Freeport-McMoRan Copper & Gold, Inc.		3,100		258,974
Metals & Mining Total				273,164
Paper & Forest Products – 0.4%
International Paper Co.		18,100		445,441
Paper & Forest Products Total				445,441
Materials Total				2,398,042
Telecommunication Services – 1.8%
Diversified Telecommunication Services – 1.7%
AT&T, Inc.		28,800		744,192
Qwest Communications International, Inc.		57,600		300,672
Verizon Communications, Inc.		19,100		592,482
Diversified Telecommunication Services Total				1,637,346
Wireless Telecommunication Services – 0.1%
Sprint Nextel Corp. (a)		34,400		130,720
Wireless Telecommunication Services Total				130,720
Telecommunication Services Total				1,768,066
Utilities – 2.1%
Electric Utilities – 0.8%
DPL, Inc.		5,600		152,264
Edison International		4,000		136,680
Entergy Corp.		1,000		81,350
Exelon Corp.		3,400		148,954
FirstEnergy Corp.		4,200		164,178
Pinnacle West Capital Corp.		3,200		120,736
Electric Utilities Total				804,162
Gas Utilities – 0.5%
Energen Corp.		400		18,612
Questar Corp.		10,900		470,880
UGI Corp.		500		13,270
Gas Utilities Total				502,762

	Shares		Value ($)
Independent Power Producers & Energy Traders – 0.2%
AES Corp. (a)		18,600		204,600
Mirant Corp. (a)		700		7,602
Independent Power Producers & Energy Traders Total				212,202
Multi-Utilities – 0.6%
DTE Energy Co.		1,000		44,600
MDU Resources Group, Inc.		3,900		84,162
NiSource, Inc.		3,900		61,620
PG&E Corp.		600		25,452
Public Service Enterprise Group, Inc.		11,800		348,336
Multi-Utilities Total				564,170
Utilities Total				2,083,296
Total Common Stocks (cost of $44,726,514)				59,512,784
Corporate Fixed-Income Bonds & Notes – 11.0%
	Par ($)
Basic Materials – 0.4%
Chemicals – 0.1%
EI Du Pont de Nemours & Co.
5.000% 07/15/13		85,000		92,049
Chemicals Total				92,049
Iron/Steel – 0.2%
ArcelorMittal USA, Inc.
6.500% 04/15/14		100,000		108,396
Nucor Corp.
5.850% 06/01/18		100,000		108,553
Iron/Steel Total				216,949
Metals & Mining – 0.1%
Vale Overseas Ltd.
6.250% 01/23/17		125,000		135,524
Metals & Mining Total				135,524
Basic Materials Total				444,522
Communications – 1.5%
Media – 0.5%
Comcast Cable Holdings LLC
9.875% 06/15/22		51,000		67,225
Comcast Corp.
7.050% 03/15/33		100,000		107,543
News America, Inc.
6.550% 03/15/33		125,000		126,833

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Time Warner, Inc.
6.200% 03/15/40		160,000		157,955
Viacom, Inc.
6.125% 10/05/17		60,000		64,866
Media Total				524,422
Telecommunication Services – 1.0%
America Movil SAB de CV
5.625% 11/15/17		115,000		121,484
AT&T, Inc.
4.950% 01/15/13		150,000		161,129
British Telecommunications PLC
5.150% 01/15/13		125,000		132,171
Cellco Partnership/Verizon Wireless Capital LLC
5.550% 02/01/14		130,000		142,069
New Cingular Wireless Services, Inc.
8.750% 03/01/31		62,000		80,055
Telefonica Emisiones SAU
0.580% 02/04/13 (05/04/10) (b)(c)		200,000		195,652
Vodafone Group PLC
5.750% 03/15/16		100,000		109,116
Telecommunication Services Total				941,676
Communications Total				1,466,098
Consumer Cyclical – 0.3%
Retail – 0.3%
CVS Pass-Through Trust
7.507% 01/10/32 (d)		154,676		172,003
Wal-Mart Stores, Inc.
5.800% 02/15/18		100,000		111,600
Retail Total				283,603
Consumer Cyclical Total				283,603
Consumer Non-Cyclical – 1.3%
Beverages – 0.6%
Anheuser-Busch InBev Worldwide, Inc.
2.500% 03/26/13 (d)		125,000		125,241
Bottling Group LLC
6.950% 03/15/14		150,000		173,656
Diageo Capital PLC
5.750% 10/23/17		150,000		162,524
Miller Brewing Co.
5.500% 08/15/13 (d)		120,000		128,478
Beverages Total				589,899
Food – 0.3%
Campbell Soup Co.
4.500% 02/15/19		60,000		61,051

	Par ($)		Value ($)
ConAgra Foods, Inc.
5.875% 04/15/14		115,000		126,257
Kraft Foods, Inc.
5.375% 02/10/20		125,000		127,044
Food Total				314,352
Healthcare Services – 0.2%
Roche Holdings, Inc.
6.000% 03/01/19 (d)		150,000		165,769
Healthcare Services Total				165,769
Pharmaceuticals – 0.2%
Express Scripts, Inc.
5.250% 06/15/12		80,000		85,300
Wyeth
5.500% 02/01/14		150,000		165,473
Pharmaceuticals Total				250,773
Consumer Non-Cyclical Total				1,320,793
Energy – 1.2%
Oil & Gas – 0.5%
Canadian Natural Resources Ltd.
5.700% 05/15/17		75,000		80,030
Chevron Corp.
4.950% 03/03/19		125,000		132,093
Nexen, Inc.
5.875% 03/10/35		150,000		142,624
Talisman Energy, Inc.
6.250% 02/01/38		110,000		111,932
Oil & Gas Total				466,679
Oil & Gas Services – 0.2%
Halliburton Co.
5.900% 09/15/18		75,000		82,415
Weatherford International Ltd.
5.150% 03/15/13		100,000		106,258
Oil & Gas Services Total				188,673
Pipelines – 0.5%
Enterprise Products Operating LLC
4.600% 08/01/12		70,000		73,838
Plains All American Pipeline LP/PAA Finance Corp.
6.650% 01/15/37		140,000		145,172
TransCanada Pipelines Ltd.
6.350% 05/15/67 (05/15/17) (b)(c)		185,000		176,026
Williams Partners LP
6.300% 04/15/40 (d)		100,000		99,371
Pipelines Total				494,407
Energy Total				1,149,759

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Financials – 4.5%
Banks – 2.9%
ANZ National International Ltd.
6.200% 07/19/13 (d)		100,000		110,205
Bank of New York Mellon Corp.
5.125% 08/27/13		160,000		174,609
Barclays Bank PLC
6.750% 05/22/19		175,000		193,601
Bear Stearns Cos. LLC
7.250% 02/01/18		275,000		317,784
Capital One Financial Corp.
5.500% 06/01/15		125,000		131,441
Citigroup, Inc.
6.125% 05/15/18		215,000		219,685
Commonwealth Bank of Australia
3.750% 10/15/14 (d)		190,000		192,607
Credit Suisse/New York NY
6.000% 02/15/18		100,000		105,878
Deutsche Bank AG London
4.875% 05/20/13		150,000		160,744
Goldman Sachs Group, Inc.
5.350% 01/15/16		110,000		115,877
Keycorp
6.500% 05/14/13		130,000		138,828
Merrill Lynch & Co., Inc.
6.050% 08/15/12 (e)		200,000		213,601
Morgan Stanley
6.625% 04/01/18		125,000		133,322
Rabobank Nederland NV
4.750% 01/15/20 (d)		200,000		199,785
U.S. Bank N.A.
6.300% 02/04/14		250,000		278,804
Wachovia Corp.
4.875% 02/15/14		150,000		155,395
Banks Total				2,842,166
Diversified Financial Services – 0.4%
Ameriprise Financial, Inc.
7.300% 06/28/19		100,000		115,865
General Electric Capital Corp.
5.000% 01/08/16		225,000		235,973
Lehman Brothers Holdings, Inc.
5.750% 07/18/11 (f)(g)		150,000		35,437
Diversified Financial Services Total				387,275
Insurance – 1.0%
Chubb Corp.
5.750% 05/15/18		50,000		54,059

	Par ($)		Value ($)
CNA Financial Corp.
5.850% 12/15/14		40,000		40,702
7.350% 11/15/19		60,000		62,708
Lincoln National Corp.
8.750% 07/01/19		115,000		140,619
MetLife, Inc.
6.817% 08/15/18		150,000		166,394
Principal Life Income Funding Trusts
5.300% 04/24/13		125,000		134,182
Prudential Financial, Inc.
6.100% 06/15/17		100,000		105,757
Transatlantic Holdings, Inc.
8.000% 11/30/39		145,000		148,191
UnitedHealth Group, Inc.
5.250% 03/15/11		115,000		119,417
Insurance Total				972,029
Real Estate Investment Trusts (REITs) – 0.2%
Duke Realty LP
8.250% 08/15/19		125,000		139,411
ERP Operating LP
5.200% 04/01/13		16,000		16,607
Simon Property Group LP
6.750% 02/01/40		80,000		79,581
Real Estate Investment Trusts (REITs) Total				235,599
Financials Total				4,437,069
Industrials – 0.6%
Aerospace & Defense – 0.1%
United Technologies Corp.
5.375% 12/15/17		120,000		129,428
Aerospace & Defense Total				129,428
Miscellaneous Manufacturing – 0.3%
Ingersoll Rand Global Holding Co., Ltd.
9.500% 04/15/14		100,000		121,254
Tyco International Ltd./Tyco International Finance SA
7.000% 12/15/19		120,000		137,718
Miscellaneous Manufacturing Total				258,972
Transportation – 0.2%
Burlington Northern Santa Fe Corp.
6.200% 08/15/36		75,000		77,168
Norfolk Southern Corp.
5.750% 04/01/18		100,000		107,337
Transportation Total				184,505
Industrials Total				572,905

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Technology – 0.2%
Networking Products – 0.1%
Cisco Systems, Inc.
4.950% 02/15/19		125,000		129,992
Networking Products Total				129,992
Software – 0.1%
Oracle Corp.
6.500% 04/15/38		100,000		110,378
Software Total				110,378
Technology Total				240,370
Utilities – 1.0%
Electric – 0.8%
Commonwealth Edison Co.
5.950% 08/15/16		75,000		82,209
Consolidated Edison Co. of New York
5.850% 04/01/18		100,000		109,443
Dominion Resources, Inc.
5.200% 08/15/19		115,000		117,705
Indiana Michigan Power Co.
5.650% 12/01/15		100,000		106,653
NY State Electric & Gas Corp.
5.750% 05/01/23		18,000		17,543
Pacific Gas & Electric Co.
5.800% 03/01/37		100,000		99,226
Progress Energy, Inc.
7.750% 03/01/31		100,000		117,922
Southern California Edison Co.
5.000% 01/15/14		125,000		134,968
Electric Total				785,669
Gas – 0.2%
Atmos Energy Corp.
6.350% 06/15/17		110,000		118,298
Sempra Energy
6.500% 06/01/16		105,000		117,304
Gas Total				235,602
Utilities Total				1,021,271
Total Corporate Fixed-Income Bonds & Notes (cost of $10,525,255)				10,936,390
Government & Agency Obligations – 10.8%
Foreign Government Obligations – 0.6%
Province of Ontario
5.450% 04/27/16		225,000		247,986
Province of Quebec
4.625% 05/14/18		190,000		198,278

	Par ($)		Value ($)
United Mexican States
7.500% 04/08/33		151,000		180,068
Foreign Government Obligations Total				626,332
U.S. Government Agencies – 1.1%
Federal Home Loan Mortgage Corp.
3.125% 10/25/10 (h)		45,000		45,660
5.500% 08/23/17		460,000		513,897
Federal National Mortgage Association
2.500% 05/15/14		475,000		477,702
U.S. Government Agencies Total				1,037,259
U.S. Government Obligations – 9.1%
U.S. Treasury Bond
5.375% 02/15/31		2,351,000		2,600,794
U.S. Treasury Inflation Indexed Notes
3.000% 07/15/12		723,012		778,820
U.S. Treasury Notes
0.875% 05/31/11		635,000		637,729
1.375% 10/15/12		600,000		600,750
2.375% 10/31/14		2,660,000		2,656,467
2.375% 02/28/15		1,800,000		1,787,634
U.S. Government Obligations Total				9,062,194
Total Government & Agency Obligations (cost of $10,657,881)				10,725,785
Mortgage-Backed Securities – 10.0%
Federal Home Loan Mortgage Corp.
4.500% 12/01/39		595,081		597,109
4.500% 01/01/40		357,551		358,769
5.000% 05/01/39		242,174		250,367
5.000% 07/01/39		675,549		698,403
5.500% 01/01/21		91,864		98,924
5.500% 07/01/21		63,974		68,690
6.000% 12/01/37		822,270		883,696
6.500% 07/01/29		111,744		123,339
6.500% 10/01/37		231,300		251,831
8.000% 09/01/25		25,131		28,989
Federal National Mortgage Association
3.199% 08/01/36 (04/01/10) (b)(c)		21,957		22,794
4.000% 01/01/25		749,122		761,199
5.000% 10/01/20		226,967		241,500
5.500% 04/01/36		117,333		123,862
5.500% 11/01/36		157,014		165,750
5.500% 02/01/37		238,144		251,269
5.500% 03/01/37		555,000		585,880

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Mortgage-Backed Securities (continued)
	Par ($)		Value ($)
5.500% 05/01/37		27,151		28,647
6.000% 04/01/36		122,512		130,764
6.000% 06/01/36		232,198		247,838
6.000% 10/01/36		441,760		471,517
6.000% 11/01/36		13,351		14,250
6.500% 09/01/34		8,115		8,915
6.500% 01/01/37		1,624		1,765
7.500% 10/01/11		11,434		11,970
8.500% 08/01/11		5,151		5,271
10.000% 09/01/18		36,874		41,559
TBA:
5.500% 04/01/40 (i)		475,000		500,605
6.000% 04/01/40 (i)		475,000		504,539
Government National Mortgage Association
4.500% 04/15/39		586,284		594,431
5.000% 04/15/39		1,098,092		1,143,920
5.500% 02/15/37		70,123		74,350
5.500% 09/15/39		535,886		568,125
7.500% 12/15/23		16,404		18,516
Total Mortgage-Backed Securities (cost of $9,670,659)				9,879,353
Commercial Mortgage-Backed Securities – 5.0%
Bear Stearns Commercial Mortgage Securities
5.456% 03/11/39 (04/01/10) (b)(c)		400,000		427,805
5.694% 09/11/38 (04/01/10) (b)(c)		152,000		163,594
CS First Boston Mortgage Securities Corp.
5.065% 08/15/38 (04/01/10) (b)(c)		300,000		312,431
GE Capital Commercial Mortgage Corp.
4.819% 01/10/38		150,000		156,857
JPMorgan Chase Commercial Mortgage Securities Corp.
4.529% 01/12/37		750,000		761,858
4.659% 07/15/42		482,827		499,967
5.201% 08/12/37 (04/01/10) (b)(c)		218,547		228,071
5.440% 06/12/47		400,000		390,958
5.447% 05/15/45		180,000		181,734
5.447% 06/12/47		287,000		293,861
5.506% 12/12/44 (04/01/10) (b)(c)		315,000		332,820
LB-UBS Commercial Mortgage Trust
5.403% 02/15/40		320,000		326,481
Merrill Lynch Mortgage Investors, Inc.
I.O.,
0.300% 12/15/30 (04/01/10) (b)(c)		1,551,450		32,131
Morgan Stanley Capital I
5.325% 12/15/43		380,000		402,448

	Par ($)		Value ($)
Wachovia Bank Commercial Mortgage Trust
5.090% 07/15/42 (04/01/10) (b)(c)		470,000		491,237
Total Commercial Mortgage-Backed Securities (cost of $4,821,722)				5,002,253
Collateralized Mortgage Obligations – 2.0%
Agency – 0.7%
Federal Home Loan Mortgage Corp.
5.500% 09/15/33		180,000		192,044
Federal National Mortgage Association
5.500% 08/25/17		191,157		203,715
6.000% 04/25/17		158,625		170,711
7.000% 01/25/21		17,720		19,640
Vendee Mortgage Trust
I.O.:
0.301% 03/15/29 (04/01/10) (b)(c)		6,061,677		58,767
0.437% 03/15/28 (04/01/10) (b)(c)		4,164,132		42,992
Agency Total				687,869
Non-Agency – 1.3%
Countrywide Alternative Loan Trust
5.500% 10/25/35		826,744		685,175
Washington Mutual Alternative Mortgage Pass-Through Certificates
5.500% 10/25/35		673,106		576,037
Non-Agency Total				1,261,212
Total Collateralized Mortgage Obligations (cost of $2,074,062)				1,949,081
Asset-Backed Securities – 1.0%
Capital Auto Receivables Asset Trust
5.300% 05/15/14		400,000		422,205
Citicorp Residential Mortgage Securities, Inc.
6.080% 06/25/37 (04/01/10) (b)(c)		290,000		269,455
Harley-Davidson Motorcycle Trust
5.350% 03/15/13		248,967		255,346
Total Asset-Backed Securities (cost of $954,682)				947,006

See Accompanying Notes to Financial Statements.

Columbia Asset Allocation Fund II

March 31, 2010

Short-Term Obligation – 1.3%
	Par ($)		Value ($)
Repurchase agreement with Fixed Income Clearing Corp., dated 03/31/10, due on 04/01/10 at 0.000%, collateralized by a U.S. Treasury obligation maturing 01/31/14, market value $1,338,188 (repurchase proceeds $1,311,000)		1,311,000		1,311,000
Total Short-Term Obligation (cost of $1,311,000)				1,311,000
Total Investments – 101.0% (cost of $84,741,775) (j)				100,263,652
Other Assets & Liabilities, Net – (1.0)%				(946,195	)
Net Assets – 100.0%				99,317,457

Notes to Investment Portfolio:

(a) Non-income producing security.

(b) The interest rate shown on floating rate or variable rate securities reflects the rate at March 31, 2010.

(d) 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 March 31, 2010, these securities, which are not illiquid, amounted to $1,193,459, which represents 1.2% of net assets.

(e) Investments in affiliates during the year ended March 31, 2010:

Affiliate				Value, beginning of period				Purchases				Sales Proceeds				Interest Income				Value, end of period
Merrill Lynch & Co., Inc. 6.050% 08/15/12				$	171,612			$	—			$	—			$	12,100			$	213,601

(f) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2010, the value of this security amounted to $35,437, which represents less than 0.1% of net assets.

(g) The issuer has filed for bankruptcy protection under Chapter 11, and is in default of certain debt covenants. Income is not being accrued. At March 31, 2010, the value of this security amounted to $35,437, which represents less than 0.1% of net assets.

(h) A portion of these securities with a market value of $30,440 is pledged as collateral for open futures contracts.

(i) Security purchased on a delayed delivery basis.

(j) Cost for federal income tax purposes is $84,927,354.

The following table summarizes the inputs used, as of March 31, 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	$	59,512,784	$	—	$	—	$	59,512,784
Total Corporate Fixed-Income Bonds & Notes		—		10,936,390		—		10,936,390
Government & Agency Obligations
Foreign Government Obligations		—		626,332		—		626,332
U.S. Government Agencies		—		1,037,259		—		1,037,259
U.S. Government Obligations		9,062,194		—		—		9,062,194
Total Government & Agency Obligations		9,062,194		1,663,591		—		10,725,785
Total Mortgage-Backed Securities		1,005,144		8,874,209		—		9,879,353
Total Commercial Mortgage-Backed Securities		—		5,002,253		—		5,002,253
Total Collateralized Mortgage Obligations		—		1,949,081		—		1,949,081
Total Asset-Backed Securities		—		947,006		—		947,006
Total Short-Term Obligation		—		1,311,000		—		1,311,000
Total Investments		69,580,122		30,683,530		—		100,263,652
Unrealized appreciation on Futures Contracts		10,805		—		—		10,805
Total	$	69,590,927	$	30,683,530	$	—	$	100,274,457

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 Asset Allocation Fund II

March 31, 2010

At March 31, 2010, the Fund held the following open short futures contracts:

Risk Exposure/Type	Number of Contracts		Value		Aggregate Face Value		Expiration Date	Unrealized Appreciation/ Depreciation
Interest Rate Risk
10-Year U.S. Treasury Note		2	$	232,500	$	231,931	June 2010	$	(569	)
5-Year U.S. Treasury Note		10		1,148,437		1,159,811	June 2010		11,374
								$	10,805

At March 31, 2010, the asset allocation of the Fund is as follows:

Asset Allocation (Unaudited)	% of Net Assets
Common Stocks		59.9
Corporate Fixed-Income Bonds & Notes		11.0
Government & Agency Obligations		10.8
Mortgage-Backed Securities		10.0
Commercial Mortgage-Backed Securities		5.0
Collateralized Mortgage Obligations		2.0
Asset-Backed Securities		1.0
		99.7
Short-Term Obligation		1.3
Other Assets & Liabilities, Net		(1.0	)
		100.0

Acronym				Name
I.O.				Interest Only

TBA				To Be Announced

See Accompanying Notes to Financial Statements.

Statement of Assets and Liabilities – Columbia Asset Allocation Fund II
March 31, 2010

		($)
Assets	Unaffiliated investments, at identified cost		84,540,944
	Affiliated investments, at identified cost		200,831
	Total investments, at identified cost		84,741,775
	Unaffiliated investments, at value		100,050,051
	Affiliated investments, at value		213,601
	Total investments, at value		100,263,652
	Cash		206
	Receivable for:
	Investments sold		263,734
	Fund shares sold		27,039
	Dividends		79,287
	Interest		289,681
	Foreign tax reclaims		847
	Expense reimbursement due from investment advisor		22,100
	Prepaid expenses		893
	Other assets		38,262
	Total Assets		100,985,701
Liabilities	Payable for:
	Investments purchased		321,566
	Investments purchased on a delayed delivery basis		1,010,602
	Fund shares repurchased		114,163
	Futures variation margin		3,779
	Investment advisory fee		50,298
	Administration fee		5,384
	Transfer agent fee		14,005
	Pricing and bookkeeping fees		7,488
	Trustees' fees		57,235
	Audit fee		28,647
	Custody fee		4,336
	Distribution and service fees		18,331
	Chief compliance officer expenses		178
	Other liabilities		32,232
	Total Liabilities		1,668,244
	Net Assets		99,317,457
Net Assets Consist of	Paid-in capital		101,572,721
	Undistributed net investment income		11,993
	Accumulated net realized loss		(17,799,939	)
	Net unrealized appreciation (depreciation) on:
	Investments		15,521,877
	Futures contracts		10,805
	Net Assets		99,317,457
Class A	Net assets	$	72,266,715
	Shares outstanding		3,418,681
	Net asset value per share	$	21.14	(a)
	Maximum sales charge		5.75	%
	Maximum offering price per share (21.14/0.9425)	$	22.43	(b)
Class B	Net assets	$	1,970,246
	Shares outstanding		94,012
	Net asset value and offering price per share	$	20.96	(a)
Class C	Net assets	$	832,157
	Shares outstanding		39,726
	Net asset value and offering price per share	$	20.95	(a)
Class Z	Net assets	$	24,248,339
	Shares outstanding		1,149,670
	Net asset value, offering and redemption price per share	$	21.09

(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 Asset Allocation Fund II
For the Year Ended March 31, 2010

		($)
Investment Income	Dividends		1,277,702
	Interest		1,810,273
	Interest from affiliates		12,100
	Total Investment Income		3,100,075
Expenses	Investment advisory fee		555,327
	Administration fee		56,172
	Distribution and service fees—Class A		169,852
	Distribution fee:
	Class B		17,494
	Class C		5,233
	Service fee:
	Class B		5,831
	Class C		1,744
	Transfer agent fee		128,936
	Pricing and bookkeeping fees		69,984
	Trustees' fees		43,086
	Custody fee		24,108
	Chief compliance officer expenses		597
	Other expenses		197,263
	Total Expenses		1,275,627
	Fees waived by transfer agent		(7,385	)
	Fees waived or expenses reimbursed by investment advisor		(177,252	)
	Expense reductions		(28	)
	Net Expenses		1,090,962
	Net Investment Income		2,009,113
Net Realized and Unrealized Gain (Loss) on Investments and Futures Contracts	Net realized loss on:
	Investments		(444,305	)
	Futures contracts		(2,083	)
	Net realized loss		(446,388	)
	Net change in unrealized appreciation (depreciation) on:
	Investments		25,743,845
	Futures contracts		(4,937	)
	Net change in unrealized appreciation (depreciation)		25,738,908
	Net Gain		25,292,520
	Net Increase Resulting from Operations		27,301,633

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets – Columbia Asset Allocation Fund II

		Year Ended March 31,
Increase (Decrease) in Net Assets		2010 ($)			2009 ($)
Operations	Net investment income		2,009,113			2,421,006
	Net realized loss on investments and futures contracts		(446,388	)		(14,822,598	)
	Net change in unrealized appreciation (depreciation) on investments and futures contracts		25,738,908			(20,154,983	)
	Net increase (decrease) resulting from operations		27,301,633			(32,556,575	)
Distributions to Shareholders	From net investment income:
	Class A		(1,488,754	)		(1,799,103	)
	Class B		(33,825	)		(68,331	)
	Class C		(10,178	)		(9,851	)
	Class Z		(528,747	)		(558,519	)
	Total distributions to shareholders		(2,061,504	)		(2,435,804	)
	Net Capital Stock Transactions		(4,905,562	)		(13,792,725	)
	Increase from regulatory settlements		1,914			—
	Total increase (decrease) in net assets		20,336,481			(48,785,104	)
Net Assets	Beginning of period		78,980,976			127,766,080
	End of period		99,317,457			78,980,976
	Undistributed net investment income at end of period		11,993			61,033

See Accompanying Notes to Financial Statements.

Statement of Changes in Net Assets (continued) – Columbia Asset Allocation Fund II

	Capital Stock Activity
	Year Ended March 31, 2010						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		85,822			1,664,491			164,420			3,151,717
Distributions reinvested		71,862			1,389,350			89,853			1,667,439
Redemptions		(410,564	)		(7,883,419	)		(817,860	)		(15,164,420	)
Net decrease		(252,880	)		(4,829,578	)		(563,587	)		(10,345,264	)
Class B
Subscriptions		8,222			146,335			9,258			172,963
Distributions reinvested		1,533			28,971			3,245			60,650
Redemptions		(68,470	)		(1,290,760	)		(190,745	)		(3,623,073	)
Net decrease		(58,715	)		(1,115,454	)		(178,242	)		(3,389,460	)
Class C
Subscriptions		8,666			169,390			12,900			228,443
Distributions reinvested		381			7,219			444			7,982
Redemptions		(1,922	)		(38,180	)		(13,661	)		(255,908	)
Net increase (decrease)		7,125			138,429			(317	)		(19,483	)
Class Z
Subscriptions		29,914			584,656			38,365			721,957
Distributions reinvested		23,361			451,485			26,566			491,545
Redemptions		(6,797	)		(135,100	)		(74,377	)		(1,252,020	)
Net increase (decrease)		46,478			901,041			(9,446	)		(38,518	)

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Asset Allocation Fund II

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

	Year Ended March 31,
Class A Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	15.94		$	22.39		$	24.00		$	22.22		$	20.84
Income from Investment Operations:
Net investment income (b)		0.41			0.45			0.48			0.43			0.32
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency		5.21			(6.44	)		(1.60	)		1.78			1.37
Total from investment operations		5.62			(5.99	)		(1.12	)		2.21			1.69
Less Distributions to Shareholders:
From net investment income		(0.42	)		(0.46	)		(0.49	)		(0.43	)		(0.31	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	21.14		$	15.94		$	22.39		$	24.00		$	22.22
Total return (d)(e)		35.54	%		(27.03	)%		(4.78	)%		10.06	%		8.17	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (f)		1.21	%		1.29	%		1.22	%		1.22	%		1.13	%
Interest expense		—			—			—	%(g)		—	%(g)		—	%(g)
Net expenses (f)		1.21	%		1.29	%		1.22	%		1.22	%		1.13	%
Waiver/Reimbursement		0.20	%		0.09	%		0.07	%		0.07	%		0.04	%
Net investment income (f)		2.14	%		2.31	%		1.99	%		1.89	%		1.49	%
Portfolio turnover rate		80	%		67	%		63	%		55	%		102	%
Net assets, end of period (000s)	$	72,267		$	58,511		$	94,827		$	115,393		$	119,408

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

(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 and no initial sales charge or contingent deferred sales charge.

(e) 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.

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

(g) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Asset Allocation Fund II

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

	Year Ended March 31,
Class B Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	15.81		$	22.20		$	23.81		$	22.04		$	20.67
Income from Investment Operations:
Net investment income (b)		0.27			0.29	��		0.30			0.26			0.14
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency		5.16			(6.37	)		(1.60	)		1.77			1.38
Total from investment operations		5.43			(6.08	)		(1.30	)		2.03			1.52
Less Distributions to Shareholders:
From net investment income		(0.28	)		(0.31	)		(0.31	)		(0.26	)		(0.15	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	20.96		$	15.81		$	22.20		$	23.81		$	22.04
Total return (d)(e)		34.52	%		(27.55	)%		(5.54	)%		9.27	%		7.38	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (f)		1.96	%		2.04	%		1.97	%		1.97	%		1.88	%
Interest expense		—			—			—	%(g)		—	%(g)		—	%(g)
Net expenses (f)		1.96	%		2.04	%		1.97	%		1.97	%		1.88	%
Waiver/Reimbursement		0.20	%		0.09	%		0.07	%		0.07	%		0.04	%
Net investment income (f)		1.42	%		1.49	%		1.25	%		1.14	%		0.68	%
Portfolio turnover rate		80	%		67	%		63	%		55	%		102	%
Net assets, end of period (000s)	$	1,970		$	2,414		$	7,349		$	15,225		$	22,247

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

(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 and no contingent deferred sales charge.

(e) 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.

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

(g) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Asset Allocation Fund II

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

	Year Ended March 31,
Class C Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	15.79		$	22.18		$	23.79		$	22.02		$	20.65
Income from Investment Operations:
Net investment income (b)		0.26			0.30			0.32			0.26			0.15
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency		5.18			(6.38	)		(1.62	)		1.77			1.37
Total from investment operations		5.44			(6.08	)		(1.30	)		2.03			1.52
Less Distributions to Shareholders:
From net investment income		(0.28	)		(0.31	)		(0.31	)		(0.26	)		(0.15	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	20.95		$	15.79		$	22.18		$	23.79		$	22.02
Total return (d)(e)		34.63	%		(27.58	)%		(5.54	)%		9.28	%		7.39	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (f)		1.96	%		2.04	%		1.97	%		1.97	%		1.88	%
Interest expense		—			—			—	%(g)		—	%(g)		—	%(g)
Net expenses (f)		1.96	%		2.04	%		1.97	%		1.97	%		1.88	%
Waiver/Reimbursement		0.20	%		0.09	%		0.07	%		0.07	%		0.04	%
Net investment income (f)		1.38	%		1.59	%		1.32	%		1.14	%		0.73	%
Portfolio turnover rate		80	%		67	%		63	%		55	%		102	%
Net assets, end of period (000s)	$	832		$	515		$	730		$	2,105		$	2,468

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

(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 and no contingent deferred sales charge.

(e) 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.

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

(g) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Asset Allocation Fund II

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

	Year Ended March 31,
Class Z Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	15.90		$	22.34		$	23.95		$	22.17		$	20.81
Income from Investment Operations:
Net investment income (b)		0.46			0.50			0.54			0.49			0.37
Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency		5.20			(6.43	)		(1.60	)		1.78			1.36
Total from investment operations		5.66			(5.93	)		(1.06	)		2.27			1.73
Less Distributions to Shareholders:
From net investment income		(0.47	)		(0.51	)		(0.55	)		(0.49	)		(0.37	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	21.09		$	15.90		$	22.34		$	23.95		$	22.17
Total return (d)(e)		35.90	%		(26.86	)%		(4.55	)%		10.35	%		8.35	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (f)		0.96	%		1.04	%		0.97	%		0.97	%		0.88	%
Interest expense		—			—			—	%(g)		—	%(g)		—	%(g)
Net expenses (f)		0.96	%		1.04	%		0.97	%		0.97	%		0.88	%
Waiver/Reimbursement		0.20	%		0.09	%		0.07	%		0.07	%		0.04	%
Net investment income (f)		2.39	%		2.58	%		2.24	%		2.15	%		1.72	%
Portfolio turnover rate		80	%		67	%		63	%		55	%		102	%
Net assets, end of period (000s)	$	24,248		$	17,541		$	24,859		$	24,680		$	25,336

(a) On August 22, 2005, the Fund's Primary A shares were renamed Class Z shares.

(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) 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.

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

(g) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Columbia Asset Allocation Fund II
March 31, 2010

Note 1. Organization

Columbia Asset Allocation Fund II (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 long-term 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 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

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 may also be valued based upon an over-the-counter or exchange bid quotation.

Certain debt securities, which tend to be more thinly traded and of lesser quality, are priced based on fundamental analysis of the financial condition of the issuer and the estimated value of any collateral. Valuations developed through pricing techniques may vary from the actual amounts realized upon sale of the securities, and the potential variation may be greater for those securities valued using fundamental analysis.

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.

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.

Columbia Asset Allocation Fund II, March 31, 2010

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.

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.

On January 21, 2010, the FASB issued an Accounting Standards Update (the amendment), Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements, which provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements for Level 2 or Level 3 positions. The amendment also requires that transfers between all levels (including Level 1 and Level 2) be disclosed on a gross basis (i.e., transfers out must be disclosed separately from transfers in), and the reason(s) for the transfer. Additionally purchases, sales, issuances and sett lements must be disclosed on a gross basis in the Level 3 rollforward. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of the amendment and the impact to the financial statements.

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.

Derivative Instruments

The Fund may invest in derivative instruments. 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

Columbia Asset Allocation Fund II, March 31, 2010

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.

Delayed Delivery Securities

The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes the Fund to subsequently invest at less advantageous prices. The Fund identifies within its portfolio of investments cash or liquid securities in an amount equal to the delayed delivery commitment.

Treasury Inflation Protected Securities

The Fund may invest in treasury inflation protected securities ("TIPS"). The principal amount of TIPS is increased for inflation or decreased for deflation based on a monthly published index. Interest payments are based on the adjusted principal at the time the interest is paid. These adjustments are recorded as interest income on the Statement of Operations.

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. 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.

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.

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, based on the relative net assets of each class, for purposes of determining the net asset value of each class.

Federal Income Tax Status

The Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, 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

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

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

Columbia Asset Allocation Fund II, March 31, 2010

distribution (or available capital loss carryforwards) under income tax regulations.

For the year ended March 31, 2010, permanent book and tax differences resulting primarily from differing treatments for proceeds 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
$	3,351			$	—			$	(3,351	)

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 March 31, 2010 and March 31, 2009 was as follows:

	March 31,
Distributions paid from:	2010		2009
Ordinary Income*	$	2,061,504	$	2,435,804

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

As of March 31, 2010, the components of distributable earnings on a tax basis were as follows:

Undistributed Ordinary Income				Undistributed Long-Term Capital Gains				Net Unrealized Appreciation*
$	11,993			$	—			$	15,336,298

* 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 March 31, 2010, based on cost of investments for federal income tax purposes were:

Unrealized appreciation	$	16,608,359
Unrealized depreciation		(1,272,061	)
Net unrealized appreciation	$	15,336,298

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 Carryforward
	2012	$	1,767,986
	2017		4,810,145
	2018		10,216,453
	Total	$	16,794,584

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 March 31, 2010, post-October capital losses of $808,973 attributed to security transactions were deferred to April 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. Columbia receives a monthly investment advisory fee at the annual rate of 0.60% of the Fund's average daily net assets.

Columbia Asset Allocation Fund II, March 31, 2010

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 April 30, 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. On March 3, 2010, the Fund's shareholders approved, among other matters, the proposed investment management services agreement with the New Advisor. The New Advisor will serve as investment advisor under a new investment management services agreement effective upon the Closing. The New Advisor will 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 0.12% 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.

Columbia Asset Allocation Fund II, March 31, 2010

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.

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 will change its name to Columbia Management Investment Services Corp. upon or shortly after the Closing.

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.

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 March 31, 2010, no minimum account balance fees were charged by the Fund.

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 March 31, 2010, the Distributor has retained net underwriting discounts of $2,904 on sales of the Fund's Class A shares and received net CDSC fees of $502 and $12 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 will change its name to Columbia Management Investment Distributors, Inc. upon or shortly after the Closing.

The Fund has adopted distribution and shareholder servicing plans (the "Plans") pursuant to Rule 12b-1 under the 1940 Act, which require the payment of distribution and service fees. The fees are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors. The Plans require the payment of a combined distribution and shareholder servicing fee for Class A shares of the Fund. The Plans also require the payment of a monthly shareholder servicing fee and distribution fee for the Class B and Class C shares of the Fund. 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	%

Fee Waivers and Expense Reimbursements

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 0.95% of the Fund's average daily net assets on an annualized basis. Columbia, in its discretion, may revise or discontinue this arrangement at any time.

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 Asset Allocation Fund II, March 31, 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. 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 Lia bilities.

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. For the year ended March 31, 2010, these custody credits reduced total expenses by $28 for the Fund.

Note 6. Objectives and Strategies for Investing in Derivative Instruments

The Fund uses derivatives instruments including futures 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:

Interest Rate Risk: Interest rate risk relates to the fluctuation in value of fixed income securities because of the inverse relationship of price and yield. Fixed income securities generally will decline in value upon an increase in general interest rates and their value generally will increase upon a decline in general interest rates. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations.

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

The Fund entered into interest rate futures contracts to manage the duration and yield curve exposure of the Fund versus the benchmark.

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 March 31, 2010, the Fund entered into 39 futures contracts.

Columbia Asset Allocation Fund II, March 31, 2010

The following table is a summary of the value of the Fund's derivative instruments as of March 31, 2010.

Fair Value of Derivative Instruments

Assets

Liabilities

Statement of Assets
and Liabilities

Fair Value

Statement of Assets
and Liabilities

Fair Value*

—

Futures Variation Margin

3,779

* Includes only current day's variation margin.

The effect of derivative instruments on the Fund's Statement of Operations for the year ended March 31, 2010:

	Amount of Realized Gain or (Loss) and Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
	Risk Exposure	Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)
Futures Contracts	Interest Rate Risk	$	(2,083	)	$	(4,937	)

Note 7. Portfolio Information

For the year ended March 31, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Fund were $73,366,176 and $73,510,109, respectively, of which $20,218,332 and $15,127,726, respectively, were U.S. Government securities.

Note 8. Regulatory Settlements

During the year ended March 31, 2010, the Fund received payments totaling $1,914 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 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 March 31, 2010, the Fund did not borrow under these arrangements.

Note 10. Shares of Beneficial Interest

As of March 31, 2010, 23.2% of the Fund's shares outstanding were beneficially owned by one participant account over which BOA and/or any of its affiliates had either sole or joint investment discretion.

As of March 31, 2010, no other shareholders owned more than 5% of the outstanding shares of the Fund.

Columbia Asset Allocation Fund II, March 31, 2010

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

Note 11. Significant Risks and Contingencies

Asset-Backed Securities Risk

The value of asset-backed securities may be affected by, among other factors, changes in interest rates, the market's assessment of the quality of underlying assets, the creditworthiness of the servicer for the underlying assets, factors concerning the interests in and structure of the issuer or the originator of the underlying assets, or the creditworthiness or rating of the entities that provide any supporting letters of credit, surety bonds, derivative instruments, or other credit enhancement. The value of asset-backed securities also will be affected by the exhaustion, termination or expiration of any credit enhancement. Most asset-backed securities are subject to prepayment risk, which is the possibility that the underlying debt may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Fund to have to reinvest the money received in securities that have lower yields. In add ition, the impact of prepayments on the value of asset-backed securities may be difficult to predict and may result in greater volatility.

Mortgage-Backed Securities Risk

The value of mortgage-backed securities may be affected by, among other things, changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgages, the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements or the quality of underlying assets or the market's assessment thereof. Mortgage-backed securities are subject to prepayment risk, which is the possibility that the underlying mortgage may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Fund to have to reinvest the money received in securities that have lower yields. In addition, the impact of prepayments on the value of mortgage-backed securities may be difficult to predict and may result in greater volatility.

Information Regarding Pending and Settled Legal Proceedings

In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc. was filed in the United States District Court for the District of Arizona. The plaintiffs allege that they are investors in several American Express Company (now known as RiverSource) mutual funds and they purport to bring the action derivatively on behalf of those funds under the Investment Company Act of 1940. The plaintiffs allege that fees allegedly paid to the defendants by the funds for investment advisory and administrative services are excessive. The plaintiffs seek remedies including restitution and rescission of investment advisory and distribution agreements. The plaintiffs voluntarily agreed to transfer this case to the United States District Court for the District of Minnesota (the District Court). In response to defendants' motion to dismiss the complaint, the District Court dismissed one of plaintiffs' four claims and granted plaintiffs limited discovery. Defendants moved for summary judgment in April 2007. Summary judgment was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit) on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the District Court for further proceedings. On August 6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the Supreme Court), asking the Supreme Court to stay the District Court proceedings while the Supreme Court considers and rules in a case captioned Jones v. Harris Associates, which involve s issues of law similar to those presented in the Gallus case. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit's decision in the Gallus case and remanded the case to the Eighth Circuit for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates.

Columbia Asset Allocation Fund II, March 31, 2010

certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the RiverSource Funds' Boards of Directors/Trustees.

On November 7, 2008, RiverSource Investments, LLC, a subsidiary of Ameriprise Financial, Inc., acquired J. & W. Seligman & Co. Incorporated (Seligman). In late 2003, Seligman conducted an extensive internal review concerning mutual fund trading practices. Seligman's review, which covered the period 2001-2003, noted one arrangement that permitted frequent trading in certain open-end registered investment companies managed by Seligman (the Seligman Funds); this arrangement was in the process of being closed down by Seligman before September 2003. Seligman identified three other arrangements that permitted frequent trading, all of which had been terminated by September 2002. In January 2004, Seligman, on a voluntary basis, publicly disclosed these four arrangements to its clients and to shareholders of the Seligman Funds. Seligman also provided information concerning mutual fund trading practices to the SEC and the Office o f the Attorney General of the State of New York (NYAG).

In September 2006, the NYAG commenced a civil action in New York State Supreme Court against Seligman, Seligman Advisors, Inc. (now known as RiverSource Fund Distributors, Inc.), Seligman Data Corp. and Brian T. Zino (collectively, the Seligman Parties), alleging, in substance, that the Seligman Parties permitted various persons to engage in frequent trading and, as a result, the prospectus disclosure used by the registered investment companies then managed by Seligman was and had been misleading. The NYAG included other related claims and also claimed that the fees charged by Seligman to the Seligman Funds were excessive. On March 13, 2009, without admitting or denying any violations of law or wrongdoing, the Seligman Parties entered into a stipulation of settlement with the NYAG and settled the claims made by the NYAG. Under the terms of the settlement, Seligman paid $11.3 million to four Seligman Funds. This settlement resolv ed all outstanding matters between the Seligman Parties and the NYAG. In addition to the foregoing matter, the New York staff of the SEC indicated in September 2005 that it was considering recommending to the Commissioners of the SEC the instituting of a formal action against Seligman and Seligman Advisors, Inc. relating to frequent trading in the Seligman Funds. Seligman responded to the staff in October 2005 that it believed that any action would be both inappropriate and unnecessary, especially in light of the fact that Seligman had previously resolved the underlying issue with the Independent Directors of the Seligman Funds and made recompense to the affected Seligman Funds. There have been no further developments with the SEC on this matter.

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

There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased fund redemptions, reduced sale of fund shares or other adverse consequences to the Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material

Columbia Asset Allocation Fund II, March 31, 2010

adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.

Note 12. Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended March 31, 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 have occurred that would require adjustment of the financial statements as presented. On April 30, 2010, the Transaction disclosed in Note 4 closed. Effective May 1, 2010, the New Advisor became the investment advisor and administrator of the Fund and subsequently changed its name to Columbia Management Investment Advisers, LLC. On that date, the New Transfer Agent became the transfer agent of the Fund and changed its name to Columbia Management Investment Services Corp. Also on that date, the New Distributor became the distributor of the Fund and changed its name to Columbia Management Investment Distrib utors, Inc.

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Series Trust and the Shareholders of Columbia Asset Allocation Fund II

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 Asset Allocation Fund II (constituting part of Columbia Funds Series Trust, hereafter referred to as the "Fund") at March 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 sta tements 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 March 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
May 21, 2010

Federal Income Tax Information (Unaudited)

56.11% of the ordinary income distributed by the Fund for the fiscal year ended March 31, 2010, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 56.21%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Fund for the fiscal year ended March 31, 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 birth years 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, Jr. (Born 1944)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 52; Trustee—BofA Funds Series Trust.

William P. Carmichael (Born 1943)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired; Oversees 52; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—Simmons Company (bedding); Director—The Finish Line (athletic shoes and apparel); Trustee—BofA Funds Series Trust.

William A. Hawkins (Born 1942)

c/o Columbia Management Investment Advisers, 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 52; Trustee—BofA Funds Series Trust.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Investment Advisers, 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 52; Director—Conseco, Inc. (insurance); Trustee—BofA Funds Series Trust.

John J. Nagorniak (Born 1944)

c/o Columbia Management Investment Advisers, 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 52; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee—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 Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 52; Board Member—Piedmont Natural Gas; Trustee—BofA Funds Series Trust.

Interested Trustee

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
Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 2002 through current; Senior Advisor—McKinsey & Company (consulting), 2006 through 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, 2000 through 2006; oversees 52; Director—Renaissance Reinsurance Ltd; Trustee—Penn Mutual Life Insurance Company; Director—Citigroup; Trustee—BofA Funds Series Trust.

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 800-345-6611.

Fund Governance (continued)

Officers

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Senior Vice President and General Manager—Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds, since 2009, and RiverSource Funds, since May 2010 (previously Senior Vice President and Chief Financial Officer, Columbia Funds, from June 2008 to January 2009, Treasurer, Columbia Funds, from October 2003 to May 2008, and senior officer of various other affiliated funds since 2000); Managing Director, Columbia Management Advisors, LLC from December 2004 to April 2010.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, from September 2004 to April 2010; senior officer of Columbia Funds and affiliated funds since 2002.

Scott R. Plummer (Born 1959)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President, Secretary and Chief Legal Officer (since 2010)				Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Vice President and Lead Chief Counsel—Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel—Asset Management, from 2005 to April 2010, and Vice President—Asset Management Compliance from 2004 to 2005); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; Vice President, General Counsel and Secretary, RiverSource Funds, since December 2006; Senior Vice President, Secretary and Chief Legal Officer, Columbia Funds, since May 2010.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Vice President and Chief Compliance Officer, Columbia Management Investment Advisers, LLC since May 2010; Chief Compliance Officer, Columbia Funds, since 2007, and RiverSource Funds, since May 2010; Director (Columbia Management Group, LLC and Investment Product Group Compliance), Bank of America, from June 2005 to April 2010; Director of Corporate Compliance and Conflicts Officer of MFS Investment Management (investment management) from August 2004 to May 2005.

William F. Truscott (Born 1960)

53600 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 (previously President, Chairman of the Board and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, U.S. Asset Management & President, Annuities, Ameriprise Financial, Inc. since May 2010 (previously President—U.S. Asset Management and Chief Investment Officer from 2005 to April 2010, and Senior Vice President—Chief Investment Officer, from 2001 to 2005); Director, President and Chief Executive Officer, Ameriprise Certificate Company since 2006; Director, Columbia Management Investment Distributors, Inc. since May 2010 (previously Chairman of the Board and Chief Executive Officer from 2008 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006.

Fund Governance (continued)

Officers (continued)

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
Colin Moore (Born 1958)

One Financial Center Boston, MA 02111 Senior Vice President (since 2010)				Director and Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC from 2007 to April 2010; Head of Equities, Columbia Management Advisors, LLC from 2002 to 2007.

Michael A. Jones (Born 1959)

100 Federal Street Boston, MA 02110 Senior Vice President (since 2010)				Director and President, Columbia Management Investment Advisers, LLC since May 2010; President and Director, Columbia Management Investment Distributors, Inc. since May 2010; Manager, Chairman, Chief Executive Officer and President, Columbia Management Advisors, LLC from 2007 to April 2010; Chief Executive Officer, President and Director, Columbia Management Distributors, Inc. from November 2006 to April 2010; previously, co-president and senior managing director at Robeco Investment Management.

Amy Johnson (Born 1965)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009 until April 2010, Vice President—Asset Management and Trust Company Services, from 2006 to 2009, and Vice President—Operations and Compliance from 2004 to 2006).

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Treasurer (since 2010) and Chief Accounting Officer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC from January 2006 to April 2010; Head of Tax/Compliance and Assistant Treasurer, Columbia Management Advisors, LLC, from November 2004 to December 2005.

Marybeth Pilat (Born 1968)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2010)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Vice President, Investment Operations, Bank of America, from October 2008 to April 2010; Finance Manager, Boston Children's Hospital from August 2008 to October 2008; Director, Mutual Fund Administration, Columbia Management Advisors, LLC, from May 2007 to July 2008; Vice President, Mutual Fund Valuation, Columbia Management Advisors, LLC, from January 2006 to May 2007; Vice President, Mutual Fund Accounting Oversight, Columbia Management Advisors, LLC from January 2005 to January 2006.

Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, from August 2008 to April 2010; Senior Tax Manager, Columbia Management Advisors, LLC from August 2006 to July 2008; Senior Compliance Manager, Columbia Management Advisors, LLC from April 2002 to August 2006.

Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 2006)				President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc. from July 2004 to April 2010; Managing Director, Columbia Management Distributors, Inc. from August 2007 to April 2010.

Board Consideration and Re-Approval of Previous 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 re-approval of the Advisory Agreement. 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 extent practicable, at ar ms' 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.

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 the Fund's performance with its 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 Agreement. The Board's review and conclusions are based on the comprehensive consideration of all information presented to them and are not the result of any single controlling factor.

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.

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 Fund by CMA under the Advisory Agreement. The most recent investment adviser registration forms for CMA were made available to the Board, as were CMA'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.

In addition, the Board considered the investment and legal compliance programs of the Fund and CMA, including their compliance policies and procedures and reports of the Fund's Chief Compliance Officer.

The Board evaluated the ability of CMA, based on its 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 they were satisfied with the nature, extent and quality of the investment advisory services provided to the Fund by CMA.

for investment advisory services (the "Contractual Management Rates"). 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 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 the 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 the 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 the Fund's Peer Group and Universe and considered potential imprecision resulting from the selection methodology. The Board also considered Lipper data that ranked the Fund based on: (i) the Fund's one- and three-year performance compared to actual management fees; and (ii) the 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 Agreement for the Fund.

Fund Performance. The Board considered the performance results for the Fund over multiple measurement periods. They also considered these results in comparison to the performance results of the Fund's Peer Group and Universe, as well as to the 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 Fund 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 Fund, whether the Fund had 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 to its other clients, including separate accounts and institutional investors. In this regard, the Board concluded that, where the Contractual Management Rates and Actual Management Rates were appreciably above the range of the fee rates offered to other CMA clients, based on information provided by CMA, the costs associated with managing and operating a

registered investment company provided a justification for the higher fee rates charged to the Fund.

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

The Board considered the effectiveness of the policies of the Fund 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 methods for allocating portfolio investment opportunities among the Fund 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 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 Fund receives throughout the year. In this regard, the Board and its Committees review reports of CMA 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.

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 under the Advisory Agreement is fair and equitable. Accordingly, the Board unanimously re-approved the Advisory Agreement.

Board Consideration and Approval of New 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 Columbia Asset Allocation Fund II.

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.

The Trustees also reviewed and considered a report prepared and provided by the Fee Consultant (the "Fee Consultant") appointed by the Independent Trustees pursuant to an assurance of discontinuance entered into by a predecessor to Columbia 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 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.

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.

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.

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.

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.

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.

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 Asset Allocation Fund II 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 (Columbia Management Advisors, LLC)

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 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

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 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

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

Summary of Management Fee Evaluation by Independent Fee Consultant (RiverSource Investments, LLC)

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

December 22, 2009

I. Overview

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 this written evaluation of the fee negotiation process. As was the case with the last three annual reports, my immediate predecessor as IFC, John Rea, provided invaluable assistance in the preparation of this report.

On September 29, 2009, Ameriprise entered into an asset purchase agreement with Bank of America, N.A. and its parent, Bank of America Corporation (together, the "Bank") pursuant to which the Bank agreed to sell certain CMG assets relating to Columbia's long-term asset management business, including management of the long-term Nations Funds (the "Transaction").³

The Transaction if completed would result in the termination of the existing Investment Management Agreements with CMA with respect to those Funds. Therefore, the Trustees have been requested to approve and recommend to the shareholders of each long-term Nations Fund new Investment Management and Sub-Advisory Agreements (together, the "Management Agreements") with RiverSource Investments, LLC ("RI"),⁴ investment manager of the RiverSource Funds and a subsidiary of Ameriprise. This report is intended to fulfill the requirements of the AOD with respect to the Trustees' consideration of the new Management Agreements.

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 (or RI), 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 the adviser's services, including the Fund's performance;

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 Ameriprise Financial, Inc. ("Ameriprise"), 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. Further, as the management of the Nations money market Funds was not included in the Transaction and no new Management Agreements were proposed for those Funds, this report does not cover those Funds unless otherwise stated.

³ Preliminary Response of Ameriprise to Information Request of Columbia Nations Board dated October 28, 2009 (hereafter, the "Preliminary Response"), p. 1.

⁴ Ameriprise intends to re-brand RI with the "Columbia" name (which is one of the assets being sold in the Transaction). Preliminary Response, pp. 4-5. In the case of new Sub-Advisory Agreements, the relevant current sub-adviser would also be a party.

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 the adviser for like services;

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

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

C. Data Presented to the Trustees

In considering the proposed new Management Agreements with RI, the Trustees relied in part on the data that had been prepared as part of their annual contract review process, which concluded in early November. This data remained relevant because the fees in the proposed Management Agreements were identical to the fees approved at that time. The annual review materials included a Lipper report on the performance of each Nations Fund compared to its peers and its benchmark, comparisons of the fees and expenses of each Nations Fund to similar CMG-sponsored Funds, comparable competitive funds chosen by Lipper (in the case of long-term Funds), and institutional accounts advised by CMA, revenues, expenses, and profits of CMG from managing the Nations Funds, calculated both by Fund and collectively, and CMG's views on the existence and sharing of economies of scale.

In addition, the Trustees reviewed materials specific to the proposed new Management Agreements with RI in response to requests for information made on behalf of the Trustees, including the following:

• Performance data for the RiverSource Funds showing percentile and quartile rankings of each fund within its Lipper performance universe for periods up to five years and net returns of each fund relative to its benchmark returns. This data was arguably relevant due to the possibility that some RiverSource investment teams would be providing investment management services to certain Columbia Funds.⁵

• tables comparing the fee schedules and effective fee rates of funds managed by CMA and RI and institutional accounts advised by the two firms.

• extensive discussion of the process by which the components of the two asset management businesses would be integrated, including investment management, compliance, transfer agency, custody, fund accounting, and distribution.

• information about the financial condition of Ameriprise, including its most recent annual report on Form 10-K, RI's profit margins from managing the RiverSource Funds in 2007 and 2008, and pro forma income statements for the combined Columbia and RiverSource fund complex.

• disclosure that certain senior CMG executives, including President Michael Jones, Chief Investment Officer Colin Moore, Head of Mutual Funds J. Kevin Connaughton, and Chief Compliance Officer Linda Wondrack would continue in analogous capacities following the consummation of the Transaction, and

• a breakdown of the synergies RI expects to realize in the two years following the Transaction and the extent to which those potential synergies are expected to be shared with shareholders of funds advised by RI.

II. Findings

1. Based upon my examination of the information supplied by CMG and Ameriprise 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 for which a new Management Agreement was proposed (each, a "Long-Term Nations Fund").

2. In my view, the process by which the proposed management fees of each Long-Term Nations Fund have been negotiated with RI thus far has been, to the extent practicable, at arms' length and reasonable and consistent with the AOD.

* * *

Respectfully submitted,
Steven E. Asher

⁵ On page 22 of its Supplemental Response to the Nations Trustees (undated but delivered November 25, 2009), Ameriprise said that "most personnel decisions, including with respect to the portfolio management teams for the Nations Funds ... will be made primarily by [current CMA CIO] Colin Moore using the Columbia 5P process."

Proxy Voting Results

On March 3, 2010, a special meeting of shareholders of Columbia Funds Series Trust was held to consider the approval of several proposals listed in the proxy statement for the meeting. Proposal 1 and Proposal 2 were voted on at the March 3, 2010 meeting of shareholders and Proposal 3 was voted on at an adjourned meeting of shareholders held on April 26, 2010. The shareholder meeting results are as follows:

Proposal 1: A proposed Investment Management Services Agreement with Columbia Management Investment Advisers, LLC (formerly, RiverSource Investments, LLC) (CMIA) was approved as follows:

Votes For				Votes Against				Abstentions				Broker Non-Votes
	2,862,775				61,130				66,496				1,539,994

Proposal 2: A proposal authorizing CMIA to enter into and materially amend subadvisory agreements for the Fund in the future, with the approval of the Trust's Board of Trustees, but without obtaining additional shareholder approval, was approved as follows:

Votes For				Votes Against				Abstentions				Broker Non-Votes
	2,791,435				124,668				80,297				1,539,996

Proposal 3: Each of the nominees for trustees was elected to the Trust's Board of Trustees, as follows:

Trustee	Votes For		Votes Withheld		Abstentions
Edward J. Boudreau, Jr.		2,680,026,424		72,649,450		0
William P. Carmichael		2,679,841,716		72,834,157		0
William A. Hawkins		2,679,847,210		72,828,663		0
R. Glenn Hilliard		2,679,699,063		72,976,810		0
John J. Nagorniak		2,680,054,075		72,621,799		0
Minor M. Shaw		2,680,402,097		72,273,776		0
Anthony M. Santomero		2,679,633,235		73,042,638		0

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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 Asset Allocation Fund II.

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, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

On April 30, 2010, Ameriprise Financial, Inc., the parent company of RiverSource Investments, LLC, acquired the long-term asset management business of Columbia Management Group, LLC, including certain of its affiliates, which were, prior to this acquisition, part of Bank of America. In connection with the acquisition of the long-term assets, the Columbia Funds have a new investment adviser, RiverSource Investments, LLC, which is now known as Columbia Management Investment Advisers, LLC. For those clients that use the services of a subadviser, those arrangements are continuing unless notified otherwise. RiverSource Fund Distributors, Inc., now known as Columbia Management Investment Distributors, Inc., member FINRA, will act as the principal distributor of the Columbia Funds.

Transfer Agent*

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

Distributor*

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

Investment Advisor*

Columbia Management Investment Advisers, LLC 100 Federal Street Boston, MA 02110

*As of May 1, 2010

Columbia Management^®

One Financial Center
Boston, MA 02111-2621

PRSRT STD
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Permit NO. 20

Columbia Management^®

Columbia Asset Allocation Fund II

Annual Report, March 31, 2010

One Financial Center, Boston, MA 02111-2621

800-345-6611 www.columbiafunds.com

SHC-42/44305-0310 (05/10) 10/E2J656

Columbia Management^®

Annual Report

March 31, 2010

Corporate Bond Funds

^gColumbia Total Return Bond Fund

^gColumbia Short Term Bond Fund

^gColumbia High Income Fund

Not FDIC Insured ⁿ May Lose Value ⁿ No Bank Guarantee

Table of Contents

Economic Update					1

Columbia Total Return Bond Fund					3

Columbia Short Term Bond Fund					8

Columbia High Income Fund					13

Financial Statements					18

Report of Independent Registered Public Accounting Firm					97

Fund Governance					98

Board Consideration and Re-Approval of Previous Investment Advisory and Sub-Advisory Agreements					103

Board Consideration and Approval of New Investment Advisory and Sub-Advisory Agreements					106

Summary of Management Fee Evaluation by Independent Fee Consultant (Columbia Management Advisors, LLC)					113

Summary of Management Fee Evaluation by Independent Fee Consultant (RiverSource Investments, LLC)					119

Proxy Voting Results					121

Important Information About This Report					125

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 company securities should not be construed as a recommendation or investment advice.

President's Message

Dear Shareholder:

				Service provider name
Advisers				Columbia Management Investment Advisers, LLC Columbia Wanger Asset Management, LLC

Distributor				Columbia Management Investment Distributors, Inc.

Transfer Agent				Columbia Management Investment Services Corp.

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

¹Source: Ameriprise Financial, Inc., based on March 31, 2010 data from the Investment Company Institute

Economic Update – Corporate Bond Funds

In the beleaguered labor market, there was some good news. While businesses continued to shed jobs through most of 2009, raising the unemployment rate at the end of the period, job data turned positive in March 2010, buoyed by a swell of temporary workers hired to conduct the national once-in-a-decade census. Consumer spending also trended higher in the second half of the period. In fact, March year-over-year sales made a significant jump upward. Despite these improvements, consumer confidence, as measured monthly by The Conference Board, an independent research organization, failed to gain much ground during the year. Consumers surveyed continue to cite uncertain business conditions and still-weak labor prospects for their concerns.

On the business side of the economy, manufacturing activity gained momentum. A key measure of the nation's manufacturing situation—the Institute for Supply Management's Index—rose above 50 in July 2009—then rose for eight consecutive months to remain well above 50 for the remainder of the period. (An index value of 50+ indicates a growing economy.) Industrial production moved higher for eleven out of the past 12 months, and durable goods orders took off, with a big jump upward in January. Manufacturing capacity utilization inched upward to 72.7%.

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 Index¹ returned 7.69%. Municipal bonds gained more than taxable investment-grade bonds even without factoring in potential tax advantages to investors in higher income-tax brackets. The Barclays Capital Municipal Bond Index² returned 9.69%. The high-yield bond market was even stronger

Summary

For the 12-month period that ended March 31, 2010

Barclays Aggregate Index				BofA ML Index

^g Stock markets rebounded around the world, as measured by the S&P 500 Index and the MSCI EAFE Index.

S&P Index				MSCI Index

Economic Update (continued) – Corporate Bond Funds

than the broad stock market during the period. For the 12 months covered by this report, the BofA Merrill Lynch U.S. High Yield Cash Pay Index³ returned 55.67%.

Stocks staged a solid comeback

Against a strengthening economic backdrop, a stock market rally that began in mid-March 2009 continued with little interruption through the end of the period. The U.S. stock market returned 49.77% for the 12-month period, as measured by the S&P 500 Index.⁴ 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.⁵ Outside the United States, stock market returns were slightly stronger. The MSCI EAFE Index,⁶ a broad gauge of stock market performance in foreign developed markets, gained 54.44% (net of dividends, in U.S. dollars) for the period. Emerging stock markets were caught in a downdraft in 2008, but they bounced back stronger than domestic or developed world markets as their economic growth generally outpaced the developed world. The MSCI Emerging Markets Index⁷ return ed 81.08% (net of dividends, in U.S. dollars) for the 12-month period, after giving back some gains in the first quarter of 2010.

Past performance is no guarantee of future results.

²The 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.

³The BofA Merrill Lynch U.S. High Yield Cash Pay Index tracks the performance of non-investment-grade corporate bonds.

⁴The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

⁵The 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 indicies.

⁶The 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.

⁷The 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.

Fund Profile – Columbia Total Return Bond Fund

Summary

^g For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 18.10% without sales charge.

^g The fund outperformed its benchmark, the Barclays Capital Aggregate Bond Index¹ and the average return of the funds in its peer group, the Lipper Intermediate Investment Grade Debt Funds Classification.²

^g An overweight in commercial mortgage-backed securities and corporate bonds, exposure to high yield and a favorable maturity profile accounted for the fund's strong relative performance.

Portfolio Management

Alexander D. Powers has co-managed the fund since December 2007 and has been associated with the advisor or its predecessors since 1996.

Carl W. Pappo has co-managed the fund since November 2006 and has been associated with the advisor or its predecessors since 1993.

Laura Ostrander has co-managed the fund since November 2004 and has been associated with the advisor or its predecessors since 1996.

Effective May 1, 2010, Michael W. Zazzarino and Scott A. Schroepfer will also co-manage the fund.

¹The 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. 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.

Summary

1-year return as of 03/31/10

				+18.10%

				Class A shares (without sales charge)

				+7.69%

				Barclays Capital Aggregate Bond Index

Performance Information – Columbia Total Return Bond Fund

Annual operating expense ratio (%)*

Class A					0.91
Class B					1.66
Class C					1.66
Class Z					0.66

*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 04/01/00 – 03/31/10

The chart above shows the growth in value of a hypothetical $10,000 investment in Class A shares of Columbia Total Return Bond 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 $10,000 investment 04/01/00 – 03/31/10 ($)

Sales charge	without		with
Class A		17,116		16,568
Class B		15,884		15,884
Class C		15,881		15,881
Class Z		17,564		n/a

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

Share class	A				B				C				Z
Inception	11/19/92				06/07/93				11/16/92				10/30/92
Sales charge	without		with		without		with		without		with		without
1-year		18.10		14.30		17.23		14.23		17.23		16.23		18.52
5-year		4.86		4.16		4.06		4.06		4.07		4.07		5.12
10-year		5.52		5.18		4.74		4.74		4.73		4.73		5.79

The "with sales charge" returns include the maximum initial sales charge of 3.25% for Class A shares and the applicable contingent deferred sales charge of 3.00% in the first year, declining to 1.00% in the fourth 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 shown would be 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 Total Return Bond Fund

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 reporting 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 reporting period.

Compare with other funds

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 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.

If the value of your account falls below the minimum initial investment requirement applicable to you, your account may 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.

10/01/09 – 03/31/10

	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		1,044.80		1,020.29		4.74		4.68		0.93
Class B		1,000.00		1,000.00		1,039.80		1,016.55		8.54		8.45		1.68
Class C		1,000.00		1,000.00		1,040.90		1,016.55		8.55		8.45		1.68
Class Z		1,000.00		1,000.00		1,046.10		1,021.54		3.47		3.43		0.68

Portfolio Managers' Report – Columbia Total Return Bond Fund

Net asset value per share

as of 03/31/10 ($)

Class A					9.84
Class B					9.84
Class C					9.84
Class Z					9.85

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.44
Class B					0.36
Class C					0.36
Class Z					0.46

Top 10 holdings

as of 03/31/10 (%)

Federal National Mortgage Association, TBA 4.500% 12/01/40					3.4
Federal Home Loan Mortgage Corp. 4.500% 11/01/24					2.8
Federal National Mortgage Association 4.500% 02/01/39					2.5
Federal National Mortgage Association 6.000% 08/01/38					2.2
U.S. Treasury Notes 0.875% 01/31/12					1.7
Federal Home Loan Mortgage Corp. 0.700% 06/23/11					1.5
U.S. Treasury Notes 1.375% 02/15/13					1.3
Kraft Foods Inc 6.500% 02/09/40					1.2
GS Mortgage Securities Trust 5.805% 08/10/45					1.2
Credit Suisse Commercial Mortgage Trust 5.826% 06/15/38					1.2

Top 10 holdings are calculated as a percentage of net assets.

For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 18.10% without sales charge. That was significantly higher than the 7.69% return of its benchmark, the Barclays Capital Aggregate Bond Index. The fund outperformed the average return of the funds in its peer group, the Lipper Intermediate Investment Grade Debt Funds Classification, which returned 15.67%. An overweight in corporate bonds and commercial mortgage-backed securities (CMBS), exposure to high yield bonds and a favorable maturity profile accounted for the fund's strong relative performance.

A favorable environment for corporate bonds, CMBS

The past twelve months were characterized by a dramatic recovery in the asset classes that suffered the most during a credit crisis that began in late 2008. In April 2009, when the reporting period began, BBB-rated and other low-quality fixed-income securities were trading at extraordinary yield premiums to comparable Treasury securities. As the economy improved, so did the financial strength of the issuers, creating a favorable environment for corporate bonds and for the high-yield sector in particular. The fund performed well within this environment because it had more exposure than the index to corporate bonds throughout the period. Although the fund's high-yield position was only 3% of net assets as the period began—far less, we believe, than many competing funds—we doubled the position during the course of the year.

An overweight in CMBS also aided performance. Within CMBS, the best-performing securities were those with origination dates between 2006 and 2007, when the housing market was cresting and underwriting standards had become unusually lax. Investments in asset-backed securities (ABS) also made a significant contribution to performance. Both CMBS and ABS benefited from their inclusion in the Term Asset-Backed Loan Facility (TALF) program, which was designed to stimulate the securitization markets during last year's financial crisis by providing financing to investors for the purchase of certain asset-backed securities. CMBS also benefited from its inclusion in the Public-Private Investment Program (PPIP), which was designed to support the market for previously-issued CMBS.

The fund's maturity profile also added to overall results. Early in 2009, we shortened the portfolio's duration (a measure of interest rate sensitivity) on the expectation that an improvement in the national economy would lead to higher long-term interest rates, a thesis that was borne out as the year progressed. We also purchased some long-term corporate bonds, which did quite well for the period. Within corporate bonds, we emphasized the financial sector, on the view that banks would benefit from the Federal Reserve Board's ongoing reluctance to raise short-term rates during a fragile recovery. This emphasis was a boon to overall performance.

Looking ahead

The fund remains overweight in CMBS, with a corresponding underweight in securities backed by residential mortgages. Although the government's extensive support for the secondary mortgage market has offered some interesting trading opportunities in this

Portfolio Managers' Report (continued) – Columbia Total Return Bond Fund

sector, it has not translated into a meaningful improvement for residential housing market, hence our concern about the prevailing valuations of mortgage-backed securities. In general, we plan to continue to emphasize shorter maturities because of the tremendous supply we anticipate within the Treasury market. As yet we do not share the inflation fears that have occasionally rippled through the fixed-income markets, but we believe that our short maturity profile leaves us well positioned should any meaningful inflation materialize in the year ahead.

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 that presented for other Columbia Funds.

Any guarantee by the U.S. Government, its agencies or instrumentalities applies only to the payment of principal and interest on the guaranteed security and does not guarantee the yield or value of that security.

Portfolio structure

as of 03/31/10 (%)

Corporate Fixed-Income Bonds & Notes	40.1
Mortgage-Backed Securities	20.9
Commercial Mortgage- Backed Securities	20.0
Government & Agency Obligations	11.5
Asset-Backed Securities	6.7
Municipal Bonds	0.9
Collateralized Mortgage Obligations	0.5
Preferred Stock	0.0	*
Warrants	0.0	*
Short-Term Obligation	1.9
Other Assets & Liabilities, Net	(2.5	)

*Rounds to less than 0.1%

Maturity breakdown

as of 03/31/10 (%)

0-1 year	8.9
1-2 years	6.0
2-3 years	8.7
3-4 years	7.6
4-5 years	12.1
5-6 years	5.0
6-7 years	11.7
7-8 years	12.1
8-9 years	3.8
9-10 years	6.5
10-20 years	3.5
20-30 years	12.9
30 years and over	2.7
Cash and Equivalents	(1.4	)

Maturity breakdown and portfolio structure are calculated as a percentage of net assets.

The fund is actively managed and the composition of its portfolio will change over time.

Quality breakdown

as of 03/31/10 (%)

AAA					56.1
AA					6.4
A					10.9
BBB					21.1
BB					4.5
B					1.0

Quality breakdown is calculated as a percentage of investments. Ratings shown in the quality breakdown represent the rating assigned to a particular bond by one of the following nationally recognized rating agencies: Standard and Poor's, Moody's Investors Service, Inc. or Fitch Ratings Ltd. Ratings are relative and subjective and are not absolute standards of quality. The fund's credit quality does not remove market risk.

30-day SEC yields

as of 03/31/10 (%)

Class A					3.59
Class B					2.96
Class C					2.97
Class Z					3.96

The 30-day SEC yields reflect the fund's earning power, net of expenses, expressed as an annualized percentage of the public offering price per share at the end of the period.

Fund Profile – Columbia Short Term Bond Fund

Summary

1-year return as of 03/31/10

				+8.68%

				Class A shares (without sales charges)

				+4.15%

				Barclays Capital 1-3 Year Government/Credit Index

Summary

^g For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 8.68% without sales charge.

^g The fund outperformed its benchmark, the Barclays Capital 1-3 Year Government/Credit Index¹, but trailed the average return of the funds in its peer group, the Lipper Short Investment Grade Debt Classification.²

^g The fund's investments in non-Treasury investment-grade bonds aided performance as these sectors outperformed government securities. We believe the fund trailed its peer group average because it emphasized higher-quality bonds in a period that favored lower-quality issues.

Portfolio Management

Leonard Aplet has co-managed the fund since October 2004 and has been associated with the advisor or its predecessors since 1987.

Ronald Stahl has co-managed the fund since November 2006 and has been associated with the advisor or its predecessors since 1998.

Effective May 1, 2010, Greg Liechty will also co-manage the fund.

¹The Barclays Capital 1-3 Year Government/Credit Index consists of Treasury or government agency securities and investment grade corporate debt securities with maturities of one to three years. 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 Short Term Bond Fund

Performance of a $10,000 investment 04/01/00 – 03/31/10

The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Short Term Bond 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 redemptions of fund shares.

Performance of a $10,000 investment 04/01/00 – 03/31/10 ($)

Sales charge	without		with
Class A		15,269		15,110
Class B		14,160		14,160
Class C		14,438		14,438
Class Y		15,627		n/a
Class Z		15,627		n/a

Annual operating expense ratio (%)*

Class A					0.77
Class B					1.52
Class C					1.52
Class Y					0.47
Class Z					0.52

*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.

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

Share class	A				B				C				Y		Z
Inception	10/02/92				06/07/93				10/02/92				07/15/09		09/30/92
Sales charge	without		with		without		with		without		with		without		without
1-year		8.68		7.55		7.77		4.77		8.35		7.35		8.97		8.97
5-year		4.25		4.04		3.47		3.47		3.88		3.88		4.51		4.51
10-year		4.32		4.21		3.54		3.54		3.74		3.74		4.57		4.57

The "with sales charge" returns include the maximum initial sales charge of 1.00% for Class A shares and the applicable contingent deferred sales charge of 3.00% in the first year, declining to 1.00% in the fourth 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 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 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.

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 Short Term Bond Fund

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 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.

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 reporting 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 reporting period.

Compare with other funds

10/01/09 – 03/31/10

	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		1,023.70		1,021.29		3.68		3.68		0.73
Class B		1,000.00		1,000.00		1,018.90		1,017.55		7.45		7.44		1.48
Class C		1,000.00		1,000.00		1,022.10		1,019.75		5.24		5.24		1.04
Class Y		1,000.00		1,000.00		1,025.00		1,022.59		2.37		2.37		0.47
Class Z		1,000.00		1,000.00		1,025.00		1,022.54		2.42		2.42		0.48

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 Short Term Bond Fund

For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 8.68% without sales charge. The fund outperformed its benchmark, the Barclays Capital 1-3 Year Government/Credit Index, which returned 4.15%. The fund's exposure to non-Treasury investment-grade sectors, particularly commercial mortgage-backed securities (CMBS), collateralized mortgage obligations (CMOs), asset-backed securities (ABS) and corporate bonds benefited performance as did an underweight in U.S. Treasuries. The fund's return was lower than the 10.34% average return of the funds in its peer group, the Lipper Short Investment Grade Debt Funds Classification, and lower than the 9.89% median return of the Lipper Short Investment Grade Debt Funds Classification. We believe that many competing funds had more exposure to lower-quality debt, which outperformed during the period.

Non-Treasury exposure drove performance

The fund's investments in CMBS and ABS, which significantly outperformed Treasuries during the period, were a significant positive contributor to performance. Both sectors benefited from their inclusion in the Term Asset-Backed Loan Facility (TALF) program, which was designed to stimulate the securitization markets during last year's financial crisis by providing financing to investors for the purchase of certain asset-backed securities. CMBS also benefited from its inclusion in the Public-Private Investment Program (PPIP), which was designed to support the market for previously issued CMBS. During the period, we boosted the fund's exposure to corporate bonds, a move that benefited returns as corporate bonds performed very well. Within the corporate market, the fund's insurance, real estate investment trust (REIT), finance and banking holdings enhanced performance as these areas outperformed within the broad corporate market.

High credit quality dampened performance relative to peers

The worst performing areas of the fixed-income market in 2008 were the best performers in 2009 and into 2010, namely lower quality-securities. The fund might have done even better if it had more exposure to lower-rated securities. However, we were comfortable keeping the fund's risk exposure at a reasonable level while delivering a solid, competitive return. The fund's "barbelled" positioning—emphasizing both short and long maturities within the short-term range that the fund invests in—had a slightly negative impact on returns because five-year yields increased more than two-year yields, and prices declined commensurately.

Portfolio positioning

With a global financial crisis easing, both stability and liquidity have been restored to the capital markets. However, the labor market is still fragile, and the credit and housing market crisis continue to weigh on consumers. The Federal Reserve Board's desire for sustained economic growth outweighs its inflation concerns, and we expect monetary policy to remain somewhat accommodative to growth for some time. We have been purchasing floating-rate securities that contribute to the fund's barbell. We believe these will also benefit the fund when the Federal Reserve Board begins to raise interest rates because, as their name suggests, their yields reset as market rates change.

Net asset value per share

as of 03/31/10 ($)

Class A					9.95
Class B					9.94
Class C					9.94
Class Y					9.93
Class Z					9.93

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.33
Class B					0.26
Class C					0.30
Class Y					0.24
Class Z					0.36

Top 10 holdings

as of 03/31/10 (%)

U.S. Treasury Notes 1.375% 03/15/13					5.5
U.S. Treasury Inflation Indexed Note 3.00% 07/15/12					1.9
U.S. Treasury Notes 0.875% 02/28/11					1.8
General Electric Capital Corp. 0.379% 11/01/12					1.1
AmeriCredit Automobile Receivables Trust 5.530% 01/06/14					1.0
Federal Home Loan Mortgage Corp. 4.500% 08/01/24					1.0
Government National Mortgage Association 4.000% 05/16/39					1.0
Volkswagen Auto Lease Trust 3.410% 04/16/12					1.0
U.S. Treasury Notes 1.125% 06/30/11					0.9

Top 10 holdings are calculated as a percentage of net assets.

Portfolio Managers' Report (continued) – Columbia Short Term Bond Fund

Portfolio structure

as of 03/31/10 (%)

Corporate Fixed-Income Bonds & Notes					28.5
Collateralized Mortgage Obligations					22.0
Government & Agency Obligations					15.9
Asset-Backed Securities					15.3
Mortgage-Backed Securities					8.4
Commercial Mortgage- Backed Securities					6.8
Short-Term Obligation					2.8
Other Assets & Liabilities, Net					0.3

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

Quality breakdown

as of 03/31/10 (%)

Treasury					13.9
Agency					25.6
Aaa					17.3
Aa					12.3
A					10.9
Baa					14.8
Ba					0.1
B					0.6
Caa					0.6
Not Rated					1.1
Cash & Equivalents					2.8

SEC yields

as of 03/31/10 (%)

Class A					2.25
Class B					1.52
Class C					1.96
Class Y					2.51
Class Z					2.52

The 30-day SEC yields reflect the fund's earning power, net of expenses, expressed as an annualized percentage of the public offering price per share at the end of the period. Had the investment advisor and/or its affiliates not waived fees or reimbursed a portion of expenses, the 30-day SEC yields would have been lower.

The yield difference between Treasury and non-Treasury issues has narrowed substantially. We have reduced the fund's allocation to agency mortgage-backed securities (MBS) pass-throughs, fixed-rate auto ABS and agency debentures, as we believe other areas of the short-term investment grade market may offer better risk/reward opportunities. We believe the most compelling opportunities for relative value lie with shorter-maturity CMBS and within certain segments that continue to experience strong demand in the investment-grade corporate bond market: within financials, we favor insurance, banking and REITs and on the defensive side, we favor utility investments with a focus on the natural gas pipeline industry. We have also increased the fund's stake in short-term agency CMOs.

Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates and risks related to renting properties, such as rental defaults.

Any guarantee by the U.S. Government, it agencies or instrumentalities applies only to the payment of principal and interest on the guaranteed security and does not guarantee the yield or value of that security.

Fund Profile – Columbia High Income Fund

Summary

^g For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 42.43% without sales charge.

^g The fund's benchmark, the Credit Suisse High Yield Index, returned 52.27%.¹ The average return of the funds in its peer group, the Lipper High Current Yield Funds Classification², was 47.35%.

^g The fund's conservative positioning and an emphasis on defensive industries generally accounted for its shortfall to comparative measures.

Portfolio Management

The fund is managed by the High Yield Portfolio Management Team of MacKay Shields LLC, investment sub-advisor to the fund. J. Matthew Philo is the lead portfolio manager responsible for making the day-to-day investment decisions for the fund and has been a portfolio manager for the fund since its inception.

¹The Credit Suisse High Yield Index is a broad-based index that tracks the performance of high-yield bonds. 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.

Summary

1-year return as of 03/31/10

				+42.43%

				Class A shares (without sales charge)

				+52.27%

				Credit Suisse High Yield Index

Performance Information – Columbia High Income Fund

Annual operating expense ratio (%)*

Class A					1.20
Class B					1.95
Class C					1.95
Class Z					0.95

*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 04/01/00 – 03/31/10

The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia High Income 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 $10,000 investment 04/01/00 – 03/31/10 ($)

Sales charge	without		with
Class A		20,356		19,395
Class B		18,899		18,899
Class C		18,885		18,885
Class Z		20,905		n/a

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

Share class	A				B				C				Z
Inception	02/14/00				02/17/00				03/08/00				02/14/00
Sales charge	without		with		without		with		without		with		without
1-year		42.43		35.56		41.33		36.33		41.38		40.38		42.69
5-year		5.37		4.36		4.56		4.28		4.58		4.58		5.64
10-year		7.37		6.85		6.57		6.57		6.56		6.56		7.65

The "with sales charge" returns include the maximum initial sales charge of 4.75% 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 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.

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 High Income Fund

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 reporting 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 reporting period.

Compare with other funds

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 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.

10/01/09 – 03/31/10

	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		1,082.40		1,018.90		6.28		6.09		1.21
Class B		1,000.00		1,000.00		1,077.20		1,015.16		10.15		9.85		1.96
Class C		1,000.00		1,000.00		1,077.60		1,015.16		10.15		9.85		1.96
Class Z		1,000.00		1,000.00		1,082.90		1,020.14		4.99		4.84		0.96

Portfolio Managers' Report – Columbia High Income Fund

Net asset value per share

as of 03/31/10 ($)

Class A					7.81
Class B					7.78
Class C					7.74
Class Z					7.89

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.55
Class B					0.50
Class C					0.50
Class Z					0.57

Top 10 holdings

as of 03/31/10 (%)

Intelsat Subsidiary Holding Co Ltd., 8.500% 01/15/13					1.4
Ford Motor Credit Co 8.125% 01/15/20					1.0
GMAC Inc. 8.000% 11/01/31					1.0
Calpine Corp 3.1350% 03/29/14					1.0
Georgia Pacific 8.875% 05/15/31					0.9
Quebecor Media 7.750% 03/15/16					0.9
Crum & Forster Holdings 7.750% 05/01/17					0.9
Shaw Communications 7.500% 11/20/13					0.9
Whiting Petroleum, 7.000% 02/01/14					0.8
CC Holdings, 7.750% 05/01/17					0.8

For the 12-month period that ended March 31, 2010, the fund's Class A shares returned 42.43% without sales charge, compared with 52.27% for its benchmark, the Credit Suisse High Yield Index. The average return of the funds in its peer group, the Lipper High Current Yield Funds Classification, was 47.35%. As cash flooded the high-yield market, lower-quality credits significantly outperformed higher-quality credits, and cyclical industries outperformed defensive industries. In this environment, the fund's relatively conservative positioning and an emphasis on defensive industries generally accounted for its shortfall to these comparative measures.

Top contributors from a range of sectors

It was a good year for high-yield bonds, and many of the fund's top performers delivered solid, strong returns. The fund's top contributors included Ford and Ford Motor Credit, Georgia Pacific, GMAC, Icahn Enterprises (formerly AMR Real Estate), Markwest Energy Partners, ReAble Therapeutics and Quebecor Media (0.6%, 2.9%, 1.8%, 1.4%, 0.3%, 0.8%, 0.5% and 0.9% of net assets, respectively). An overweight in the transportation sector had a positive impact on relative performance. Most transportation companies announced improved results as they replenished inventories following "Cash for Clunkers"-related sales. Ford Motor Credit did well after gaining access to the capital markets early in the period through a new unsecured bond issue and asset-backed TALF financings. In the financials sector, GMAC did well as it was bolstered by government support throughout the period. In the health care sector, ReAble Therapeutics aided performa nce, while Reliant Energy and Energy Future Holdings (0.4% and 0.2% of net assets, respectively) were standout performers in the utilities sector. Finally, Icahn Enterprises reported higher revenues and income and was a top performer.

Few disappointments in a period of strength

The only issuers that had a negative impact on performance were Innophos, JC Penney, Silgan and Ziff Davis Media (0.3%, less than 0.1%, 0.3%, and less than 0.1% of net assets, respectively). Poor cash flows and elevated expenses hurt Ziff Davis as advertising spending suffered a global decline.

Portfolio Managers' Report (continued) – Columbia High Income Fund

Looking ahead

The high-yield market continues to signal a strong economic recovery. However, we remain conservatively positioned because our disciplined investment process requires us to invest in companies with definable economic value and evaluate credits based on defined fundamental factors. While there is widespread belief that the U.S. economy is in the early stages of recovery, we do not believe that the recovery is supported by fundamentals, which remain weak and uncertain for most high-yield issuers. We believe that current valuations in the riskiest part of the high-yield market are extremely unattractive and represent poor value. Given the poor value that credit risk currently represents, our investment process requires us to remain underweight the riskier part of the high-yield market, but we believe that the fund continues to represent attractive relative value.

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 that presented for other Columbia Funds.

Source for all security-specific commentary—MacKay Shields LLC.

Source for all statistical data—Columbia Management Investment Advisers, LLC.

Maturity breakdown

as of 03/31/10 (%)

0 – 1 year					9.3
1 – 3 years					13.3
3 – 5 years					31.6
5 – 7 years					23.3
7 – 10 years					16.4
10 – 15 years					0.7
15 years and over					5.4

Portfolio Structure

as of 03/31/10 (%)

Corporate Fixed-Income Bonds & Notes	91.0
Convertible Bonds	0.6
Preferred Stocks	0.4
Common Stocks	0.0	*
Warrants	0.0	*
Short Term Obligation	5.1
Other Assets & Liabilities, Net	2.9

*Rounds to less than 0.1%

Maturity breakdown, top 10 holdings and portfolio structure are calculated as a percentage of net assets.

The fund is actively managed and the composition of its portfolio will change over time.

Quality breakdown

as of 03/31/10 (%)

Cash and Equivalents					5.6
A & Above					0.8
BBB					9.9
BB					33.7
B					44.3
CCC					4.7
D					0.9
Not Rated					0.1

30-day SEC yields

as of 03/31/10 (%)

Class A					5.58
Class B					5.11
Class C					5.11
Class Z					6.11

The 30-day SEC yields reflect the portfolio's earning power net of expenses, expressed as an annualized percentage of the public offering price per share at the end of the period.

Investment Portfolio – Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes – 40.1%
	Par (a)		Value ($)
Basic Materials – 2.3%
Chemicals – 1.0%
Dow Chemical Co.
5.900% 02/15/15		4,590,000		4,969,244
8.550% 05/15/19		1,790,000		2,165,436
9.400% 05/15/39		2,520,000		3,377,906
Huntsman International LLC
7.875% 11/15/14		195,000		196,950
INVISTA
9.250% 05/01/12 (b)		585,000		592,313
Lubrizol Corp.
6.500% 10/01/34		345,000		357,060
8.875% 02/01/19		775,000		977,476
NOVA Chemicals Corp.
8.375% 11/01/16 (b)		90,000		92,475
8.625% 11/01/19 (b)		135,000		139,050
Solutia, Inc.
8.750% 11/01/17		295,000		311,225
Terra Capital, Inc.
7.750% 11/01/19		300,000		362,250
Chemicals Total				13,541,385
Forest Products & Paper – 0.2%
Clearwater Paper Corp.
10.625% 06/15/16 (b)		75,000		83,250
Domtar Corp.
10.750% 06/01/17		400,000		486,000
Georgia-Pacific Corp.
8.000% 01/15/24		800,000		848,000
PE Paper Escrow GmbH
12.000% 08/01/14 (b)		310,000		350,300
Westvaco Corp.
8.200% 01/15/30		240,000		263,824
Forest Products & Paper Total				2,031,374
Iron/Steel – 0.6%
ArcelorMittal
7.000% 10/15/39		605,000		621,324
9.850% 06/01/19		1,915,000		2,433,959
Nucor Corp.
5.000% 06/01/13		1,335,000		1,442,476
5.850% 06/01/18		2,085,000		2,263,332
Russel Metals, Inc.
6.375% 03/01/14		295,000		276,194
Steel Dynamics, Inc.
7.750% 04/15/16 (04/07/10) (c)(d)		735,000		768,075
United States Steel Corp.
7.000% 02/01/18		255,000		251,175
Iron/Steel Total				8,056,535

	Par (a)		Value ($)
Metals & Mining – 0.5%
FMG Finance Ltd.
10.625% 09/01/16 (b)		285,000		328,463
Freeport-McMoRan Copper & Gold, Inc.
8.375% 04/01/17		300,000		333,750
Noranda Aluminum Holding Corp.
PIK,
7.024% 11/15/14 (05/15/10) (c)(d)		222,801		152,277
Teck Resources Ltd.
10.750% 05/15/19		900,000		1,102,500
Vale Overseas Ltd.
6.875% 11/21/36		3,610,000		3,734,725
Vedanta Resources PLC
9.500% 07/18/18 (b)		265,000		292,825
Metals & Mining Total				5,944,540
Basic Materials Total				29,573,834
Communications – 3.4%
Advertising – 0.0%
Interpublic Group of Companies, Inc.
6.250% 11/15/14		85,000		85,531
Advertising Total				85,531
Media – 1.6%
CMP Susquehanna Corp.
3.250% 05/15/14 (05/14/10) (c)(d)(e)		27,000		15,930
Comcast Cable Holdings LLC
9.875% 06/15/22		2,159,000		2,845,862
Comcast Corp.
6.950% 08/15/37		2,539,000		2,746,736
CSC Holdings, Inc.
8.500% 04/15/14 (b)		405,000		431,325
8.500% 06/15/15 (b)		190,000		201,400
DirecTV Holdings LLC
6.375% 06/15/15		590,000		612,862
DISH DBS Corp.
7.875% 09/01/19		145,000		150,800
EchoStar DBS Corp.
6.625% 10/01/14		1,490,000		1,501,175
Liberty Media LLC
8.250% 02/01/30		355,000		330,594
Local TV Finance LLC
PIK,
9.250% 06/15/15 (b)		187,425		117,658

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
News America, Inc.
6.400% 12/15/35		2,175,000		2,221,006
6.550% 03/15/33		655,000		664,605
Reader's Digest Association, Inc.
9.500% 02/15/17 (05/15/10) (b)(c)(d)		240,000		244,800
Sirius XM Radio, Inc.
9.750% 09/01/15 (b)		405,000		437,400
Time Warner Cable, Inc.
3.500% 02/01/15		2,540,000		2,542,149
5.850% 05/01/17		1,270,000		1,359,854
7.300% 07/01/38		3,485,000		3,878,540
Media Total				20,302,696
Telecommunication Services – 1.8%
AT&T, Inc.
6.550% 02/15/39		2,715,000		2,854,122
BellSouth Corp.
5.200% 09/15/14		305,000		328,623
British Telecommunications PLC
5.150% 01/15/13		750,000		793,024
5.950% 01/15/18		1,245,000		1,278,113
Cricket Communications, Inc.
7.750% 05/15/16		595,000		617,312
Crown Castle International Corp.
9.000% 01/15/15		455,000		492,538
Digicel Group Ltd.
8.250% 09/01/17 (b)		630,000		623,700
Frontier Communications Corp.
7.875% 01/15/27		1,005,000		904,500
GeoEye, Inc.
9.625% 10/01/15 (b)		315,000		322,088
Intelsat Corp.
9.250% 06/15/16		655,000		686,112
Lucent Technologies, Inc.
6.450% 03/15/29		415,000		292,575
MetroPCS Wireless, Inc.
9.250% 11/01/14		400,000		409,000
Nextel Communications, Inc.
7.375% 08/01/15		1,100,000		1,045,000
NII Capital Corp.
10.000% 08/15/16 (b)		320,000		350,400
Nordic Telephone Co. Holdings ApS
8.875% 05/01/16 (b)		230,000		246,675
Quebecor Media, Inc.
7.750% 03/15/16		615,000		622,688
Qwest Communications International, Inc.
7.500% 02/15/14		355,000		361,213
Qwest Corp.
7.500% 10/01/14		680,000		742,900
7.500% 06/15/23		500,000		500,000

	Par (a)		Value ($)
SBA Telecommunications, Inc.
8.250% 08/15/19 (b)		425,000		452,625
Sprint Capital Corp.
6.875% 11/15/28		110,000		88,550
Syniverse Technologies, Inc.
7.750% 08/15/13		180,000		181,350
Telefonica Emisiones SAU
6.221% 07/03/17		1,075,000		1,178,916
6.421% 06/20/16		3,700,000		4,110,408
Verizon Communications, Inc.
6.250% 04/01/37		1,245,000		1,261,774
Wind Acquisition Finance SA
11.750% 07/15/17 (b)		1,015,000		1,121,575
11.750% 07/15/17 (b)	EUR	215,000		322,333
Windstream Corp.
8.625% 08/01/16		1,105,000		1,129,862
Telecommunication Services Total				23,317,976
Communications Total				43,706,203
Consumer Cyclical – 2.4%
Airlines – 0.2%
American Airlines, Inc.
10.500% 10/15/12 (b)		340,000		362,100
Continental Airlines, Inc.
7.461% 04/01/15		2,407,698		2,377,602
United Air Lines, Inc.
10.400% 11/01/16		325,000		349,375
Airlines Total				3,089,077
Apparel – 0.0%
Levi Strauss & Co.
9.750% 01/15/15		250,000		261,875
Apparel Total				261,875
Auto Manufacturers – 0.1%
Navistar International Corp.
8.250% 11/01/21		570,000		581,400
Auto Manufacturers Total				581,400
Auto Parts & Equipment – 0.0%
Goodyear Tire & Rubber Co.
10.500% 05/15/16		370,000		399,600
Lear Corp.
7.875% 03/15/18		50,000		50,563
8.125% 03/15/20		50,000		50,812
Auto Parts & Equipment Total				500,975
Entertainment – 0.1%
Boyd Gaming Corp.
6.750% 04/15/14		275,000		239,937

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Penn National Gaming, Inc.
8.750% 08/15/19 (b)		285,000		289,275
Pinnacle Entertainment, Inc.
8.625% 08/01/17 (b)		300,000		293,250
Six Flags, Inc.
9.625% 06/01/14 (f)		171,000		53,865
WMG Acquisition Corp.
7.375% 04/15/14		330,000		316,800
Entertainment Total				1,193,127
Home Builders – 0.1%
D.R. Horton, Inc.
5.625% 09/15/14		380,000		376,200
5.625% 01/15/16		165,000		158,606
KB Home
5.875% 01/15/15		665,000		630,088
Ryland Group, Inc.
8.400% 05/15/17		110,000		119,625
Home Builders Total				1,284,519
Leisure Time – 0.1%
Royal Caribbean Cruises Ltd.
7.500% 10/15/27		640,000		564,800
Leisure Time Total				564,800
Lodging – 0.2%
Host Hotels & Resorts LP
6.750% 06/01/16		630,000		631,575
MGM Mirage
13.000% 11/15/13		150,000		174,750
Seminole Indian Tribe of Florida
7.804% 10/01/20 (b)		325,000		302,920
Snoqualmie Entertainment Authority
9.125% 02/01/15 (b)		265,000		204,050
Starwood Hotels & Resorts Worldwide, Inc.
6.750% 05/15/18		615,000		616,537
Wynn Las Vegas LLC
6.625% 12/01/14		490,000		488,775
Lodging Total				2,418,607
Retail – 1.6%
AmeriGas Partners LP
7.125% 05/20/16		255,000		257,550
7.250% 05/20/15		195,000		197,925
Best Buy Co., Inc.
6.750% 07/15/13		2,485,000		2,781,398
CVS Lease Pass Through Trust
8.353% 07/10/31 (b)		4,865,910		5,650,976
CVS Pass-Through Trust
5.298% 01/11/27 (b)		2,785,296		2,650,623
6.036% 12/10/28		3,224,954		3,189,576

	Par (a)		Value ($)
General Nutrition Centers, Inc.
PIK,
4.893% 03/15/14 (09/15/10) (c)(d)		80,000		75,700
Inergy LP/Inergy Finance Corp.
8.250% 03/01/16		195,000		200,850
8.750% 03/01/15		120,000		125,550
Limited Brands, Inc.
8.500% 06/15/19		530,000		590,950
McDonald's Corp.
5.700% 02/01/39		3,410,000		3,395,334
QVC, Inc.
7.375% 10/15/20 (b)		115,000		115,575
7.500% 10/01/19 (b)		315,000		321,300
Starbucks Corp.
6.250% 08/15/17		1,590,000		1,724,051
Retail Total				21,277,358
Storage/Warehousing – 0.0%
Niska Gas Storage U.S. LLC/ Niska Gas Storage Canada ULC
8.875% 03/15/18 (b)		345,000		352,762
Storage/Warehousing Total				352,762
Textiles – 0.0%
Mohawk Industries, Inc.
6.875% 01/15/16		285,000		294,263
Textiles Total				294,263
Consumer Cyclical Total				31,818,763
Consumer Non-Cyclical – 4.6%
Beverages – 0.9%
Anheuser-Busch InBev Worldwide, Inc.
7.200% 01/15/14 (b)		2,935,000		3,362,418
7.750% 01/15/19 (b)		3,995,000		4,751,581
8.000% 11/15/39 (b)		2,855,000		3,612,635
Beverages Total				11,726,634
Commercial Services – 0.1%
ARAMARK Corp.
8.500% 02/01/15		210,000		214,725
Corrections Corp. of America
6.250% 03/15/13		240,000		243,300
Iron Mountain, Inc.
8.000% 06/15/20		355,000		363,875
RSC Equipment Rental, Inc.
10.000% 07/15/17 (b)		275,000		291,500

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Service Corp. International
6.750% 04/01/16		165,000		161,700
7.000% 06/15/17		290,000		284,200
Commercial Services Total				1,559,300
Food – 1.9%
Campbell Soup Co.
4.500% 02/15/19		1,990,000		2,024,841
ConAgra Foods, Inc.
7.000% 10/01/28		4,235,000		4,619,381
JBS USA LLC/JBS USA Finance, Inc.
11.625% 05/01/14 (b)		355,000		404,700
Kraft Foods, Inc.
6.500% 02/09/40		15,185,000		15,735,927
New Albertson's, Inc.
8.000% 05/01/31		455,000		391,300
Smithfield Foods, Inc.
10.000% 07/15/14 (b)		420,000		468,300
Tyson Foods, Inc.
10.500% 03/01/14		330,000		391,875
Food Total				24,036,324
Healthcare Products – 0.0%
Biomet, Inc.
PIK,
10.375% 10/15/17		230,000		253,000
Healthcare Products Total				253,000
Healthcare Services – 0.6%
Community Health Systems, Inc.
8.875% 07/15/15		215,000		222,525
HCA, Inc.
9.250% 11/15/16		120,000		127,575
PIK,
9.625% 11/15/16		994,000		1,064,823
Health Net, Inc.
6.375% 06/01/17		320,000		297,600
Healthsouth Corp.
8.125% 02/15/20		310,000		308,450
Roche Holdings, Inc.
6.000% 03/01/19 (b)		2,495,000		2,757,287
U.S. Oncology, Inc.
9.125% 08/15/17		420,000		438,900
WellPoint, Inc.
7.000% 02/15/19		1,840,000		2,086,534
Healthcare Services Total				7,303,694
Household Products/Wares – 0.1%
American Greetings Corp.
7.375% 06/01/16		165,000		164,587

	Par (a)		Value ($)
Fortune Brands, Inc.
5.125% 01/15/11		1,565,000		1,609,840
Jostens IH Corp.
7.625% 10/01/12		135,000		135,338
Household Products/Wares Total				1,909,765
Pharmaceuticals – 1.0%
Abbott Laboratories
5.600% 05/15/11		7,000,000		7,356,447
Elan Finance PLC
4.250% 11/15/11 (05/15/10) (c)(d)		70,000		68,775
Novartis Securities Investment Ltd.
5.125% 02/10/19		4,165,000		4,414,404
Omnicare, Inc.
6.750% 12/15/13		465,000		467,325
6.875% 12/15/15		150,000		147,188
Valeant Pharmaceuticals International
8.375% 06/15/16 (b)		265,000		276,925
Pharmaceuticals Total				12,731,064
Consumer Non-Cyclical Total				59,519,781
Diversified – 0.1%
Diversified Holding Companies – 0.1%
Icahn Enterprises LP/Icahn Enterprises Finance Corp.
8.000% 01/15/18 (b)		700,000		674,625
Leucadia National Corp.
7.125% 03/15/17		270,000		267,300
Reynolds Group DL Escrow, Inc./ Reynolds Group Escrow LLC
7.750% 10/15/16 (b)		355,000		364,763
Diversified Holding Companies Total				1,306,688
Diversified Total				1,306,688
Energy – 5.2%
Coal – 0.1%
Arch Western Finance LLC
6.750% 07/01/13		810,000		813,037
Cloud Peak Energy Resources LLC/ Cloud Peak Energy Finance Corp.
8.250% 12/15/17 (b)		165,000		168,300
8.500% 12/15/19 (b)		165,000		169,125
Massey Energy Co.
6.875% 12/15/13		680,000		689,350
Coal Total				1,839,812

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Oil & Gas – 2.9%
Canadian Natural Resources Ltd.
6.250% 03/15/38		2,125,000		2,197,350
Chesapeake Energy Corp.
6.375% 06/15/15		1,370,000		1,346,025
Cimarex Energy Co.
7.125% 05/01/17		450,000		459,000
Coffeyville Resources LLC
10.875% 04/01/17 (b)(j)		230,000		228,275
Connacher Oil & Gas Ltd.
11.750% 07/15/14 (b)		395,000		436,475
Devon Energy Corp.
6.300% 01/15/19		1,320,000		1,473,339
Forest Oil Corp.
8.500% 02/15/14		795,000		838,725
Frontier Oil Corp.
8.500% 09/15/16		150,000		153,750
Gazprom International SA
7.201% 02/01/20 (b)		2,058,900		2,187,581
Hess Corp.
7.300% 08/15/31		3,120,000		3,555,212
Linn Energy LLC/Linn Energy Finance Corp.
8.625% 04/15/20 (b)		40,000		40,050
Marathon Oil Corp.
6.000% 07/01/12		2,415,000		2,621,673
6.000% 10/01/17		3,000,000		3,219,738
7.500% 02/15/19		525,000		616,667
Newfield Exploration Co.
6.625% 04/15/16		600,000		610,500
6.875% 02/01/20		210,000		211,575
Nexen, Inc.
5.875% 03/10/35		725,000		689,350
7.500% 07/30/39		1,940,000		2,212,923
OPTI Canada, Inc.
8.250% 12/15/14		380,000		357,200
Penn Virginia Corp.
10.375% 06/15/16		190,000		206,150
PetroHawk Energy Corp.
7.875% 06/01/15		275,000		280,156
Qatar Petroleum
5.579% 05/30/11 (b)		828,499		851,072
Quicksilver Resources, Inc.
7.125% 04/01/16		245,000		232,750
Range Resources Corp.
7.500% 05/15/16		240,000		247,200
Shell International Finance BV
5.500% 03/25/40		4,565,000		4,474,924
Southwestern Energy Co.
7.500% 02/01/18		235,000		254,975

	Par (a)		Value ($)
Talisman Energy, Inc.
5.850% 02/01/37		2,210,000		2,118,455
7.750% 06/01/19		4,168,000		4,966,380
Tesoro Corp.
6.625% 11/01/15		475,000		454,813
Oil & Gas Total				37,542,283
Oil & Gas Services – 0.2%
Weatherford International Ltd.
5.150% 03/15/13		815,000		866,000
7.000% 03/15/38		1,510,000		1,596,520
Oil & Gas Services Total				2,462,520
Pipelines – 2.0%
El Paso Corp.
6.875% 06/15/14		460,000		469,385
7.250% 06/01/18		135,000		139,308
Enbridge Energy Partners LP
7.500% 04/15/38		1,265,000		1,480,966
Kinder Morgan Energy Partners LP
5.625% 02/15/15		1,445,000		1,566,913
6.500% 09/01/39		2,635,000		2,708,525
6.950% 01/15/38		2,220,000		2,404,773
Kinder Morgan Finance Co. ULC
5.700% 01/05/16		560,000		548,800
MarkWest Energy Partners LP
8.500% 07/15/16		295,000		299,794
ONEOK Partners LP
6.850% 10/15/37		1,435,000		1,534,184
Plains All American Pipeline LP/PAA Finance Corp.
5.750% 01/15/20		660,000		676,800
8.750% 05/01/19		2,725,000		3,324,413
TransCanada Pipelines Ltd.
6.350% 05/15/67 (05/15/17) (c)(d)		6,425,000		6,113,355
Williams Companies, Inc.
7.875% 09/01/21		63,000		74,177
Williams Partners LP
6.300% 04/15/40 (b)		5,000,000		4,968,530
Pipelines Total				26,309,923
Energy Total				68,154,538
Financials – 15.5%
Banks – 8.3%
Bank of New York Mellon Corp.
5.450% 05/15/19		2,695,000		2,858,163
Barclays Bank PLC
5.000% 09/22/16		2,365,000		2,430,913
7.375% 06/29/49 (b)		1,165,000		1,124,225

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Capital One Capital IV
6.745% 02/17/37 (02/17/32) (c)(d)		4,905,000		4,230,562
Capital One Capital V
10.250% 08/15/39		4,170,000		4,940,136
Chinatrust Commercial Bank
5.625% 12/29/49 (03/29/49) (b)(c)(d)		1,220,000		1,126,365
Citigroup, Inc.
8.125% 07/15/39		9,335,000		10,776,352
Comerica Bank
0.337% 06/30/10 (04/30/10) (c)(d)		1,250,000		1,249,381
5.200% 08/22/17		2,600,000		2,522,156
5.750% 11/21/16		615,000		633,043
Deutsche Bank AG/London
4.875% 05/20/13		555,000		594,752
Discover Bank/Greenwood DE
8.700% 11/18/19		1,100,000		1,204,799
Discover Financial Services
10.250% 07/15/19		1,345,000		1,600,227
Fifth Third Bank
0.360% 05/17/13 (05/17/10) (c)(d)		1,205,000		1,125,383
JPMorgan Chase Capital XVIII
6.950% 08/17/36		1,165,000		1,141,835
JPMorgan Chase Capital XX
6.550% 09/29/36		9,545,000		8,957,219
JPMorgan Chase Capital XXII
6.450% 02/02/37		915,000		849,493
KeyBank NA
5.800% 07/01/14		2,025,000		2,071,051
Keycorp
6.500% 05/14/13		3,400,000		3,630,891
Lloyds TSB Bank PLC
4.375% 01/12/15 (b)		7,020,000		6,920,190
Lloyds TSB Group PLC
6.267% 12/31/49 (11/16/16) (b)(c)(d)		1,460,000		865,050
M&I Marshall & Ilsley Bank
5.300% 09/08/11		1,163,000		1,160,231
Merrill Lynch & Co., Inc.
5.700% 05/02/17 (g)		3,535,000		3,513,772
6.150% 04/25/13 (g)		3,295,000		3,547,733
7.750% 05/14/38 (g)		2,235,000		2,477,433
National City Bank of Cleveland
6.200% 12/15/11		890,000		959,226
National City Bank of Kentucky
6.300% 02/15/11		1,585,000		1,629,008
National City Corp.
6.875% 05/15/19		1,840,000		2,044,496

	Par (a)		Value ($)
Northern Trust Co.
6.500% 08/15/18		2,865,000		3,205,780
Northern Trust Corp.
5.500% 08/15/13		765,000		846,579
PNC Funding Corp.
3.625% 02/08/15		2,045,000		2,057,252
5.125% 02/08/20		3,060,000		3,082,467
Regions Financial Corp.
6.375% 05/15/12		165,000		165,509
7.000% 03/01/11		4,290,000		4,322,304
USB Capital IX
6.189% 04/15/42		15,615,000		13,350,825
Westpac Banking Corp.
4.200% 02/27/15		3,710,000		3,818,981
Zions Bancorporation
7.750% 09/23/14		275,000		277,371
Banks Total				107,311,153
Diversified Financial Services – 1.8%
Ameriprise Financial, Inc.
7.300% 06/28/19		2,620,000		3,035,652
Eaton Vance Corp.
6.500% 10/02/17		2,535,000		2,729,995
Fund American Companies, Inc.
5.875% 05/15/13		3,225,000		3,319,225
General Electric Capital Corp.
5.500% 01/08/20		2,806,000		2,862,864
GMAC, Inc.
8.000% 11/01/31		235,000		224,425
International Lease Finance Corp.
4.875% 09/01/10		5,754,000		5,753,948
Lazard Group LLC
7.125% 05/15/15		310,000		325,499
Lehman Brothers Holdings, Inc.
5.625% 01/24/13 (e)(f)		16,760,000		3,959,550
6.875% 05/02/18 (e)(f)		660,000		155,925
Reliance Intermediate Holdings LP
9.500% 12/15/19 (b)		155,000		163,912
SLM Corp.
8.000% 03/25/20		805,000		783,876
Diversified Financial Services Total				23,314,871
Insurance – 4.2%
Asurion Corp.
6.730% 07/02/15 (04/12/10) (c)(d)(h)		210,000		207,724
CNA Financial Corp.
5.850% 12/15/14		1,168,000		1,188,507
7.350% 11/15/19		2,322,000		2,426,789
Crum & Forster Holdings Corp.
7.750% 05/01/17		270,000		267,300

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
ING Groep NV
5.775% 12/29/49 (12/08/15) (c)(d)		5,085,000		4,329,877
Liberty Mutual Group, Inc.
7.500% 08/15/36 (b)		5,775,000		5,569,127
10.750% 06/15/58 (b)		2,815,000		3,152,800
Lincoln National Corp.
8.750% 07/01/19		940,000		1,149,406
MetLife Capital Trust X
9.250% 04/08/38 (b)		6,075,000		6,834,375
MetLife, Inc.
10.750% 08/01/39		6,025,000		7,765,936
Principal Life Income Funding Trusts
5.300% 04/24/13		4,550,000		4,884,238
Provident Companies, Inc.
7.000% 07/15/18		130,000		132,569
Prudential Financial, Inc.
8.875% 06/15/38 (06/15/18) (c)(d)		8,960,000		10,057,600
Transatlantic Holdings, Inc.
8.000% 11/30/39		3,780,000		3,863,190
Unum Group
7.125% 09/30/16		2,860,000		3,108,923
Insurance Total				54,938,361
Real Estate Investment Trusts (REITs) – 1.2%
Brandywine Operating Partnership LP
7.500% 05/15/15		1,575,000		1,694,806
Duke Realty LP
7.375% 02/15/15		3,055,000		3,299,125
8.250% 08/15/19		5,185,200		5,782,996
DuPont Fabros Technology LP
8.500% 12/15/17 (b)		365,000		375,950
Highwoods Properties, Inc.
5.850% 03/15/17		1,040,000		994,059
Liberty Property LP
5.500% 12/15/16		3,310,000		3,208,575
Senior Housing Properties Trust
8.625% 01/15/12		150,000		156,000
Real Estate Investment Trusts (REITs) Total				15,511,511
Savings & Loans – 0.0%
Washington Mutual Bank
5.125% 01/15/15 (i)		6,935,000		43,344
Savings & Loans Total				43,344
Financials Total				201,119,240

	Par (a)		Value ($)
Industrials – 2.4%
Aerospace & Defense – 0.6%
BE Aerospace, Inc.
8.500% 07/01/18		535,000		571,113
Embraer Overseas Ltd.
6.375% 01/15/20		3,495,000		3,556,162
L-3 Communications Corp.
6.375% 10/15/15		485,000		497,731
Raytheon Co.
5.375% 04/01/13		2,200,000		2,399,340
7.200% 08/15/27		830,000		976,398
Aerospace & Defense Total				8,000,744
Building Materials – 0.0%
Building Materials Corp. of America
7.500% 03/15/20 (b)		95,000		94,762
Owens Corning
6.500% 12/01/16		330,000		349,244
Texas Industries, Inc.
7.250% 07/15/13		190,000		186,675
Building Materials Total				630,681
Electrical Components & Equipment – 0.1%
Belden, Inc.
7.000% 03/15/17		500,000		492,500
General Cable Corp.
7.125% 04/01/17		305,000		302,331
Electrical Components & Equipment Total				794,831
Electronics – 0.0%
Flextronics International Ltd.
6.250% 11/15/14		250,000		253,125
Electronics Total				253,125
Environmental Control – 0.0%
Clean Harbors, Inc.
7.625% 08/15/16		285,000		289,275
Environmental Control Total				289,275
Machinery-Construction & Mining – 0.3%
Caterpillar, Inc.
8.250% 12/15/38		2,395,000		3,201,828
Terex Corp.
8.000% 11/15/17		410,000		398,725
Machinery-Construction & Mining Total				3,600,553
Machinery-Diversified – 0.0%
CPM Holdings, Inc.
10.625% 09/01/14 (b)		145,000		154,425
Manitowoc Co., Inc.
7.125% 11/01/13		270,000		269,325
Machinery-Diversified Total				423,750

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Miscellaneous Manufacturing – 0.5%
American Railcar Industries, Inc.
7.500% 03/01/14		265,000		253,075
Bombardier, Inc.
6.300% 05/01/14 (b)		650,000		674,375
Colt Defense LLC/Colt Finance Corp.
8.750% 11/15/17 (b)		170,000		170,425
Ingersoll-Rand Global Holding Co., Ltd.
9.500% 04/15/14		3,315,000		4,019,557
Koppers, Inc.
7.875% 12/01/19 (b)		105,000		108,150
Tyco International Ltd./Tyco International Finance SA
6.875% 01/15/21		645,000		737,041
Miscellaneous Manufacturing Total				5,962,623
Packaging & Containers – 0.1%
Crown Americas LLC & Crown Americas Capital Corp.
7.750% 11/15/15		370,000		384,800
Crown Americas LLC & Crown Americas Capital Corp. II
7.625% 05/15/17 (b)		245,000		255,412
Graphic Packaging International, Inc.
9.500% 06/15/17		220,000		234,850
Packaging & Containers Total				875,062
Transportation – 0.8%
BNSF Funding Trust I
6.613% 12/15/55 (01/15/26) (c)(d)		2,965,000		2,879,756
Bristow Group, Inc.
7.500% 09/15/17		415,000		419,150
Kansas City Southern de Mexico SA de CV
7.625% 12/01/13		295,000		301,637
Navios Maritime Holdings, Inc.
9.500% 12/15/14		205,000		206,538
RailAmerica, Inc.
9.250% 07/01/17		180,000		191,925
Ship Finance International Ltd.
8.500% 12/15/13		120,000		118,800
Stena AB
7.500% 11/01/13		25,000		25,625
Teekay Corp.
8.500% 01/15/20		260,000		271,700
Union Pacific Corp.
5.700% 08/15/18		2,775,000		2,920,227
6.650% 01/15/11		2,635,000		2,748,284
Transportation Total				10,083,642
Industrials Total				30,914,286

	Par (a)		Value ($)
Technology – 0.5%
Computers – 0.0%
Seagate Technology International
10.000% 05/01/14 (b)		145,000		164,212
Computers Total				164,212
Networking Products – 0.3%
Cisco Systems, Inc.
5.900% 02/15/39		3,315,000		3,365,567
Networking Products Total				3,365,567
Semiconductors – 0.0%
Amkor Technology, Inc.
9.250% 06/01/16		140,000		147,700
Freescale Semiconductor, Inc.
12.500% 12/15/14 (c)(h)		121,801		125,128
Semiconductors Total				272,828
Software – 0.2%
Oracle Corp.
6.500% 04/15/38		2,440,000		2,693,221
Software Total				2,693,221
Technology Total				6,495,828
Utilities – 3.7%
Electric – 3.0%
AEP Texas Central Co.
6.650% 02/15/33		2,830,000		2,960,455
AES Corp.
8.000% 10/15/17		1,175,000		1,192,625
Calpine Construction Finance Co. LP
8.000% 06/01/16 (b)		295,000		301,638
CMS Energy Corp.
6.875% 12/15/15		160,000		170,529
Commonwealth Edison Co.
5.900% 03/15/36		815,000		827,256
5.950% 08/15/16		3,430,000		3,759,698
6.950% 07/15/18		1,630,000		1,798,581
Consolidated Edison Co. of New York, Inc.
6.750% 04/01/38		1,900,000		2,143,483
DTE Energy Co.
7.625% 05/15/14		2,540,000		2,889,618
Exelon Generation Co. LLC
6.200% 10/01/17		3,000,000		3,264,840
FPL Energy National Wind LLC
5.608% 03/10/24 (b)		450,587		451,569
Hydro Quebec
8.500% 12/01/29		1,510,000		1,991,294
Intergen NV
9.000% 06/30/17 (b)		460,000		473,800

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Ipalco Enterprises, Inc.
7.250% 04/01/16 (b)		310,000		321,625
MidAmerican Energy Holdings Co.
5.000% 02/15/14		3,300,000		3,500,317
Mirant North America LLC
7.375% 12/31/13		485,000		483,788
Niagara Mohawk Power Corp.
4.881% 08/15/19 (b)		4,910,000		4,876,229
NRG Energy, Inc.
7.375% 02/01/16		1,110,000		1,101,675
NSG Holdings LLC/NSG Holdings, Inc.
7.750% 12/15/25 (b)		515,000		463,500
Oncor Electric Delivery Co.
5.950% 09/01/13		3,110,000		3,396,257
Southern Co.
4.150% 05/15/14		1,270,000		1,325,524
Windsor Financing LLC
5.881% 07/15/17 (b)		1,199,201		949,072
Electric Total				38,643,373
Gas – 0.7%
Atmos Energy Corp.
6.350% 06/15/17		2,065,000		2,220,773
8.500% 03/15/19		2,540,000		3,116,237
Centerpoint Energy, Inc.
5.950% 02/01/17		295,000		305,266
Nakilat, Inc.
6.067% 12/31/33 (b)		1,915,000		1,742,822
Sempra Energy
6.500% 06/01/16		1,410,000		1,575,232
Gas Total				8,960,330
Utilities Total				47,603,703
Total Corporate Fixed-Income Bonds & Notes (cost of $503,967,346)				520,212,864
Mortgage-Backed Securities – 20.9%
Federal Home Loan Mortgage Corp.
4.500% 09/01/24		8,136,885		8,450,992
4.500% 11/01/24		34,790,751		36,133,775
5.596% 08/01/37 (04/01/10) (c)(d)		5,384,964		5,696,239
5.631% 06/01/37 (04/01/10) (c)(d)		4,056,603		4,293,711
5.703% 06/01/36 (04/01/10) (c)(d)		3,745,366		3,941,617
6.000% 05/01/17		50,781		55,081
6.000% 02/01/39		3,502,116		3,761,895
8.000% 04/01/10		92		93
8.500% 11/01/26		129,288		151,225

	Par (a)		Value ($)
Federal National Mortgage Association
3.199% 08/01/36 (04/01/10) (c)(d)		30,238		31,392
4.000% 03/01/39		8,534,395		8,283,347
4.000% 10/01/39		9,881,827		9,590,153
4.000% 12/01/39		3,379,154		3,279,414
4.500% 07/01/24		6,048,684		6,283,126
4.500% 11/01/24		8,789,549		9,130,224
4.500% 02/01/39		31,664,934		31,772,825
4.680% 09/01/19		6,925,000		7,157,800
5.534% 10/01/37 (04/01/10) (c)(d)		4,230,439		4,427,620
5.858% 07/01/37 (04/01/10) (c)(d)		628,294		662,812
5.862% 07/01/32 (04/01/10) (c)(d)		160,322		170,607
5.943% 06/01/32 (04/01/10) (c)(d)		11,672		12,441
6.000% 05/01/37		13,213,424		14,058,044
6.000% 05/01/38		2,166,854		2,304,347
6.000% 08/01/38		26,630,842		28,320,639
6.000% 12/01/38		11,214,379		11,925,961
7.000% 10/01/11		28,819		29,923
10.000% 09/01/18		46,733		52,671
TBA,
4.500% 04/01/40 (j)		44,200,000		44,296,710
Government National Mortgage Association
4.500% 07/15/39		20,702,928		20,990,620
4.500% 02/15/40		3,994,821		4,050,334
7.000% 01/15/30		671,647		753,974
7.500% 12/15/23		646,242		729,423
7.500% 07/20/28		262,103		295,151
8.000% 05/15/17		7,412		8,279
8.500% 02/15/25		73,592		85,115
13.000% 01/15/11		220		228
13.000% 02/15/11		256		263
Total Mortgage-Backed Securities (cost of $271,337,845)				271,188,071
Commercial Mortgage-Backed Securities – 20.0%
Bear Stearns Commercial Mortgage Securities
4.740% 03/13/40		640,000		667,795
4.830% 08/15/38		3,530,000		3,692,818
4.933% 02/13/42 (04/01/10) (c)(d)		6,960,000		7,211,137
5.201% 12/11/38		4,315,000		4,313,337
5.540% 09/11/41		1,765,000		1,817,266
5.694% 09/11/38 (04/01/10) (c)(d)		482,000		518,765

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Commercial Mortgage-Backed Securities (continued)
	Par (a)		Value ($)
5.719% 06/11/40 (04/01/10) (c)(d)		6,870,000		6,781,442
5.719% 06/11/40 (04/01/10) (c)(d)		3,925,000		4,086,857
5.742% 09/11/42 (04/01/10) (c)(d)		7,990,000		8,229,410
6.480% 02/15/35		10,764,882		11,085,398
Chase Commercial Mortgage Securities Corp.
5.857% 02/12/16 (04/01/10) (b)(c)(d)		13,600,000		14,094,522
Credit Suisse First Boston Mortgage Securities Corp.
I.O.,
1.068% 03/15/36 (04/01/10) (b)(c)(d)		25,297,849		792
Credit Suisse Mortgage Capital Certificates
5.723% 06/15/39 (04/01/10) (c)(d)		7,635,000		6,877,560
5.826% 06/15/38 (04/01/10) (c)(d)		15,000,000		15,140,083
CW Capital Cobalt Ltd.
5.820% 05/15/46 (04/01/10) (c)(d)		12,350,000		11,693,031
GE Capital Commercial Mortgage Corp.
5.189% 07/10/39 (04/01/10) (c)(d)		14,309,000		14,887,335
GMAC Commercial Mortgage Securities, Inc.
I.O.,
0.655% 04/10/40 (04/01/10) (b)(c)(d)		23,840,005		100,269
I.O.,
1.112% 07/15/29 (04/01/10) (c)(d)		7,731,375		368,469
Greenwich Capital Commercial Funding Corp.
4.533% 01/05/36		1,666,000		1,699,997
5.317% 06/10/36 (04/01/10) (c)(d)		7,855,000		8,259,039
5.886% 07/10/38 (04/01/10) (c)(d)		9,540,000		9,725,231
GS Mortgage Securities Corp. II
5.805% 08/10/45 (04/01/10) (c)(d)		16,355,000		15,153,171
JPMorgan Chase Commercial Mortgage Securities Corp.
I.O.,
0.169% 10/15/42 (04/01/10) (c)(d)		80,989,384		396,370
5.050% 12/12/34		8,110,000		8,518,170
5.440% 06/12/47		5,025,000		4,911,408
6.068% 02/12/51		2,336,000		2,093,241
LB-UBS Commercial Mortgage Trust
5.084% 02/15/31		10,080,000		10,234,869

	Par (a)		Value ($)
5.430% 02/15/40		4,585,000		4,412,300
5.866% 09/15/45 (04/11/10) (c)(d)		6,000,000		5,906,246
Merrill Lynch Mortgage Investors, Inc.
I.O.,
0.300% 12/15/30 (04/01/10) (c)(d)		21,963,145		454,863
Merrill Lynch Mortgage Trust
4.747% 06/12/43 (04/01/10) (c)(d)		6,450,000		6,542,882
Morgan Stanley Capital I
4.970% 12/15/41		9,194,000		9,641,901
Morgan Stanley Dean Witter Capital I
4.920% 03/12/35		2,960,000		3,079,368
5.080% 09/15/37		5,755,000		6,034,424
Wachovia Bank Commercial Mortgage Trust
I.O.,
0.251% 03/15/42 (04/01/10) (b)(c)(d)		257,831,317		1,411,962
5.037% 03/15/42		4,549,985		4,742,276
5.209% 10/15/44 (04/01/10) (c)(d)		12,960,000		13,343,633
5.239% 07/15/41 (04/01/10) (c)(d)		1,205,000		1,238,598
5.418% 01/15/45 (04/01/10) (c)(d)		9,000,000		9,123,241
5.609% 03/15/45 (04/01/10) (c)(d)		5,635,000		4,887,054
5.726% 06/15/45		2,021,768		2,037,277
5.765% 07/15/45 (04/01/10) (c)(d)		9,090,000		9,265,076
6.413% 04/15/34		5,000,000		5,329,209
Total Commercial Mortgage-Backed Securities (cost of $243,444,584)				260,008,092
Government & Agency Obligations – 11.5%
Foreign Government Obligations – 3.6%
Belgium Government Bond
3.250% 09/28/16	EUR	150,000		208,260
3.750% 09/28/15	EUR	650,000		934,654
Canada Housing Trust No. 1
4.000% 06/15/12	CAD	760,000		779,396
Eksportfinans A/S
1.600% 03/20/14	JPY	390,000,000		4,300,383
1.800% 06/21/10	JPY	210,000,000		2,250,926

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Government & Agency Obligations (continued)
	Par (a)		Value ($)
European Investment Bank
0.026% 09/21/11 (06/21/10) (c)(d)	JPY	120,000,000		1,278,409
1.250% 09/20/12	JPY	50,000,000		547,072
1.400% 06/20/17	JPY	68,300,000		748,976
5.500% 12/07/11	GBP	190,000		308,597
Federal Republic of Germany
4.250% 07/04/17	EUR	3,210,000		4,767,803
Government of Canada
4.000% 06/01/16	CAD	415,000		428,696
Government of Japan
1.500% 09/20/14	JPY	90,000,000		1,004,915
1.500% 09/20/18	JPY	61,500,000		675,679
Kingdom of Denmark
4.000% 11/15/17	DKK	1,570,000		302,359
Kingdom of Netherlands
4.000% 07/15/16	EUR	650,000		946,726
Kingdom of Norway
6.000% 05/16/11	NOK	3,030,000		530,413
Kingdom of Sweden
3.750% 08/12/17	SEK	2,700,000		395,312
Kreditanstalt fuer Wiederaufbau
4.375% 03/15/18		4,210,000		4,365,753
Nordic Investment Bank
1.700% 04/27/17	JPY	330,000,000		3,696,826
Province of Quebec
5.125% 11/14/16		3,060,000		3,350,887
Republic of Austria
4.300% 09/15/17 (b)	EUR	300,000		439,779
Republic of Finland
5.375% 07/04/13	EUR	290,000		438,292
Republic of France
3.000% 10/25/15	EUR	1,640,000		2,272,348
4.250% 04/25/19	EUR	1,360,000		1,982,274
Republic of Italy
5.250% 08/01/17	EUR	2,185,000		3,348,251
5.375% 06/12/17		2,075,000		2,230,034
Republic of Poland
6.250% 10/24/15	PLN	1,000,000		368,598
Republic of Spain
4.400% 01/31/15	EUR	730,000		1,060,958
Svensk Exportkredit AB
5.125% 03/01/17		310,000		337,274
Treasury Corp. of Victoria
5.750% 11/15/16	AUD	175,000		158,047
6.000% 06/15/20	AUD	180,000		162,247
United Kingdom Treasury
5.000% 03/07/25	GBP	1,110,000		1,802,165
8.000% 09/27/13	GBP	450,000		821,764
Foreign Government Obligations Total				47,244,073

U.S. Government Agencies – 3.8%
Federal Home Loan Bank
0.700% 06/23/11		19,835,000		19,831,509
Resolution Funding Corp., STRIPS
(k) 10/15/19		18,425,000		12,005,988
(k) 10/15/20		17,795,000		10,869,916
	Par (a)		Value ($)
(k) 01/15/30		17,000,000		5,998,093
U.S. Government Agencies Total				48,705,506
U.S. Government Obligations – 4.1%
U.S. Treasury Bond
4.375% 11/15/39		1,745,000		1,650,116
U.S. Treasury Notes
0.875% 01/31/12 (l)		22,165,000		22,139,023
1.375% 02/15/13		16,925,000		16,845,656
2.375% 02/28/15 (m)		6,734,000		6,687,737
3.375% 11/15/19		2,830,000		2,730,729
3.625% 02/15/20		3,120,000		3,066,863
U.S. Government Obligations Total				53,120,124
Total Government & Agency Obligations (cost of $147,853,813)				149,069,703
Asset-Backed Securities – 6.7%
Ally Auto Receivables Trust
1.450% 05/15/14		1,500,000		1,499,850
American Express Credit Account Master Trust
0.510% 01/15/13 (04/15/10) (b)(c)(d)		2,380,000		2,375,432
AmeriCredit Automobile Receivables Trust
0.970% 01/15/13		6,050,000		6,050,898
Bombardier Capital Mortgage Securitization Corp.
6.230% 04/15/28		81,098		76,455
Capital One Multi-Asset Execution Trust
1.330% 04/15/13 (04/15/10) (c)(d)		3,845,000		3,852,911
Carmax Auto Owner Trust
5.270% 11/15/12		12,500,000		13,052,980
Chrysler Financial Lease Trust
1.780% 06/15/11 (b)		2,355,000		2,354,031
Citibank Credit Card Issuance Trust
6.300% 06/20/14		275,000		290,956
6.950% 02/18/14		955,000		1,018,530
Contimortgage Home Equity Trust
6.880% 01/15/28		94,858		70,366
Daimler Chrysler Auto Trust
4.940% 02/08/12		7,622,943		7,723,088

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Asset-Backed Securities (continued)
	Par (a)		Value ($)
Discover Card Master Trust
0.550% 01/15/13 (04/15/10) (c)(d)		5,778,700		5,757,760
0.597% 06/15/15		1,375,000		1,366,169
1.530% 12/15/14 (04/15/10) (c)(d)		2,865,000		2,893,511
1.530% 02/17/15 (04/15/10) (c)(d)		2,350,000		2,391,773
First Alliance Mortgage Loan Trust
7.625% 07/25/25		576,400		415,153
Ford Credit Auto Owner Trust
4.950% 03/15/13		7,500,000		7,931,383
5.160% 04/15/13		5,650,000		6,016,801
Franklin Auto Trust
5.360% 05/20/16		3,200,000		3,314,017
7.160% 05/20/16 (b)		2,100,000		2,273,880
IMC Home Equity Loan Trust
7.500% 04/25/26		167,839		167,399
Long Beach Auto Receivables Trust
4.250% 04/15/12		1,507,186		1,508,708
Money Store Home Equity Trust
0.530% 08/15/29 (04/15/10) (c)(d)		3,101,429		1,428,023
Morgan Stanley Mortgage Loan Trust
0.366% 10/25/36 (04/26/10) (c)(d)		137,324		135,147
Popular ABS Mortgage Pass-Through Trust
0.446% 02/25/36 (04/26/10) (c)(d)		484,086		482,164
SACO I, Inc.
0.446% 04/25/35 (04/26/10) (b)(c)(d)		291,667		120,210
SLM Student Loan Trust
0.317% 03/15/17 (06/15/10) (c)(d)		1,346,841		1,335,746
0.337% 12/15/20 (06/15/10) (c)(d)		9,792,000		9,630,689
Soundview Home Equity Loan Trust
0.546% 11/25/35 (04/26/10) (c)(d)		1,578,452		1,411,264
Total Asset-Backed Securities (cost of $87,260,235)				86,945,294
Municipal Bonds – 0.9%
California – 0.4%
CA State
Series 2009,
7.550% 04/01/39		2,875,000		2,989,598

	Par (a)		Value ($)
CA Los Angeles Unified School District
Series 2009,
5.750% 07/01/34		2,665,000		2,452,919
California Total				5,442,517
New York – 0.5%
NY Triborough Bridge & Tunnel Authority
Series 2008 C,
5.000% 11/15/38		5,525,000		5,768,542
New York Total				5,768,542
Total Municipal Bonds (cost of $10,878,042)				11,211,059
Collateralized Mortgage Obligations – 0.5%
Non-Agency – 0.5%
Bear Stearns Alt-A Trust
0.526% 01/25/35 (04/26/10) (c)(d)		1,517,609		1,116,115
3.200% 10/25/33 (04/25/10) (c)(d)		1,347,575		1,194,167
Citigroup Mortgage Loan Trust, Inc.
5.611% 09/25/37 (04/01/10) (c)(d)		4,027,124		2,457,432
Morgan Stanley Mortgage Loan Trust
0.466% 02/25/47 (04/26/10) (c)(d)		7,463,033		1,701,730
Sequoia Mortgage Trust
1.120% 07/20/34 (04/20/10) (c)(d)		1,969,112		516,056
Non-Agency Total				6,985,500
Total Collateralized Mortgage Obligations (cost of $16,344,340)				6,985,500
Preferred Stock – 0.0%
	Shares
Communications – 0.0%
Media – 0.0%
CMP Susquehanna Radio Holdings Corp., Series A (b)(e)(n)		6,343		63
Media Total				63
Communications Total				63
Total Preferred Stock (cost of $63)				63

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Warrants – 0.0%
	Units		Value ($)
Financials – 0.0%
CNB Capital Trust I
Expires 03/23/19 (e)(n)		7,248		72
Financials Total				72
Total Warrants (cost of $72)				72
Securities Lending Collateral – 0.5%
	Shares
State Street Navigator Securities Lending Prime Portfolio (7 day yield of 0.219%) (o)		5,792,568		5,792,568
Total Securities Lending Collateral (cost of $5,792,568)				5,792,568
Short-Term Obligation – 1.9%
	Par (a)
Repurchase agreement with Fixed Income Clearing Corp., dated 03/31/10, due 04/01/10 at 0.000%, collateralized by a U.S. Government Agency obligation maturing 09/05/13, market value $25,247,963 (repurchase proceeds $24,750,000)		24,750,000		24,750,000
Total Short-Term Obligation (cost of $24,750,000)				24,750,000
Total Investments – 103.0% (cost of $1,311,628,908) (p)				1,336,163,286
Obligation to Return Collateral for Securities Loaned – (0.5)%				(5,792,568	)
Other Assets & Liabilities, Net – (2.5)%				(33,150,599	)
Net Assets – 100.0%				1,297,220,119

Notes to Investment Portfolio:

(a) Principal amount is stated in United States dollars unless otherwise noted.

(b) 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 March 31, 2010, these securities, which are not illiquid except for the following, amounted to $103,812,578, which represents 8.0% of net assets.

Security	Acquisition Date	Par/ Shares		Cost		Value
CMP Susquehanna Radio Holdings Corp., Series A, Preferred Stock	04/01/09		6,343	$	63	$	63
Local TV Finance LLC, PIK, 9.250% 06/15/15	05/07/07	$	187,425	$	176,547	$	117,658
Qatar Petroleum, 5.579% 05/30/11	05/26/05	$	828,499	$	828,499	$	851,072
Seminole Indian Tribe of Florida 7.804% 10/01/20	09/28/07	$	325,000	$	329,010	$	302,920
						$	1,271,713

(d) Parenthetical date represents the next interest rate reset date for the security.

(e) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2010, the value of these securities amounted to $4,131,540, which represents 0.3% of net assets.

(f) The issuer has filed for bankruptcy protection under Chapter 11, and is in default of certain debt covenants. Income is not being accrued. At March 31, 2010, the value of these securities amounted to $4,169,340, which represents 0.3% of net assets.

(g) Investments in affiliates during the year ended March 31, 2010:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Interest Income		Value, end of period
Merrill Lynch & Co., Inc., 5.700% 05/02/17	$	2,093,123	$	—	$	—	$	201,495	$	3,513,772
Merrill Lynch & Co., Inc., 6.150% 04/25/13		3,879,355		—		1,410,103		251,802		3,547,733
Merrill Lynch & Co., Inc., 7.750% 05/14/38		1,326,750		—		—		173,213		2,477,433
Total	$	7,299,228	$	—	$	1,410,103	$	626,510	$	9,538,938

(h) Loan participation agreement.

(i) The issuer is in default of certain debt covenants. Income is not being accrued. At March 31, 2010, the value of this security represents less than 0.1% of net assets.

(j) Security purchased on a delayed delivery basis.

(k) Zero coupon bond.

(l) The security or a portion of the security is pledged as collateral for open futures contracts. At March 31, 2010, the total market value of securities pledged amounted to $2,996,400.

(m) All or a portion of this security was on loan at March 31, 2010. The total market value of securities on loan at March 31, 2010 is $5,686,807.

(n) Non-income producing security.

(o) Investment made with cash collateral received from securities lending activity.

(p) Cost for federal income tax purposes is $1,313,081,797.

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

The following table summarizes the inputs used, as of March 31, 2010, in valuing the Fund's assets:

Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Corporate Fixed-Income Bonds & Notes
Basic Materials	$	—	$	29,573,834	$	—	$	29,573,834
Communications		—		43,690,273		15,930		43,706,203
Consumer Cyclical		—		29,091,786		2,726,977		31,818,763
Consumer Non-Cyclical		—		59,519,781		—		59,519,781
Diversified		—		1,306,688		—		1,306,688
Energy		—		68,154,538		—		68,154,538
Financials		—		201,119,240		—		201,119,240
Industrials		—		30,914,286		—		30,914,286
Technology		—		6,495,828		—		6,495,828
Utilities		—		47,603,703		—		47,603,703
Total Corporate Fixed-Income Bonds & Notes		—		517,469,957		2,742,907		520,212,864
Total Mortgage-Backed Securities		44,296,710		226,891,361		—		271,188,071
Total Commercial Mortgage-Backed Securities		—		260,008,092		—		260,008,092
Government & Agency Obligations
Foreign Government Obligations		—		47,244,073		—		47,244,073
U.S. Government Agencies		—		48,705,506		—		48,705,506
U.S. Government Obligations		53,120,124		—		—		53,120,124
Total Government & Agency Obligations		53,120,124		95,949,579		—		149,069,703

Description	Quoted Prices (Level 1)			Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Total Asset-Backed Securities	$	—		$	86,945,294		$	—	$	86,945,294
Total Municipal Bonds		—			11,211,059			—		11,211,059
Total Collateralized Mortgage Obligations		—			6,985,500			—		6,985,500
Total Preferred Stock		—			—			63		63
Total Warrants		—			—			72		72
Total Securities Lending Collateral		5,792,568			—			—		5,792,568
Total Short-Term Obligation		—			24,750,000			—		24,750,000
Total Investments		103,209,402			1,230,210,842			2,743,042		1,336,163,286
Value of Credit Default Swap Contracts – Appreciation		—			94,129			—		94,129
Value of Credit Default Swap Contracts – Depreciation					(679,113	)				(679,113	)
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts		—			19,656			—		19,656
Unrealized Appreciation on Futures Contracts		634,402			—					634,402
Unrealized Depreciation on Futures Contracts		(1,442,152	)		—			—		(1,442,152	)
Total	$	102,401,652		$	1,229,645,514		$	2,743,042	$	1,334,790,208

The following table reconciles asset balances for the year ended March 31, 2010, in which significant unobservable inputs (Level 3) were used in determining value:

Investment in Securities	Balance as of March 31, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases		Sales			Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2010
Corporate Fixed-Income Bonds & Notes
Communications	$	12,150	$	457	$	—	$	3,323		$	—	$	—		$	—	$	—	$	15,930
Consumer Cyclical		1,792,878		16,265		6,894		717,045			347,450		(153,555	)		—		—		2,726,977
Preferred Stocks		63		—		—		—			—		—			—		—		63
Warrants		73		—		—		(1	)		—		—			—		—		72
	$	1,805,164	$	16,722	$	6,894	$	720,367		$	347,450	$	(153,555	)	$	—	$	—	$	2,743,042

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 appreciation attributable to securities owned at March 31, 2010 which were valued using significant unobservable inputs (Level 3) amounted to $720,367. This amount is included in net changes in unrealized appreciation (depreciation) on the Statements 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.

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

Forward foreign currency exchange contracts outstanding on March 31, 2010 are:

Foreign Exchange Rate Risk

Forward Foreign Currency Contracts to Sell	Value		Aggregate Face Value		Settlement Date	Unrealized Appreciation
EUR	$	87,792	$	88,281	04/09/10	$	489
EUR		337,665		343,856	04/15/10		6,191
EUR		182,341		182,524	04/22/10		183
JPY		192,543		198,369	04/14/10		5,826
JPY		192,551		199,440	04/22/10		6,889
JPY		187,209		187,287	04/28/10		78
						$	19,656

At March 31, 2010, the Fund has entered into the following credit default swap contracts:

Credit Risk

Swap Counterparty	Referenced Obligation	Receive Buy/Sell Protection	Fixed Rate			Expiration Date	Notional Amount		Upfront Premium Paid (Received)			Value of Contract
Barclays Capital	Toll Brothers, Inc. 5.150% 05/15/15	Buy		1.000	%	09/20/14	$	4,100,000	$	14,252		$	50,543
Barclays Capital	Toll Brothers, Inc. 5.150% 05/15/15	Buy		1.000	%	09/20/14		5,165,000		40,574			43,586
Barclays Capital	The Home Depot, Inc.	Buy		1.000	%	03/20/15		5,500,000		(26,109	)		(66,374	)
Barclays Capital	Limited Brands, Inc.	Buy		1.000	%	03/20/15		5,000,000		279,239			(100,012	)
Barclays Capital	Macy's, Inc.	Buy		1.000	%	03/20/15		4,365,000		224,492			(85,476	)
Barclays Capital	Textron, Inc.	Buy		1.000	%	03/20/15		3,000,000		95,390			(84	)
Barclays Capital	D.R. Horton, Inc.	Buy		1.000	%	03/20/15		6,000,000		261,866			(32,458	)
BNP Paribas	Marriott International, Inc.	Buy		1.000	%	03/20/15		6,280,000		58,332			(57,818	)
Credit Suisse First Boston	Textron, Inc.	Buy		1.000	%	03/20/15		3,280,000		111,555			(7,264	)
JPMorgan	D.R. Horton, Inc.	Buy		1.000	%	03/20/15		5,800,000		253,112			(31,488	)
JPMorgan	Macy's, Inc.	Buy		1.000	%	03/20/15		8,000,000		429,112			(173,711	)
Morgan Stanley	Limited Brands, Inc.	Buy		1.000	%	03/20/15		5,700,000		268,715			(66,824	)
Morgan Stanley	The Home Depot, Inc.	Buy		1.000	%	03/20/15		6,200,000		(46,941	)		(57,604	)
												$	(584,984	)

At March 31, 2010, the Fund held the following open long futures contracts:

Risk Exposure/Type

Interest Rate Risk	Number of Contracts		Value		Aggregate Face Value		Expiration Date	Unrealized Appreciation (Depreciation)
2-Year U.S. Treasury Notes		250	$	54,238,282	$	54,340,641	June 2010	$	(102,359	)
5-Year U.S. Treasury Notes		456		52,368,750		52,312,873	June 2010		55,877
30-Year U.S. Treasury Notes		180		20,902,500		21,054,960	June 2010		(152,460	)
								$	(198,942	)

At March 31, 2010, the Fund held the following open short futures contracts:

Risk Exposure/Type

Interest Rate Risk	Number of Contracts		Value		Aggregate Face Value		Expiration Date	Unrealized Appreciation (Depreciation)
10-Year U.S. Treasury Notes		1,718	$	199,717,500	$	198,530,167	June-10	$	(1,187,333	)
Ultra Long U.S. Treasury Bonds		300		35,990,625		36,569,150	June-10		578,525
								$	(608,808	)

See Accompanying Notes to Financial Statements.

Columbia Total Return Bond Fund

March 31, 2010

At March 31, 2010, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Corporate Fixed-Income Bonds & Notes		40.1
Mortgage-Backed Securities		20.9
Commercial Mortgage-Backed Securities		20.0
Government & Agency Obligations		11.5
Asset-Backed Securities		6.7
Municipal Bonds		0.9
Collateralized Mortgage Obligations		0.5
Preferred Stock		0.0	*
Warrants		0.0	*
		100.6
Securities Lending Collateral		0.5
Short-Term Obligation		1.9
Obligation to Return Collateral for Securities Loaned		(0.5	)
Other Assets & Liabilities, Net		(2.5	)
		100.0

* Rounds to less than 0.1%

Acronym				Name
AUD				Australian Dollar

CAD				Canadian Dollar

DKK				Danish Krone

EUR				Euro

GBP				Pound Sterling

I.O.				Interest Only

JPY				Japanese Yen

NOK				Norwegian Krone

PIK				Payment-In-Kind

PLN				Polish Zloty

SEK				Swedish Krona

STRIPS				Separate Trading of Registered Interest and Principal of Securities

TBA				To Be Announced

See Accompanying Notes to Financial Statements.

Investment Portfolio – Columbia Short Term Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes – 28.5%
	Par ($)		Value ($)
Basic Materials – 0.9%
Chemicals – 0.2%
EI Du Pont de Nemours & Co.
5.000% 07/15/13		5,465,000		5,918,223
Chemicals Total				5,918,223
Iron/Steel – 0.4%
ArcelorMittal USA, Inc.
6.500% 04/15/14		5,900,000		6,395,376
Nucor Corp.
5.000% 06/01/13		2,504,000		2,705,587
Iron/Steel Total				9,100,963
Metals & Mining – 0.3%
Vale Inco Ltd.
7.750% 05/15/12		6,235,000		6,829,738
Metals & Mining Total				6,829,738
Basic Materials Total				21,848,924
Communications – 3.6%
Media – 1.2%
Comcast Corp.
5.300% 01/15/14		6,100,000		6,558,543
5.500% 03/15/11		2,885,000		3,001,514
News America, Inc.
5.300% 12/15/14		4,775,000		5,232,063
Time Warner, Inc.
6.875% 05/01/12		7,235,000		7,958,175
Viacom, Inc.
4.375% 09/15/14		6,405,000		6,617,588
Media Total				29,367,883
Telecommunication Services – 2.4%
America Movil S.A. de C.V.
5.500% 03/01/14		7,420,000		8,018,586
AT&T, Inc.
4.950% 01/15/13		14,375,000		15,441,510
British Telecommunications PLC
5.150% 01/15/13		6,505,000		6,878,166
Cellco Partnership/Verizon Wireless Capital LLC
5.550% 02/01/14		10,000,000		10,928,420
Deutsche Telekom International Finance BV
8.500% 06/15/10		5,000,000		5,073,935
Telefonica Emisiones SAU
0.580% 02/04/13 (05/04/10) (a)(b)		10,875,000		10,638,588
Telecommunication Services Total				56,979,205
Communications Total				86,347,088

	Par ($)		Value ($)
Consumer Cyclical – 0.3%
Retail – 0.3%
CVS Caremark Corp.
5.750% 08/15/11		5,997,000		6,339,741
Retail Total				6,339,741
Consumer Cyclical Total				6,339,741
Consumer Non-Cyclical – 3.8%
Beverages – 1.3%
Anheuser-Busch InBev Worldwide, Inc.
2.500% 03/26/13 (c)		8,500,000		8,516,397
Bottling Group LLC
6.950% 03/15/14		7,425,000		8,595,989
Diageo Capital PLC
5.200% 01/30/13		4,985,000		5,394,059
Diageo Finance BV
3.875% 04/01/11		2,585,000		2,656,726
Miller Brewing Co.
5.500% 08/15/13 (c)		3,236,000		3,464,630
SABMiller PLC
5.700% 01/15/14 (c)		2,360,000		2,578,470
Beverages Total				31,206,271
Food – 0.8%
ConAgra Foods, Inc.
5.875% 04/15/14		6,840,000		7,509,533
HJ Heinz Finance Co.
6.000% 03/15/12		5,110,000		5,523,746
6.625% 07/15/11		652,000		694,666
Kraft Foods, Inc.
2.625% 05/08/13		6,650,000		6,699,995
Food Total				20,427,940
Healthcare Services – 0.6%
Roche Holdings, Inc.
4.500% 03/01/12 (c)		9,000,000		9,514,368
UnitedHealth Group, Inc.
5.500% 11/15/12		3,641,000		3,937,410
Healthcare Services Total				13,451,778
Pharmaceuticals – 1.1%
Abbott Laboratories
5.600% 05/15/11		8,075,000		8,486,187
Express Scripts, Inc.
5.250% 06/15/12		5,795,000		6,178,942
Merck & Co., Inc.
1.875% 06/30/11		2,900,000		2,927,590
Pfizer, Inc.
4.450% 03/15/12		1,000,000		1,059,992

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Wyeth
6.950% 03/15/11		7,031,000		7,457,360
Pharmaceuticals Total				26,110,071
Consumer Non-Cyclical Total				91,196,060
Energy – 2.6%
Oil & Gas – 1.3%
Canadian Natural Resources Ltd.
5.450% 10/01/12		4,100,000		4,407,853
6.700% 07/15/11		2,000,000		2,132,798
Conoco Funding Co.
6.350% 10/15/11		10,500,000		11,326,497
Occidental Petroleum Corp.
6.750% 01/15/12		2,750,000		3,005,882
Ras Laffan Liquefied Natural Gas Co. Ltd. III
4.500% 09/30/12 (c)		9,250,000		9,708,920
Oil & Gas Total				30,581,950
Oil & Gas Services – 0.3%
Weatherford International Ltd.
5.150% 03/15/13		6,885,000		7,315,842
Oil & Gas Services Total				7,315,842
Pipelines – 1.0%
Energy Transfer Partners LP
8.500% 04/15/14		4,500,000		5,234,985
Plains All American Pipeline LP
4.250% 09/01/12		5,500,000		5,714,159
TransCanada Pipelines Ltd.
8.625% 05/15/12		5,850,000		6,653,334
Williams Partners LP
3.800% 02/15/15 (c)		7,000,000		6,987,442
Pipelines Total				24,589,920
Energy Total				62,487,712
Financials – 12.6%
Banks – 9.0%
ANZ National International Ltd.
6.200% 07/19/13 (c)		12,735,000		14,034,543
Bank of New York Mellon Corp.
4.950% 11/01/12		2,625,000		2,846,015
5.125% 08/27/13		5,760,000		6,285,928
Barclays Bank PLC
3.900% 04/07/15 (d)		15,325,000		15,359,481

	Par ($)		Value ($)
Capital One Financial Corp.
6.250% 11/15/13		9,160,000		10,027,021
Citigroup, Inc.
5.500% 10/15/14		14,000,000		14,488,684
6.500% 08/19/13		2,000,000		2,156,024
Comerica Bank
0.330% 05/10/10 (04/12/10) (a)(b)		7,007,000		7,005,634
0.362% 05/26/11 (05/26/10) (a)(b)		1,590,000		1,561,733
0.362% 05/24/11 (05/24/10) (a)(b)		2,000,000		1,970,194
Commonwealth Bank of Australia
3.750% 10/15/14 (c)		13,000,000		13,178,347
Credit Suisse/New York NY
5.000% 05/15/13		12,300,000		13,219,757
Deutsche Bank AG London
4.875% 05/20/13		13,150,000		14,091,869
Goldman Sachs Group, Inc.
5.300% 02/14/12		6,325,000		6,732,406
ING Bank NV
0.881% 01/13/12 (04/13/10) (a)(b)(c)		12,500,000		12,473,575
JPMorgan Chase & Co.
0.902% 02/26/13 (05/26/10) (a)(b)		19,000,000		19,096,634
Keycorp
6.500% 05/14/13		7,925,000		8,463,179
Merrill Lynch & Co., Inc.
6.150% 04/25/13 (e)		2,000,000		2,153,404
Morgan Stanley
5.625% 01/09/12		2,800,000		2,965,665
6.600% 04/01/12		2,255,000		2,446,605
Svenska Handelsbanken AB
2.875% 09/14/12 (c)		10,000,000		10,189,460
U.S. Bank N.A.
6.300% 02/04/14		11,200,000		12,490,442
UBS AG/Stamford CT
1.352% 02/23/12 (05/24/10) (a)(b)		8,200,000		8,239,007
Wachovia Corp.
0.439% 08/01/13 (05/04/10) (a)(b)		11,010,000		10,686,757
2.019% 05/01/13 (05/01/10) (a)(b)		6,440,000		6,625,408
Banks Total				218,787,772
Diversified Financial Services – 1.4%
General Electric Capital Corp.
0.379% 11/01/12 (05/04/10) (a)(b)		27,010,000		26,474,068

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
0.379% 08/02/12 (05/04/10) (a)(b)		4,876,000		4,789,612
Lehman Brothers Holdings, Inc.
3.950% 11/10/09 (f)(g)		5,365,000		1,267,481
Diversified Financial Services Total				32,531,161
Insurance – 1.6%
Berkshire Hathaway Finance Corp.
5.000% 08/15/13		4,400,000		4,805,148
CNA Financial Corp.
5.850% 12/15/14		6,585,000		6,700,613
Lincoln National Corp.
4.750% 02/15/14		1,855,000		1,894,630
5.650% 08/27/12		5,300,000		5,626,088
Metropolitan Life Global Funding I
5.125% 04/10/13 (c)		8,650,000		9,286,614
Principal Life Income Funding Trusts
0.429% 11/08/13 (05/10/10) (a)(b)		4,500,000		4,300,609
Prudential Financial, Inc.
3.625% 09/17/12		2,000,000		2,056,878
4.500% 07/15/13		3,750,000		3,920,636
Insurance Total				38,591,216
Real Estate Investment Trusts (REITs) – 0.6%
Duke Realty LP
7.375% 02/15/15		6,340,000		6,846,629
Simon Property Group LP
4.900% 01/30/14		7,760,000		8,126,637
Real Estate Investment Trusts (REITs) Total				14,973,266
Financials Total				304,883,415
Industrials – 1.7%
Aerospace & Defense – 0.1%
United Technologies Corp.
6.100% 05/15/12		1,719,000		1,879,938
6.350% 03/01/11		2,000,000		2,098,126
Aerospace & Defense Total				3,978,064
Machinery – 0.3%
John Deere Capital Corp.
4.500% 04/03/13		6,215,000		6,635,420
Machinery Total				6,635,420
Miscellaneous Manufacturing – 0.7%
Ingersoll-Rand Global Holding Co., Ltd.
9.500% 04/15/14		6,002,000		7,277,641
Tyco International Group SA
6.375% 10/15/11		8,745,000		9,422,126
Miscellaneous Manufacturing Total				16,699,767

	Par ($)		Value ($)
Commercial Services – 0.3%
Yale University
2.900% 10/15/14		7,000,000		7,059,227
Commercial Services Total				7,059,227
Transportation – 0.3%
Burlington Northern Santa Fe Corp.
6.750% 07/15/11		5,405,000		5,750,817
Norfolk Southern Corp.
8.625% 05/15/10		2,205,000		2,223,630
Transportation Total				7,974,447
Industrials Total				42,346,925
Technology – 1.1%
Computers – 0.6%
Hewlett-Packard Co.
2.250% 05/27/11		6,225,000		6,320,753
International Business Machines Corp.
6.500% 10/15/13		8,010,000		9,194,294
Computers Total				15,515,047
Networking & Telecom Equipment – 0.2%
Cisco Systems, Inc.
5.250% 02/22/11		5,095,000		5,302,433
Networking & Telecom Equipment Total				5,302,433
Software – 0.3%
Oracle Corp.
5.000% 01/15/11		6,625,000		6,851,456
Software Total				6,851,456
Technology Total				27,668,936
Utilities – 1.9%
Electric – 1.4%
Consolidated Edison Co. of New York, Inc.
4.875% 02/01/13		5,193,000		5,581,068
5.550% 04/01/14		265,000		288,545
National Rural Utilities Cooperative Finance Corp.
5.500% 07/01/13		9,325,000		10,210,698
Ohio Power Co.
5.750% 09/01/13		5,870,000		6,432,340
Pacific Gas & Electric Co.
4.200% 03/01/11		5,850,000		6,021,855
Virginia Electric Power
5.100% 11/30/12		4,535,000		4,935,989
Electric Total				33,470,495

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Gas – 0.5%
Atmos Energy Corp.
5.125% 01/15/13		1,390,000		1,484,132
7.375% 05/15/11		3,875,000		4,127,600
Sempra Energy
8.900% 11/15/13		6,505,000		7,751,631
Gas Total				13,363,363
Utilities Total				46,833,858
Total Corporate Fixed-Income Bonds & Notes (cost of $673,209,099)				689,952,659
Collateralized Mortgage Obligations – 22.0%
Agency – 17.1%
Federal Home Loan Mortgage Corp.
3.100% 08/15/19		5,853,504		5,801,517
3.200% 07/15/19		18,228,996		18,515,224
3.500% 01/15/17		1,848,337		1,898,256
4.000% 09/15/15		674,110		681,854
4.000% 12/15/17		19,774,394		20,542,008
4.000% 12/15/17		10,329,876		10,684,362
4.250% 04/15/33		1,598,993		1,656,611
4.500% 12/15/14		301,484		301,737
4.500% 03/15/17		712,793		731,935
4.500% 11/15/32		7,261,955		7,616,246
4.500% 05/15/39		10,507,726		11,059,826
4.750% 08/15/19		18,740,360		19,525,958
4.750% 08/15/19		20,507,128		21,366,789
5.000% 07/15/17		8,567,458		9,087,792
5.000% 10/15/34		3,313,492		3,480,370
5.000% 12/15/35		13,239,896		13,982,030
5.000% 10/15/36		21,522,785		22,737,376
5.000% 07/15/37		11,309,791		11,954,560
5.125% 10/15/15		1,739,110		1,782,841
5.350% 05/15/29		9,068,516		9,436,913
5.500% 08/15/13		360,055		368,005
5.500% 12/15/19		9,665,075		10,107,680
5.500% 11/15/21		2,479,430		2,538,875
5.500% 04/15/26		1,128,682		1,146,046
5.500% 12/15/26		2,608,114		2,649,577
5.500% 10/15/27		1,925,158		1,952,510
5.500% 06/15/28		1,700,000		1,738,802
5.500% 11/15/28		2,069,753		2,116,349
5.500% 01/15/29		4,688,858		4,825,868
5.500% 10/15/29		2,001,147		2,043,820
5.500% 12/15/31		6,665,682		7,024,208
6.000% 03/15/19		266,099		266,616
6.000% 06/15/25		1,525,256		1,534,193
6.000% 05/15/27		2,710,079		2,724,405

	Par ($)		Value ($)
6.000% 09/15/27		7,052,982		7,153,675
7.000% 06/15/22		79,823		88,604
Federal National Mortgage Association
(i) 05/25/23		854,535		757,079
3.000% 11/25/24		19,769,086		20,104,708
3.500% 03/25/18		7,275,852		7,520,505
4.000% 01/25/19		4,566,644		4,764,540
4.000% 06/25/23		4,024,802		4,172,718
4.250% 03/25/22		3,618,034		3,750,975
4.500% 11/25/21		4,048,051		4,209,579
4.500% 03/25/23		12,428,065		12,992,852
4.500% 12/25/23		9,791,336		10,242,378
5.000% 04/25/16		124,632		124,797
5.000% 12/25/16		2,256,627		2,307,661
5.000% 12/25/17		1,396,919		1,432,379
5.000% 11/25/24		9,823,726		10,285,146
5.000% 04/25/31		1,450,551		1,498,086
5.000% 09/25/33		3,032,077		3,235,852
5.500% 12/25/29		5,247,499		5,489,238
5.500% 06/25/30		1,096,995		1,149,447
5.500% 01/25/33		16,790,142		17,505,026
5.500% 05/25/33		8,309,050		8,786,074
Government National Mortgage Association
4.000% 06/20/37		9,224,462		9,539,365
4.000% 05/16/39		22,289,805		23,154,135
4.000% 08/20/39		11,735,352		12,103,907
4.500% 08/20/35		318,085		329,917
4.500% 05/20/39		6,296,039		6,542,012
5.000% 05/16/27		261,080		274,754
5.000% 06/20/28		306,897		307,405
Agency Total				413,703,973
Non-Agency – 4.9%
Bank of America Mortgage Securities
3.062% 03/25/34 (04/01/10) (a)(b)		2,458,213		2,258,044
5.081% 11/25/35 (04/01/10) (a)(b)		1,105,428		1,050,743
5.250% 02/25/18		1,513		1,513
BCAP LLC Trust
5.000% 12/26/36 (04/01/10) (a)(b)(c)		11,047,487		11,030,253
6.000% 05/26/37 (04/01/10) (a)(b)(c)		11,632,120		11,658,841
Bear Stearns Alt-A Trust
2.623% 09/25/34 (04/01/10) (a)(b)		1,402,019		1,113,142
Countrywide Alternative Loan Trust
0.646% 03/25/34 (04/25/10) (a)(b)		269,196		253,829

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

Collateralized Mortgage Obligations (continued)
	Par ($)		Value ($)
5.500% 07/25/34		1,251,146		1,221,177
Countrywide Home Loan Mortgage Pass Through Trust
0.746% 03/25/34 (04/25/10) (a)(b)		1,162,159		1,039,692
5.500% 09/25/35		12,102,824		11,602,321
Credit Suisse Mortgage Capital Certificates
5.000% 12/27/36 (c)		12,245,772		12,276,386
5.000% 06/27/37 (04/01/10) (a)(b)(c)		6,292,806		6,280,850
5.813% 10/27/37 (c)		11,496,980		11,640,693
6.000% 08/27/37 (04/01/10) (a)(b)(c)		14,153,398		14,339,161
6.000% 01/27/47 (c)		5,824,757		5,948,532
GMAC Mortgage Corporation Loan Trust
0.746% 05/25/18 (04/25/10) (a)(b)		1,270,873		1,179,546
MASTR Asset Securitization Trust
5.750% 05/25/36		5,080,379		4,963,493
Residential Accredit Loans, Inc.
0.846% 07/25/32 (04/25/10) (a)(b)		22,648		16,002
Structured Asset Securities Corp.
5.500% 05/25/33		198,304		201,572
5.500% 07/25/33		99,853		99,854
5.750% 04/25/33		1,251,302		1,189,840
Washington Mutual Alternative Mortgage Pass-Through Certificates
5.500% 10/25/35		1,952,007		1,670,508
Washington Mutual Mortgage Pass-Through Certificates
5.592% 11/25/36 (04/01/10) (a)(b)		8,898,449		7,165,425
6.032% 10/25/36 (04/01/10) (a)(b)		4,808,326		4,028,028
Wells Fargo Mortgage Backed Securities Trust
4.500% 08/25/18		477,417		468,300
4.950% 09/25/35 (04/01/10) (a)(b)		2,197,591		2,067,784
5.132% 04/25/36 (04/01/10) (a)(b)		4,718,929		4,251,352
Non-Agency Total				119,016,881
Total Collateralized Mortgage Obligations (cost of $533,310,009)				532,720,854
Government & Agency Obligations – 15.9%
Foreign Government Obligations – 2.0%
Financement-Quebec
5.000% 10/25/12		9,921,000		10,642,872

	Par ($)		Value ($)
Morocco Government AID Bond
0.442% 05/01/23 (04/06/10) (a)(b)		1,147,500		1,057,972
Nova Scotia Province
5.750% 02/27/12		1,985,000		2,136,928
Province of Ontario
4.100% 06/16/14		13,175,000		14,074,721
Svensk Exportkredit AB
4.875% 09/29/11		13,090,000		13,808,916
United Mexican States
5.875% 02/17/14		5,025,000		5,605,387
Foreign Government Obligations Total				47,326,796
U.S. Government Obligations – 13.9%
U.S. Treasury Inflation Indexed Note
3.000% 07/15/12		42,175,700		45,431,158
U.S. Treasury Notes
0.875% 02/28/11		44,000,000		44,180,488
0.875% 03/31/11 (h)		1,500,000		1,506,270
1.125% 06/30/11		22,000,000		22,159,852
1.375% 03/15/13		135,000,000		134,208,900
2.500% 03/31/15		90,000,000		89,739,900
U.S. Government Obligations Total				337,226,568
Total Government & Agency Obligations (cost of $382,607,292)				384,553,364
Asset-Backed Securities – 15.3%
AmeriCredit Automobile Receivables Trust
2.260% 05/15/12		9,920,000		9,989,692
4.630% 06/06/12		4,098,680		4,100,602
5.020% 11/06/12		3,964,625		3,978,715
5.210% 09/06/13		1,118,835		1,152,104
5.420% 08/08/11		7,396,501		7,480,829
5.420% 05/07/12		8,042,781		8,130,379
5.530% 01/06/14		23,888,000		24,677,943
5.640% 09/06/13		7,823,099		8,032,536
5.680% 12/12/12		6,343,000		6,527,849
Americredit Prime Automobile Receivable
5.220% 06/08/12		7,422,905		7,510,787
Amresco Residential Securities Mortgage Loan Trust
0.726% 07/25/28 (04/26/10) (a)(b)		14,774		9,848
Arizona Educational Loan Marketing Corp.
0.472% 12/01/23 (06/01/10) (a)(b)		10,105,263		9,960,556
BMW Floorplan Master Owner Trust
1.380% 09/15/14 (04/15/10) (a)(b)(c)		15,000,000		14,999,874

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

Asset-Backed Securities (continued)
	Par ($)		Value ($)
BMW Vehicle Lease Trust
2.910% 03/15/12		5,140,000		5,235,869
Capital Auto Receivables Asset Trust
5.000% 04/15/11		89,233		89,534
5.300% 05/15/14		1,750,000		1,847,148
5.420% 12/15/14		3,070,000		3,300,983
Capital One Auto Finance Trust
5.030% 04/15/12		1,489,564		1,499,888
CitiFinancial Auto Issuance Trust
2.590% 10/15/13 (c)		15,000,000		15,184,406
Cityscape Home Equity Loan Trust
7.380% 07/25/28 (04/01/10) (a)(b)		616,323		601,126
7.410% 05/25/28		10,777		10,501
CPS Auto Trust
5.040% 09/15/11 (c)		67,969		68,063
5.330% 11/15/12 (c)		5,960,967		6,044,242
Daimler Chrysler Auto Trust
4.940% 02/08/12		2,094,496		2,122,012
Drive Auto Receivables Trust
5.330% 04/15/14 (04/15/10) (a)(b)(c)		2,864,458		2,869,449
5.540% 12/16/13 (04/15/10) (a)(b)(c)		4,311,712		4,399,657
Fifth Third Auto Trust
4.070% 01/17/12		6,190,848		6,250,333
First Alliance Mortgage Loan Trust
6.680% 06/25/25		53,824		45,549
8.225% 09/20/27		180,932		143,564
Ford Credit Auto Owner Trust
5.160% 04/15/13		10,554,000		11,239,172
5.240% 07/15/12		997,500		1,047,518
Ford Credit Floorplan Master Owner Trust
1.880% 12/15/14 (04/15/10) (a)(b)(c)		10,000,000		10,045,626
Franklin Auto Trust
5.360% 05/20/16		2,498,000		2,587,004
GE Equipment Midticket LLC
4.530% 06/14/11		1,222,404		1,228,666
GS Auto Loan Trust
5.480% 12/15/14		11,140,000		11,603,040
Household Automotive Trust
5.340% 09/17/13		3,281,000		3,371,578
IMC Home Equity Loan Trust
7.080% 08/20/28		11,973		11,592
7.500% 04/25/26		222,259		221,676
7.520% 08/20/28		817,964		819,842
Keycorp Student Loan Trust
0.368% 06/27/25 (06/29/10) (a)(b)		10,964,554		10,342,431

	Par ($)		Value ($)
0.618% 12/27/29 (06/29/10) (a)(b)		15,770,242		14,999,723
0.682% 08/25/27 (05/25/10) (a)(b)		15,192,519		15,016,879
Long Beach Auto Receivables Trust
4.250% 04/15/12		1,115,317		1,116,444
4.522% 06/15/12		1,316,482		1,317,950
5.500% 05/15/13		1,121,102		1,135,707
Marriott Vacation Club Owner Trust
4.809% 07/20/31 (c)		8,944,679		8,962,382
Merrill Auto Trust Securitization
5.500% 03/15/12		3,796,696		3,892,284
National Collegiate Student Loan Trust
0.396% 07/25/26 (04/26/10) (a)(b)		12,000,000		10,286,776
Nissan Auto Receivables Owner Trust
5.030% 05/16/11		212,455		213,612
Novastar Home Equity Loan
1.026% 05/25/33 (04/26/10) (a)(b)		2,375,963		1,846,761
Residential Funding Mortgage Securities II, Inc.
0.536% 08/25/33 (04/26/10) (a)(b)		17,389		10,063
SLM Student Loan Trust
0.249% 07/25/17 (04/26/10) (a)(b)		12,800,000		12,684,353
0.317% 03/15/17 (06/15/10) (a)(b)		701,480		695,701
0.337% 12/15/20 (06/15/10) (a)(b)		10,947,000		10,766,662
Terwin Mortgage Trust
1.146% 07/25/34 (04/26/10) (a)(b)		888,355		716,496
Triad Auto Receivables Owner Trust
4.880% 04/12/13		18,555,961		19,043,598
5.310% 05/13/13		14,822,063		15,408,404
UPFC Auto Receivables Trust
5.010% 08/15/12		8,855,279		9,041,532
5.490% 05/15/12		2,712,931		2,717,504
5.530% 07/15/13		7,873,829		8,044,699
Volkswagen Auto Lease Trust
3.410% 04/16/12		22,400,000		23,008,834
Total Asset-Backed Securities (cost of $364,920,690)				369,708,547
Mortgage-Backed Securities – 8.4%
Federal Home Loan Mortgage Corp.
2.811% 03/01/34 (04/01/10) (a)(b)		993,006		1,028,789

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

Mortgage-Backed Securities (continued)
	Par ($)		Value ($)
3.751% 04/01/35 (04/01/10) (a)(b)		478,688		497,343
4.000% 05/01/11		1,980,920		2,017,764
4.000% 05/01/24		5,399,363		5,487,251
4.000% 07/01/24		14,276,719		14,509,108
4.500% 11/01/20		1,922,334		2,015,165
4.500% 03/01/21		3,782,516		3,941,174
4.500% 05/01/24		3,514,530		3,650,201
4.500% 06/01/24		8,695,713		9,031,392
4.500% 08/01/24		23,136,559		24,029,696
4.500% 10/01/24		5,787,384		6,010,794
5.000% 09/01/22		11,115,315		11,754,139
5.000% 01/01/24		2,711,882		2,866,317
5.000% 02/01/24		4,612,720		4,877,824
5.500% 05/01/17		79,095		85,322
5.500% 09/01/17		284,760		307,177
5.500% 01/01/19		8,565		9,234
5.500% 07/01/19		349,059		376,320
5.500% 12/01/20		4,133,451		4,451,096
5.500% 01/01/21		7,111,886		7,658,416
5.500% 02/01/21		6,625,616		7,114,073
5.532% 01/01/36 (04/01/10) (a)(b)		1,467,649		1,547,233
5.885% 07/01/36 (04/01/10) (a)(b)		66,499		70,073
6.000% 03/01/17		35,887		38,925
6.000% 04/01/17		41,240		44,732
6.000% 06/01/17		2,639		2,863
6.000% 08/01/17		121,720		132,025
6.000% 08/01/21		997,658		1,078,691
6.000% 09/01/21		366,996		396,805
6.000% 10/01/21		4,264,277		4,610,632
7.500% 09/01/15		36,452		39,654
8.500% 07/01/30		39,287		46,304
Federal National Mortgage Association
2.413% 06/01/33 (04/01/10) (a)(b)		1,794,016		1,830,558
2.499% 01/01/35 (04/01/10) (a)(b)		1,521,568		1,538,677
3.076% 03/01/34 (04/01/10) (a)(b)		1,735,625		1,760,942
3.184% 07/01/34 (04/01/10) (a)(b)		1,713,553		1,761,637
3.748% 04/01/34 (04/01/10) (a)(b)		1,479,907		1,517,138
3.802% 06/01/34 (04/01/10) (a)(b)		960,011		993,297
4.500% 11/01/14		1,286,353		1,330,691
4.500% 07/01/24		5,439,413		5,650,240
4.811% 06/01/35 (04/01/10) (a)(b)		2,207,265		2,303,528

	Par ($)		Value ($)
4.995% 07/01/35 (04/01/10) (a)(b)		1,569,757		1,650,548
5.000% 07/01/22		12,416,553		13,114,642
5.000% 08/01/24		6,966,113		7,355,588
5.500% 05/01/21		896,154		961,800
5.500% 11/01/21		4,315,192		4,631,295
5.500% 10/01/23		4,648,115		4,977,450
5.500% 01/01/24		6,762,437		7,241,580
5.500% 10/01/24		8,594,216		9,203,631
5.655% 04/01/36 (04/01/10) (a)(b)		3,711,230		3,856,288
5.676% 10/01/35 (04/01/10) (a)(b)		1,533,402		1,622,739
5.732% 07/01/36 (04/01/10) (a)(b)		80,525		84,344
6.000% 03/01/37		2,656,756		2,805,824
6.105% 09/01/37 (04/01/10) (a)(b)		1,291,750		1,358,987
6.500% 03/01/12		6,962		7,267
7.500% 08/01/15		29,740		32,649
7.500% 10/01/28		1,272,780		1,437,138
7.500% 01/01/29		435,878		492,165
8.000% 05/01/15		51,982		57,102
8.000% 01/01/16		109,600		120,037
8.000% 08/01/30		17,267		20,013
8.000% 05/01/31		52,572		60,934
8.000% 07/01/31		25,826		29,940
9.000% 04/01/16		437		454
Government National Mortgage Association
3.625% 07/20/18 (04/01/10) (a)(b)		252,873		261,933
4.250% 03/20/30 (04/01/10) (a)(b)		51,652		53,527
4.375% 04/20/22 (04/01/10) (a)(b)		1,468,966		1,513,964
4.375% 06/20/29 (04/01/10) (a)(b)		221,850		229,011
6.500% 09/15/13		18,108		19,581
6.500% 03/15/32		1,822		1,993
6.500% 11/15/33		235,570		257,095
7.000% 11/15/13		28,684		30,724
7.000% 04/15/29		58,201		65,350
7.000% 08/15/29		2,913		3,271
8.000% 10/15/17		243,588		269,498
Small Business Administration
0.875% 06/25/22 (04/01/10) (a)(b)		159,529		158,510
Total Mortgage-Backed Securities (cost of $196,233,066)				202,400,112

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

Commercial Mortgage-Backed Securities – 6.8%
	Par ($)		Value ($)
Bear Stearns Commercial Mortgage Securities, Inc.
4.060% 08/15/38		7,889,252		8,029,005
5.085% 12/11/40		8,502,758		8,570,909
5.694% 09/11/38 (04/01/10) (a)(b)		3,500,000		3,766,964
6.480% 02/15/35		753,099		775,522
Credit Suisse First Boston Mortgage Securities Corp.
4.681% 04/15/37		9,400,000		9,719,939
Credit Suisse Mortgage Capital Certificates
5.250% 03/15/39		3,193,782		3,249,163
CS First Boston Mortgage Securities Corp.
3.727% 03/15/35		395,567		403,799
4.302% 07/15/36		939,532		939,597
CW Capital Cobalt Ltd.
5.324% 05/15/46		1,001,248		1,026,198
GE Capital Commercial Mortgage Corp.
4.599% 06/10/48		2,901,908		2,999,658
4.970% 08/11/36		1,637,765		1,696,382
6.070% 06/10/38		14,600,000		15,366,290
Greenwich Capital Commercial Funding Corp.
4.533% 01/05/36		12,676,000		12,934,674
4.619% 08/10/42		5,582,893		5,742,865
JPMorgan Chase Commercial Mortgage Securities Corp.
4.914% 07/12/37		2,444,922		2,498,490
4.980% 02/15/51		2,815,420		2,885,677
5.201% 08/12/37 (04/01/10) (a)(b)		12,590,226		13,138,903
5.241% 05/15/45		1,824,473		1,842,552
5.320% 06/12/47		1,620,843		1,664,751
5.338% 05/12/45		3,790,891		3,859,173
5.506% 12/12/44 (04/01/10) (a)(b)		9,725,000		10,275,158
5.874% 04/15/45 (04/01/10) (a)(b)		3,000,000		3,188,593
JPMorgan Commercial Mortgage Finance Corp.
6.812% 01/15/30		3,647,414		3,721,334
LB-UBS Commercial Mortgage Trust
4.095% 03/15/27		3,469,957		3,570,409
5.007% 04/15/30		2,050,000		2,133,046
5.391% 02/15/40		3,815,196		3,898,612
5.403% 02/15/40		5,526,335		5,638,255
5.611% 04/15/41		3,564,348		3,715,420
5.642% 12/15/25		1,750,710		1,795,429
Merrill Lynch Mortgage Investors, Inc.
I.O.,
0.300% 12/15/30 (04/01/10) (a)(b)		4,321,231		89,494
Morgan Stanley Capital I
5.124% 03/12/44		36,953		36,925
5.257% 12/15/43		2,681,398		2,748,406

	Par ($)		Value ($)
Morgan Stanley Dean Witter Capital I
6.540% 02/15/31		2,030,642		2,085,461
Nationslink Funding Corp.
7.104% 01/22/26		9,780,745		10,649,324
Prudential Securities Secured Financing Corp.
7.503% 06/16/31 (04/01/10) (a)(b)		6,221,132		6,186,628
7.503% 06/16/31 (04/01/10) (a)(b)		1,430,000		1,434,353
Salomon Brothers Mortgage Securities VII
6.428% 12/18/35		985,035		1,015,625
Total Commercial Mortgage-Backed Securities (cost of $161,721,061)				163,292,983
Short-Term Obligation – 2.8%
Repurchase agreement with Fixed Income Clearing Corp., dated 03/31/10, due 04/01/10 at 0.000%, collateralized by a U.S. Treasury obligation maturing 01/31/14, market value $69,674,963 (repurchase proceeds $68,306,000)		68,306,000		68,306,000
Total Short-Term Obligation (cost of $68,306,000)				68,306,000
Total Investments – 99.7% (cost of $2,380,307,217) (j)				2,410,934,519
Other Assets & Liabilities, Net – 0.3%				8,609,672
Net Assets – 100.0%				2,419,544,191

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at March 31, 2010.

(b) Parenthetical date represents the next interest rate reset date for the security.

(c) 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 March 31, 2010, these securities, which are not illiquid, amounted to $235,681,181, which represents 9.7% of net assets.

(d) Security purchased on a delayed delivery basis.

(e) Investments in affiliates during the year ended March 31, 2010:

Affiliate				Value, beginning of period				Purchases				Sales Proceeds				Interest Income				Value, end of period
Merrill Lynch & Co., Inc. 6.150% 04/25/13				$	1,681,194			$	—			$	—			$	123,000			$	2,153,404

(f) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. The value of this security amounted to $1,267,481, which represents 0.1% of net assets.

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

(h) The security or a portion of the security is pledged as collateral for open futures contracts. At March 31, 2010, the total market value of securities pledged amounted to $1,506,270.

(i) Zero coupon bond.

(j) Cost for federal income tax purposes is $2,380,307,217.

The following table summarizes the inputs used, as of March 31, 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 Corporate Fixed-Income Bonds & Notes	$	—	$	689,952,659	$	—	$	689,952,659
Total Collateralized Mortgage Obligations		—		532,720,854		—		532,720,854

Description	Quoted Prices (Level 1)			Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Government & Agency Obligations
Foreign Government Obligations	$	—		$	47,326,796	$	—	$	47,326,796
U.S. Government Obligations		337,226,568			—		—		337,226,568
Total Government & Agency Obligations		337,226,568			47,326,796		—		384,553,364
Total Asset-Backed Securities		—			369,708,547		—		369,708,547
Total Mortgage-Backed Securities		—			202,400,112		—		202,400,112
Total Commercial Mortgage-Backed Securities		—			163,292,983		—		163,292,983
Total Short-Term Obligation		—			68,306,000		—		68,306,000
Total Investments		337,226,568			2,073,707,951		—		2,410,934,519
Unrealized Depreciation on Futures Contracts		(97,970	)		—		—		(97,970	)
Total	$	337,128,598		$	2,073,707,951	$	—	$	2,410,836,549

The following table reconciles asset balances for the year ended March 31, 2010, in which significant unobservable inputs (Level 3) were used in determining value:

Investment in Securities	Balance as of March 31, 2009		Accrued Discounts (Premiums)			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases		Sales			Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2010
Collateralized Mortgage Obligations	$	85,507	$	174		$	(42,481	)	$	38,504		$	—	$	(81,704	)	$	—	$	—	$	—
Asset-Backed Securities		9,503,516		(2,064	)		125,555			(3,882	)		1,517,813		(11,140,938	)		—		—		—
	$	9,589,023	$	(1,890	)	$	83,074		$	34,622		$	1,517,813	$	(11,222,642	)	$	—	$	—	$	—

At March 31, 2010, the Fund held the following open short futures contracts:

Risk Exposure/Type

Interest Rate Risk				Number of Contracts				Value				Aggregate Face Value				Expiration Date				Unrealized Depreciation
2-Year U.S. Treasury Notes					1,010			$	219,122,657			$	219,024,687			June 2010				$	(97,970	)

See Accompanying Notes to Financial Statements.

Columbia Short Term Bond Fund

March 31, 2010

At March 31, 2010, the asset allocation of the Fund is as follows:

Asset Allocation (Unaudited)	% of Net Assets
Corporate Fixed-Income Bonds & Notes		28.5
Collateralized Mortgage Obligations		22.0
Government & Agency Obligations		15.9
Asset-Backed Securities		15.3
Mortgage-Backed Securities		8.4
Commercial Mortgage-Backed Securities		6.8
		96.9
Short-Term Obligation		2.8
Other Assets & Liabilities, Net		0.3
		100.0

Acronym				Name
I.O.				Interest Only

See Accompanying Notes to Financial Statements.

Investment Portfolio – Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes – 91.0%
	Par (a)		Value ($)
Basic Materials – 8.1%
Chemicals – 3.7%
Agricultural Chemicals – 0.4%
Terra Capital, Inc.
7.750% 11/01/19		2,320,000		2,801,400
				2,801,400
Chemicals-Diversified – 3.3%
Georgia Gulf Corp.
9.000% 01/15/17 (b)		3,205,000		3,353,231
Innophos, Inc.
8.875% 08/15/14		2,320,000		2,389,600
INVISTA
9.250% 05/01/12 (b)		5,740,000		5,811,750
Koppers, Inc.
7.875% 12/01/19 (b)		2,435,000		2,508,050
NOVA Chemicals Corp.
3.649% 11/15/13 (05/15/10) (c)(d)		4,425,000		4,170,563
6.500% 01/15/12		2,130,000		2,183,250
8.375% 11/01/16 (b)		2,020,000		2,075,550
Olin Corp.
8.875% 08/15/19		1,955,000		2,121,175
Westlake Chemical Corp.
6.625% 01/15/16		1,995,000		1,945,125
				26,558,294
Chemicals Total				29,359,694
Forest Products & Paper – 3.3%
Forestry – 0.2%
Weyerhaeuser Co.
6.950% 10/01/27		1,965,000		1,812,274
				1,812,274
Paper & Related Products – 3.1%
Bowater, Inc.
9.375% 12/15/21 (e)		5,545,000		2,051,650
Domtar Corp.
7.875% 10/15/11		5,005,000		5,342,838
Georgia-Pacific Corp.
7.000% 01/15/15 (b)		4,750,000		4,916,250
7.750% 11/15/29		757,000		757,000
8.000% 01/15/24		921,000		976,260
8.875% 05/15/31		6,745,000		7,318,325
Smurfit Capital Funding PLC
7.500% 11/20/25		4,100,000		3,587,500
				24,949,823
Forest Products & Paper Total				26,762,097

	Par (a)		Value ($)
Metals & Mining – 1.1%
Metal-Diversified – 1.1%
Allegheny Ludlum Corp.
6.950% 12/15/25		3,850,000		3,708,378
Allegheny Technologies, Inc.
8.375% 12/15/11		2,320,000		2,435,002
Freeport-McMoRan Copper & Gold, Inc.
8.375% 04/01/17		2,220,000		2,469,750
				8,613,130
Metals & Mining Total				8,613,130
Basic Materials Total				64,734,921
Communications – 14.3%
Advertising – 0.1%
Advertising Agencies – 0.1%
Interpublic Group of Companies, Inc.
6.250% 11/15/14		1,171,000		1,178,319
				1,178,319
Advertising Total				1,178,319
Internet – 0.5%
E-Commerce/Services – 0.5%
Expedia, Inc.
7.456% 08/15/18		3,425,000		3,810,312
				3,810,312
Internet Total				3,810,312
Media – 5.2%
Cable TV – 4.2%
Charter Communications Operating LLC/Charter Communications Operating Capital
8.000% 04/30/12 (b)		5,230,000		5,556,875
Charter Term Loan Incremental
2.230% 03/06/14 (06/30/10) (c)(d)(f)		4,121,786		3,976,473
CSC Holdings, Inc.
6.750% 04/15/12		3,960,000		4,143,150
Rainbow National Services LLC
8.750% 09/01/12 (b)		4,605,000		4,679,831
10.375% 09/01/14 (b)		1,556,000		1,639,635
Shaw Communications, Inc.
7.500% 11/20/13	CAD	6,060,000		6,776,591
Videotron Ltee
6.375% 12/15/15		665,000		669,988
6.875% 01/15/14		5,500,000		5,582,500
				33,025,043

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Multimedia – 0.6%
Lamar Media Corp.
6.625% 08/15/15		4,320,000		4,155,850
7.250% 01/01/13		800,000		806,000
				4,961,850
Publishing-Newspaper – 0.2%
Morris Publishing Group LLC
10.000% 09/01/14		1,992,976		1,843,502
				1,843,502
Publishing-Periodicals – 0.0%
Ziff Davis Media, Inc.
PIK,
13.500% 07/15/11 (01/15/11) (c)(d)(g)		908,700		152,208
				152,208
Television – 0.2%
CW Media Holdings, Inc.
13.500% 08/15/15 (b)		1,015,000		1,126,650
ION Media Networks, Inc.
PIK,
10.070% 01/15/13 (b)(e)(g)		1,254,550		125
				1,126,775
Media Total				41,109,378
Telecommunication Services – 8.5%
Cellular Telecommunications – 0.9%
iPCS, Inc.
2.374% 05/01/13 (05/04/10) (c)(d)		2,270,000		2,099,750
Millicom International Cellular SA
10.000% 12/01/13		5,115,000		5,306,813
				7,406,563
Media – 1.4%
Nielsen Finance LLC
2.229% 08/04/13 (04/09/10) (c)(d)(f)		465,000		445,158
2.229% 08/09/13 (04/09/10) (c)(d)(f)		3,912,549		3,745,596
Quebecor Media, Inc.
7.750% 03/15/16		6,885,000		6,971,063
9.750% 01/15/49 (g)(h)		1,885,000		98,020
				11,259,837
Satellite Telecommunications – 1.7%
Inmarsat Finance PLC
7.375% 12/01/17 (b)		1,635,000		1,700,400

	Par (a)		Value ($)
Intelsat Subsidiary Holding Co., Ltd.
8.500% 01/15/13		10,785,000		10,946,775
8.875% 01/15/15 (b)		915,000		940,162
				13,587,337
Telecommunication Equipment – 0.8%
Lucent Technologies, Inc.
6.450% 03/15/29		4,110,000		2,897,550
6.500% 01/15/28		920,000		646,300
Nortel Networks Ltd.
10.750% 07/15/16 (e)		3,330,000		2,676,488
				6,220,338
Telecommunication Services – 1.3%
GCI, Inc.
7.250% 02/15/14		3,225,000		3,229,031
8.625% 11/15/19 (b)		1,800,000		1,833,750
Sable International Finance Ltd.
7.750% 02/15/17 (b)		2,590,000		2,693,600
tw telecom holdings, Inc.
8.000% 03/01/18 (b)		2,360,000		2,413,100
				10,169,481
Telephone-Integrated – 1.4%
Qwest Corp.
6.950% 06/30/10 (d)(f)		5,675,000		5,696,281
Virgin Media Finance PLC
8.375% 10/15/19		1,395,000		1,433,362
9.125% 08/15/16		1,115,000		1,184,688
9.500% 08/15/16		2,580,000		2,818,650
				11,132,981
Wireless Equipment – 1.0%
American Tower Corp.
7.250% 05/15/19 (b)		1,405,000		1,580,625
CC Holdings GS V LLC/Crown Castle GS III Corp.
7.750% 05/01/17 (b)		5,845,000		6,371,050
				7,951,675
Telecommunication Services Total				67,728,212
Communications Total				113,826,221
Consumer Cyclical – 12.4%
Airlines – 0.1%
Delta Air Lines, Inc.
2.875% 02/06/24 (h)		1,555,000		31,100
2.875% 02/18/49 (h)		905,000		18,100
8.000% 06/03/23 (h)		2,885,000		57,700
8.000% 06/03/49 (h)		2,256,000		45,120
8.300% 12/15/29 (h)		1,023,000		20,460
9.250% 03/15/49 (h)		715,000		14,300

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
9.750% 05/15/49 (h)		2,335,000		46,700
10.000% 08/15/49 (h)		1,945,000		38,900
10.375% 12/15/22 (h)		2,990,000		59,800
10.375% 02/01/49 (h)		4,295,000		85,900
Northwest Airlines, Inc.
7.625% 11/15/23 (h)		2,552,500		15,060
7.875% 03/15/13 (h)		2,390,800		14,345
8.700% 03/15/49 (h)		260,000		1,560
8.875% 06/01/49 (h)		971,900		5,831
9.875% 03/15/37 (h)		4,278,500		25,671
10.000% 02/01/49 (h)		2,426,300		14,558
Airlines Total				495,105
Apparel – 0.8%
Apparel Manufacturers – 0.2%
Hanesbrands, Inc.
8.000% 12/15/16		1,705,000		1,764,675
				1,764,675
Textile-Apparel – 0.6%
Unifi, Inc.
11.500% 05/15/14		4,349,000		4,457,725
				4,457,725
Apparel Total				6,222,400
Auto Manufacturers – 0.6%
Auto-Cars/Light Trucks – 0.6%
Ford Motor Co.
3.260% 12/16/13 (04/15/10) (c)(d)(f)		5,288,322		5,099,926
				5,099,926
Auto Manufacturers Total				5,099,926
Auto Parts & Equipment – 2.3%
Auto/Truck Parts & Equipment-Original – 1.2%
Collins & Aikman Products Co.
12.875% 08/15/12 (b)(e)(g)		6,910,000		691
Johnson Controls, Inc.
5.250% 01/15/11		2,055,000		2,123,491
Lear Corp.
7.875% 03/15/18		940,000		950,575
8.125% 03/15/20		660,000		670,725
8.750% 12/01/16 (h)		1,595,000		2,393
Tenneco Automotive, Inc.
8.125% 11/15/15		2,670,000		2,730,075
10.250% 07/15/13		1,489,000		1,542,976
TRW Automotive, Inc.
7.000% 03/15/14 (b)		1,610,000		1,585,850
				9,606,776

	Par (a)		Value ($)
Auto/Truck Parts & Equipment-Replacement – 0.4%
Affinia Group, Inc.
9.000% 11/30/14		1,470,000		1,462,650
10.750% 08/15/16 (b)		1,000,000		1,090,000
Allison Transmission
PIK,
11.250% 11/01/15 (b)		679,800		725,686
				3,278,336
Rubber-Tires – 0.7%
Goodyear Tire & Rubber Co.
8.625% 12/01/11		3,250,000		3,380,000
10.500% 05/15/16		1,815,000		1,960,200
				5,340,200
Auto Parts & Equipment Total				18,225,312
Distribution/Wholesale – 0.4%
ACE Hardware Corp.
9.125% 06/01/16 (b)		3,055,000		3,276,488
Distribution/Wholesale Total				3,276,488
Entertainment – 3.4%
Casino Services – 0.5%
American Casino & Entertainment Properties LLC
11.000% 06/15/14		2,140,000		2,006,250
Peninsula Gaming LLC
8.375% 08/15/15 (b)		1,155,000		1,152,112
10.750% 08/15/17 (b)		1,260,000		1,203,300
				4,361,662
Gambling (Non-Hotel) – 2.6%
Galaxy Entertainment Finance Co., Ltd.
9.875% 12/15/12 (b)		3,805,000		3,966,712
Global Cash Access LLC
8.750% 03/15/12		1,115,000		1,116,394
Isle of Capri Casinos, Inc.
7.000% 03/01/14		1,226,000		1,048,230
Jacobs Entertainment, Inc.
9.750% 06/15/14		3,955,000		3,717,700
Mohegan Tribal Gaming Authority
6.125% 02/15/13		2,180,000		1,863,900
Penn National Gaming, Inc.
6.750% 03/01/15		3,755,000		3,693,981
Pinnacle Entertainment, Inc.
7.500% 06/15/15		925,000		800,125
8.250% 03/15/12		1,970,000		1,955,225
Seminole Hard Rock Entertainment, Inc.
2.757% 03/15/14 (06/15/10) (b)(c)(d)		3,280,000		2,919,200
				21,081,467

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Motion Pictures & Services – 0.0%
United Artists Theatre Circuit, Inc.
9.300% 07/01/15 (g)		187,287		112,372
				112,372
Professional Sports – 0.2%
MU Finance PLC
8.375% 02/01/17 (b)		1,230,000		1,213,088
				1,213,088
Resorts/Theme Parks – 0.1%
Vail Resorts, Inc.
6.750% 02/15/14		710,000		712,663
				712,663
Entertainment Total				27,481,252
Housewares – 0.1%
Libbey Glass, Inc.
10.000% 02/15/15 (b)		690,000		726,225
Housewares Total				726,225
Leisure Time – 0.4%
Recreational Centers – 0.4%
Speedway Motorsports, Inc.
8.750% 06/01/16		1,780,000		1,895,700
Town Sports International, Inc.
11.000% 02/01/14		1,945,000		1,675,131
				3,570,831
Leisure Time Total				3,570,831
Lodging – 1.8%
Casino Hotels – 0.7%
Ameristar Casinos, Inc.
9.250% 06/01/14		1,360,000		1,424,600
FireKeepers Development Authority
13.875% 05/01/15 (b)		785,000		908,638
MGM Mirage
13.000% 11/15/13		1,600,000		1,864,000
Seneca Gaming Corp.
7.250% 05/01/12		1,275,000		1,259,062
				5,456,300
Hotels & Motels – 1.1%
Host Hotels & Resorts LP
3.250% 04/15/24 (b)		1,185,000		1,211,663
6.375% 03/15/15		1,635,000		1,622,737
6.750% 06/01/16		2,220,000		2,225,550
6.875% 11/01/14		1,090,000		1,100,900

	Par (a)		Value ($)
Starwood Hotels & Resorts Worldwide, Inc.
6.750% 05/15/18		2,190,000		2,195,475
7.875% 05/01/12		505,000		546,663
				8,902,988
Lodging Total				14,359,288
Office Furnishings – 0.2%
Interface, Inc.
11.375% 11/01/13		1,200,000		1,353,000
Office Furnishings Total				1,353,000
Retail – 2.3%
Retail-Automobiles – 1.0%
Asbury Automotive Group, Inc.
7.625% 03/15/17		1,935,000		1,843,088
AutoNation, Inc.
2.251% 04/15/13 (04/15/10) (c)(d)		2,375,000		2,398,750
7.000% 04/15/14		800,000		828,000
Sonic Automotive, Inc.
8.625% 08/15/13		1,910,000		1,964,912
United Auto Group, Inc.
7.750% 12/15/16		1,320,000		1,270,500
				8,305,250
Retail-Miscellaneous/Diversified – 0.5%
Sally Holdings LLC
9.250% 11/15/14		1,945,000		2,061,700
Susser Holdings LLC
10.625% 12/15/13		1,805,000		1,877,200
				3,938,900
Retail-Propane Distributors – 0.2%
AmeriGas Partners LP
7.125% 05/20/16		845,000		853,450
7.250% 05/20/15		890,000		903,350
				1,756,800
Retail-Regional Department Stores – 0.1%
JC Penney Corp., Inc.
7.125% 11/15/23		350,000		353,062
				353,062
Retail-Restaurants – 0.1%
Wendy's International, Inc.
6.250% 11/15/11		640,000		667,200
				667,200

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Retail-Vitamins/Nutritional Supplements – 0.4%
NBTY, Inc.
7.125% 10/01/15		3,300,000		3,324,750
				3,324,750
Retail Total				18,345,962
Consumer Cyclical Total				99,155,789
Consumer Non-Cyclical – 14.9%
Agriculture – 0.4%
Tobacco – 0.4%
Alliance One International, Inc.
10.000% 07/15/16 (b)		2,285,000		2,387,825
Reynolds American, Inc.
7.625% 06/01/16		635,000		713,486
				3,101,311
Agriculture Total				3,101,311
Beverages – 0.8%
Beverages-Non-Alcoholic – 0.4%
Cott Beverages, Inc.
8.375% 11/15/17 (b)		2,655,000		2,741,287
				2,741,287
Beverages-Wine/Spirits – 0.4%
Constellation Brands, Inc.
7.250% 05/15/17		1,875,000		1,921,875
8.375% 12/15/14		1,315,000		1,421,844
				3,343,719
Beverages Total				6,085,006
Biotechnology – 0.2%
Medical-Biomedical/Gene – 0.2%
Bio-Rad Laboratories, Inc.
8.000% 09/15/16		1,440,000		1,533,600
				1,533,600
Biotechnology Total				1,533,600
Commercial Services – 3.1%
Commercial Services – 1.1%
KAR Holdings, Inc.
8.750% 05/01/14		1,075,000		1,096,500
10.000% 05/01/15		4,225,000		4,436,250
Quintiles Transnational Corp.
PIK,
9.500% 12/30/14 (b)		3,130,000		3,192,600
				8,725,350

	Par (a)		Value ($)
Commercial Services-Finance – 1.1%
Cardtronics, Inc.
9.250% 08/15/13		680,000		702,101
Lender Processing Services, Inc.
8.125% 07/01/16		3,805,000		4,080,862
National Money Mart Co.
10.375% 12/15/16 (b)		4,125,000		4,377,656
				9,160,619
Consulting Services – 0.2%
FTI Consulting, Inc.
7.750% 10/01/16		2,025,000		2,065,500
				2,065,500
Printing-Commercial – 0.1%
Vertis, Inc.
PIK,
18.500% 10/01/12		655,848		572,227
				572,227
Schools – 0.6%
Knowledge Learning Corp., Inc.
7.750% 02/01/15 (b)		4,700,000		4,559,000
				4,559,000
Commercial Services Total				25,082,696
Food – 1.8%
Fisheries – 0.3%
ASG Consolidated LLC/ASG Finance, Inc.
11.500% 11/01/11		2,590,000		2,602,950
				2,602,950
Food-Meat Products – 0.8%
Tyson Foods, Inc.
8.250% 10/01/11		2,420,000		2,607,550
10.500% 03/01/14		3,465,000		4,114,687
				6,722,237
Food-Miscellaneous/Diversified – 0.3%
B&G Foods, Inc.
7.625% 01/15/18		2,035,000		2,073,156
				2,073,156
Food-Retail – 0.4%
American Stores Co.
7.900% 05/01/17		2,425,000		2,315,875
8.000% 06/01/26		175,000		153,563
Stater Brothers Holdings
8.125% 06/15/12		385,000		386,925
				2,856,363
Food Total				14,254,706

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Healthcare Products – 3.0%
Medical Products – 3.0%
Biomet, Inc.
10.000% 10/15/17		2,380,000		2,623,950
11.625% 10/15/17		2,380,000		2,665,600
DJO Finance LLC/DJO Finance Corp.
10.875% 11/15/14		4,700,000		5,105,375
Hanger Orthopedic Group, Inc.
10.250% 06/01/14		3,560,000		3,773,600
Invacare Corp.
9.750% 02/15/15		2,110,000		2,268,250
ReAble Therapeutics Finance LLC/ ReAble Therapeutics Finance Corp.
11.750% 11/15/14		2,760,000		2,925,600
Universal Hospital Services, Inc.
3.859% 06/01/15 (06/01/10) (c)(d)		3,455,000		2,945,388
PIK,
8.500% 06/01/15		1,820,000		1,810,900
				24,118,663
Healthcare Products Total				24,118,663
Healthcare Services – 2.8%
Medical-Hospitals – 2.1%
Community Health Systems, Inc.
2.502% 07/25/14 (05/28/10) (c)(d)(f)		7,233,974		7,044,119
2.502% 07/14/25 (05/28/10) (c)(d)(f)		290,824		283,191
2.502% 12/29/99 (05/28/10) (c)(d)(f)		150,000		146,063
8.875% 07/15/15		3,985,000		4,124,475
HCA, Inc.
6.300% 10/01/12		4,305,000		4,299,619
Vanguard Health Holding Co. II LLC/ Vanguard Holding Co. II, Inc.
8.000% 02/01/18 (b)		500,000		486,250
				16,383,717
Medical-Nursing Homes – 0.5%
Skilled Healthcare Group, Inc.
11.000% 01/15/14		1,559,000		1,640,848
Sun Healthcare Group, Inc.
9.125% 04/15/15		2,285,000		2,347,837
				3,988,685
Physical Therapy/Rehab Centers – 0.2%
Healthsouth Corp.
8.125% 02/15/20		1,655,000		1,646,725

	Par (a)		Value ($)
Psychiatric Solutions, Inc.
7.750% 07/15/15		170,000		173,188
				1,819,913
Healthcare Services Total				22,192,315
Household Products/Wares – 1.0%
Consumer Products-Miscellaneous – 0.7%
Central Garden and Pet Co.
8.250% 03/01/18		1,950,000		1,976,813
Jarden Corp.
7.500% 05/01/17		1,895,000		1,921,056
Visant Corp.
7.625% 10/01/12		2,032,000		2,037,080
				5,934,949
Soap & Cleaning Preparations – 0.3%
JohnsonDiversey, Inc.
8.250% 11/15/19 (b)		2,045,000		2,116,575
				2,116,575
Household Products/Wares Total				8,051,524
Pharmaceuticals – 1.8%
Medical-Drugs – 1.6%
Catalent Pharma Solutions, Inc.
PIK,
10.250% 04/15/15 (04/15/10) (c)(d)		4,094,618		3,829,435
Phibro Animal Health Corp.
10.000% 08/01/13 (b)		5,385,000		5,593,669
Talecris Biotherapeutics Holdings Corp.
7.750% 11/15/16 (b)		395,000		396,975
Valeant Pharmaceuticals International
8.375% 06/15/16 (b)		2,290,000		2,393,050
				12,213,129
Pharmacy Services – 0.2%
BioScrip, Inc.
10.250% 10/01/15 (b)		1,595,000		1,622,912
				1,622,912
Pharmaceuticals Total				13,836,041
Consumer Non-Cyclical Total				118,255,862

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Diversified – 0.3%
Diversified Holding Companies – 0.3%
Diversified Operations – 0.3%
Leucadia National Corp.
7.125% 03/15/17		2,165,000		2,143,350
				2,143,350
Diversified Holding Companies Total				2,143,350
Diversified Total				2,143,350
Energy – 14.5%
Coal – 0.4%
Peabody Energy Corp.
6.875% 03/15/13		1,440,000		1,456,200
7.875% 11/01/26		1,855,000		1,906,012
Coal Total				3,362,212
Energy-Alternate Sources – 0.4%
Headwaters, Inc.
11.375% 11/01/14 (b)		2,460,000		2,567,625
Salton Sea Funding
8.300% 05/30/11		1,909		1,978
Energy-Alternate Sources Total				2,569,603
Oil & Gas – 10.2%
Oil & Gas Drilling – 0.6%
Parker Drilling Co.
9.625% 10/01/13		3,730,000		3,849,658
Pride International, Inc.
7.375% 07/15/14		930,000		957,900
				4,807,558
Oil Companies-Exploration & Production – 8.9%
Berry Petroleum Co.
10.250% 06/01/14		2,205,000		2,431,012
Chaparral Energy, Inc.
8.500% 12/01/15		5,825,000		5,315,312
Chesapeake Energy Corp.
6.375% 06/15/15		1,185,000		1,164,263
6.500% 08/15/17		1,200,000		1,161,000
6.625% 01/15/16		2,495,000		2,445,100
7.500% 09/15/13		1,040,000		1,053,000
7.500% 06/15/14		805,000		817,075
Comstock Resources, Inc.
6.875% 03/01/12		1,635,000		1,630,913
Continental Resources Inc/ Oklahoma
8.250% 10/01/19		1,600,000		1,696,000
Denbury Resources, Inc.
9.750% 03/01/16		1,625,000		1,787,500

	Par (a)		Value ($)
Forest Oil Corp.
7.250% 06/15/19		555,000		557,775
8.000% 12/15/11		475,000		501,125
8.500% 02/15/14		2,000,000		2,110,000
Hilcorp Energy LP/Hilcorp Finance Co.
7.750% 11/01/15 (b)		4,495,000		4,438,812
9.000% 06/01/16 (b)		1,110,000		1,154,400
KCS Energy, Inc.
7.125% 04/01/12		803,000		803,000
Linn Energy LLC
9.875% 07/01/18		2,390,000		2,557,300
11.750% 05/15/17 (b)		2,005,000		2,275,675
Mariner Energy, Inc.
7.500% 04/15/13		2,470,000		2,488,525
8.000% 05/15/17		190,000		186,675
Newfield Exploration Co.
6.625% 04/15/16		3,310,000		3,367,925
7.125% 05/15/18		2,930,000		2,973,950
PetroHawk Energy Corp.
7.875% 06/01/15		2,090,000		2,129,188
10.500% 08/01/14		1,000,000		1,103,750
Petroquest Energy, Inc.
10.375% 05/15/12		3,575,000		3,610,750
Plains Exploration & Production Co.
7.000% 03/15/17		1,175,000		1,157,375
7.625% 06/01/18		930,000		939,300
10.000% 03/01/16		2,520,000		2,784,600
Range Resources Corp.
6.375% 03/15/15		1,420,000		1,427,100
7.500% 05/15/16		1,595,000		1,642,850
7.500% 10/01/17		2,395,000		2,466,850
Stone Energy Corp.
6.750% 12/15/14		2,714,000		2,388,320
W&T Offshore, Inc.
8.250% 06/15/14 (b)		1,860,000		1,739,100
Whiting Petroleum Corp.
7.000% 02/01/14		6,540,000		6,695,325
				71,000,845
Oil Refining & Marketing – 0.7%
Frontier Oil Corp.
6.625% 10/01/11		2,475,000		2,493,563
8.500% 09/15/16		2,290,000		2,347,250
Holly Corp.
9.875% 06/15/17 (b)		455,000		468,650
				5,309,463
Oil & Gas Total				81,117,866

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Oil & Gas Services – 0.7%
Oil-Field Services – 0.7%
Complete Production Services, Inc.
8.000% 12/15/16		2,650,000		2,623,500
Expro Finance Luxembourg SCA
8.500% 12/15/16 (b)		2,950,000		2,979,500
				5,603,000
Oil & Gas Services Total				5,603,000
Pipelines – 2.8%
ANR Pipeline Co.
7.375% 02/15/24		1,205,000		1,363,325
Copano Energy LLC/Copano Energy Finance Corp.
7.750% 06/01/18		6,145,000		6,129,637
El Paso Natural Gas Co.
7.625% 08/01/10		5,240,000		5,246,550
8.375% 06/15/32		1,860,000		2,176,855
MarkWest Energy Partners LP
6.875% 11/01/14		1,065,000		1,043,700
8.500% 07/15/16		5,100,000		5,182,875
Regency Energy Partners LP/Regency Energy Finance Corp.
8.375% 12/15/13		1,198,000		1,242,925
Pipelines Total				22,385,867
Energy Total				115,038,548
Financials – 10.5%
Banks – 0.6%
Commercial Banks-Central US – 0.4%
CapitalSource, Inc.
12.750% 07/15/14 (b)		2,845,000		3,257,525
				3,257,525
Mortgage Banks – 0.2%
Provident Funding Associates
10.250% 04/15/17 (b)		1,600,000		1,612,000
				1,612,000
Banks Total				4,869,525
Diversified Financial Services – 6.6%
Finance-Auto Loans – 5.6%
AmeriCredit Corp.
8.500% 07/01/15		2,560,000		2,489,600
Credit Acceptance Corp.
9.125% 02/01/17 (b)		1,695,000		1,741,613
Daimler Chrysler 2nd Lien
6.730% 08/03/13 (04/15/10) (c)(d)(f)		6,415,000		6,340,156

	Par (a)		Value ($)
Ford Motor Credit Co.
5.507% 06/15/11 (06/15/10) (c)(d)		2,350,000		2,397,000
7.250% 10/25/11		4,100,000		4,238,953
7.800% 06/01/12		630,000		653,415
7.875% 06/15/10		3,670,000		3,704,131
8.125% 01/15/20		7,700,000		8,077,077
9.875% 08/10/11		1,860,000		1,972,684
12.000% 05/15/15		1,320,000		1,576,999
GMAC, Inc.
6.875% 09/15/11		2,830,000		2,875,987
7.250% 03/02/11		580,000		590,150
8.000% 11/01/31		8,247,000		7,875,885
				44,533,650
Investment Management/Advisor Service – 0.5%
Janus Capital Group, Inc.
6.500% 06/15/12		480,000		496,485
6.950% 06/15/17		3,065,000		3,047,318
Nuveen Investments, Inc.
10.500% 11/15/15		230,000		223,100
				3,766,903
Special Purpose Entity – 0.5%
Harley-Davidson Funding Corp.
6.800% 06/15/18 (b)		3,950,000		3,943,838
				3,943,838
Diversified Financial Services Total				52,244,391
Insurance – 2.4%
Insurance Brokers – 0.9%
HUB International Holdings, Inc.
9.000% 12/15/14 (b)		3,035,000		2,943,950
Trinity Acquisition Ltd.
12.875% 12/31/16 (b)(g)		1,840,000		2,532,381
USI Holdings Corp.
4.125% 11/15/14 (05/17/10) (b)(c)(d)		1,365,000		1,163,662
9.750% 05/15/15 (b)		840,000		793,800
				7,433,793
Multi-Line Insurance – 0.6%
Fairfax Financial Holdings Ltd.
7.375% 04/15/18		875,000		896,875
7.750% 07/15/37		3,590,000		3,410,500
8.300% 04/15/26		185,000		185,000
				4,492,375
Mutual Insurance – 0.0%
Lumbermens Mutual Casualty
8.300% 12/01/37 (b)(e)		180,000		1,818
8.450% 12/01/97 (b)(e)		4,600,000		46,460
9.150% 07/01/26 (b)(e)		9,865,000		99,637
				147,915

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Property/Casualty Insurance – 0.9%
Crum & Forster Holdings Corp.
7.750% 05/01/17		6,950,000		6,880,500
				6,880,500
Insurance Total				18,954,583
Real Estate Investment Trusts (REITs) – 0.9%
REITS-Health Care – 0.3%
Omega Healthcare Investors, Inc.
7.000% 04/01/14		2,920,000		2,912,700
				2,912,700
REITS-Single Tenant – 0.6%
Trustreet Properties, Inc.
7.500% 04/01/15		4,605,000		4,745,194
				4,745,194
Real Estate Investment Trusts (REITs) Total				7,657,894
Financials Total				83,726,393
Industrials – 8.2%
Aerospace & Defense – 0.6%
Aerospace/Defense – 0.4%
DAE Aviation Holdings, Inc.
4.000% 07/31/14 (04/30/10) (c)(d)(f)		552,808		517,336
11.250% 08/01/15 (b)		2,565,000		2,398,275
				2,915,611
Aerospace/Defense-Equipment – 0.2%
BE Aerospace, Inc.
8.500% 07/01/18		1,540,000		1,643,950
				1,643,950
Aerospace & Defense Total				4,559,561
Building Materials – 1.3%
Building & Construction Products-Miscellaneous – 0.3%
Building Materials Corp. of America
7.500% 03/15/20 (b)		2,505,000		2,498,737
				2,498,737
Building Products-Air & Heating – 0.3%
Goodman Global, Inc.
13.500% 02/15/16		1,835,000		2,050,613
				2,050,613

	Par (a)		Value ($)
Building Products-Cement/Aggregation – 0.7%
Texas Industries, Inc.
7.250% 07/15/13		5,800,000		5,698,500
				5,698,500
Building Materials Total				10,247,850
Building Products – 0.2%
Chemical-Plastics – 0.2%
CPG International I, Inc.
10.500% 07/01/13		1,300,000		1,303,250
				1,303,250
Building Products Total				1,303,250
Electrical Components & Equipment – 0.4%
Wire & Cable Products – 0.4%
Belden, Inc.
7.000% 03/15/17		3,268,000		3,218,980
				3,218,980
Electrical Components & Equipment Total				3,218,980
Environmental Control – 0.7%
Pollution Control – 0.7%
Geo Sub Corp.
11.000% 05/15/12		6,165,000		6,026,288
				6,026,288
Environmental Control Total				6,026,288
Metal Fabricate/Hardware – 1.0%
Metal Processors & Fabrication – 0.8%
Neenah Foundry Co.
1.000% 11/02/10 (g)(i)		2,000,000		2,000,000
9.500% 01/01/17 (j)		3,770,000		2,045,225
12.500% 11/05/10 (04/05/10) (c)(d)(f)(g)		2,000,000		2,000,000
				6,045,225
Steel Pipe & Tube – 0.2%
Mueller Water Products, Inc.
7.375% 06/01/17		2,205,000		1,990,013
				1,990,013
Metal Fabricate/Hardware Total				8,035,238
Miscellaneous Manufacturing – 1.2%
Diversified Manufacturing Operators – 1.0%
Actuant Corp.
6.875% 06/15/17		2,215,000		2,148,550
RBS Global, Inc. & Rexnord Corp.
9.500% 08/01/14		2,486,000		2,585,440

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
SPX Corp.
7.625% 12/15/14		2,335,000		2,442,994
Tyco Electronics Group SA
6.000% 10/01/12		375,000		403,773
				7,580,757
Firearms & Ammunition – 0.2%
Colt Defense LLC/Colt Finance Corp.
8.750% 11/15/17 (b)		1,640,000		1,644,100
				1,644,100
Miscellaneous Manufacturing Total				9,224,857
Packaging & Containers – 1.4%
Containers-Metal/Glass – 1.1%
Owens-Brockway Glass Container, Inc.
6.750% 12/01/14		4,120,000		4,202,400
8.250% 05/15/13		2,330,000		2,359,125
Silgan Holdings, Inc.
6.750% 11/15/13		2,375,000		2,404,687
				8,966,212
Containers-Paper/Plastic – 0.3%
Plastipak Holdings, Inc.
10.625% 08/15/19 (b)		2,200,000		2,447,500
				2,447,500
Packaging & Containers Total				11,413,712
Transportation – 1.4%
Automotive – 0.0%
BHM Technologies
8.500% 10/11/26 (06/30/10) (c)(d)(f)(g)(j)		1,266,522		66,492
				66,492
Transportation-Marine – 0.3%
Martin Midstream Partners & Finance
8.875% 04/01/18 (b)		2,025,000		2,045,250
				2,045,250
Transportation-Railroad – 0.5%
Kansas City Southern de Mexico SA de CV
7.375% 06/01/14		4,350,000		4,382,625
				4,382,625
Transportation-Shipping – 0.6%
Great Lakes Dredge & Dock Corp.
7.750% 12/15/13		2,945,000		2,970,769

	Par (a)		Value ($)
Greenbrier Companies, Inc.
8.375% 05/15/15		1,970,000		1,792,700
				4,763,469
Transportation Total				11,257,836
Industrials Total				65,287,572
Technology – 1.5%
Software – 1.5%
Application Software – 1.4%
SS&C Technologies, Inc.
11.750% 12/01/13		4,495,000		4,770,319
Sungard Data Systems, Inc.
4.875% 01/15/14		3,585,000		3,392,306
10.625% 05/15/15		2,725,000		2,970,250
				11,132,875
Transactional Software – 0.1%
Open Solutions, Inc.
9.750% 02/01/15 (b)		1,095,000		943,069
				943,069
Software Total				12,075,944
Technology Total				12,075,944
Utilities – 6.3%
Electric – 5.9%
Electric-Generation – 0.8%
Cedar Brakes LLC
8.500% 02/15/14 (b)		1,254,327		1,262,831
9.875% 09/01/13 (b)		1,895,331		1,930,016
Reliant Energy Mid-Atlantic Power Holdings LLC
9.237% 07/02/17		122,909		131,512
9.681% 07/02/26		2,490,000		2,648,738
				5,973,097
Electric-Integrated – 2.5%
Energy Future Holdings Corp.
10.875% 11/01/17		1,720,000		1,277,100
Ipalco Enterprises, Inc.
7.250% 04/01/16 (b)		2,475,000		2,567,812
8.625% 11/14/11		1,575,000		1,677,375
PNM Resources, Inc.
9.250% 05/15/15		2,915,000		3,100,831
Public Service Co. of New Mexico
7.950% 05/15/18		3,265,000		3,406,345

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par (a)		Value ($)
Texas Competitive Electric Holdings Co. LLC
3.729% 10/10/14 (04/09/10) (c)(d)(f)		9,684,894		7,912,477
				19,941,940
Independent Power Producer – 2.6%
AES Eastern Energy LP
9.000% 01/02/17		3,767,026		3,880,036
Calpine Corp.
3.135% 03/29/14 (06/30/10) (c)(d)(f)		7,768,229		7,512,483
RRI Energy, Inc.
6.750% 12/15/14		2,455,000		2,448,863
7.625% 06/15/14		1,130,000		1,056,550
7.875% 06/15/17		6,700,000		6,013,250
				20,911,182
Electric Total				46,826,219
Gas Utilities – 0.4%
Retail-Propane Distributors – 0.4%
Star Gas Partners LP/Star Gas Finance Co.
10.250% 02/15/13		2,949,000		3,000,608
				3,000,608
Gas Utilities Total				3,000,608
Utilities Total				49,826,827
Total Corporate Fixed-Income Bonds & Notes (cost of $702,976,905)				724,071,427
Convertible Bonds – 0.6%
Communications – 0.0%
Internet – 0.0%
Web Portals/ISP – 0.0%
At Home Corp.
4.750% 12/15/06 (g)(j)		3,896,787		390
				390
Internet Total				390
Communications Total				390
Consumer Discretionary – 0.3%
Specialty Retail – 0.3%
United Auto Group, Inc.
3.500% 04/01/26		2,679,000		2,672,302
Specialty Retail Total				2,672,302
Consumer Discretionary Total				2,672,302

	Par (a)		Value ($)
Diversified – 0.3%
Diversified Holding Companies – 0.3%
Icahn Enterprises LP
4.000% 08/15/13 (04/15/10) (c)(d)		2,750,000		2,433,750
Diversified Holding Companies Total				2,433,750
Diversified Total				2,433,750
Total Convertible Bonds (cost of $4,446,096)				5,106,442
Preferred Stocks – 0.4%
	Shares
Financials – 0.4%
Real Estate Investment Trusts (REITs) – 0.4%
REITS-Diversified – 0.4%
Sovereign Real Estate Investment Corp.,
12.00% (b)		2,581		2,942,340
Real Estate Investment Trusts (REITs) Total				2,942,340
Financials Total				2,942,340
Transportation – 0.0%
Automotive – 0.0%
BHM Technologies (g)(k)		1,378		14
Automotive Total				14
Transportation Total				14
Total Preferred Stocks (cost of $2,524,997)				2,942,354

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Common Stocks – 0.0%
	Shares		Value ($)
Communications – 0.0%
Media – 0.0%
Haights Cross Communications (g)(l)		275,078		—
Verits Holdings, Inc. (g)		1,908		19
Ziff Davis Media, Inc. (g)		12,260		123
Media Total				142
Communications Total				142
Consumer Non-Cyclical – 0.0%
Consumer Services – 0.0%
World Color Press, Inc. (k)		13,537		161,767
Consumer Services Total				161,767
Consumer Non-Cyclical Total				161,767
Financials – 0.0%
Diversified Financial Services – 0.0%
Adelphia Recovery Trust (g)(k)		1,410,902		14,109
Diversified Financial Services Total				14,109
Financials Total				14,109
Information Technology – 0.0%
Communications Equipment – 0.0%
Loral Space & Communications, Inc. (k)		101		3,547
Communications Equipment Total				3,547
Information Technology Total				3,547
Transportation – 0.0%
Automotive – 0.0%
BHM Technologies (g)		115,119		1,151
Automotive Total				1,151
Transportation Total				1,151
Total Common Stocks (cost of $5,057,572)				180,716

Warrants – 0.0%
	Units		Value ($)
Communications – 0.0%
Media – 0.0%
Multimedia – 0.0%
Haights Cross Communications
Expires 12/10/11 (g)(k)(l)		1,366		—
				—
Media Total				—
Communications Total				—
Consumer Non-Cyclical – 0.0%
Commercial Services – 0.0%
World Color Press, Inc.
Expires 07/14/20 (k)		15,344		63,294
Commercial Services Total				63,294
Consumer Non-Cyclical Total				63,294
Total Warrants (cost of $295,300)				63,294
Short-Term Obligation – 5.1%
	Par (a)
Repurchase agreement with Fixed Income Clearing Corp., dated 03/31/10, due 04/01/10, at 0.000%, collateralized by a U.S. Government Agency obligation maturing 09/05/13, market value $41,002,250 (repurchase proceeds $40,195,000)		40,195,000		40,195,000
Total Short-Term Obligation (cost of $40,195,000)				40,195,000
Total Investments – 97.1% (cost of $755,495,870)				772,559,233
Other Assets & Liabilities, Net – 2.9%				23,014,926
Net Assets – 100.0%				795,574,159

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

Notes to Investment Portfolio:

(a) Principal amount is stated in United States dollars unless otherwise noted.

Security	Acquisition Date	Par/ Shares		Cost		Value
Lumbermens Mutual Casualty: 8.300% 12/01/37	02/28/08	$	180,000	$	20,250	$	1,818
8.450% 12/01/97	02/28/08		4,600,000		422,625		46,460
9.150% 07/01/26	02/28/08		9,865,000		2,090,824		99,637
ION Media Networks, Inc., 10.070% 01/15/13	02/28/08		1,254,550		1,137,893		125
Sovereign Real Estate Investment Corp., 12.00% Preferred Stock	08/21/00- 10/17/06		2,581		2,524,923		2,942,340
Trinity Acquisition Ltd., 12.875% 12/31/16	03/06/09		1,840,000		1,840,000		2,532,381
						$	5,622,761

(d) The interest rate shown on floating rate or variable rate securities reflects the rate at March 31, 2010.

(e) The issuer has filed for bankruptcy protection under Chapter 11, and is in default of certain debt covenants. Income is not being accrued. At March 31, 2010, the value of these securities amounted to $4,876,869, which represents 0.6% of net assets.

(f) Loan participation agreement.

(g) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2010, the value of these securities amounted to $6,978,095, which represents 0.9% of net assets.

(h) Position reflects anticipated residual bankruptcy claims. Income is not being accrued.

(i) Security purchased on a delayed delivery basis.

(j) The issuer is in default of certain debt covenants. Income is not being accrued. At March 31, 2010, the value of these securities amounted to $2,112,107, which represents 0.3% of net assets.

(k) Non-income producing security.

(l) Security has no value.

(m) Cost for federal income tax purposes is $757,067,134.

The following table summarizes the inputs used, as of March 31, 2010, in valuing the Fund's assets:

Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Corporate Fixed-Income Bonds & Notes
Basic Materials	$	—	$	64,734,921	$	—	$	64,734,921
Communications		—		113,575,868		250,353		113,826,221
Consumer Cyclical		—		99,042,726		113,063		99,155,789
Consumer Non-Cyclical		—		118,255,862		—		118,255,862
Diversified		—		2,143,350		—		2,143,350
Energy		—		115,038,548		—		115,038,548
Financials		—		81,194,012		2,532,381		83,726,393
Industrials		—		61,221,080		4,066,492		65,287,572
Technology		—		12,075,944		—		12,075,944
Utilities		—		49,826,827		—		49,826,827
Total Corporate Fixed-Income Bonds & Notes		—		717,109,138		6,962,289		724,071,427
Convertible Bonds
Communications		—		—		390		390
Consumer Discretionary		—		2,672,302		—		2,672,302
Diversified		—		2,433,750		—		2,433,750
Total Convertible Bonds		—		5,106,052		390		5,106,442
Preferred Stocks
Financials		—		2,942,340		—		2,942,340
Transportation		—		—		14		14
Total Preferred Stock		—		2,942,340		14		2,942,354
Common Stocks
Communications		—		—		142		142
Consumer Non-Cyclical		161,767		—		—		161,767
Financials		—		—		14,109		14,109
Information Technology		3,547		—		—		3,547
Transportation		—		—		1,151		1,151
Total Common Stocks		165,314		—		15,402		180,716
Total Warrants		63,294		—		—		63,294
Total Short-Term Obligation		—		40,195,000		—		40,195,000
Total Investments	$	228,608	$	765,352,530	$	6,978,095	$	772,559,233

See Accompanying Notes to Financial Statements.

Columbia High Income Fund

March 31, 2010

The following table reconciles asset balances for the year ended March 31, 2010, in which significant unobservable inputs (Level 3) were used in determining value:

Investment in Securities	Balance as of March 31, 2009		Accrued Discounts (Premiums)			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Purchases		Sales			Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2010
Common Stocks
Communications	$	142	$	—		$	—		$	—	$	—	$	—		$	—	$	—	$	142
Financials		14,109		—			—			—		—		—			—		—		14,109
Transportation		1,151		—			—			—		—		—			—		—		1,151
Preferred Stocks
Transportation		14		—			—			—		—		—			—		—		14
Warrants
Communications		—		—			(23,848	)		23,848		—		—			—		—		—
Convertible Bonds
Communications		390		—			—			—		—		—			—		—		390
Corporate Fixed-Income Bonds & Notes
Communications		611,816		139			(431,515	)		147,033		79,113		(169,497	)		13,264		—		250,353
Consumer Cyclical		127,700		5,146			3,505			1,108		—		(24,396	)		—		—		113,063
Financials		—		—			—			664,555		—		—			1,867,826		—		2,532,381
Industrials		700,645		(88,859	)		(965,627	)		1,481,836		4,120,711		(1,182,214	)		—		—		4,066,492
	$	1,455,967	$	(83,574	)	$	(1,417,485	)	$	2,318,380	$	4,199,824	$	(1,376,107	)	$	1,881,090	$	—	$	6,978,095

The change in unrealized appreciation attributable to securities owned at March 31, 2010 which were valued using significant unobservable inputs (Level 3) amounted to $2,146,960. This amount is included in net changes in unrealized appreciation (depreciation) on the Statements of Changes in Net Assets.

Financial assets were transferred into Level 3 due to pricing services discontinuing coverage of the security and the resulting need of management to fair value the security under consistently applied procedures established by and under the general supervision of the Board of Trustees.

At March 31, 2010, the asset allocation of the Fund is as follows:

Asset Allocation (Unaudited)	% of Net Assets
Corporate Fixed-Income Bonds & Notes		91.0
Convertible Bonds		0.6
Preferred Stocks		0.4
Common Stocks		0.0	*
Warrants		0.0	*
		92.0
Short Term Obligation		5.1
Other Assets & Liabilities, Net		2.9
		100.0

* Represents less than 0.1%

Acronym				Name
CAD				Canadian Dollar

PIK				Payment-In-Kind

See Accompanying Notes to Financial Statements.

Statements of Assets and Liabilities – Corporate Bond Funds
March 31, 2010

	($)		($)		($)
	Columbia Total Return Bond Fund		Columbia Short Term Bond Fund		Columbia High Income Fund
Assets
Unaffiliated investments, at identified cost		1,302,592,105		2,378,308,930		755,495,870
Affiliated investments, at identified cost		9,036,803		1,998,287		—
Total investments, at identified cost		1,311,628,908		2,380,307,217		755,495,870
Unaffiliated investments, at value		1,326,624,348		2,408,781,115		772,559,233
Affiliated investments, at value		9,538,938		2,153,404		—
Total investments at value (including securities on loan of $5,686,807, $— and $—, respectively)		1,336,163,286		2,410,934,519		772,559,233
Cash		102,710		9,836,062		388,909
Foreign currency (cost of $2,750,340, $— and $—, respectively)		2,656,733		—		—
Unrealized appreciation on forward foreign currency exchange contracts		19,656		—		—
Open credit default swap contracts		94,129		—		—
Credit default swap contracts premiums paid		1,990,437		—		—
Receivable for:
Investments sold		153		257,783,093		12,466,837
Fund shares sold		1,497,391		4,734,502		749,830
Interest		15,907,711		13,778,032		15,918,781
Foreign tax reclaims		13,489		3,988		11,855
Expense reimbursement due from investment advisor		—		103,650		—
Trustees' deferred compensation plan		7,018		12,121		—
Prepaid expenses		13,050		25,000		7,971
Other assets		479,383		58,115		—
Total Assets		1,358,945,146		2,697,269,082		802,103,416
Liabilities
Collateral on securities loaned		5,792,568		—		—
Open credit default swap contracts		679,113		—		—
Credit default swap contracts premiums received		71,211		—		—
Payable for:
Investments purchased		4,911,220		249,009,131		2,412,492
Investments purchased on a delayed delivery basis		44,504,733		15,324,234		2,000,000
Fund shares repurchased		939,590		7,806,941		1,325,174
Futures variation margin		572,625		192,584		—
Distributions		3,394,084		4,026,623		—
Investment advisory fee		399,098		610,595		363,064
Administration fee		153,514		273,278		143,284
Pricing and bookkeeping fees		19,848		17,172		16,751
Transfer agent fee		128,851		144,753		68,154
Trustees' fees		66,961		97,915		51,260
Custody fee		10,318		11,645		4,155
Distribution and service fees		12,276		108,175		72,943
Chief compliance officer expenses		305		399		215
Interest payable		87		—		—
Trustees' deferred compensation plan		7,018		12,121		—
Other liabilities		61,607		89,325		71,765
Total Liabilities		61,725,027		277,724,891		6,529,257
Net Assets		1,297,220,119		2,419,544,191		795,574,159

See Accompanying Notes to Financial Statements.

Statements of Assets and Liabilities (continued) – Corporate Bond Funds
March 31, 2010

	($)			($)			($)
	Columbia Total Return Bond Fund			Columbia Short Term Bond Fund			Columbia High Income Fund
Net Assets Consist of
Paid-in capital		1,338,943,250			2,428,006,611			865,890,587
Undistributed (Overdistributed) net investment income		972,025			(1,748,904	)		628,224
Accumulated net realized loss		(65,822,333	)		(37,242,848	)		(88,012,600	)
Net unrealized appreciation (depreciation) on:
Investments		24,534,378			30,627,302			17,063,363
Foreign currency translations and forward foreign currency exchange contracts		(1,018	)		—			4,585
Credit default swap contracts		(598,433	)		—			—
Futures contracts		(807,750	)		(97,970	)		—
Net Assets		1,297,220,119			2,419,544,191			795,574,159
Class A
Net assets	$	20,299,664		$	245,871,885		$	112,678,241
Shares outstanding		2,062,892			24,715,135			14,433,634
Net asset value per share (a)	$	9.84		$	9.95		$	7.81
Maximum sales charge		3.25	%		1.00	%		4.75	%
Maximum offering price per share (b)	$	10.17		$	10.05		$	8.20
Class B
Net assets	$	4,305,713		$	9,326,029		$	30,663,795
Shares outstanding		437,419			937,943			3,939,333
Net asset value per share (a)	$	9.84		$	9.94		$	7.78
Class C
Net assets	$	4,528,047		$	113,037,631		$	23,518,746
Shares outstanding		460,144			11,374,936			3,037,615
Net asset value per share (a)	$	9.84		$	9.94		$	7.74
Class Y (c)
Net assets	$	—		$	26,109,963		$	—
Shares outstanding		—			2,629,805			—
Net asset value per share	$	—		$	9.93		$	—
Class Z
Net assets	$	1,268,086,695		$	2,025,198,683		$	628,713,377
Shares outstanding		128,745,383			203,943,080			79,711,300
Net asset value per share	$	9.85		$	9.93		$	7.89

(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.

Statements of Operations – Corporate Bond Funds
For the Year Ended March 31, 2010

	($)			($)			($)
	Columbia Total Return Bond Fund			Columbia Short Term Bond Fund			Columbia High Income Fund
Investment Income
Dividends		—			—			525,505
Interest		66,235,623			77,303,005			64,667,532
Interest from affiliates		626,510			123,000			—
Securities lending		20,455			23,582			—
Total Investment Income		66,882,588			77,449,587			65,193,037
Expenses
Investment advisory fee		4,695,452			5,778,812			4,106,528
Administration fee		1,803,180			2,556,779			1,610,648
Distribution fee:
Class B		35,210			76,368			280,926
Class C		29,886			532,171			168,507
Service fee:
Class B		11,737			25,456			93,642
Class C		9,962			177,390			56,169
Distribution and service fees:
Class A		48,959			467,584			248,940
Pricing and bookkeeping fees		187,866			170,978			169,120
Transfer agent fee—Class A, Class B, Class C and Class Z		1,247,658			798,631			902,997
Transfer agent fee—Class Y (a)(b)		—			73			—
Trustees' fees		46,030			60,539			43,210
Custody fee		52,525			62,095			25,694
Chief compliance officer expenses		1,127			1,417			873
Other expenses		266,812			452,672			295,051
Expenses before interest expense		8,436,404			11,160,965			8,002,305
Interest expense		87			—			—
Total Expenses		8,436,491			11,160,965			8,002,305
Fees waived or expenses reimbursed by investment advisor and/or administrator		—			(628,536	)		—
Fees waived by distributor—Class C		—			(312,207	)		—
Expense reductions		(53	)		(1,044	)		(170	)
Net Expenses		8,436,438			10,219,178			8,002,135
Net Investment Income		58,446,150			67,230,409			57,190,902

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

(b) Class Y shares reflect activity for the period July 15, 2009 through March 31, 2010.

See Accompanying Notes to Financial Statements.

Statements of Operations – Corporate Bond Funds
For the Year Ended March 31, 2010 (continued)

	($)			($)			($)
	Columbia Total Return Bond Fund			Columbia Short Term Bond Fund			Columbia High Income Fund
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Futures Contracts and Credit Default Swap Contracts
Net realized gain (loss) on:
Unaffiliated investments		33,280,473			4,841,675			(44,326,346	)
Affiliated investments		91,364			—			—
Net realized loss on violation of investment restriction (See Note 12)		(38,162	)		—			—
Foreign currency transactions and forward foreign currency exchange contracts		(1,543,054	)		—			(26,038	)
Futures contracts		2,449,715			(2,874,003	)		—
Credit default swap contracts		(4,280,508	)		—			—
Reimbursement of realized loss on violation of investment restrictions (See Note 12)		38,162			—			—
Net realized gain (loss)		29,997,990			1,967,672			(44,352,384	)
Net change in unrealized appreciation (depreciation) on:
Investments		128,395,855			80,825,330			244,104,612
Foreign currency translations and forward foreign currency exchange contracts		862,620			—			6,565
Futures contracts		803,426			(830,452	)		—
Credit default swap contracts		(456,873	)		—			—
Net change in unrealized appreciation (depreciation)		129,605,028			79,994,878			244,111,177
Net Gain		159,603,018			81,962,550			199,758,793
Net Increase Resulting from Operations		218,049,168			149,192,959			256,949,695

See Accompanying Notes to Financial Statements.

Statements of Changes in Net Assets – Corporate Bond Funds

Increase (Decrease) in Net Assets	Columbia Total Return Bond Fund						Columbia Short Term Bond Fund						Columbia High Income Fund
	Year Ended March 31,						Year Ended March 31,						Year Ended March 31,
	2010 ($)			2009 ($)			2010 ($)(a)(b)			2009 ($)			2010 ($)			2009 ($)
Operations
Net investment income		58,446,150			75,004,210			67,230,409			56,080,937			57,190,902			57,392,683
Net realized gain (loss) on investments, foreign currency transactions, forward foreign currency exchange contracts, futures contracts and credit default swap contracts		29,997,990			(47,179,052	)		1,967,672			1,890,508			(44,352,384	)		(42,593,087	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency translations, forward foreign currency exchange contracts, futures contracts and credit default swap contracts		129,605,028			(93,662,940	)		79,994,878			(56,307,325	)		244,111,177			(159,043,742	)
Net increase (decrease) resulting from operations		218,049,168			(65,837,782	)		149,192,959			1,664,120			256,949,695			(144,244,146	)
Distributions to Shareholders
From net investment income:
Class A		(903,090	)		(992,675	)		(6,207,014	)		(3,827,846	)		(7,623,106	)		(6,762,477	)
Class B		(180,119	)		(249,664	)		(271,323	)		(440,891	)		(2,585,782	)		(3,648,567	)
Class C		(153,315	)		(133,621	)		(2,094,729	)		(985,739	)		(1,557,575	)		(1,577,538	)
Class Y		—			—			(690,988	)		—			—			—
Class Z		(61,455,109	)		(78,657,832	)		(58,760,506	)		(50,075,377	)		(46,773,102	)		(44,798,872	)
From net realized gains:
Class A		—			—			—			—			—			(744,301	)
Class B		—			—			—			—			—			(469,197	)
Class C		—			—			—			—			—			(195,286	)
Class Z		—			—			—			—			—			(4,685,440	)
Total distributions to shareholders		(62,691,633	)		(80,033,792	)		(68,024,560	)		(55,329,853	)		(58,539,565	)		(62,881,678	)
Net Capital Stock Transactions		(83,078,763	)		(345,366,302	)		1,036,423,022			154,132,956			(14,622,568	)		82,772,300
Increase from regulatory settlements		40,867			3,547			49,053			6,972			177,263			—
Total increase (decrease) in net assets		72,319,639			(491,234,329	)		1,117,640,474			100,474,195			183,964,825			(124,353,524	)
Net Assets
Beginning of period		1,224,900,480			1,716,134,809			1,301,903,717			1,201,429,522			611,609,334			735,962,858
End of period		1,297,220,119			1,224,900,480			2,419,544,191			1,301,903,717			795,574,159			611,609,334
Undistributed (overdistributed) net investment income at end of period		972,025			(6,237,590	)		(1,748,904	)		(995,592	)		628,224			1,828,682

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

(b) Class Y shares reflect activity for the period July 15, 2009 through March 31, 2010.

See Accompanying Notes to Financial Statements.

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Statements of Changes in Net Assets (continued) – Capital Stock Activity

	Columbia Total Return Bond Fund												Columbia Short Term Bond Fund
	Year Ended March 31, 2010						Year Ended March 31, 2009						Year Ended March 31, 2010 (a)(b)						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)			Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		397,880			3,796,868			404,055			3,578,667			19,545,601			192,127,134			9,010,357			86,048,590
Distributions reinvested		71,501			682,118			85,082			755,655			522,432			5,145,173			335,479			3,209,803
Redemptions		(497,035	)		(4,721,691	)		(827,483	)		(7,475,067	)		(8,226,025	)		(81,090,294	)		(4,175,154	)		(39,743,789	)
Net increase (decrease)		(27,654	)		(242,705	)		(338,346	)		(3,140,745	)		11,842,008			116,182,013			5,170,682			49,514,604
Class B
Subscriptions		101,131			958,579			119,710			1,059,089			269,391			2,650,071			127,014			1,216,785
Distributions reinvested		14,583			138,911			21,946			195,171			23,567			231,211			38,957			373,741
Redemptions		(235,850	)		(2,234,617	)		(355,397	)		(3,184,498	)		(464,484	)		(4,570,887	)		(476,096	)		(4,560,754	)
Net decrease		(120,136	)		(1,137,127	)		(213,741	)		(1,930,238	)		(171,526	)		(1,689,605	)		(310,125	)		(2,970,228	)
Class C
Subscriptions		209,261			2,011,184			162,011			1,423,328			9,522,422			93,616,714			3,151,689			30,058,483
Distributions reinvested		9,859			94,253			8,067			71,352			137,158			1,351,256			63,710			608,097
Redemptions		(163,888	)		(1,572,741	)		(93,363	)		(824,923	)		(2,082,162	)		(20,462,910	)		(1,304,482	)		(12,405,109	)
Net increase (decrease)		55,232			532,696			76,715			669,757			7,577,418			74,505,060			1,910,917			18,261,471
Class Y
Subscriptions		—			—			—			—			3,701,658			36,034,293			—			—
Distributions reinvested		—			—			—			—			14,109			139,640			—			—
Redemptions		—			—			—			—			(1,085,962	)		(10,693,171	)		—			—
Net increase		—			—			—			—			2,629,805			25,480,762			—			—
Class Z
Subscriptions		14,729,781			138,286,475			20,480,028			185,365,087			140,730,646			1,377,894,072			44,428,970			425,054,819
Distributions reinvested		1,792,766			17,116,076			2,360,282			20,993,268			1,673,563			16,441,940			1,792,719			17,158,946
Redemptions		(25,132,516	)		(237,634,178	)		(62,341,691	)		(547,323,431	)		(58,374,664	)		(572,391,220	)		(36,950,138	)		(352,886,656	)
Net increase (decrease)		(8,609,969	)		(82,231,627	)		(39,501,381	)		(340,965,076	)		84,029,545			821,944,792			9,271,551			89,327,109

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

(b) Class Y shares reflect activity for the period July 15, 2009 through March 31, 2010.

See Accompanying Notes to Financial Statements.

	Columbia High Income Fund
	Year Ended March 31, 2010						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		6,596,682			47,672,499			5,988,663			42,803,769
Distributions reinvested		811,059			5,873,327			831,113			5,732,753
Redemptions		(4,940,770	)		(36,525,050	)		(7,180,568	)		(52,486,092	)
Net increase (decrease)		2,466,971			17,020,776			(360,792	)		(3,949,570	)
Class B
Subscriptions		206,107			1,433,179			265,822			1,758,334
Distributions reinvested		223,836			1,596,281			367,188			2,538,733
Redemptions		(2,701,733	)		(19,678,794	)		(2,512,623	)		(17,454,327	)
Net decrease		(2,271,790	)		(16,649,334	)		(1,879,613	)		(13,157,260	)
Class C
Subscriptions		561,599			4,004,756			931,515			5,907,948
Distributions reinvested		136,602			977,029			160,500			1,096,492
Redemptions		(723,507	)		(5,265,262	)		(1,413,827	)		(9,816,481	)
Net increase (decrease)		(25,306	)		(283,477	)		(321,812	)		(2,812,041	)
Class Y
Subscriptions		—			—			—			—
Distributions reinvested		—			—			—			—
Redemptions		—			—			—			—
Net increase		—			—			—			—
Class Z
Subscriptions		33,783,341			246,485,305			42,874,424			297,133,259
Distributions reinvested		1,992,576			14,454,556			2,250,474			15,464,375
Redemptions		(37,410,313	)		(275,650,394	)		(31,102,146	)		(209,906,463	)
Net increase (decrease)		(1,634,396	)		(14,710,533	)		14,022,752			102,691,171

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Total Return Bond Fund

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

	Year Ended March 31,
Class A Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.72		$	9.51		$	9.74		$	9.56		$	9.80
Income from Investment Operations:
Net investment income (b)		0.40			0.43			0.45			0.44			0.35
Net realized and unrealized gain (loss) on investments, foreign currency, futures contracts and credit default swap contracts		1.16			(0.76	)		(0.23	)		0.18			(0.17	)
Total from investment operations		1.56			(0.33	)		0.22			0.62			0.18
Less Distributions to Shareholders:
From net investment income		(0.44	)		(0.46	)		(0.45	)		(0.44	)		(0.39	)
From net realized gains		—			—			—			—			(0.03	)
Total distributions to shareholders		(0.44	)		(0.46	)		(0.45	)		(0.44	)		(0.42	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.84		$	8.72		$	9.51		$	9.74		$	9.56
Total return (d)		18.10	%(e)		(3.45	)%		2.34	%		6.65	%		1.84	%(f)
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (g)		0.89	%		0.85	%		0.85	%		0.79	%		0.79	%
Interest expense		—	%(h)		—	%(h)		—			—			—
Net expenses (g)		0.89	%		0.85	%		0.85	%		0.79	%		0.79	%
Waiver/Reimbursement		—			—			—			—			0.06	%(i)
Net investment income (g)		4.27	%		4.79	%		4.74	%		4.60	%		3.91	%
Portfolio turnover rate		165	%		223	%		253	%		320	%		199	%
Net assets, end of period (000s)	$	20,300		$	18,221		$	23,087		$	24,704		$	35,849

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

(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 and no initial sales charge or contingent deferred sales charge.

(e) Total return includes a reimbursement of a loss experienced by the Fund due to a compliance violation. This reimbursement had an impact of less than 0.01% on the Fund's total return.

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

(h) Rounds to less than 0.01%.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Total Return Bond Fund

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

	Year Ended March 31,
Class B Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.72		$	9.51		$	9.74		$	9.57		$	9.81
Income from Investment Operations:
Net investment income (b)		0.33			0.36			0.38			0.37			0.28
Net realized and unrealized gain (loss) on investments, foreign currency, futures contracts and credit default swap contracts		1.15			(0.76	)		(0.23	)		0.17			(0.17	)
Total from investment operations		1.48			(0.40	)		0.15			0.54			0.11
Less Distributions to Shareholders:
From net investment income		(0.36	)		(0.39	)		(0.38	)		(0.37	)		(0.32	)
From net realized gains		—			—			—			—			(0.03	)
Total distributions to shareholders		(0.36	)		(0.39	)		(0.38	)		(0.37	)		(0.35	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.84		$	8.72		$	9.51		$	9.74		$	9.57
Total return (d)		17.23	%(e)		(4.16	)%		1.58	%		5.75	%		1.09	%(f)
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (g)		1.64	%		1.60	%		1.60	%		1.54	%		1.54	%
Interest expense		—	%(h)		—	%(h)		—			—			—
Net expenses (g)		1.64	%		1.60	%		1.60	%		1.54	%		1.54	%
Waiver/Reimbursement		—			—			—			—			0.06	%(i)
Net investment income (g)		3.55	%		4.04	%		3.99	%		3.85	%		3.14	%
Portfolio turnover rate		165	%		223	%		253	%		320	%		199	%
Net assets, end of period (000s)	$	4,306		$	4,861		$	7,334		$	8,735		$	10,108

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

(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 and no contingent deferred sales charge.

(e) Total return includes a reimbursement of a loss experienced by the Fund due to a compliance violation. This reimbursement had an impact of less than 0.01% on the Fund's total return.

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

(h) Rounds to less than 0.01%.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Total Return Bond Fund

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

	Year Ended March 31,
Class C Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.72		$	9.51		$	9.74		$	9.56		$	9.80
Income from Investment Operations:
Net investment income (b)		0.33			0.36			0.38			0.37			0.28
Net realized and unrealized gain (loss) on investments, foreign currency, futures contracts and credit default swap contracts		1.15			(0.76	)		(0.23	)		0.18			(0.17	)
Total from investment operations		1.48			(0.40	)		0.15			0.55			0.11
Less Distributions to Shareholders:
From net investment income		(0.36	)		(0.39	)		(0.38	)		(0.37	)		(0.32	)
From net realized gains		—			—			—			—			(0.03	)
Total distributions to shareholders		(0.36	)		(0.39	)		(0.38	)		(0.37	)		(0.35	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.84		$	8.72		$	9.51		$	9.74		$	9.56
Total return (d)		17.23	%(e)		(4.17	)%		1.57	%		5.86	%		1.08	%(f)
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (g)		1.64	%		1.60	%		1.60	%		1.54	%		1.54	%
Interest expense		—	%(h)		—	%(h)		—			—			—
Net expenses (g)		1.64	%		1.60	%		1.60	%		1.54	%		1.54	%
Waiver/Reimbursement		—			—			—			—			0.06	%(i)
Net investment income (g)		3.50	%		4.04	%		3.97	%		3.84	%		3.20	%
Portfolio turnover rate		165	%		223	%		253	%		320	%		199	%
Net assets, end of period (000s)	$	4,528		$	3,529		$	3,120		$	2,275		$	2,956

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

(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 and no contingent deferred sales charge.

(e) Total return includes a reimbursement of a loss experienced by the Fund due to a compliance violation. This reimbursement had an impact of less than 0.01% on the Fund's total return.

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

(h) Rounds to less than 0.01%.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Total Return Bond Fund

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

	Year Ended March 31,
Class Z Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.72		$	9.51		$	9.75		$	9.57		$	9.81
Income from Investment Operations:
Net investment income (b)		0.43			0.45			0.48			0.47			0.37
Net realized and unrealized gain (loss) on investments, foreign currency, futures contracts and credit default swap contracts		1.16			(0.76	)		(0.24	)		0.18			(0.16	)
Total from investment operations		1.59			(0.31	)		0.24			0.65			0.21
Less Distributions to Shareholders:
From net investment income		(0.46	)		(0.48	)		(0.48	)		(0.47	)		(0.42	)
From net realized gains		—			—			—			—			(0.03	)
Total distributions to shareholders		(0.46	)		(0.48	)		(0.48	)		(0.47	)		(0.45	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.85		$	8.72		$	9.51		$	9.75		$	9.57
Total return (d)		18.52	%(e)		(3.20	)%		2.49	%		6.91	%		2.10	%(f)
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (g)		0.64	%		0.60	%		0.60	%		0.54	%		0.54	%
Interest expense		—	%(h)		—	%(h)		—			—			—
Net expenses (g)		0.64	%		0.60	%		0.60	%		0.54	%		0.54	%
Waiver/Reimbursement		—			—			—			—	%		0.06	%(i)
Net investment income (g)		4.52	%		5.03	%		4.98	%		4.85	%		4.13	%
Portfolio turnover rate		165	%		223	%		253	%		320	%		199	%
Net assets, end of period (000s)	$	1,268,087		$	1,198,289		$	1,682,595		$	1,865,289		$	1,997,046

(a) On August 22, 2005, the Fund's Primary A shares were renamed Class Z shares.

(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) Total return includes a reimbursement of a loss experienced by the Fund due to a compliance violation. This reimbursement had an impact of less than 0.01% on the Fund's total return.

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

(h) Rounds to less than 0.01%.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Short Term Bond Fund

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

	Year Ended March 31,
Class A Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	9.47		$	9.89		$	9.84		$	9.75		$	9.82
Income from Investment Operations:
Net investment income (b)		0.32			0.42			0.44			0.40			0.31
Net realized and unrealized gain (loss) on investments and futures contracts		0.49			(0.42	)		0.05			0.09			(0.07	)
Total from investment operations		0.81			—			0.49			0.49			0.24
Less Distributions to Shareholders:
From net investment income		(0.33	)		(0.42	)		(0.44	)		(0.40	)		(0.31	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.95		$	9.47		$	9.89		$	9.84		$	9.75
Total return (d)(e)		8.68	%		0.03	%		5.13	%		5.12	%		2.47	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (f)		0.73	%		0.73	%		0.73	%		0.73	%		0.72	%
Waiver/Reimbursement		0.03	%		0.04	%		0.02	%		0.02	%		0.08	%(g)
Net investment income (f)		3.27	%		4.43	%		4.43	%		4.05	%		3.27	%
Portfolio turnover rate		91	%		58	%		58	%		72	%		80	%
Net assets, end of period (000s)	$	245,872		$	121,914		$	76,196		$	85,635		$	83,675

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

(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 and no initial sales charge or contingent deferred sales charge.

(e) 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.

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

(g) Bank of America Corporation assumed certain non-recurring costs. Absent these non-recurring costs, the waiver/reimbursement ratio would have been 0.02% for the fiscal year ended March 31, 2006.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Short Term Bond Fund

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

	Year Ended March 31,
Class B Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	9.47		$	9.89		$	9.84		$	9.74		$	9.81
Income from Investment Operations:
Net investment income (b)		0.26			0.35			0.36			0.32			0.25
Net realized and unrealized gain (loss) on investments and futures contracts		0.47			(0.42	)		0.06			0.11			(0.08	)
Total from investment operations		0.73			(0.07	)		0.42			0.43			0.17
Less Distributions to Shareholders:
From net investment income		(0.26	)		(0.35	)		(0.37	)		(0.33	)		(0.24	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.94		$	9.47		$	9.89		$	9.84		$	9.74
Total return (d)(e)		7.77	%		(0.72	)%		4.35	%		4.45	%		1.71	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (f)		1.48	%		1.48	%		1.48	%		1.48	%		1.47	%
Waiver/Reimbursement		0.03	%		0.04	%		0.02	%		0.02	%		0.08	%(g)
Net investment income (f)		2.62	%		3.69	%		3.69	%		3.30	%		2.69	%
Portfolio turnover rate		91	%		58	%		58	%		72	%		80	%
Net assets, end of period (000s)	$	9,326		$	10,502		$	14,035		$	20,303		$	28,061

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

(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 and no contingent deferred sales charge.

(e) 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.

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

(g) Bank of America Corporation assumed certain non-recurring costs. Absent these non-recurring costs, the waiver/reimbursement ratio would have been 0.02% for the fiscal year ended March 31, 2006.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Short Term Bond Fund

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

	Year Ended March 31,
Class C Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	9.46		$	9.88		$	9.83		$	9.74		$	9.81
Income from Investment Operations:
Net investment income (b)		0.29			0.39			0.41			0.37			0.26
Net realized and unrealized gain (loss) on investments and futures contracts		0.49			(0.42	)		0.05			0.09			(0.07	)
Total from investment operations		0.78			(0.03	)		0.46			0.46			0.19
Less Distributions to Shareholders:
From net investment income		(0.30	)		(0.39	)		(0.41	)		(0.37	)		(0.26	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.94		$	9.46		$	9.88		$	9.83		$	9.74
Total return (d)(e)		8.35	%		(0.29	)%		4.80	%		4.80	%		1.94	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (f)		1.04	%		1.04	%		1.04	%		1.04	%		1.20	%
Waiver/Reimbursement		0.47	%		0.48	%		0.46	%		0.46	%		0.35	%(g)
Net investment income (f)		2.90	%		4.12	%		4.12	%		3.75	%		2.69	%
Portfolio turnover rate		91	%		58	%		58	%		72	%		80	%
Net assets, end of period (000s)	$	113,038		$	35,926		$	18,644		$	17,598		$	22,091

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

(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 and no contingent deferred sales charge.

(e) 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.

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

(g) Bank of America Corporation assumed certain non-recurring costs. Absent these non-recurring costs, the waiver/reimbursement ratio would have been 0.02% for the fiscal year ended March 31, 2006.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Short Term Bond Fund

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

Class Y Shares	Period Ended March 31, 2010 (a)
Net Asset Value, Beginning of Period	$	9.70
Income from Investment Operations:
Net investment income (b)		0.24
Net realized and unrealized gain on investments and futures contracts		0.23
Total from investment operations		0.47
Less Distributions to Shareholders:
From net investment income		(0.24	)
Increase from regulatory settlements (c)		—
Net Asset Value, End of Period	$	9.93
Total return (d)(e)(f)		4.91	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (g)(h)		0.47	%
Waiver/Reimbursement (h)(i)		—	%
Net investment income (g)(h)		3.39	%
Portfolio turnover rate (f)		91	%
Net assets, end of period (000s)	$	26,110

(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) 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.

(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.

(i) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia Short Term Bond Fund

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

	Year Ended March 31,
Class Z Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	9.45		$	9.87		$	9.82		$	9.73		$	9.80
Income from Investment Operations:
Net investment income (b)		0.35			0.45			0.46			0.42			0.33
Net realized and unrealized gain (loss) on investments and futures contracts		0.49			(0.43	)		0.06			0.09			(0.07	)
Total from investment operations		0.84			0.02			0.52			0.51			0.26
Less Distributions to Shareholders:
From net investment income		(0.36	)		(0.44	)		(0.47	)		(0.42	)		(0.33	)
Increase from regulatory settlements		—	(c)		—	(c)		—			—			—
Net Asset Value, End of Period	$	9.93		$	9.45		$	9.87		$	9.82		$	9.73
Total return (d)(e)		8.97	%		0.27	%		5.39	%		5.39	%		2.73	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (f)		0.48	%		0.48	%		0.48	%		0.48	%		0.47	%
Waiver/Reimbursement		0.03	%		0.04	%		0.02	%		0.02	%		0.08	%(g)
Net investment income (f)		3.54	%		4.68	%		4.67	%		4.29	%		3.40	%
Portfolio turnover rate		91	%		58	%		58	%		72	%		80	%
Net assets, end of period (000s)	$	2,025,199		$	1,133,563		$	1,092,555		$	857,655		$	1,130,604

(a) On August 22, 2005, the Fund's Primary A shares were renamed Class Z shares.

(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) 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.

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

(g) Bank of America Corporation assumed certain non-recurring costs. Absent these non-recurring costs, the waiver/reimbursement ratio would have been 0.02% for the fiscal year ended March 31, 2006.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia High Income Fund

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

	Year Ended March 31,
Class A Shares (a)	2010			2009			2008 (b)			2007			2006 (c)
Net Asset Value, Beginning of Period	$	5.92		$	8.03		$	9.11		$	8.91		$	9.31
Income from Investment Operations:
Net investment income (d)		0.54			0.57			0.64			0.62			0.63
Net realized and unrealized gain (loss) on investments and foreign currency		1.90			(2.05	)		(1.00	)		0.32			(0.10	)
Total from investment operations		2.44			(1.48	)		(0.36	)		0.94			0.53
Less Distributions to Shareholders:
From net investment income		(0.55	)		(0.57	)		(0.65	)		(0.62	)		(0.66	)
From net realized gains		—			(0.06	)		(0.07	)		(0.12	)		(0.27	)
Total distributions to shareholders		(0.55	)		(0.63	)		(0.72	)		(0.74	)		(0.93	)
Increase from regulatory settlements		—	(e)		—			—			—			—
Net Asset Value, End of Period	$	7.81		$	5.92		$	8.03		$	9.11		$	8.91
Total return (f)		42.43	%		(19.17	)%(g)		(4.22	)%(h)		11.10	%		6.03	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (i)		1.19	%		1.18	%		1.16	%		1.13	%		1.08	%
Interest expense		—			—			—	%(j)		—			—
Net expenses (i)		1.19	%		1.18	%		1.16	%		1.13	%		1.08	%
Waiver/Reimbursement		—			—	%(j)		—			—			—
Net investment income (i)		7.35	%		8.06	%		7.28	%		6.88	%		6.90	%
Portfolio turnover rate		41	%		25	%		2	%(k)(l)		—			—
Turnover of Columbia High Income Master Portfolio		—			—			32	%(k)		44	%		34	%
Net assets, end of period (000s)	$	112,678		$	70,836		$	98,973		$	123,071		$	109,029

(a) Through February 27, 2008, the per share amounts and percentages reflect income and expenses assuming inclusion of the Fund's proportionate share of income and expense of the Columbia High Income Master Portfolio.

(b) Effective February 28, 2008, the Fund converted to a stand-alone fund. Prior to February 28, 2008, the Fund operated in a master-feeder structure.

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

(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) 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.

(h) Includes a reimbursement by the investment sub-advisor for a realized investment loss on disposal of an investment not meeting the Fund's investment restrictions. This reimbursement increased total return and net asset value per share by less than 0.01% and $0.01, respectively.

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

(j) Rounds to less than 0.01%.

(k) Not annualized.

(l) Amount represents results after the Fund's conversion to a stand-alone structure on February 28, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia High Income Fund

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

	Year Ended March 31,
Class B Shares (a)	2010			2009			2008 (b)			2007			2006 (c)
Net Asset Value, Beginning of Period	$	5.90		$	8.01		$	9.09		$	8.89		$	9.29
Income from Investment Operations:
Net investment income (d)		0.48			0.52			0.57			0.55			0.56
Net realized and unrealized gain (loss) on investments and foreign currency		1.90			(2.05	)		(1.00	)		0.32			(0.10	)
Total from investment operations		2.38			(1.53	)		(0.43	)		0.87			0.46
Less Distributions to Shareholders:
From net investment income		(0.50	)		(0.52	)		(0.58	)		(0.55	)		(0.59	)
From net realized gains		—			(0.06	)		(0.07	)		(0.12	)		(0.27	)
Total distributions to shareholders		(0.50	)		(0.58	)		(0.65	)		(0.67	)		(0.86	)
Increase from regulatory settlements		—	(e)		—			—			—			—
Net Asset Value, End of Period	$	7.78		$	5.90		$	8.01		$	9.09		$	8.89
Total return (f)		41.33	%		(19.84	)%(g)		(4.95	)%(h)		10.29	%		5.25	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (i)		1.94	%		1.93	%		1.91	%		1.88	%		1.83	%
Interest expense		—			—			—	%(j)		—			—
Net expenses (i)		1.94	%		1.93	%		1.91	%		1.88	%		1.83	%
Waiver/Reimbursement		—			—	%(j)		—			—			—
Net investment income (i)		6.71	%		7.29	%		6.54	%		6.16	%		6.22	%
Portfolio turnover rate		41	%		25	%		2	%(k)(l)		—			—
Turnover of Columbia High Income Master Portfolio		—			—			32	%(k)		44	%		34	%
Net assets, end of period (000s)	$	30,664		$	36,667		$	64,786		$	93,413		$	102,085

(b) Effective February 28, 2008, the Fund converted to a stand-alone fund. Prior to February 28, 2008, the Fund operated in a master-feeder structure.

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

(e) 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) 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.

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

(j) Rounds to less than 0.01%.

(k) Not annualized.

(l) Amount represents results after the Fund's conversion to a stand-alone structure on February 28, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia High Income Fund

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

	Year Ended March 31,
Class C Shares (a)	2010			2009			2008 (b)			2007			2006 (c)
Net Asset Value, Beginning of Period	$	5.87		$	7.97		$	9.05		$	8.86		$	9.25
Income from Investment Operations:
Net investment income (d)		0.48			0.52			0.57			0.55			0.56
Net realized and unrealized gain (loss) on investments and foreign currency		1.89			(2.04	)		(1.00	)		0.31			(0.09	)
Total from investment operations		2.37			(1.52	)		(0.43	)		0.86			0.47
Less Distributions to Shareholders:
From net investment income		(0.50	)		(0.52	)		(0.58	)		(0.55	)		(0.59	)
From net realized gains		—			(0.06	)		(0.07	)		(0.12	)		(0.27	)
Total distributions to shareholders		(0.50	)		(0.58	)		(0.65	)		(0.67	)		(0.86	)
Increase from regulatory settlements		—	(e)		—			—			—			—
Net Asset Value, End of Period	$	7.74		$	5.87		$	7.97		$	9.05		$	8.86
Total return (f)		41.38	%		(19.81	)%(g)		(4.98	)%(h)		10.21	%		5.39	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (i)		1.94	%		1.93	%		1.91	%		1.88	%		1.83	%
Interest expense		—			—			—	%(j)		—			—
Net expenses (i)		1.94	%		1.93	%		1.91	%		1.88	%		1.83	%
Waiver/Reimbursement		—			—	%(j)		—			—			—
Net investment income (i)		6.63	%		7.32	%		6.54	%		6.16	%		6.23	%
Portfolio turnover rate		41	%		25	%		2	%(k)(l)		—			—
Turnover of Columbia High Income Master Portfolio		—			—			32	%(k)		44	%		34	%
Net assets, end of period (000s)	$	23,519		$	17,991		$	26,976		$	35,639		$	39,547

(b) Effective February 28, 2008, the Fund converted to a stand-alone fund. February 28, 2008, the Fund operated in a master-feeder structure.

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

(e) 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) 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.

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

(j) Rounds to less than 0.01%.

(k) Not annualized.

(l) Amount represents results after the Fund's conversion to a stand-alone structure on February 28, 2008.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia High Income Fund

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

	Year Ended March 31,
Class Z Shares (a)	2010			2009			2008 (b)			2007			2006 (c)
Net Asset Value, Beginning of Period	$	5.98		$	8.10		$	9.19		$	8.98		$	9.37
Income from Investment Operations:
Net investment income (d)		0.56			0.60			0.66			0.64			0.66
Net realized and unrealized gain (loss) on investments and foreign currency		1.92			(2.07	)		(1.01	)		0.33			(0.10	)
Total from investment operations		2.48			(1.47	)		(0.35	)		0.97			0.56
Less Distributions to Shareholders:
From net investment income		(0.57	)		(0.59	)		(0.67	)		(0.64	)		(0.68	)
From net realized gains		—			(0.06	)		(0.07	)		(0.12	)		(0.27	)
Total distributions to shareholders		(0.57	)		(0.65	)		(0.74	)		(0.76	)		(0.95	)
Increase from regulatory settlements		—	(e)		—			—			—			—
Net Asset Value, End of Period	$	7.89		$	5.98		$	8.10		$	9.19		$	8.98
Total return (f)		42.69	%		(18.92	)%(g)		(4.05	)%(h)		11.41	%		6.37	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (i)		0.94	%		0.93	%		0.91	%		0.88	%		0.83	%
Interest expense		—			—			—	%(j)		—			—
Net expenses (i)		0.94	%		0.93	%		0.91	%		0.88	%		0.83	%
Waiver/Reimbursement		—			—	%(j)		—			—			—
Net investment income (i)		7.63	%		8.41	%		7.54	%		7.14	%		7.19	%
Portfolio turnover rate		41	%		25	%		2	%(k)(l)		—			—
Turnover of Columbia High Income Master Portfolio		—			—			32	%(k)		44	%		34	%
Net assets, end of period (000s)	$	628,713		$	486,116		$	545,228		$	739,921		$	681,752

(b) Effective February 28, 2008, the Fund converted to a stand-alone fund. Prior to February 28, 2008, the Fund operated in a master-feeder structure.

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

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

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

(g) 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.

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

(j) Rounds to less than 0.01%.

(k) Not annualized.

(l) Amount represents results after the Fund's conversion to a stand-alone structure on February 28, 2008.

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Corporate Bond Funds
March 31, 2010

Note 1. Organization

Columbia Funds Series Trust (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. Information presented in these financial statements pertains to the following diversified series of the Trust (each, a "Fund" and collectively, the "Funds"):

Columbia Total Return Bond Fund

Columbia Short Term Bond Fund

Columbia High Income Fund

Investment Objectives

Columbia Total Return Bond Fund seeks total return, consisting of current income and capital appreciation. Columbia Short Term Bond Fund seeks current income, consistent with minimal fluctuation of principal. Columbia High Income Fund seeks total return, consisting of a high level of income and capital appreciation.

Fund Shares

The Trust may issue an unlimited number of shares. Columbia Total Return Bond Fund and Columbia High Income Fund each offer four classes of shares: Class A, Class B, Class C and Class Z shares. Columbia Short Term Bond Fund offers five classes of shares: Class A, Class B, Class C, Class Y and Class Z. 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 Funds no longer accept investments in Class B shares from new or existing investors in the Funds' Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of each 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 1.00%, 3.25% and 4.75% for Columbia Short Term Bond Fund, Columbia Total Return Bond Fund and Columbia High Income Fund, respectively, based on the amount of initial investment. Class A shares purchased without an initial sales charge in accounts aggregating between $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 3.00%, 3.00% and 5.00% for Columbia Short Term Bond Fund, Columbia Total Return Bond Fund and Columbia High Income Fund, respectively, 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 twelve months after purchase. Class Y and Class Z shares are offered co ntinuously at net asset value. There are certain restrictions on the purchase of Class Y and Class Z shares, as described in each Fund's prospectus.

Note 2. Significant Accounting Policies

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

Security Valuation

Equity securities and securities of certain investment companies 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

Corporate Bond Funds, March 31, 2010 (continued)

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.

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

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

Credit default swap contracts are marked to market daily based upon spread quotations from market makers.

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 Funds' 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 Funds' net asset values. 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.

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

• 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.

Corporate Bond Funds, March 31, 2010 (continued)

(i.e., transfers out must be disclosed separately from transfers in), and the reason(s) for the transfer. Additionally purchases, sales, issuances and settlements must be disclosed on a gross basis in the Level 3 rollforward. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of the amendment and the impact to the financial statements.

Security Transactions

Derivative Instruments

The Funds may invest in derivative instruments. For additional information on derivative instruments, please see Note 6.

Repurchase Agreements

Each Fund may engage in repurchase agreement transactions with institutions that Columbia Management Advisors, LLC ("Columbia"), the Funds' investment advisor, has determined are creditworthy. Each 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 each 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 Funds seek to assert their rights.

Loan Participations and Commitments

The Funds may invest in loan participations. When a Fund purchases a loan participation, the Fund typically enters into a contractual relationship with the lender or third party selling such participation ("Selling Participant"), but not the borrower. However, the Fund assumes the credit risk of the borrower, Selling Participant and any other persons interpositioned between the Fund and the borrower. The Funds may not directly benefit from the collateral supporting the senior loan which it has purchased from the Selling Participant.

Delayed Delivery Securities

Each Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes the Funds to subsequently invest at less advantageous prices. Each Fund identifies within its portfolio of investments cash or liquid securities in an amount equal to the delayed delivery commitment.

Treasury Inflation Protected Securities

The Funds may invest in treasury inflation protected securities ("TIPS"). The principal amount of TIPS is adjusted periodically and is increased for inflation or decreased for deflation based on a monthly published index. Interest payments are based on the adjusted principal at the time the interest is paid. These adjustments are recorded as interest income on the Statements of Operations.

Stripped Securities

Stripped mortgage-backed securities are derivative multi-class mortgage securities structured so that one class receives most, if not all, of the principal from the underlying mortgage assets, while the other class receives most, if not all, of the interest and the remainder of the principal. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Fund may fail to fully recoup its initial investment in an interest-only security. The market value of these securities can be extremely volatile in response to changes in interest rates. Credit risk reflects the risk that a Fund may not receive all or part of its principal because the issuer or credit enhancer has defaulted on its obligation.

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

Corporate Bond Funds, March 31, 2010 (continued)

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 Funds do 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 Statements of Operations.

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. Original issue discount is accreted to interest income over the life of the security with a corresponding increase in the cost basis. Dividend income is 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 Fund are charged to such Fund.

Determination of Class Net Asset Values

All income, expenses (other than class-specific expenses, as shown on the Statements of Operations) and realized and unrealized gains (losses) are allocated to each class of a 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

Each 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 tax-exempt or taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each 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 each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Distributions to Shareholders

Distributions from net investment income are declared daily and paid monthly for each Fund, except Columbia High Income Fund for which distributions from net investment income are declared and paid monthly. 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

In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund's maximum exposure under these arrangements is unknown because this would involve future claims against a 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 Funds expect 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 each 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 March 31, 2010, permanent book and tax basis differences resulting primarily from differing treatments for proceeds received from litigation settlements, defaulted

Corporate Bond Funds, March 31, 2010 (continued)

bonds, partnership adjustments, discount accretion/premium amortization on debt securities, market discount accretion adjustments and foreign currency transactions were identified and reclassified among the components of the Funds' net assets as follows:

	Undistributed (Overdistributed) Net Investment Income		Accumulated Net Realized Loss			Paid-In Capital
Columbia Total Return Bond Fund	$	11,455,098	$	(11,414,234	)	$	(40,864	)
Columbia Short Term Bond Fund		40,839		(2	)		(40,837	)
Columbia High Income Fund		148,205		134,507			(282,712	)

Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the years ended March 31, 2010 and March 31, 2009 was as follows:

	March 31, 2010
	Ordinary Income*		Long-Term Capital Gains
Columbia Total Return Bond Fund	$	62,691,633	$	—
Columbia Short Term Bond Fund		68,024,560		—
Columbia High Income Fund		58,539,565		—
	March 31, 2009
	Ordinary Income*		Long-Term Capital Gains
Columbia Total Return Bond Fund	$	80,033,792	$	—
Columbia Short Term Bond Fund		55,329,853		—
Columbia High Income Fund		56,809,056		6,072,622

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

As of March 31, 2010, the components of distributable earnings on a tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Net Unrealized Appreciation*
Columbia Total Return Bond Fund	$	5,131,840	$	—	$	23,081,489
Columbia Short Term Bond Fund		2,361,349		—		30,627,302
Columbia High Income Fund		2,099,232		—		15,492,099

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

Corporate Bond Funds, March 31, 2010 (continued)

Unrealized appreciation and depreciation at March 31, 2010, based on cost of investments for federal income tax purposes, were:

	Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation
Columbia Total Return Bond Fund	$	57,632,317	$	(34,550,828	)	$	23,081,489
Columbia Short Term Bond Fund		41,899,634		(11,272,332	)		30,627,302
Columbia High Income Fund		48,008,360		(32,516,261	)		15,492,099

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
	2012		2013		2014		2015		2016		2017		2018		Total
Columbia Total Return Bond Fund	$	—	$	—	$	—	$	—	$	—	$	65,175,950	$	—	$	65,175,950
Columbia Short Term Bond Fund		1,196,305		9,446,701		11,783,069		12,691,619		642,768		—		—		35,760,462
Columbia High Income Fund		—		—		—		—		—		16,962,990		69,241,867		86,204,857

Capital loss carryforwards of $13,135,548 and $2,453,790 were utilized on Columbia Total Return Bond Fund and Columbia Short Term Bond Fund, respectively, during the year ended March 31, 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 March 31, 2010, post-October capital losses attributed to security transactions were deferred to April 1, 2010 as follows:

Columbia Short Term Bond Fund				$	1,580,357
Columbia High Income Fund					184,373

Under Financial Accounting Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109 ("FIN 48"), management determines whether a tax position of the Funds 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 is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Management has evaluated the known implications of FIN 48 on its computation of net assets for each Fund. As a result of this evaluation, management has concluded that FIN 48 did no t have any effect on the Funds' financial statements. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions). The Funds are 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.

Management is required to determine whether a tax position of the Funds is more likely than not to be sustained upon

Corporate Bond Funds, March 31, 2010 (continued)

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 each 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 Funds' 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 Funds. Columbia receives a monthly investment advisory fee based on each Fund's average daily net assets at the following annual rates:

	First $500 Million			$500 Million to $1 Billion			$1 Billion to $1.5 Billion			$1.5 Billion to $3 Billion			$3 Billion to $6 Billion			Over $6 Billion
Columbia Total Return Bond Fund		0.40	%		0.35	%		0.32	%		0.29	%		0.28	%		0.27	%
Columbia Short Term Bond Fund		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Columbia High Income Fund		0.55	%		0.52	%		0.49	%		0.46	%		0.46	%		0.46	%

For the year ended March 31, 2010, the effective investment advisory fee rates for the Funds, as a percentage of each Fund's average daily net assets, were as follows:

	Effective Fee Rate
Columbia Total Return Bond Fund		0.36	%
Columbia Short Term Bond Fund		0.30	%
Columbia High Income Fund		0.54	%

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 Funds. The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close on or about April 30, 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 Funds. RiverSource Investments, LLC (the "New Advisor"), a subsidiary of Ameriprise Financial, will become the investment advisor of the Funds upon the Closing. On March 3, 2010, the Funds' shareholders approved, among other matters, the proposed investment management services agreement with the New Advisor. The New Advisor will serve as investment advisor under a new investment management services agreement effective upon the Closing. The New Advisor will 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.

Sub-Advisory Fee

MacKay Shields LLC ("MacKay Shields") has been retained by Columbia to serve as the investment sub-advisor to Columbia High Income Fund. As the sub-advisor, and subject to the oversight of Columbia and the Fund's Board of Trustees, MacKay Shields is responsible for the daily investment

Corporate Bond Funds, March 31, 2010 (continued)

operations, including placing all orders for the purchase and sale of the portfolio securities for Columbia High Income Fund. Columbia, from the investment advisory fee it receives, pays MacKay Shields a monthly sub-advisory fee based on Columbia High Income Fund's average daily net assets at the following annual rates:

Average Daily Net Assets	Annual Fee Rate
First $100 Million		0.400	%
$100 Million to $200 Million		0.375	%
Over $200 Million		0.350	%

Administration Fee

Columbia provides administrative and other services to the Funds. Under the administration agreement, Columbia is entitled to receive an administration fee, computed daily and paid monthly, based on each Fund's average daily net assets at the annual rates listed below less the fees payable by the Funds as described under the Pricing and Bookkeeping Fees note below:

	Annual Fee Rate
Columbia Total Return Bond Fund		0.15	%
Columbia Short Term Bond Fund		0.14	%
Columbia High Income Fund		0.23	%

Prior to July 31, 2009, Columbia contractually agreed to waive a portion of its administration fee for Columbia Short Term Bond Fund at an annual rate of 0.02% of Columbia Short Term Bond Fund's average daily net assets.

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

Pricing and Bookkeeping Fees

The Funds have 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 Funds. The Funds have 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 Funds. Under the State Street Agreements, each 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 each Fund for the month. The aggregate fee per Fund will not exceed $140,000 per year (exclusive of out-of-pocket expenses and charges). The Funds also reimburse State Street for certain out-of-pocket expe nses 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 Funds have 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 Funds reimburse Columbia for out-of-pocket expenses and charges, including fees payable to third parties, such as for pricing the Funds' 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

The Funds pay monthly fees 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

Corporate Bond Funds, March 31, 2010 (continued)

("IRA") trustee agent fees and account transcript fees due to the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds. 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.

The Class Y shares of Columbia Short Term Bond 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 Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds. 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 Funds.

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

Prior to April 30, 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 for Columbia High Income Fund.

Under certain circumstances, an annual minimum account balance fee of $20 may apply to certain accounts with a value below each 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 Statements of Operations. For the year ended March 31, 2010, no minimum account balance fees were charged by the Funds.

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 Funds' shares. For the year ended March 31, 2010, the Distributor has retained net underwriting discounts on the sale of Class A shares and received net CDSC fees on Class A, Class B and Class C share redemptions as follows:

	Front End Sales Charge		Contingent Deferred Sales Charge
Fund	Class A		Class A		Class B		Class C
Columbia Total Return Bond Fund	$	1,582	$	3	$	2,468	$	420
Columbia Short Term Bond Fund		64,371		35,587		4,116		33,731
Columbia High Income Fund		19,213		—		28,742		5,225

Corporate Bond Funds, March 31, 2010 (continued)

RiverSource Fund Distributors, Inc. (the "New Distributor"), a subsidiary of Ameriprise Financial, will become the distributor of the Funds upon the Closing. The New Distributor will 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 each Fund and a combined distribution and shareholder servicing plan for the Class A shares of each Fund. The shareholder servicing plans permit the Funds 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 Funds 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 each 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 th e 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	%

* Columbia Short Term Bond Fund pays its shareholder servicing fees, at the rates shown above, under a separate shareholder servicing plan.

The Distributor has voluntarily agreed to waive a portion of the distribution fee on Class C shares for Columbia Short Term Bond Fund so that it does not exceed 0.31% of average net assets annually. This arrangement may be modified or terminated by the Distributor at any time.

Fee Waivers and Expense Reimbursements

Effective August 1, 2009, Columbia has voluntarily agreed to reimburse a portion of the Funds' expenses so that 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 Funds' custodian, do not exceed the following annual rates, based on each Fund's average daily net assets:

Fund	Annual rate
Columbia Total Return Bond Fund		0.70	%
Columbia Short Term Bond Fund		0.48	%
Columbia High Income Fund		1.00	%

Columbia, in its discretion, may revise or discontinue these arrangements at any time.

Columbia and/or the Distributor are entitled to recover from Columbia Total Return Bond Fund any fees waived and/or expenses reimbursed for a three year period following the date of such fee waiver and/or reimbursement under this arrangement if such recovery does not cause the Fund's expenses to exceed the expense limitations in effect at the time of recovery. Upon the Closing, the New Advisor will be entitled to recover any fees waived and/or expenses reimbursed to Columbia Total Return Bond Fund in the same manner. At March 31, 2010, no amounts were potentially recoverable from the Fund.

Prior to August 1, 2009, Columbia contractually agreed to bear a portion of the Funds' expenses so that 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 Funds' custodian, did not exceed the following annual rates, based on each Fund's average daily net assets:

Fund	Annual rate
Columbia Total Return Bond Fund		0.60	%
Columbia Short Term Bond Fund		0.48	%
Columbia High Income Fund		0.93	%

Fees Paid to Officers and Trustees

All officers of the Funds are employees of Columbia or its affiliates and, with the exception of the Funds' Chief Compliance Officer, receive no compensation from the Funds.

Corporate Bond Funds, March 31, 2010 (continued)

The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The Funds, along with other affiliated funds, pay their pro-rata share of the expenses associated with the Chief Compliance Officer. Each Fund's expenses for the Chief Compliance Officer will not exceed $15,000 per year.

Trustees are compensated for their services to the Funds, as set forth on the Statements 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 Funds' 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. 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 Statements of Operations. The liability for the deferred compensation plan is included in "Trustees' fees" on the Statements of Assets and Liabilities.

Note 5. Custody Credits

Each 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 Statements of Operations. The Funds could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if they had not entered into such an agreement.

For the year ended March 31, 2010, these custody credits reduced total expenses for the Funds as follows:

	Custody Credits
Columbia Total Return Bond Fund	$	53
Columbia Short Term Bond Fund		1,044
Columbia High Income Fund		170

Note 6. Objectives and Strategies for Investing in Derivatives

Objectives

Columbia Total Return Bond Fund and Columbia Short Term Bond Fund used derivative instruments including futures contracts, credit default swaps and forward contracts in order to meet each Fund's investment objectives. Each 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, each Fund may not achieve its investment objectives.

In pursuit of the Funds' investment objectives, the Funds are exposed to the following market risks:

Interest rate risk

Interest rate risk relates to the fluctuation in value of fixed income securities because of the inverse relationship of price and yield. Fixed income securities generally will decline in value upon an increase in general interest rates and their value generally will increase upon a decline in general interest rates. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations.

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.

Credit risk

Credit risk relates to the ability of the issuer or guarantor of a fixed income security, or counterparty to a derivative contract to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings. Generally, lower-yield higher-quality bonds are

Corporate Bond Funds, March 31, 2010 (continued)

subject to credit risk to a lesser extent than lower-grade higher-yield bonds.

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

Futures Contracts—Columbia Total Return Bond Fund and Columbia Short Term Bond Fund entered into interest rate futures contracts to manage the duration and yield curve exposure of the Funds versus the benchmarks.

Upon entering into a futures contract, a 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 a 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. A 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 Statements of Assets and Liabilities.

During the year ended March 31, 2010, Columbia Total Return Bond Fund and Columbia Short Term Bond Fund entered into 14,805 and 5,576 futures contracts, respectively.

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

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. Certain Funds may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. Certain Funds 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 be come realized 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 Funds' 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) over the period it remains open. The Funds 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 March 31, 2010, the Fund entered into 113 forward foreign currency exchange contracts.

Credit Default Swaps—Columbia Total Return Bond Fund entered into credit default swap transactions as a protection buyer to reduce overall credit exposure.

Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place. The Funds may receive an upfront payment as the protection seller or make an upfront payment as the protection buyer. Credit default swaps are marked to market daily based on quotations from market makers and any change is recorded as unrealized appreciation/depreciation on the Statements of Assets and Liabilities. Periodic payments received or made are recorded as a realized gain or loss and premiums received or made are amortized on the Statements of Operations.

If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement,

Corporate Bond Funds, March 31, 2010 (continued)

the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Credit default swap agreements involve greater risks than if a Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk.

During the year ended March 31, 2010, Columbia Total Return Bond Fund purchased credit default swaps with a notional amount of $151,045,000.

The following table is a summary of the value of the Funds' derivative instruments as of March 31, 2010:

	Statements of Assets and Liabilities Fair Value of Derivative Instruments
	Asset Derivatives						Liability Derivatives
Funds	Futures Variation Margin*		Credit Default Swaps/Premiums		Unrealized Appreciation on Forward Foreign Currency Exchange Contracts		Futures Variation Margin*		Credit Default Swaps/Premiums		Unrealized Depreciation on Forward Foreign Currency Exchange Contracts
	Fair Value						Fair Value
Columbia Total Return Bond Fund	$	—	$	2,084,566	$	19,656	$	572,625	$	750,324	$	—
Columbia Short Term Bond Fund		—		—		—		192,584		—		—

* Includes only current day's variation margin.

Corporate Bond Funds, March 31, 2010 (continued)

The effect of derivative instruments on the Funds' Statements of Operations for the year ended March 31, 2010:

	Amount of Realized Gain or (Loss) on Derivatives Recognized in Income							Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Funds	Risk Exposure	Futures Contracts			Credit Default Swaps			Realized Loss on Forward Foreign Currency Exchange Contracts		Futures Contracts			Credit Default Swaps			Unrealized Appreciation on Forward Foreign Currency Exchange Contracts
Columbia Total Return	Interest
Bond Fund	Rate	$	2,449,715		$	—		$	—	$	803,426		$	—		$	—
	Foreign
	Exchange
	Rate		—			—			(1,554,068)		—			—			855,590
	Credit		—			(4,280,508	)		—		—			(456,873	)		—
Columbia Short Term Bond Fund Interest	Rate		(2,874,003	)		—			—		(830,452	)		—			—

Note 7. Portfolio Information

For the year ended March 31, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Funds were as follows:

	U.S Government Securities				Other Investment Securities
	Purchases		Sales		Purchases		Sales
Columbia Total Return Bond Fund	$	1,265,197,265	$	1,314,644,165	$	830,399,688	$	832,955,767
Columbia Short Term Bond Fund		869,757,761		655,819,401		1,821,716,194		1,042,612,651
Columbia High Income Fund		—		—		285,334,145		306,664,519

Note 8. Line of Credit

The Funds 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.

Corporate Bond Funds, March 31, 2010 (continued)

annum were accrued and apportioned among the participating funds pro rata based on their relative net assets.

For the year ended March 31, 2010, Columbia Total Return Bond Fund borrowed under these arrangements. The average daily loan balance outstanding on days where borrowing existed was $2,200,000 at a weighted average interest rate of 1.425%.

Note 9. Securities Lending

Each 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 Funds and any additional required collateral is delivered to the Funds 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 Funds. Generally, in the event of borrower default, the Funds have the right to use the collateral to offset any losses incurred. In the event the Funds are delayed or prevented from exercising their right to dispose of the collateral, there may be a potential loss to the Funds. The Funds bear the risk of loss with respect to the investment of collateral.

Note 10. Shares of Beneficial Interest

As of March 31, 2010, the Funds had shareholders that held greater than 5% of the shares outstanding of a Fund, over which BOA and/or any of its affiliates had either sole or joint investment discretion. The percentages of shares of beneficial interest outstanding held therein are as follows:

	% of Shares Outstanding Held
Columbia Total Return Bond Fund		69.6
Columbia Short Term Bond Fund		60.9
Columbia High Income Fund		55.1

As of March 31, 2010, the Funds had shareholders that held greater than 5% of the shares outstanding of a Fund, over which BOA and/or any of its affiliates did not have investment discretion. The number of accounts and the percentages of shares of beneficial interest outstanding held therein are as follows:

	Number of Shareholders		% of Shares Outstanding Held
Columbia Total Return Bond Fund		1		8.5
Columbia High Income Fund		1		6.1

As of March 31, 2010, no other shareholders owned more than 5% of the outstanding shares of each Fund. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds.

An unlimited number of shares of beneficial interest without par value were authorized for the Trust. The Trust's Declaration of Trust authorizes the Board of Trustees to classify or reclassify any authorized but unissued shares into one or more additional classes or series of shares.

Class B shares generally convert to Class A shares as follows:

Columbia Total Return Bond Fund
Class B Shares purchased:				Will convert to Class A Shares after:
– after November 15, 1998				Eight years
– between August 1, 1998 and November 15, 1998
$0 - $249,999				Six years
$250,000 - $499,999				Six years
$500,000 - $999,999				Five years

Columbia High Income Fund
Class B Shares purchased:				Will convert to Class A Shares after:
– after November 15, 1998				Eight years
– between August 1, 1997 and November 15, 1998
$0 - $249,999				Nine years
$250,000 - $499,999				Six years
$500,000 - $999,999				Five years
– before August 1, 1997				Eight Years

Corporate Bond Funds, March 31, 2010 (continued)

Note 11. Regulatory Settlements

During the year ended March 31, 2010, the following Funds received payments relating to certain regulatory settlements with third parties that the Funds had participated in during the year. The payments have been included in "Increase from regulatory settlements" on the Statements of Changes in Net Assets. The payments were as follows:

Columbia Total Return Bond Fund	$	40,867
Columbia Short Term Bond Fund		49,053
Columbia High Income Fund		177,263

Note 12. Other

During the year ended March 31, 2010, the Columbia Total Return Bond Fund purchased a security in violation of investment restrictions and experienced a realized loss of $38,162. Columbia reimbursed the Fund for the loss.

Note 13. Significant Risks and Contingencies

Foreign Securities Risk

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

Asset-Backed Securities Risk

Mortgage-Backed Securities Risk

Information Regarding Pending and Settled Legal Proceedings

Corporate Bond Funds, March 31, 2010 (continued)

the Eighth Circuit Court of Appeals (the Eighth Circuit) on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the District Court for further proceedings. On August 6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the Supreme Court), asking the Supreme Court to stay the District Court proceedings while the Supreme Court considers and rules in a case captioned Jones v. Harris Associates, which involves issues of law similar to those presented in the Gallus case. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2 010, the Supreme Court vacated the Eighth Circuit's decision in the Gallus case and remanded the case to the Eighth Circuit for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates.

In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)), entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at http://www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the RiverSource Funds' Boards of Directors/Trustees.

Corporate Bond Funds, March 31, 2010 (continued)

arbitration or regulatory proceedings that are likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.

Note 14. Subsequent Events

In connection with the preparation of the financial statements of the Funds as of and for the fiscal year ended March 31, 2010, events and transactions through the date the financial statements were issued have been evaluated by the Funds' management for possible adjustment and/or disclosure. No subsequent events or transactions have occurred that would require adjustment of the financial statements as presented. On April 30, 2010, the Transaction disclosed in Note 4 closed. Effective May 1, 2010, the New Advisor became the investment advisor and administrator of the Funds and subsequently changed its name to Columbia Management Investment Advisers, LLC. On that date, the New Transfer Agent became the transfer agent of the Funds and changed its name to Columbia Management Investment Services Corp. Also on that date, the New Distributor became the distributor of the Funds and changed its name to Columbia Management Investment Dis tributors, Inc.

Report of Independent Registered Public Accounting Firm

To the Shareholders and Trustees of Columbia Funds Series Trust

In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, 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 Total Return Bond Fund, Columbia Short Term Bond Fund and Columbia High Income Fund (constituting part of Columbia Funds Series Trust, hereafter referred to as the "Funds") at March 31, 2010, the results of each of their operations for the year then ended, and the changes in each of their net assets and their financial highlights for 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 Funds' management. Our responsibility is to express an opinion on these fi nancial 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 March 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
May 21, 2010

Fund Governance

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, Jr. (Born 1944)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 52; Trustee—BofA Funds Series Trust.

William P. Carmichael (Born 1943)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired; oversees 52; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—Simmons Company (bedding); Director—The Finish Line (athletic shoes and apparel); Trustee—BofA Funds Series Trust.

William A. Hawkins (Born 1942)

c/o Columbia Management Investment Advisers, 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 52; Trustee—BofA Funds Series Trust.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Investment Advisers, 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 52; Director—Conseco, Inc. (insurance); Trustee—BofA Funds Series Trust.

John J. Nagorniak (Born 1944)

c/o Columbia Management Investment Advisers, 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 52; Trustee—Research Foundation of CFA Institute; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee—BofA Funds Series Trust.

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 Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 52; Board Member—Piedmont Natural Gas; Trustee—BofA Funds Series Trust.

Interested Trustee

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
Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 2002 through current; Senior Advisor—McKinsey & Company (consulting), 2006 through 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, 2000 through 2006; oversees 52; Director—Renaissance Reinsurance Ltd; Trustee—Penn Mutual Life Insurance Company; Director—Citigroup; Trustee—BofA Funds Series Trust.

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, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Senior Vice President and General Manager—Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds, since 2009, and RiverSource Funds, since May 2010 (previously Senior Vice President and Chief Financial Officer, Columbia Funds, from June 2008 to January 2009, Treasurer, Columbia Funds, from October 2003 to May 2008, and senior officer of various other affiliated funds since 2000); Managing Director, Columbia Management Advisors, LLC from December 2004 to April 2010.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, from September 2004 to April 2010; senior officer of Columbia Funds and affiliated funds since 2002.

Scott R. Plummer (Born 1959)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President, Secretary and Chief Legal Officer (since 2010)				Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Vice President and Lead Chief Counsel—Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel—Asset Management, from 2005 to April 2010, and Vice President—Asset Management Compliance from 2004 to 2005); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; Vice President, General Counsel and Secretary, RiverSource Funds, since December 2006; Senior Vice President, Secretary and Chief Legal Officer, Columbia Funds, since May 2010.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Vice President and Chief Compliance Officer, Columbia Management Investment Advisers, LLC since May 2010; Chief Compliance Officer, Columbia Funds, since 2007, and RiverSource Funds, since May 2010; Director (Columbia Management Group, LLC and Investment Product Group Compliance), Bank of America, from June 2005 to April 2010; Director of Corporate Compliance and Conflicts Officer of MFS Investment Management (investment management) from August 2004 to May 2005.

William F. Truscott (Born 1960)

53600 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 (previously President, Chairman of the Board and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, U.S. Asset Management & President, Annuities, Ameriprise Financial, Inc. since May 2010 (previously President—U.S. Asset Management and Chief Investment Officer from 2005 to April 2010, and Senior Vice President—Chief Investment Officer, from 2001 to 2005); Director, President and Chief Executive Officer, Ameriprise Certificate Company since 2006; Director, Columbia Management Investment Distributors, Inc. since May 2010 (previously Chairman of the Board and Chief Executive Officer from 2008 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006.

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Fund Governance (continued)

Officers

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
Colin Moore (Born 1958)

One Financial Center Boston, MA 02111 Senior Vice President (since 2010)				Director and Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC from 2007 to April 2010; Head of Equities, Columbia Management Advisors, LLC from 2002 to 2007.

Michael A. Jones (Born 1959)

100 Federal Street Boston, MA 02110 Senior Vice President (since 2010)				Director and President, Columbia Management Investment Advisers, LLC since May 2010; President and Director, Columbia Management Investment Distributors, Inc. since May 2010; Manager, Chairman, Chief Executive Officer and President, Columbia Management Advisors, LLC from 2007 to April 2010; Chief Executive Officer, President and Director, Columbia Management Distributors, Inc. from November 2006 to April 2010; previously, co-president and senior managing director at Robeco Investment Management.

Amy Johnson (Born 1965)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009 until April 2010, Vice President—Asset Management and Trust Company Services, from 2006 to 2009, and Vice President—Operations and Compliance from 2004 to 2006).

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Treasurer (since 2010) and Chief Accounting Officer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC from January 2006 to April 2010; Head of Tax/Compliance and Assistant Treasurer, Columbia Management Advisors, LLC, from November 2004 to December 2005.

Marybeth Pilat (Born 1968)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2010)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Vice President, Investment Operations, Bank of America, from October 2008 to April 2010; Finance Manager, Boston Children's Hospital from August 2008 to October 2008; Director, Mutual Fund Administration, Columbia Management Advisors, LLC, from May 2007 to July 2008; Vice President, Mutual Fund Valuation, Columbia Management Advisors, LLC, from January 2006 to May 2007; Vice President, Mutual Fund Accounting Oversight, Columbia Management Advisors, LLC from January 2005 to January 2006.

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Fund Governance (continued)

Officers

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, from August 2008 to April 2010; Senior Tax Manager, Columbia Management Advisors, LLC from August 2006 to July 2008; Senior Compliance Manager, Columbia Management Advisors, LLC from April 2002 to August 2006.

Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 2006)				President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc. from July 2004 to April 2010; Managing Director, Columbia Management Distributors, Inc. from August 2007 to April 2010.

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Board Consideration and Re-Approval of Previous Investment Advisory and Sub-Advisory Agreements

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 Short Term Bond Fund, Columbia Total Return Bond Fund and Columbia High Income Fund; and (ii) an investment sub-advisory agreement with MacKay Shields LLC ("MacKay Shields" or the "Sub-Adviser") for Columbia High Income Fun d. The investment advisory agreements with CMA and the investment sub-advisory agreement with MacKay Shields 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 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

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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.

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"). 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 expenses of certain funds across the fund complex. Additionally, th e 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 Funds with a sub-adviser, the Board also reviewed the Sub-Advisory Agreement Rates charged by MacKay Shields, which serves as Sub-Adviser to Columbia High Income Fund. The Board concluded that the Sub-Advisory Agreement Rates are fair and equitable, based on their consideration of the factors described above.

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

104

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).

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.

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.

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.

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Board Consideration and Approval of New Investment Advisory and Sub-Advisory Agreements

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(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.

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108

109

110

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.

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Columbia High Income Fund, Columbia Short Term Bond Fund and Columbia Total Return Bond Fund were not highlighted as review funds.

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Summary of Management Fee Evaluation by Independent Fee Consultant (Columbia Management Advisors, LLC)

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

November 12, 2009

I. Overview

A. Role of the Independent Fee Consultant

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."

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II. Summary of Findings

A. General

B. Nature and Quality of Services, Including Performance

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C. Management Fees Charged by Other Mutual Fund Companies

D. Trustees' Advisory Contract Review Process

E. Potential Economies of Scale

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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

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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.

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Respectfully submitted,
Steven E. Asher

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Summary of Management Fee Evaluation by Independent Fee Consultant (RiverSource Investments, LLC)

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

December 22, 2009

I. Overview

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 this written evaluation of the fee negotiation process. As was the case with the last three annual reports, my immediate predecessor as IFC, John Rea, provided invaluable assistance in the preparation of this 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 (or RI), 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 the adviser's services, including the Fund's performance;

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

³ Preliminary Response of Ameriprise to Information Request of Columbia Nations Board dated October 28, 2009 (hereafter, the "Preliminary Response"), p. 1.

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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 the adviser for like services;

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

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

C. Data Presented to the Trustees

• tables comparing the fee schedules and effective fee rates of funds managed by CMA and RI and institutional accounts advised by the two firms.

II. Findings

* * *

Respectfully submitted,
Steven E. Asher

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Proxy Voting Results

Columbia Total Return Bond Fund, Columbia Short Term Bond Fund, Columbia High Income Fund

On March 3, 2010, a special meeting of shareholders of Columbia Funds Series Trust was held to consider the approval of several proposals listed in the proxy statement for the meeting. Proposal 1 and Proposal 3 were voted at the March 3, 2010 meeting of shareholders. Proposal 2 was voted on at the March 3, 2010 meeting of shareholders by Columbia High Income Fund shareholders. Proposal 4 was voted on at an adjourned meeting of shareholders held on April 26, 2010. The shareholder meeting results are as follows:

Proposal 1: A proposed Investment Management Services Agreement with Columbia Management Investment Advisers, LLC (formerly, RiverSource Investments, LLC) (CMIA) was approved for each Fund as follows:

Fund	Votes For		Votes Against		Abstentions		Broker Non-Votes
Columbia Total Return Bond Fund		117,428,712		641,113		436,775		5,617,218
Columbia Short Term Bond Fund		160,192,883		1,138,152		644,390		24,692,069
Columbia High Income Fund		81,034,298		212,246		318,376		14,784,307

Proposal 2: A proposed Investment Subadvisory Agreement with MacKay Shields LLC was approved for Columbia High Income Fund as follows:

Votes For				Votes Against				Abstentions				Broker Non-Votes
	81,007,709				201,248				355,961				14,784,309

Proposal 3: A proposal authorizing CMIA to enter into and materially amend subadvisory agreements for the Fund in the future, with the approval of the Trust's Board of Trustees, but without obtaining additional shareholder approval, was approved for each Fund as follows:

Fund	Votes For		Votes Against		Abstentions		Broker Non-Votes
Columbia Total Return Bond Fund		117,062,795		986,698		457,105		5,617,220
Columbia Short Term Bond Fund		151,427,046		9,852,428		695,942		24,692,078
Columbia High Income Fund		79,244,571		1,963,866		356,471		14,784,319

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Proposal 4: Each of the nominees for trustees was elected to the Trust's Board of Trustees, as follows:

Trustee	Votes For		Votes Withheld		Abstentions
Edward J. Boudreau, Jr.		2,680,026,424		72,649,450		0
William P. Carmichael		2,679,841,716		72,834,157		0
William A. Hawkins		2,679,847,210		72,828,663		0
R. Glenn Hilliard		2,679,699,063		72,976,810		0
John J. Nagorniak		2,680,054,075		72,621,799		0
Minor M. Shaw		2,680,402,097		72,273,776		0
Anthony M. Santomero		2,679,633,235		73,042,638		0

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Important Information About This Report

The funds mail 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 Corporate Bond Funds.

A description of the policies and procedures that each fund uses to determine how to vote proxies and a copy of each 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 each 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 each fund voted proxies relating to portfolio securities is also available from the funds' website columbiamanagement.com.

Each 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. Each 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.

Transfer Agent*

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

Distributor*

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

Investment Advisor*

Columbia Management Investment
Advisers, LLC
100 Federal Street
Boston, MA 02110

*As of May 1, 2010

125

Columbia Management^®

One Financial Center
Boston, MA 02111-2621

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

Columbia Management^®

Corporate Bond Funds

Annual Report, March 31, 2010

One Financial Center, Boston, MA 02111-2621

800-345-6611 www.columbiafunds.com

SHC-42/44406-0310 (05/10) 10/H0S536

Columbia Management^®

Annual Report

March 31, 2010

Fixed Income Sector Portfolios

^gCorporate Bond Portfolio

^gMortgage- and Asset-Backed Portfolio

Not FDIC Insured ⁿ May Lose Value ⁿ No Bank Guarantee

Table of Contents

Economic Update					1

Corporate Bond Portfolio					3

Mortgage- and Asset-Backed Portfolio					8

Financial Statements					13

Report of Independent Registered Public Accounting Firm					38

Fund Governance					39

Board Consideration and Re-Approval of Previous Investment Advisory Agreement					44

Board Consideration and Approval of New Investment Advisory Agreement					47

Summary of Management Fee Evaluation by Independent Fee Consultant (Columbia Management Advisors, LLC)					54

Summary of Management Fee Evaluation by Independent Fee Consultant (RiverSource Investments, LLC)					60

Proxy Voting Results					62

Important Information About This Report					65

The views expressed in this report reflects 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:

				Service provider name
Advisers				Columbia Management Investment Advisers, LLC Columbia Wanger Asset Management, LLC
Distributor				Columbia Management Investment Distributors, Inc.
Transfer Agent				Columbia Management Investment Services Corp.

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

¹Source: Ameriprise Financial, Inc., based on March 31, 2010 data from the Investment Company Institute

Economic Update – Fixed Income Sector Portfolios

On the business side of the economy, manufacturing activity gained momentum. A key measure of the nation's manufacturing situation—the Institute for Supply Management's Index—rose above 50 in July 2009—then rose for eight consecutive months to remain well above 50 for the remainder of the period. (An index value of 50+ indicates a growing economy.) Industrial production moved higher for eleven out of the past 12 months, and durable goods orders took off, with a big jump upward in January. Manufacturing capacity utilization inched upward to 72.7%.

Bond returns ranged from solid to strong

²The 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.

Summary

For the 12-month period that ended March 31, 2010

Barclays Aggregate Index				BofA ML Index

^g Stock markets rebounded around the world, as measured by the S&P 500 Index and the MSCI EAFE Index.

S&P Index				MSCI Index

Economic Update (continued) – Fixed Income Sector Portfolios

by this report, the BofA Merrill Lynch U.S. High Yield Cash Pay Index³ returned 55.67%.

Stocks staged a solid comeback

Past performance is no guarantee of future results.

³The BofA Merrill Lynch U.S. High Yield Cash Pay Index tracks the performance of non-investment-grade corporate bonds.

⁴The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

Portfolio Profile – Corporate Bond Portfolio

Summary

^g For the 12-month period that ended March 31, 2010, the portfolio returned 26.58%.

^g The portfolio outperformed its benchmark, the Barclays Capital U.S. Credit Bond Index.¹

^g The portfolio's exposure to investment-grade bonds and preferred securities drove performance. A small allocation to high yield was beneficial.

Portfolio Management

Carl Pappo has managed the portfolio since November 2006 and has been associated with the advisor or its predecessors since 1993.

Effective May 1, 2010, RiverSource Investments, LLC, a subsidiary of Ameriprise Financial, Inc., became the investment advisor to the Portfolio and changed its name to Columbia Management Investment Advisers, LLC. Please see the Portfolio's prospectus, as supplemented, for more information regarding the change in investment advisor and certain other changes.

¹The Barclays Capital U.S. Credit Bond Index is an index of publicly issued investment grade corporate securities and dollar-denominated SEC registered global debentures. 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 portfolio 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 call 1-800-345-6611 for daily and most recent month-end performance updates.

Summary

1-year return as of 03/31/10

				+26.58%

				Portfolio Performance

				+20.83%

				Barclays Capital U.S Credit Bond Index

Performance Information – Corporate Bond Portfolio

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 1-800-345-6611 for daily and most recent month-end performance updates.

Performance of a $10,000 investment 08/30/02 – 03/31/10

The chart above shows the change in value of a hypothetical $10,000 investment in the Corporate Bond Portfolio during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on portfolio distributions or on the redemption of portfolio shares.

Performance of a $10,000 investment 08/30/02 – 03/31/10 ($)

Corporate Bond Portfolio					15,720
Barclays Capital U.S. Credit Bond Index					15,332

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

Inception	08/30/02
1-year		26.58
5-year		6.12
Life		6.14

No fees or expenses are charged to the Portfolio. Participants in wrap fee programs eligible to invest in the portfolio, however, pay an asset-based fee, which is negotiable, for investment services, brokerage services and investment consultation. The portfolio may incur significant transaction costs that are in addition to the wrap fees paid to the program sponsor that are not included in this table. All results shown assume reinvestment of distributions.

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

Understanding Your Expenses – Corporate Bond Portfolio

The information on this page is intended to help you understand your ongoing costs of investing in the portfolio.

The table below reflects the fact that no fees or expenses are charged to the portfolio. Participants in the wrap fee programs eligible to invest in the portfolio pay an asset-based fee, which is negotiable, for investment services, brokerage services and investment consultation. Please read the wrap program documents for information regarding fees charged.

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. The amount listed in the "Actual" column is calculated using the portfolio's actual total return for the period. The amount listed in the "Hypothetical" column is calculated using a hypothetical annual return of 5%. You should not use the hypothetical account value to estimate your actual account balance.

Account value at the beginning of the period ($) 10/01/09				Account value at the end of the period ($) 03/31/10				Expenses paid during the period ($)*
Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical
	1,000.00		1,000.00		1,048.60		1,024.93		—		—

* No fees or expenses are charged to the Portfolio. Participants in wrap fee programs pay an asset-based fee that is not included in this table.

Portfolio Manager's Report – Corporate Bond Portfolio

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 1-800-345-6611 for daily and most recent month-end performance updates.

Net asset value per share

as of 03/31/10 ($)

10.30

Distributions declared per share

04/01/09 – 03/31/10 ($)

0.59

For the 12-month period that ended March 31, 2010, the portfolio returned 26.58%, compared with 20.83% for its benchmark, the Barclays Capital U.S. Credit Bond Index. Sector allocations and security selection contributed to the portfolio's outperformance of its benchmark. An emphasis on investment-grade and high-yield securities dovetailed with the market's renewed acceptance of credit risk. There are no high-yield bonds in the index.

Corporate bonds responded to improving outlook

In a complete reversal from the prior 12-month period, corporate bonds staged a comeback, rebounding from the precipitous declines triggered by a credit crisis and recorded substantial gains. Aggressive government programs and a very accommodative Federal Reserve Board helped recapitalize corporate America and restore liquidity to the markets, heading off fears of a financial collapse. Investors began shedding low-risk holdings to pursue greater returns. Confident buyers scooped up beaten-down issues across the ratings spectrum and in a variety of industries. U.S. Treasury and agency bonds underperformed as investors sought better prospects elsewhere.

Sector allocations drove strong results

Overweight positions in investment-grade and high-yield issues accounted for most of the portfolio's performance advantage over its benchmark. These sectors fell sharply during the 2008 credit crisis, leaving yield spreads at historically wide levels. Security selection within corporate sectors was beneficial. Above-benchmark weights in the financial sector, notably banks and insurance companies, boosted returns.

Amid questions of capital adequacy in the banking industry, securities of JPMorgan Chase (0.4% of net assets) rose because of the company's comparatively small capital needs. MetLife (0.7% of net assets), whose capital was never in question, eliminated some real estate holdings and bought attractively priced assets at discounted prices from AIG (not in the portfolio). International Lease Finance (1.5% of net assets), an aircraft leasing company and an AIG affiliate, also contributed. Bonds of Citigroup (no longer in the portfolio) responded favorably when Citi moved to strengthen its balance sheet.

Portfolio Manager's Report (continued) – Corporate Bond Portfolio

Looking ahead

With the economy on firmer footing, we believe the Federal Reserve Board (the Fed) may temper its accommodative stance and move to raise interest rates late in 2010. However, given that short-term rates are currently near zero, a modest rate increase seems unlikely to disrupt the markets. Against this backdrop, we believe that corporate and high-yield bonds have the potential to continue to perform well. Nevertheless, given how far the recent rally has come, we think it prudent to reduce some of the portfolio's risk exposure by reducing the portfolio's corporate position from a large overweight to a modest overweight position.

Top 10 holdings

as of 03/31/10 (%)

Kraft Foods Inc.,
4.125% 02/09/16					3.8
Anheuser-Busch, InBev Worldwide, Inc., 7.200% 01/15/14					2.7
International Bank for Reconstruction & Development, 5.000% 04/01/16					2.5
Westpac Banking Corp., 4.200% 02/27/15					1.8
Abbott Laboratories, 5.600% 05/15/11					1.7
Union Pac Corp., 6.650% 01/15/11					1.7
Principal Life Income Fund, 5.300% 04/24/13					1.6
Lloyds TSB Bank PLC, 4.380% 01/12/15					1.5
Plains All Amern Pipeline, 6.500% 05/01/18					1.5
General Electric Corp, 5.500% 01/08/20					1.5

Portfolio structure

as of 03/31/10 (%)

Corporate Fixed-Income Bonds & Notes					88.4
Government & Agency Obligations					7.5
Municipal Bonds					0.6
Other Assets & Liabilities, Net					3.5

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

Portfolio Profile – Mortgage- and Asset-Backed Portfolio

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 1-800-345-6611 for daily and most recent month-end performance updates.

Summary

1-year return as of 03/31/10

				+8.79%

				Portfolio Performance

				+7.99%

				Barclays Capital U.S. Securitized Index

Summary

^g For the 12-month period that ended March 31, 2010, the portfolio returned 8.79%.

^g Returns exceeded the Barclays Capital U.S. Securitized Index.¹

^g The portfolio's emphasis on commercial mortgage-backed securities generally accounted for its performance advantage over the benchmark.

Portfolio Management

Lee Reddin has co-managed the portfolio since December 2007 and has been associated with the advisor or its predecessors since 2000.

Michael Zazzarino has co-managed the portfolio since December 2007 and has been associated with the advisor or its predecessors since 2005.

¹The Barclays Capital U.S. Securitized Index is the largest component of the U.S. Aggregate Index and consists of the U.S. MBS Index, the ERISA-Eligible CMBS Index and the fixed-rate ABS Index. The U.S. MBS Index includes both fixed-rate agency passthroughs and agency hybrid ARM securities. 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 portfolio may not match those in an index.

Performance Information – Mortgage- and Asset-Backed Portfolio

Performance of a $10,000 investment 08/30/02 – 03/31/10

The chart above shows the change in value of a hypothetical $10,000 investment in the Mortgage- and Asset-Backed Portfolio during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or on the redemption of Portfolio shares.

Performance of a $10,000 investment 08/30/02 – 03/31/10 ($)

Mortgage- and Asset-Backed Portfolio					12,959
Barclays Capital U.S. Securitized Index					14,731

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 1-800-345-6611 for daily and most recent month-end performance updates.

Average annual total return as of 3/31/10 (%)

Inception	08/30/02
1-year		8.79
5-year		3.43
Life		3.48

No fees or expenses are charged to the Portfolio. Participants in the wrap fee programs eligible to invest in the Portfolio, however, pay an asset-based fee, which is negotiable, for investment services, brokerage services and investment consultation. The Portfolio may incur significant transaction costs that are in addition to the wrap fees paid to the program sponsor that are not included in this table. All results shown assume reinvestment of distributions.

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

Understanding Your Expenses – Mortgage- and Asset-Backed Portfolio

The information on this page is intended to help you understand your ongoing costs of investing in the portfolio.

Account value at the beginning of the period ($) 10/01/09				Account value at the end of the period ($) 03/31/10				Expenses paid during the period ($)*
Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical
	1,000.00		1,000.00		1,038.00		1,024.93		—		—

* No fees or expenses are charged to the Portfolio. Participants in wrap fee programs pay an asset-based fee that is not included in this table.

Portfolio Managers' Report – Mortgage- and Asset-Backed Portfolio

For the 12-month period that ended March 31, 2010, Mortgage- and Asset-Backed Portfolio returned 8.79%, compared with 7.99% for its benchmark, the Barclays Capital U.S. Securitized Index. The portfolio's emphasis on commercial mortgage-backed securities generally accounted for its performance advantage versus the benchmark.

During the past 12 months, the fixed-income market witnessed strong rallies among securities with low credit ratings, while long-term Treasury securities drifted lower as an improving national economy pushed long-term interest rates higher. Mortgage and asset-backed securities finished the period somewhere in the middle of this unusually wide performance spectrum.

Emphasis on CMBS drove performance

Throughout the period, the portfolio maintained an overweight position in commercial mortgage-backed securities (CMBS). The CMBS market fell on tough times when bank lending to commercial clients collapsed and commercial real estate valuations began to decline in 2008. They began the reporting period with an enormous yield advantage versus Treasury securities of comparable maturities. As the economy improved and commercial real estate stabilized, fixed-income buyers reassessed the risk/return profile of the CMBS sector and moved back in. The result was a historic rally that buoyed the portfolio throughout the year. For the most part, the portfolio's positions consisted of seasoned issues originating in 2005 or earlier. Because underwriting standards grew notably more lax after that, CMBS originating in 2006 and 2007 were substantially riskier but staged more impressive rebounds over the past 12 months. As a result, the portfolio 's lower-risk CMBS positions underperformed. But even these securities generated higher returns than the benchmark index.

Meanwhile, the portfolio has been underweight in structured mortgages and agency passthroughs. The agency position underwent a significant adjustment at the beginning of 2010, when the government announced a program that allows financial companies to get mortgages off their balance sheets and create more liquidity for Fannie Mae and Freddie Mac to increase future lending. The portfolio's response was to move into lower-coupon mortgages, on the belief that so-called "delinquency buyouts" will center on mortgages with middle-range coupons and thereby increase the prepayment risk in that category.

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 1-800-345-6611 for daily and most recent month-end performance updates.

Net asset value per share

as of 03/31/10 ($)

9.26

Distributions declared per share

04/01/09 – 03/31/10 ($)

0.39

Portfolio Managers' Report (continued) – Mortgage- and Asset-Backed Portfolio

Top 10 holdings

as of 03/31/10 (%)

Federal National Mortgage Association, 6.00% 08/01/37					13.2
Federal National Mortgage Association, 6.00% 11/01/38					9.8
Federal National Mortgage Association, 4.50% 09/01/39					4.7
Federal Home Loan Mortgage, 4.50% 09/01/24					4.4
Federal National Mortgage Association, TBA 4.50% 04/01/40					4.1
Federal National Mortgage Association, 4.50% 02/01/39					3.9
Federal National Mortgage Association, 6.00% 09/01/36					3.9
Federal National Mortgage Association, 4.50% 11/01/24					3.7
Government National Mortgage Association, 4.50% 05/15/39					2.7
Federal Home Loan Mortgage, 4.50% 11/01/24					2.5

Portfolio structure

as of 03/31/10 (%)

Mortgage-Backed Securities	64.3
Commercial Mortgage-Backed Securities	21.6
Asset-Backed Securities	8.0
Collateralized Mortgage Obligations	2.1
Government & Agency Obligation	0.3
Short Term Obligation	4.0
Other Assets & Liabilities, Net	(0.3	)

The portfolio is actively managed and the composition of its portfolio will change over time. Portfolio structure and top holdings are calculated as a percentage of net assets.

Looking ahead

We are maintaining an overweight in CMBS despite the substantial reduction in that sector's yield premium during the past twelve months. We have "barbelled" the risk structure of the portfolio with higher risk CMBS positions offset by the low-risk, low-coupon agency mortgages. The portfolio will continue to maintain a watchful eye on government stimulus efforts, but the opportunities to simply purchase those sectors receiving support have become less frequent as the various stimulus programs wind down.

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

Investment Portfolio – Corporate Bond Portfolio

March 31, 2010

Corporate Fixed-Income Bonds & Notes – 88.4%
	Par ($)		Value ($)
Basic Materials – 4.1%
Chemicals – 2.5%
Dow Chemical Co.
5.900% 02/15/15		320,000		346,440
8.550% 05/15/19		90,000		108,877
9.400% 05/15/39		90,000		120,639
Lubrizol Corp.
6.500% 10/01/34		25,000		25,874
Chemicals Total				601,830
Iron/Steel – 0.9%
ArcelorMittal
7.000% 10/15/39		25,000		25,675
9.850% 06/01/19		15,000		19,065
Nucor Corp.
5.000% 06/01/13		145,000		156,673
Iron/Steel Total				201,413
Metals & Mining – 0.7%
Vale Overseas Ltd.
6.875% 11/21/36		160,000		165,528
Metals & Mining Total				165,528
Basic Materials Total				968,771
Communications – 7.5%
Media – 4.2%
Comcast Cable Holdings LLC
9.875% 06/15/22		72,000		94,906
Comcast Corp.
6.950% 08/15/37		135,000		146,045
DirecTV Holdings LLC
6.375% 06/15/15		75,000		77,906
News America, Inc.
6.400% 12/15/35		100,000		102,115
6.550% 03/15/33		35,000		35,513
Rogers Cable, Inc.
6.250% 06/15/13		6,000		6,612
Time Warner Cable, Inc.
3.500% 02/01/15		125,000		125,106
5.000% 02/01/20		104,000		102,542
5.850% 05/01/17		60,000		64,245
7.300% 07/01/38		145,000		161,374
Time Warner, Inc.
6.500% 11/15/36		80,000		82,182
Media Total				998,546
Telecommunication Services – 3.3%
AT&T, Inc.
5.625% 06/15/16		130,000		142,521
6.550% 02/15/39		135,000		141,918

	Par ($)		Value ($)
British Telecommunications PLC
5.950% 01/15/18		80,000		82,128
Cellco Partnership/Verizon Wireless Capital LLC
5.550% 02/01/14		100,000		109,284
Telefonica Emisiones SAU
6.221% 07/03/17		100,000		109,667
6.421% 06/20/16		190,000		211,075
Telecommunication Services Total				796,593
Communications Total				1,795,139
Consumer Cyclical – 2.3%
Airlines – 0.4%
Continental Airlines, Inc.
7.461% 04/01/15		92,349		91,195
Airlines Total				91,195
Home Builders – 0.0%
D.R. Horton, Inc.
5.625% 09/15/14		10,000		9,900
Home Builders Total				9,900
Retail – 1.9%
CVS Pass-Through Trust
5.298% 01/11/27 (a)		109,370		104,082
6.036% 12/10/28		188,890		186,818
McDonald's Corp.
5.700% 02/01/39		165,000		164,291
Retail Total				455,191
Consumer Cyclical Total				556,286
Consumer Non-Cyclical – 11.7%
Beverages – 2.7%
Anheuser-Busch InBev Worldwide, Inc.
7.200% 01/15/14 (a)		565,000		647,280
Beverages Total				647,280
Food – 4.6%
Campbell Soup Co.
4.500% 02/15/19		90,000		91,576
ConAgra Foods, Inc.
7.000% 10/01/28		75,000		81,807
Kraft Foods, Inc.
4.125% 02/09/16		895,000		906,910
Food Total				1,080,293
Healthcare Services – 0.4%
WellPoint, Inc.
7.000% 02/15/19		90,000		102,059
Healthcare Services Total				102,059

See Accompanying Notes to Financial Statements.

Corporate Bond Portfolio

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Household Products/Wares – 0.4%
Fortune Brands, Inc.
5.125% 01/15/11		90,000		92,578
Household Products/Wares Total				92,578
Pharmaceuticals – 3.6%
Abbott Laboratories
5.600% 05/15/11		395,000		415,114
Novartis Securities Investment Ltd.
5.125% 02/10/19		185,000		196,078
Wyeth
5.500% 02/01/14		225,000		248,209
Pharmaceuticals Total				859,401
Consumer Non-Cyclical Total				2,781,611
Energy – 9.9%
Oil & Gas – 5.3%
Canadian Natural Resources Ltd.
6.250% 03/15/38		240,000		248,171
Devon Energy Corp.
6.300% 01/15/19		70,000		78,132
Marathon Oil Corp.
6.000% 07/01/12		25,000		27,140
6.000% 10/01/17		160,000		171,719
Nexen, Inc.
5.875% 03/10/35		160,000		152,132
7.500% 07/30/39		45,000		51,331
Qatar Petroleum
5.579% 05/30/11 (a)		30,006		30,824
Shell International Finance BV
5.500% 03/25/40		225,000		220,560
Talisman Energy, Inc.
5.850% 02/01/37		140,000		134,201
7.750% 06/01/19		135,000		160,859
Oil & Gas Total				1,275,069
Oil & Gas Services – 0.9%
Smith International, Inc.
9.750% 03/15/19		130,000		174,864
Weatherford International Ltd.
5.150% 03/15/13		35,000		37,190
Oil & Gas Services Total				212,054
Pipelines – 3.7%
Enbridge Energy Partners LP
7.500% 04/15/38		80,000		93,658
ONEOK Partners LP
6.850% 10/15/37		90,000		96,221
Plains All American Pipeline LP
6.500% 05/01/18		330,000		359,552

	Par ($)		Value ($)
Plains All American Pipeline LP/PAA Finance Corp.
5.750% 01/15/20		10,000		10,254
8.750% 05/01/19		120,000		146,396
TransCanada Pipelines Ltd.
6.350% 05/15/67 (05/15/17) (b)(c)		185,000		176,027
Pipelines Total				882,108
Energy Total				2,369,231
Financials – 34.5%
Banks – 17.9%
Bank of New York Mellon Corp.
5.450% 05/15/19		60,000		63,633
Barclays Bank PLC
5.000% 09/22/16		135,000		138,762
Capital One Capital IV
6.745% 02/17/37 (c)		225,000		194,063
Capital One Capital V
10.250% 08/15/39		65,000		77,005
Capital One Financial Corp.
7.375% 05/23/14		15,000		17,141
Chinatrust Commercial Bank
5.625% 12/29/49 (03/01/15) (a)(b)(c)		45,000		41,546
Comerica Bank
5.200% 08/22/17		245,000		237,665
Deutsche Bank AG London
4.875% 05/20/13		250,000		267,906
Discover Financial Services
10.250% 07/15/19		60,000		71,386
HSBC Holdings PLC
6.800% 06/01/38		170,000		182,296
JPMorgan Chase Capital XXIII
1.250% 05/15/47 (05/17/10) (b)(c)		115,000		86,304
KeyBank NA
5.800% 07/01/14		250,000		255,685
Keycorp
6.500% 05/14/13		270,000		288,335
Lloyds TSB Bank PLC
4.375% 01/12/15 (a)		365,000		359,810
M&I Marshall & Ilsley Bank
5.300% 09/08/11		67,000		66,841
Merrill Lynch & Co., Inc.
6.050% 08/15/12 (d)		35,000		37,380
National City Corp.
4.900% 01/15/15		15,000		15,668
6.875% 05/15/19		175,000		194,449

See Accompanying Notes to Financial Statements.

Corporate Bond Portfolio

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Northern Trust Co.
6.500% 08/15/18		180,000		201,410
Northern Trust Corp.
5.500% 08/15/13		125,000		138,330
PNC Funding Corp.
3.625% 02/08/15		145,000		145,869
5.125% 02/08/20		225,000		226,652
Regions Financial Corp.
7.750% 09/15/24		32,000		28,014
Scotland International Finance No. 2
4.250% 05/23/13 (a)		127,000		123,090
US Bancorp
3.150% 03/04/15		110,000		108,862
USB Capital IX
6.189% 10/29/49 (04/15/42) (b)(c)		170,000		145,350
Wachovia Corp.
4.375% 06/01/10		135,000		135,807
Westpac Banking Corp.
4.200% 02/27/15		405,000		416,897
Banks Total				4,266,156
Diversified Financial Services – 4.9%
Ameriprise Financial, Inc.
7.300% 06/28/19		120,000		139,038
Eaton Vance Corp.
6.500% 10/02/17		110,000		118,461
Fund American Companies, Inc.
5.875% 05/15/13		110,000		113,214
General Electric Capital Corp.
5.500% 01/08/20		345,000		351,991
International Lease Finance Corp.
4.875% 09/01/10		97,000		96,999
5.625% 09/15/10		250,000		251,764
Lehman Brothers Holdings, Inc.
5.625% 01/24/13 (e)(f)		370,000		87,413
6.875% 05/02/18 (e)(f)		45,000		10,631
Diversified Financial Services Total				1,169,511
Insurance – 7.9%
CNA Financial Corp.
5.850% 12/15/14		61,000		62,071
7.350% 11/15/19		124,000		129,596
ING Groep NV
5.775% 12/29/49 (12/08/15) (b)(c)		105,000		89,408
Liberty Mutual Group, Inc.
7.500% 08/15/36 (a)		265,000		255,553
Lincoln National Corp.
8.750% 07/01/19		250,000		305,693

	Par ($)		Value ($)
MetLife Capital Trust X
9.250% 04/08/38 (a)(c)		145,000		163,125
Principal Life Income Funding Trusts
5.300% 04/24/13		350,000		375,711
Prudential Financial, Inc.
4.500% 07/15/13		90,000		94,095
7.375% 06/15/19		50,000		57,339
Transatlantic Holdings, Inc.
8.000% 11/30/39		150,000		153,301
Unum Group
7.125% 09/30/16		180,000		195,666
Insurance Total				1,881,558
Real Estate Investment Trusts (REITs) – 3.8%
Brandywine Operating Partnership LP
7.500% 05/15/15		110,000		118,367
Camden Property Trust
5.375% 12/15/13		199,000		208,015
Duke Realty LP
7.375% 02/15/15		140,000		151,188
8.250% 08/15/19		200,000		223,058
Highwoods Properties, Inc.
5.850% 03/15/17		55,000		52,571
Liberty Property LP
5.500% 12/15/16		160,000		155,097
Real Estate Investment Trusts (REITs) Total				908,296
Financials Total				8,225,521
Industrials – 7.1%
Aerospace & Defense – 1.7%
Embraer Overseas Ltd.
6.375% 01/15/20		140,000		142,450
Raytheon Co.
5.375% 04/01/13		245,000		267,199
Aerospace & Defense Total				409,649
Machinery-Construction & Mining – 0.7%
Caterpillar, Inc.
8.250% 12/15/38		115,000		153,741
Machinery-Construction & Mining Total				153,741
Miscellaneous Manufacturing – 1.1%
Ingersoll-Rand Global Holding Co., Ltd.
9.500% 04/15/14		150,000		181,880
Tyco International Ltd./Tyco International Finance SA
6.875% 01/15/21		75,000		85,703
Miscellaneous Manufacturing Total				267,583

See Accompanying Notes to Financial Statements.

Corporate Bond Portfolio

March 31, 2010

Corporate Fixed-Income Bonds & Notes (continued)
	Par ($)		Value ($)
Transportation – 3.6%
BNSF Funding Trust I
6.613% 12/15/55 (01/15/26) (b)(c)		130,000		126,263
Burlington Northern Santa Fe Corp.
7.950% 08/15/30		115,000		140,061
Union Pacific Corp.
4.698% 01/02/24		9,727		10,117
5.700% 08/15/18		165,000		173,635
6.650% 01/15/11		385,000		401,552
Transportation Total				851,628
Industrials Total				1,682,601
Technology – 1.2%
Networking Products – 1.2%
Cisco Systems, Inc.
5.500% 01/15/40		135,000		129,461
5.900% 02/15/39		150,000		152,288
Networking Products Total				281,749
Technology Total				281,749
Utilities – 10.1%
Electric – 8.2%
AEP Texas Central Co.
6.650% 02/15/33		160,000		167,375
Columbus Southern Power Co.
6.600% 03/01/33		41,000		44,215
Commonwealth Edison Co.
5.950% 08/15/16		80,000		87,690
6.950% 07/15/18		95,000		104,825
Duke Energy Corp.
5.300% 10/01/15		285,000		311,743
Exelon Generation Co. LLC
6.200% 10/01/17		220,000		239,422
Kansas City Power & Light Co.
7.150% 04/01/19		250,000		286,905
MidAmerican Energy Holdings Co.
5.000% 02/15/14		197,000		208,958
6.125% 04/01/36		70,000		70,527
Niagara Mohawk Power Corp.
4.881% 08/15/19 (a)		215,000		213,521
Oncor Electric Delivery Co.
5.950% 09/01/13		155,000		169,267
Southern Co.
4.150% 05/15/14		60,000		62,623
Electric Total				1,967,071

	Par ($)		Value ($)
Gas – 1.9%
Atmos Energy Corp.
6.350% 06/15/17		100,000		107,544
8.500% 03/15/19		115,000		141,089
Nakilat, Inc.
6.067% 12/31/33 (a)		145,000		131,963
Sempra Energy
6.500% 06/01/16		60,000		67,031
Gas Total				447,627
Utilities Total				2,414,698
Total Corporate Fixed-Income Bonds & Notes (cost of $20,045,547)				21,075,607
Government & Agency Obligations – 7.5%
Foreign Government Obligations – 4.4%
International Bank for Reconstruction & Development
5.000% 04/01/16		535,000		589,292
Province of Ontario
3.375% 05/20/11		115,000		118,466
Province of Quebec
5.125% 11/14/16		200,000		219,012
Republic of Italy
5.375% 06/12/17		105,000		112,845
Foreign Government Obligations Total				1,039,615
U.S. Government Obligations – 3.1%
U.S. Treasury Bonds
4.375% 11/15/39		305,000		288,415
4.500% 08/15/39		65,000		62,766
U.S. Treasury Notes
1.875% 02/28/14		150,000		148,734
2.375% 02/28/15		251,000		249,276
U.S. Government Obligations Total				749,191
Total Government & Agency Obligations (cost of $1,759,583)				1,788,806

See Accompanying Notes to Financial Statements.

Corporate Bond Portfolio

March 31, 2010

Municipal Bonds – 0.6%
	Par ($)		Value ($)
California – 0.6%
CA State
Series 2009,
7.550% 04/01/39		25,000		25,997
CA Los Angeles Unified School District
Series 2009,
5.750% 07/01/34		115,000		105,848
California Total				131,845
Total Municipal Bonds (cost of $138,834)				131,845
Short-Term Obligation – 2.0%
Repurchase agreement with Fixed Income Clearing Corp., dated 03/31/10, due 04/01/10 at 0.00%, collateralized by a U.S. Government Agency obligation maturing 09/05/13, market value $491,225 (repurchase proceeds $480,000)		480,000		480,000
Total Short-Term Obligation (cost of $480,000)				480,000
Total Investments – 98.5% (cost of $22,423,964) (g)				23,476,258
Other Assets & Liabilities, Net – 1.5%				355,403
Net Assets – 100.0%				23,831,661

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 March 31, 2010, these securities, which are not illiquid, except for the following, amounted to $2,070,794, which represents 8.7% of net assets.

Security				Acquisition Date				Par				Cost				Value
Qatar Petroleum 5.579% 05/30/11					05/19/06			$	30,006			$	30,006			$	30,824

(b) Parenthetical date represents the next interest rate reset date for the security.

(d) Investment in affiliate during the twelve months ended March 31, 2010:

Affiliate				Value, beginning of period				Purchases				Sales Proceeds				Interest Income				Value, end of period
Merrill Lynch & Co., Inc. 6.050% 08/15/12				$	30,032			$	—			$	—			$	2,118			$	37,380

(f) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2010, the value of these securities amounted to $98,044, which represents 0.4% of net assets.

(g) Cost for federal income tax purposes is $22,462,076.

The following table summarizes the inputs used, as of March 31, 2010, in valuing the Portfolio's assets:

Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Corporate Fixed-Income Bonds & Notes
Basic Materials	$	—	$	968,771		$	—	$	968,771
Communications		—		1,795,139			—		1,795,139
Consumer Cyclical		—		465,091			91,195		556,286
Consumer Non-Cyclical		—		2,781,611			—		2,781,611
Energy		—		2,369,231			—		2,369,231
Financials		—		8,225,521			—		8,225,521
Industrials		—		1,682,601			—		1,682,601
Technology		—		281,749			—		281,749
Utilities		—		2,414,698			—		2,414,698
Total Corporate Fixed-Income Bonds & Notes		—		20,984,412			91,195		21,075,607
Government & Agency Obligations
Foreign Government Obligations		—		1,039,615			—		1,039,615
U.S. Government Obligations		749,191		—			—		749,191
Total Government & Agency Obligations		749,191		1,039,615			—		1,788,806
Total Municipal Bonds		—		131,845			—		131,845
Total Short-Term Obligation		—		480,000			—		480,000
Total Investments	$	749,191	$	22,635,872		$	91,195	$	23,476,258
Unrealized Appreciation on Credit Default Swap Contracts		—		4,464			—		4,464
Unrealized Depreciation on Credit Default Swap Contracts		—		(29,702	)		—		(29,702	)
Total	$	749,191	$	22,610,634		$	91,195	$	23,451,020

See Accompanying Notes to Financial Statements.

Corporate Bond Portfolio

March 31, 2010

The following table reconciles asset balances for the year ended March 31, 2010, in which significant unobservable inputs (Level 3) were used in determining value:

Investment in Securities	Balance as of March 31, 2009		Accrued Discounts/ (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Purchases		Sales			Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2010
Corporate Fixed-Income Bonds & Notes
Consumer Cyclical	$	68,767	$	651	$	245	$	27,422	$	—	$	(5,890	)	$	—	$	—	$	91,195

The change in unrealized appreciation attributable to the security owned at March 31, 2010, which were valued using significant unobservable inputs (Level 3) amounted to $27,422. This amount is included in net change in unrealized appreciation on the Statement of Changes in Net Assets.

At March 31, 2010, the Portfolio has entered into the following credit default swap contracts:

Credit Risk

Swap Counterparty	Referenced Obligation	Receive Buy/Sell Protection	Fixed Rate			Expiration Date	Notional Amount		Upfront Premium Paid (Received)			Value of Contract
Barclays Capital	D.R. Horton, Inc.	Buy		1.000	%	03/20/15	$	300,000	$	13,093		$	(1,623	)
Barclays Capital	Limited Brands, Inc.	Buy		1.000	%	03/20/15		200,000		11,170			(4,000	)
Barclays Capital	Macy's, Inc.	Buy		1.000	%	03/20/15		285,000		14,658			(5,581	)
Barclays Capital	The Home Depot, Inc.	Buy		1.000	%	03/20/15		200,000		(949	)		(2,414	)
Barclays Capital	Toll Brothers, Inc. 5.150% 05/15/15	Buy		1.000	%	09/20/14		215,000		1,689			1,814
Barclays Capital	Toll Brothers, Inc. 5.150% 05/15/15	Buy		1.000	%	09/20/14		215,000		747			2,650
JPMorgan	D.R. Horton, Inc.	Buy		1.000	%	03/20/15		300,000		13,092			(1,629	)
JPMorgan	Macy's, Inc.	Buy		1.000	%	03/20/15		300,000		16,092			(6,514	)
Morgan Stanley	Limited Brands, Inc.	Buy		1.000	%	03/20/15		400,000		18,857			(4,689	)
Morgan Stanley	The Home Depot, Inc.	Buy		1.000	%	03/20/15		350,000		(2,650	)		(3,252	)
												$	(25,238	)

At March 31, 2010, the Portfolio held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Financials		34.5
Utilities		10.1
Consumer Non-Cyclical		11.7
Energy		9.9
Communications		7.5
Industrials		7.1
Basic Materials		4.1
Consumer Cyclical		2.3
Technology		1.2
		88.4
Government & Agency Obligations		7.5
Municipal Bond		0.6
Short Term Obligation		2.0
Other Assets & Liabilities, Net		1.5
		100.0

See Accompanying Notes to Financial Statements.

Investment Portfolio – Mortgage- and Asset-Backed Portfolio

March 31, 2010

Mortgage-Backed Securities – 64.3%
	Par ($)		Value ($)
Federal Home Loan Mortgage Corp.
4.500% 09/01/24		1,710,445		1,776,473
4.500% 11/01/24		961,542		998,661
5.631% 06/01/37 (04/01/10) (a)(b)		525,931		556,672
6.500% 11/01/32		7,666		8,452
Federal National Mortgage Association
4.000% 03/01/39		983,511		954,579
4.000% 12/01/39		705,647		684,819
4.500% 11/01/24		1,459,753		1,516,331
4.500% 02/01/39		1,578,535		1,583,913
4.500% 04/01/39		238,241		239,077
4.500% 09/01/39		1,917,663		1,924,197
4.500% 11/01/39		693,184		695,546
4.680% 06/01/19		114,103		118,703
4.680% 09/01/19		215,000		222,228
6.000% 09/01/36		1,474,145		1,573,442
6.000% 08/01/37		5,036,365		5,358,296
6.000% 02/01/38		229,896		244,591
6.000% 06/01/38		558,479		593,916
6.000% 11/01/38		3,735,558		3,987,181
6.500% 10/01/37		299,185		324,667
7.000% 02/01/32		11,189		12,543
TBA,
4.500% 04/01/40 (c)		1,650,000		1,653,610
Government National Mortgage Association
4.500% 05/15/39		1,085,612		1,100,698
7.000% 03/15/31		1,453		1,632
Total Mortgage-Backed Securities (cost of $25,969,758)				26,130,227
Commercial Mortgage-Backed Securities – 21.6%
Bear Stearns Commercial Mortgage Securities
4.740% 03/13/40		95,848		100,011
4.830% 08/15/38		123,627		129,329
4.933% 02/13/42 (04/01/10) (a)(b)		140,679		145,755
5.201% 12/11/38		474,847		474,664
5.540% 09/11/41		55,000		56,629
5.742% 09/11/42 (04/01/10) (a)(b)		145,000		149,345
6.480% 02/15/35		180,153		185,517
Credit Suisse Mortgage Capital Certificates
5.549% 02/15/39 (04/01/10) (a)(b)		50,000		52,200
5.723% 06/15/39 (04/01/10) (a)(b)		110,000		99,087
CW Capital Cobalt Ltd.
5.484% 04/15/47 (04/01/10) (a)(b)		475,000		432,788

	Par ($)		Value ($)
First Union National Bank Commercial Mortgage
6.141% 02/12/34		172,244		181,255
GE Capital Commercial Mortgage Corp.
4.819% 01/10/38		425,000		444,429
5.349% 08/11/36		130,000		137,264
GMAC Commercial Mortgage Securities, Inc.
5.487% 05/10/40 (04/01/10) (a)(b)		80,000		85,284
Greenwich Capital Commercial Funding Corp.
5.317% 06/10/36 (04/01/10) (a)(b)		430,000		452,118
5.886% 07/10/38 (04/01/10) (a)(b)		310,000		316,019
GS Mortgage Securities Corp. II
5.560% 11/10/39		265,000		262,346
JPMorgan Chase Commercial Mortgage Securities Corp.
4.985% 01/12/37		85,000		89,109
5.122% 01/15/49		120,721		123,311
5.170% 05/15/47		284,495		290,696
5.255% 07/12/37 (a)		30,000		31,745
6.068% 02/12/51		132,000		118,282
LB-UBS Commercial Mortgage Trust
4.166% 05/15/32		205,000		209,559
4.810% 01/15/36 (04/11/10) (a)(b)		554,190		501,263
4.853% 09/15/31		512,196		537,545
5.430% 02/15/40		140,000		134,727
Morgan Stanley Capital I
4.970% 12/15/41		280,000		293,641
5.332% 12/15/43		419,566		421,996
Morgan Stanley Dean Witter Capital I
4.920% 03/12/35		400,722		416,882
Wachovia Bank Commercial Mortgage Trust
4.039% 10/15/41		187,173		188,642
4.748% 02/15/41		265,000		275,172
4.807% 04/15/42		195,000		203,071
4.980% 11/15/34		85,000		89,289
5.037% 03/15/42		294,999		307,466
5.208% 10/15/44 (04/01/10) (a)(b)		470,000		483,913
5.609% 03/15/45 (04/01/10) (a)(b)		45,000		39,027
5.765% 07/15/45 (04/01/10) (a)(b)		240,000		244,622
5.997% 06/15/45		85,000		90,024
Total Commercial Mortgage-Backed Securities (cost of $8,232,265)				8,794,022

See Accompanying Notes to Financial Statements.

Mortgage- and Asset-Backed Portfolio

March 31, 2010

Asset-Backed Securities – 8.0%
	Par ($)		Value ($)
Capital Auto Receivables Asset Trust
5.020% 09/15/11		70,779		71,489
Capital One Multi-Asset Execution Trust
0.310% 09/15/15 (04/15/10) (a)(b)		320,000		316,681
1.330% 04/15/13 (04/15/10) (a)(b)		205,000		205,422
Chrysler Financial Lease Trust
1.780% 06/15/11 (d)		75,000		74,969
Citibank Credit Card Issuance Trust
0.289% 02/09/15 (05/07/10) (a)(b)		385,000		380,942
6.950% 02/18/14		38,000		40,528
Discover Card Master Trust
0.550% 01/15/13 (04/15/10) (a)(b)		130,000		129,529
Ford Credit Auto Owner Trust
5.160% 04/15/13		389,000		414,254
Franklin Auto Trust
5.360% 05/20/16		100,000		103,563
Morgan Stanley Mortgage Loan Trust
0.366% 10/25/36 (04/26/10) (a)(b)		17,550		17,272
SACO I, Inc.
0.446% 04/25/35 (04/26/10) (a)(b)(d)		13,515		5,570
SLM Student Loan Trust
0.317% 03/15/17 (06/15/10) (a)(b)		83,756		83,067
0.337% 12/15/20 (06/15/10) (a)(b)		649,000		638,309
Soundview Home Equity Loan Trust
0.546% 11/25/35 (04/26/10) (a)(b)		53,735		48,043
Terwin Mortgage Trust
1.146% 07/25/34 (04/26/10) (a)(b)		49,092		39,594
USAA Auto Owner Trust
5.070% 06/15/13		639,000		664,811
Total Asset-Backed Securities (cost of $3,185,220)				3,234,043
Collateralized Mortgage Obligations – 2.1%
Agency – 1.6%
Federal Home Loan Mortgage Corp.
4.000% 12/15/22		624,005		644,412
Agency Total				644,412

	Par ($)		Value ($)
Non-Agency – 0.5%
Bear Stearns Alt-A Trust
0.526% 01/25/35 (04/26/10) (a)(b)		64,650		47,546
Morgan Stanley Mortgage Loan Trust
0.466% 02/25/47 (04/26/10) (a)(b)		636,597		145,158
Non-Agency Total				192,704
Total Collateralized Mortgage Obligations (cost of $1,345,912)				837,116
Government & Agency Obligation – 0.3%
U.S. Government Obligation – 0.3%
U.S. Treasury Note
2.250% 01/31/15		135,000		133,534
U.S. Government Obligation Total				133,534
Total Government & Agency Obligation (cost of $133,780)				133,534
Short-Term Obligation – 4.0%
Repurchase agreement with Fixed Income Clearing Corp., dated 03/31/10, due 04/01/10 at 0.00%, collateralized by a U.S. Treasury obligation maturing 01/31/14, market value $1,680,169 (repurchase proceeds $1,646,000)		1,646,000		1,646,000
Total Short-Term Obligation (cost of $1,646,000)				1,646,000
Total Investments – 100.3% (cost of $40,512,935) (e)				40,774,942
Other Assets & Liabilities, Net – (0.3)%				(118,686	)
Net Assets – 100.0%				40,656,256

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at March 31, 2010.

(b) Parenthetical date represents the next reset date for the security.

(e) Cost for federal income tax purposes is $40,512,935.

See Accompanying Notes to Financial Statements.

Mortgage- and Asset-Backed Portfolio

March 31, 2010

The following table summarizes the inputs used, as of March 31, 2010, in valuing the Portfolio's assets:

Description	Quoted Prices in (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Total Mortgage-Backed Securities	$	1,653,610	$	24,476,617	$	—	$	26,130,227
Total Commercial Mortgage-Backed Securities		—		8,794,022		—		8,794,022
Total Asset-Backed Securities		—		3,234,043		—		3,234,043
Total Collateralized Mortgage Obligations		—		837,116		—		837,116
Total Government & Agency Obligations		133,534		—		—		133,534
Total Short-Term Obligation		—		1,646,000		—		1,646,000
Total Investments	$	1,787,144	$	38,987,798	$	—	$	40,774,942

At March 31, 2010, the asset allocation of the Portfolio is as follows:

Asset Allocation (Unaudited)	% of Net Assets
Mortgage-Backed Securities		64.3
Commercial Mortgage-Backed Securities		21.6
Asset-Backed Securities		8.0
Collateralized Mortgage Obligations		2.1
Government & Agency Obligation		0.3
		96.3
Short-Term Obligation		4.0
Other Assets & Liabilities, Net		(0.3	)
		100.0

Acronym				Name
TBA				To Be Announced

See Accompanying Notes to Financial Statements.

Statements of Assets and Liabilities – Fixed Income Sector Portfolios
March 31, 2010

	($)			($)
	Corporate Bond Portfolio			Mortgage- and Asset-Backed Portfolio
Assets
Unaffiliated investments, at identified cost		22,388,989			40,512,935
Affiliated investments, at identified cost		34,975			—
Total investments, at identified cost		22,423,964			40,512,935
Unaffiliated investments, at value		23,438,878			40,774,942
Affiliated investments, at value		37,380			—
Total investments, at value		23,476,258			40,774,942
Cash		770			634
Cash collateral		99,000			—
Open credit default swap contracts		4,464			—
Credit default swap contracts premiums paid		87,392			—
Receivable for:
Investments sold		64,817			—
Investments sold on a delayed delivery basis		—			743,191
Portfolio shares sold		15,015			15,260
Interest		331,530			784,606
Foreign tax reclaims		701			—
Other assets		10,109			—
Total Assets		24,090,056			42,318,633
Liabilities
Open credit default swap contracts		29,702			—
Credit default swap contracts premiums received		3,510			—
Payable for:
Investments purchased		218,302			—
Investments purchased on a delayed delivery basis		—			1,655,756
Portfolio shares repurchased		3,903			6,621
Futures variation margin		2,978			—
Total Liabilities		258,395			1,662,377
Net Assets		23,831,661			40,656,256
Net Assets Consist of
Paid-in capital		26,490,563			53,514,936
Undistributed net investment income		91,529			49,311
Accumulated net realized loss		(3,770,762	)		(13,169,998	)
Net unrealized appreciation (depreciation) on:
Investments		1,052,294			262,007
Credit default swap contracts		(31,963	)		—
Net Assets		23,831,661			40,656,256
Shares outstanding		2,313,831			4,392,269
Net asset value price per share		10.30			9.26

See Accompanying Notes to Financial Statements.

Statements of Operations – Fixed Income Sector Portfolios
For the Year Ended March 31, 2010

	($)			($)
	Corporate Bond Portfolio			Mortgage- and Asset-Backed Portfolio
Investment Income
Interest		1,343,551			1,747,063
Interest from affiliate		2,118			—
Securities lending		3			—
Total Investment Income		1,345,672			1,747,063
Net Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Credit Default Swap Contracts
Net realized gain (loss) on:
Investments		665,990			954,764
Futures contracts		(43,705	)		—
Credit default swap contracts		(221,744	)		—
Net realized gain		400,541			954,764
Net change in unrealized appreciation (depreciation) on:
Investments		3,245,483			823,140
Credit default swap contracts		30,268			—
Net change in unrealized appreciation (depreciation)		3,275,751			823,140
Net Gain		3,676,292			1,777,904
Net Increase Resulting from Operations		5,021,964			3,524,967

See Accompanying Notes to Financial Statements.

Statements of Changes in Net Assets – Fixed Income Sector Portfolios

Increase (Decrease) in Net Assets	Corporate Bond Portfolio						Mortgage- and Asset-Backed Portfolio
	Year Ended March 31,						Year Ended March 31,
	2010 ($)			2009 ($)			2010 ($)			2009 ($)
Operations
Net investment income		1,345,672			2,571,838			1,747,063			4,460,548
Net realized gain (loss) on investments, futures contracts and credit default swap contracts		400,541			(5,463,777	)		954,764			(8,226,295	)
Net change in unrealized appreciation (depreciation) on investments, futures contracts and credit default swap contracts		3,275,751			(995,918	)		823,140			2,656,222
Net increase (decrease) resulting from operations		5,021,964			(3,887,857	)		3,524,967			(1,109,525	)
Distributions to Shareholders
From net investment income		(1,309,428	)		(2,585,812	)		(1,762,349	)		(4,513,649	)
Net Capital Stock Transactions		564,513			(47,774,916	)		(9,234,695	)		(84,444,399	)
Total increase (decrease) in net assets		4,277,049			(54,248,585	)		(7,472,077	)		(90,067,573	)
Net Assets
Beginning of period		19,554,612			73,803,197			48,128,333			138,195,906
End of period		23,831,661			19,554,612			40,656,256			48,128,333
Undistributed net investment income at end of period		91,529			55,285			49,311			64,597

See Accompanying Notes to Financial Statements.

Statements of Changes in Net Assets (continued) – Capital Stock Activity

	Corporate Bond Portfolio												Mortgage- and Asset-Backed Portfolio
	Year Ended March 31, 2010						Year Ended March 31, 2009						Year Ended March 31, 2010						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)			Shares			Dollars ($)			Shares			Dollars ($)
Subscriptions		465,475			4,487,267			176,063			1,580,494			536,314			4,902,872			2,498,322			22,601,096
Distributions reinvested		1,274			12,338			1,682			14,980			16,385			148,495			20,921			185,920
Redemptions		(415,326	)		(3,935,092	)		(5,554,673	)		(49,370,390	)		(1,583,094	)		(14,286,062	)		(11,926,680	)		(107,231,415	)
Net increase (decrease)		51,423			564,513			(5,376,928	)		(47,774,916	)		(1,030,395	)		(9,234,695	)		(9,407,437	)		(84,444,399	)

See Accompanying Notes to Financial Statements.

Financial Highlights – Corporate Bond Portfolio

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

	Year Ended March 31,
	2010			2009			2008			2007			2006
Net Asset Value, Beginning of Period	$	8.64		$	9.66		$	10.06		$	9.93		$	10.19
Income from Investment Operations:
Net investment income (a)		0.60			0.56			0.58			0.55			0.49
Net realized and unrealized gain (loss) on investments, futures contracts and credit default swap contracts		1.65			(1.01	)		(0.40	)		0.13			(0.25	)
Total from investment operations		2.25			(0.45	)		0.18			0.68			0.24
Less Distributions to Shareholders:
From net investment income		(0.59	)		(0.57	)		(0.58	)		(0.55	)		(0.49	)
From net realized gains		—			—			—			—			(0.01	)
Total distributions to shareholders		(0.59	)		(0.57	)		(0.58	)		(0.55	)		(0.50	)
Net Asset Value, End of Period	$	10.30		$	8.64		$	9.66		$	10.06		$	9.93
Total return (b)		26.58	%		(4.65	)%		1.81	%(c)		7.01	%		2.34	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (d)		—			—			—			—			—
Net investment income (d)		6.14	%		6.10	%		5.84	%		5.55	%		4.83	%
Portfolio turnover rate		146	%		137	%		189	%		114	%		62	%
Net assets, end of period (000s)	$	23,832		$	19,555		$	73,803		$	78,588		$	64,597

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

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

(c) Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(d) The net investment income and expense ratios exclude expenses charged directly to shareholders.

See Accompanying Notes to Financial Statements.

Financial Highlights – Mortgage- and Asset-Backed Portfolio

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

	Year Ended March 31,
	2010			2009			2008			2007			2006
Net Asset Value, Beginning of Period	$	8.88		$	9.32		$	10.01		$	9.85		$	10.01
Income from Investment Operations:
Net investment income (a)		0.38			0.44			0.54			0.54			0.40
Net realized and unrealized gain (loss) on investments		0.39			(0.44	)		(0.67	)		0.14			(0.12	)
Total from investment operations		0.77			—			(0.13	)		0.68			0.28
Less Distributions to Shareholders:
From net investment income		(0.39	)		(0.44	)		(0.53	)		(0.52	)		(0.40	)
From net realized gains		—			—			(0.03	)		—			(0.04	)
Total distributions to shareholders		(0.39	)		(0.44	)		(0.56	)		(0.52	)		(0.44	)
Net Asset Value, End of Period	$	9.26		$	8.88		$	9.32		$	10.01		$	9.85
Total return (b)		8.79	%		0.10	%		(1.34	)%		7.12	%		2.85	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (c)		—			—			—			—			—
Net investment income (c)		4.20	%		4.92	%		5.50	%		5.41	%		4.00	%
Portfolio turnover rate		146	%		142	%		369	%		543	%		561	%
Net assets, end of period (000s)	$	40,656		$	48,128		$	138,196		$	135,358		$	89,569

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

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

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Fixed Income Sector Portfolios
March 31, 2010

Note 1. Organization

Columbia Funds Series Trust (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. Information presented in these financial statements pertains to Corporate Bond Portfolio and Mortgage- and Asset-Backed Portfolio (each, a "Portfolio" and collectively, the "Portfolios"), each a series of the Trust.

Investment Goals

Corporate Bond Portfolio and Mortgage- and Asset-Backed Portfolio each seek total return, consisting of current income and capital appreciation.

Portfolio Shares

The Portfolios are authorized to issue an unlimited number of shares without par value and are available only to certain eligible investors through certain wrap fee programs, certain other managed accounts and certain registered investment companies, including those sponsored or managed by Bank of America Corporation ("BOA") and its affiliates.

Note 2. Significant Accounting Policies

Security Valuation

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.

Credit default swap contracts are marked to market daily based upon spread quotations from market makers.

• 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

Fixed Income Sector Portfolios (continued)

March 31, 2010

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

Derivative Instruments

The Portfolios may invest in derivative instruments. For additional information on derivative instruments, please see Note 5.

Repurchase Agreements

Each Portfolio may engage in repurchase agreement transactions with institutions that Columbia Management Advisors, LLC ("Columbia"), the Portfolios' investment advisor, has determined are creditworthy. Each Portfolio, 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 each Portfolio's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Portfolios seek to assert their rights.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale at the issuer's expense either upon demand by the Portfolios or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Board of Trustees. The Portfolios will not incur any registration costs upon such resale.

Delayed Delivery Securities

Each Portfolio may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes the Portfolios to subsequently invest at less advantageous prices. Each Portfolio identifies within its portfolio of investments cash or liquid securities in an amount equal to the delayed delivery commitment.

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. Dividend income is recorded on the ex-date.

Federal Income Tax Status

Fixed Income Sector Portfolios (continued)

March 31, 2010

its net investment income, capital gains and certain other amounts, if any, such that each Portfolio should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Distributions to Shareholders

Distributions from net investment income are declared and paid monthly. 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

In the normal course of business, each Portfolio enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Portfolio's maximum exposure under these arrangements is unknown because this would involve future claims against a Portfolio. 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 Portfolios expect 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 each Portfolio's capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

The tax character of distributions paid during the years ended March 31, 2010 and March 31, 2009 was as follows:

	March 31, 2010
	Ordinary Income*		Long-Term Capital Gains
Corporate Bond Portfolio	$	1,309,428	$	—
Mortgage- and Asset-Backed Portfolio		1,762,349		—
	March 31, 2009
	Ordinary Income*		Long-Term Capital Gains
Corporate Bond Portfolio	$	2,585,812	$	—
Mortgage- and Asset-Backed Portfolio		4,513,649		—

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

As of March 31, 2010, the components of distributable earnings on a tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Net Unrealized Appreciation (Depreciation)*
Corporate Bond Portfolio	$	102,319	$	—	$	1,014,182
Mortgage- and Asset-Backed Portfolio		49,311		—		262,007

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

Fixed Income Sector Portfolios (continued)

March 31, 2010

Unrealized appreciation and depreciation at March 31, 2010, based on cost of investments for federal income tax purposes, were:

	Unrealized Appreciation		Unrealized Depreciation			Unrealized Appreciation
Corporate Bond Portfolio	$	1,402,855	$	(388,673	)	$	1,014,182
Mortgage- and Asset-Backed Portfolio		882,490		(620,483	)		262,007

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
	2014		2015		2016		2017		2018		Total
Corporate Bond Portfolio	$	190,899	$	595,089	$	576,674	$	2,121,554	$	224,029	$	3,708,245
Mortgage- and Asset-Backed Portfolio		—		—		635,139		12,534,859		—		13,169,998

Capital loss carryforwards of $341,126 were utilized during the year ended March 31, 2010 by Mortgage and Asset-Backed Portfolio.

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 March 31, 2010, post-October capital losses of $24,398 attributed to security transactions were deferred to April 1, 2010 for Corporate Bond Portfolio.

Management is required to determine whether a tax position of the Portfolios 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 each Portfolio 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 Portfolios' 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 BOA, provides investment advisory services to the Portfolios.

Columbia does not receive any fees for its investment advisory services. In addition, under its investment advisory agreement, Columbia has agreed to bear all fees and expenses of the Portfolios (exclusive of brokerage fees and commissions, taxes, interest expense and extraordinary expenses, but inclusive of custodian charges relating to overdrafts, if any).

The Portfolios do not incur any fees or expenses except brokerage fees and commissions, taxes, interest expense and extraordinary expenses. Participants in the wrap fee programs eligible to invest in the Portfolios are required to pay fees to the program sponsor pursuant to separate agreements and should review the wrap program disclosure document for fees and expenses charged.

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 Portfolios. The Transaction is subject to certain approvals and

Fixed Income Sector Portfolios (continued)

March 31, 2010

other conditions to closing, and is currently expected to close on or about April 30, 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 Portfolios. RiverSource Investments, LLC (the "New Advisor"), a subsidiary of Ameriprise Financial, will become the investment advisor of the Portfolios upon the Closing. On March 3, 2010, the Portfolios' shareholders approved, among other matters, the proposed investment management services agreement with the New Advisor. The New Advisor will serve as investment advisor under a new investment management services agreement effective upon the Closing. The New Advisor will 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 Portfolios. Under the administration agreement, Columbia does not receive any compensation from the Portfolios for its services.

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

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 Portfolios and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. 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 Portfolios. The Transfer Agent does not receive any compensation directly from the Portfolios for its services.

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

Distribution and Service 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 Portfolios' shares. The Distributor does not receive a fee for its services as distributor.

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

Note 5. Objectives and Strategies for Investing in Derivative Instruments

Corporate Bond Portfolio uses derivatives instruments including futures contracts and credit default swaps in order to meet its investment objectives. The Corporate Bond Portfolio 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 Corporate Bond Portfolio may not achieve its investment objectives.

In pursuit of its investment objectives, the Corporate Bond Portfolio is exposed to the following market risks:

Credit Risk: Credit risk relates to the ability of the issuer or guarantor of a fixed income security, or counter party to a derivative contract to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings. Generally, lower-yield higher-quality bonds are subject to credit risk to a lesser extent than lower-grade higher-yield bonds.

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

Futures Contracts

Corporate Bond Portfolio entered into interest rate futures contracts to manage the duration and yield curve exposure of the Portfolio versus the benchmark.

Fixed Income Sector Portfolios (continued)

March 31, 2010

Upon entering into a futures contract, the Corporate Bond Portfolio pledges cash or securities in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Portfolio 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 Portfolio 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 March 31, 2010, the Corporate Bond Portfolio entered into 152 futures contracts. The Portfolio did not have any open futures contracts at the end of the year.

Credit Default Swap Contracts

Corporate Bond Portfolio entered into credit default swap transactions as a protection buyer to reduce overall credit exposure.

Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place. The Portfolio may receive or make an upfront payment as the protection buyer or seller. Credit default swaps are marked to market daily based on quotations from market makers and any change is recorded as unrealized appreciation/depreciation on the Statement of Assets and Liabilities. Periodic payments received or made are recorded as a realized gain or loss and premiums received or made are amortized on the Statement of Operations.

If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Credit default swap agreements involve greater risks than if the Portfolio had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk.

During the year ended March 31, 2010, the Corporate Bond Portfolio purchased credit default swap contracts with a notional amount of $6,655,000.

The following table is a summary of the value of Corporate Bond Portfolio's derivative instruments as of March 31, 2010:

	Fair Value of Derivative Instruments
	Assets			Liabilities
Corporate Bond Portfolio	Statement of Assets and Liabilities	Fair Value		Statement of Assets and Liabilities	Fair Value
	—	$	—	Futures Variation Margin	$	(2,978	)*
	Open Credit Default Swap Contracts/Premiums paid		91,856	Open Credit Default Swap Contracts/Premiums received	$	(33,212	)

* Includes only current day's variation margin.

Fixed Income Sector Portfolios (continued)

March 31, 2010

The effect of derivative instruments on the Statement of Operations for the year ended March 31, 2010:

	Amount of Realized Gain or (Loss) and Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
Corporate Bond Portfolio	Risk Exposure	Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)
Futures Contracts	Interest Rate Risk	$	(43,705	)	$	—
Credit Default Swap Contracts	Credit Risk		(221,744	)		30,268

Note 6. Portfolio Information

For the year ended March 31, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Portfolios were as follows:

	U.S Government Securities				Other Investment Securities
	Purchases		Sales		Purchases		Sales
Corporate Bond Portfolio	$	7,144,446	$	6,630,490	$	24,394,339	$	25,198,669
Mortgage- and Asset-Backed Portfolio		50,993,522		54,306,544		8,659,741		9,710,623

Note 7. Line of Credit

The Portfolios 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 portfolio is limited to the lesser of $200,000,000 and the Portfolio's borrowing limit set forth in the Portfolio's registration statement. Borrowings are available for short-term liquidity or temporary or emergency purposes.

For the year ended March 31, 2010, the Portfolios did not borrow under these arrangements.

Note 8. Securities Lending

Each Portfolio 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 Portfolios and any additional required collateral is delivered to the Portfolios 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 Portfolios. Generally, in the event of borrower default, the Portfolios have the right to use the collateral to offset any losses incurred. In the event the Portfolios are delayed or prevented from

Fixed Income Sector Portfolios (continued)

March 31, 2010

exercising their right to dispose of the collateral, there may be a potential loss to the Portfolios. The Portfolios bear the risk of loss with respect to the investment of collateral.

Note 9. Shares of Beneficial Interest

As of March 31, 2010, the Portfolios had shareholders that held greater than 5% of the shares outstanding of a Portfolio, whose shares were beneficially owned by participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion. The percentages of shares of beneficial interest outstanding held therein are as follows:

	% of Shares Outstanding Held
Corporate Bond Portfolio		98.4
Mortgage- and Asset-Backed Portfolio		94.1

Subscription and redemption activity of these accounts may have a significant effect on the operations of the Portfolios.

Note 10. Significant Risks and Contingencies

Asset-Backed Securities Risk

The value of asset-backed securities may be affected by, among other factors, changes in interest rates, the market's assessment of the quality of underlying assets, the creditworthiness of the servicer for the underlying assets, factors concerning the interests in and structure of the issuer or the originator of the underlying assets, or the creditworthiness or rating of the entities that provide any supporting letters of credit, surety bonds, derivative instruments, or other credit enhancement. The value of asset-backed securities also will be affected by the exhaustion, termination or expiration of any credit enhancement. Most asset-backed securities are subject to prepayment risk, which is the possibility that the underlying debt may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Portfolio to have to reinvest the money received in securities that have lower yields. I n addition, the impact of prepayments on the value of asset-backed securities may be difficult to predict and may result in greater volatility.

Foreign Securities Risk

Mortgage-Backed Securities Risk

The value of mortgage-backed securities may be affected by, among other things, changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgages, the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements or the quality of underlying assets or the market's assessment thereof. Mortgage-backed securities are subject to prepayment risk, which is the possibility that the underlying mortgage may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Portfolio to have to reinvest the money received in securities that have lower yields. In addition, the impact of prepayments on the value of mortgage-backed securities may be difficult to predict and may result in greater volatility.

Information Regarding Pending and Settled Legal Proceedings

Fixed Income Sector Portfolios (continued)

March 31, 2010

States District Court for the District of Minnesota (the District Court). In response to defendants' motion to dismiss the complaint, the District Court dismissed one of plaintiffs' four claims and granted plaintiffs limited discovery. Defendants moved for summary judgment in April 2007. Summary judgment was granted in the defendants' favor on July 9, 2007. The plaintiffs filed a notice of appeal with the Eighth Circuit Court of Appeals (the Eighth Circuit) on August 8, 2007. On April 8, 2009, the Eighth Circuit reversed summary judgment and remanded to the District Court for further proceedings. On August 6, 2009, defendants filed a writ of certiorari with the U.S. Supreme Court (the Supreme Court), asking the Supreme Court to stay the District Court proceedings while the Supreme Court considers and rules in a case captioned Jones v. Harris Associates, which involves issues of law similar to those presented in the Gallus case. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit's decision in the Gallus case and remanded the case to the Eighth Circuit for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates.

Fixed Income Sector Portfolios (continued)

March 31, 2010

Ameriprise Financial believes that the Funds are not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.

Note 11. Subsequent Events

In connection with the preparation of the financial statements of the Portfolios as of and for the fiscal year ended March 31, 2010, events and transactions through the date the financial statements were issued have been evaluated by the Portfolios' management for possible adjustment and/or disclosure. No subsequent events or transactions have occurred that would require adjustment of the financial statements as presented. On April 30, 2010, the Transaction disclosed in Note 4 closed. Effective May 1, 2010, the New Advisor became the investment advisor and administrator of the Portfolios and subsequently changed its name to Columbia Management Investment Advisers, LLC. On that date, the New Transfer Agent became the transfer agent of the Portfolios and changed its name to Columbia Management Investment Services Corp. Also on that Date, the New Distributor became the distributor of the Portfolios and changed its name to Columbia Management Investment Distributors, Inc.

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Series Trust and Shareholders of Corporate Bond Portfolio and Mortgage- and Asset-Backed Portfolio

In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, 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 Corporate Bond Portfolio and Mortgage- and Asset-Backed Portfolio (each a series of Columbia Funds Series Trust, hereafter referred to as the "Portfolios") at March 31, 2010, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Portfolios' management. Our r esponsibility 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 March 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
May 21, 2010

Fund Governance

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, Jr. (Born 1944)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 52; Trustee—BofA Funds Series Trust.

William P. Carmichael (Born 1943)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired; oversees 52; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—Simmons Company (bedding); Director—The Finish Line (athletic shoes and apparel); Trustee—BofA Funds Series Trust.

William A. Hawkins (Born 1942)

c/o Columbia Management Investment Advisers, 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 52; Trustee—BofA Funds Series Trust.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Investment Advisers, 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 52; Director—Conseco, Inc. (insurance); Trustee—BofA Funds Series Trust.

John J. Nagorniak (Born 1944)

c/o Columbia Management Investment Advisers, 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 52; Trustee—Research Foundation of CFA Institute; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee—BofA Funds Series Trust.

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 Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 52; Board Member—Piedmont Natural Gas; Trustee—BofA Funds Series Trust.

Interested Trustee

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
Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 2002 through current; Senior Advisor—McKinsey & Company (consulting), 2006 through 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, 2000 through 2006; oversees 52; Director—Renaissance Reinsurance Ltd; Trustee—Penn Mutual Life Insurance Company; Director—Citigroup; Trustee—BofA Funds Series Trust.

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, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Senior Vice President and General Manager—Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds, since 2009, and RiverSource Funds, since May 2010 (previously Senior Vice President and Chief Financial Officer, Columbia Funds, from June 2008 to January 2009, Treasurer, Columbia Funds, from October 2003 to May 2008, and senior officer of various other affiliated funds since 2000); Managing Director, Columbia Management Advisors, LLC from December 2004 to April 2010.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, from September 2004 to April 2010; senior officer of Columbia Funds and affiliated funds since 2002.

Scott R. Plummer (Born 1959)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President, Secretary and Chief Legal Officer (since 2010)				Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Vice President and Lead Chief Counsel—Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel—Asset Management, from 2005 to April 2010, and Vice President—Asset Management Compliance from 2004 to 2005); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; Vice President, General Counsel and Secretary, RiverSource Funds, since December 2006; Senior Vice President, Secretary and Chief Legal Officer, Columbia Funds, since May 2010.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Vice President and Chief Compliance Officer, Columbia Management Investment Advisers, LLC since May 2010; Chief Compliance Officer, Columbia Funds, since 2007, and RiverSource Funds, since May 2010; Director (Columbia Management Group, LLC and Investment Product Group Compliance), Bank of America, from June 2005 to April 2010; Director of Corporate Compliance and Conflicts Officer of MFS Investment Management (investment management) from August 2004 to May 2005.

William F. Truscott (Born 1960)

53600 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 (previously President, Chairman of the Board and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, U.S. Asset Management & President, Annuities, Ameriprise Financial, Inc. since May 2010 (previously President—U.S. Asset Management and Chief Investment Officer from 2005 to April 2010, and Senior Vice President—Chief Investment Officer, from 2001 to 2005); Director, President and Chief Executive Officer, Ameriprise Certificate Company since 2006; Director, Columbia Management Investment Distributors, Inc. since May 2010 (previously Chairman of the Board and Chief Executive Officer from 2008 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006.

Fund Governance (continued)

Officers (continued)

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
Colin Moore (Born 1958)

One Financial Center Boston, MA 02111 Senior Vice President (since 2010)				Director and Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC from 2007 to April 2010; Head of Equities, Columbia Management Advisors, LLC from 2002 to 2007.

Michael A. Jones (Born 1959)

100 Federal Street Boston, MA 02110 Senior Vice President (since 2010)				Director and President, Columbia Management Investment Advisers, LLC since May 2010; President and Director, Columbia Management Investment Distributors, Inc. since May 2010; Manager, Chairman, Chief Executive Officer and President, Columbia Management Advisors, LLC from 2007 to April 2010; Chief Executive Officer, President and Director, Columbia Management Distributors, Inc. from November 2006 to April 2010; previously, co-president and senior managing director at Robeco Investment Management.

Amy Johnson (Born 1965)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009 until April 2010, Vice President—Asset Management and Trust Company Services, from 2006 to 2009, and Vice President—Operations and Compliance from 2004 to 2006).

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Treasurer (since 2010) and Chief Accounting Officer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC from January 2006 to April 2010; Head of Tax/Compliance and Assistant Treasurer, Columbia Management Advisors, LLC, from November 2004 to December 2005.

Marybeth Pilat (Born 1968)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2010)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Vice President, Investment Operations, Bank of America, from October 2008 to April 2010; Finance Manager, Boston Children's Hospital from August 2008 to October 2008; Director, Mutual Fund Administration, Columbia Management Advisors, LLC, from May 2007 to July 2008; Vice President, Mutual Fund Valuation, Columbia Management Advisors, LLC, from January 2006 to May 2007; Vice President, Mutual Fund Accounting Oversight, Columbia Management Advisors, LLC from January 2005 to January 2006.

Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, from August 2008 to April 2010; Senior Tax Manager, Columbia Management Advisors, LLC from August 2006 to July 2008; Senior Compliance Manager, Columbia Management Advisors, LLC from April 2002 to August 2006.

Fund Governance (continued)

Officers (continued)

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 2006)				President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc. from July 2004 to April 2010; Managing Director, Columbia Management Distributors, Inc. from August 2007 to April 2010.

Board Consideration and Re-Approval of Previous 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 agreement 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 agreement 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, the investment advisory agreement with Columbia Management Advisors, LLC ("CMA" or the "Adviser") for Corporate Bond Portfolio and Mortgage- and Asset-Backed Portfolio. The investment advisory agreement with CMA is referred to as an "Advisory Agreement." The portfolios identified above are each referred to as a "Portfolio" and collectively referred to as the "Portfolio s."

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 Portfolio'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 for each Portfolio, and their determinations were made separately in respect of each Portfolio.

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 Portfolios by CMA under the Advisory Agreement. The most recent investment adviser registration forms for CMA were made available to the Board, as were CMA'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.

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

Investment 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 Portfolios to CMA for investment advisory services (the "Contractual Management Rates"). 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 expenses of certain funds across the fund complex. Additionally, the Board rece ived 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 noted that no fees or expenses are charged to the Portfolios.

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 Portfolios.

Portfolio Performance. The Board considered the performance results for each of the Portfolios over multiple measurement periods. It also considered these results in comparison to the performance results of the group of funds that was determined by Lipper Inc. ("Lipper") to be the most similar to a given Portfolio (the "Peer Group") and to the performance of a broader universe of relevant funds as determined by Lipper (the "Universe"), as well as to each Portfolio's benchmark index. Lipper is 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 Portfolio's Peer Group and Universe and considered potential imprecision resulting from the selection methodology. For certain Portfolios, 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 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 Portfolios and other funds in the complex on the one hand and CMA affiliates on the other. The analysis included complex-wide and per-Portfolio 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 Portfolios, whether the Portfolios 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 Portfolio shareholders, most through CMA's assumption of certain Portfolio expenses.

Other Benefits to CMA. The Board received and considered information regarding any "fall-out" or ancillary benefits received by CMA and its affiliates as a result of their

relationship with the Portfolios. Such benefits could include, among others, benefits attributable to CMA's relationship with the Portfolios (such as soft-dollar credits) and benefits potentially derived from an increase in CMA's business as a result of its relationship with the Portfolios (such as the ability to market to shareholders other financial products offered by CMA and its affiliates).

The Board considered the effectiveness of the policies of the Portfolios 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 methods for allocating portfolio investment opportunities among the Portfolios 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 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 Portfolios receives throughout the year. In this regard, the Board and its Committees review reports of CMA at each of its quarterly meetings, which include, among other things, Portfolio 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.

Board Consideration and Approval of New 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 trust, for purposes of this shareholder report, the description is only relevant as to the Fixed Income Sector Portfolios.

(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.

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.

Corporate Bond Portfolio and Mortgage- and Asset-Backed Portfolio were not highlighted as review funds.

Summary of Management Fee Evaluation by Independent Fee Consultant (Columbia Management Advisors, LLC)

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

November 12, 2009

I. Overview

A. Role of the Independent Fee Consultant

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

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

Summary of Management Fee Evaluation by Independent Fee Consultant (RiverSource Investments, LLC)

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

December 22, 2009

I. Overview

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 this written evaluation of the fee negotiation process. As was the case with the last three annual reports, my immediate predecessor as IFC, John Rea, provided invaluable assistance in the preparation of this 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 (or RI), 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 the adviser's services, including the Fund's performance;

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

³ Preliminary Response of Ameriprise to Information Request of Columbia Nations Board dated October 28, 2009 (hereafter, the "Preliminary Response"), p. 1.

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 the adviser for like services;

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

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

C. Data Presented to the Trustees

• tables comparing the fee schedules and effective fee rates of funds managed by CMA and RI and institutional accounts advised by the two firms.

II. Findings

* * *

Respectfully submitted,
Steven E. Asher

Proxy Voting Results

Corporate Bond Portfolio and Mortgage- and Asset-Backed Portfolio

On March 3, 2010, a special meeting of shareholders of Columbia Funds Series Trust was held to consider the approval of several proposals listed in the proxy statement for the meeting. Proposal 1 and Proposal 2 were voted on at the March 3, 2010 meeting of shareholders and Proposal 3 was voted on at an adjourned meeting of shareholders held on April 26, 2010. The shareholder meeting results are as follows:

Fund	Votes For		Votes Against		Abstentions		Broker Non-Votes
Corporate Bond Portfolio		2,240,031		0		0		0
Mortgage- and Asset-Backed Portfolio		4,481,459		0		0		1,214

Proposal 2: A proposal authorizing CMIA to enter into and materially amend subadvisory agreements for the Portfolio in the future, with the approval of the Trust's Board of Trustees, but without obtaining additional shareholder approval, was approved for each Portfolio as follows:

Fund	Votes For		Votes Against		Abstentions		Broker Non-Votes
Corporate Bond Portfolio		2,240,031		0		0		0
Mortgage- and Asset-Backed Portfolio		4,481,459		0		0		1,214

Proposal 3: Each of the nominees for trustees was elected to the Trust's Board of Trustees, as follows:

Trustee	Votes For		Votes Withheld		Abstentions
Edward J. Boudreau, Jr.		2,680,026,424		72,649,450		0
William P. Carmichael		2,679,841,716		72,834,157		0
William A. Hawkins		2,679,847,210		72,828,663		0
R. Glenn Hilliard		2,679,699,063		72,976,810		0
John J. Nagorniak		2,680,054,075		72,621,799		0
Minor M. Shaw		2,680,402,097		72,273,776		0
Anthony M. Santomero		2,679,633,235		73,042,638		0

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Important Information About This Report

The portfolios mail 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 Fixed Income Sector Portfolios.

A description of the policies and procedures that each portfolio uses to determine how to vote proxies and a copy of each portfolio'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 each portfolio voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how each portfolio voted proxies relating to portfolio securities is also available from the portfolios' website, www.columbiamanagement.com.

Each portfolio files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each portfolio'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.

Transfer Agent*

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

Distributor*

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

Investment Advisor*

Columbia Management Investment
Advisers, LLC
100 Federal Street
Boston, MA 02110

*As of May 1, 2010

Columbia Management^®

One Financial Center
Boston, MA 02111-2621

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

Columbia Management^®

Fixed Income Sector Portfolios

Annual Report, March 31, 2010

One Financial Center, Boston, MA 02111-2621

800-345-6611 www.columbiafunds.com

SHC-42/44407-0310 (05/10) 10/W4Z5G2

Columbia Management^®

Annual Report

March 31, 2010

Columbia LifeGoal^TM Portfolios

^gColumbia LifeGoal^TM Growth Portfolio

^gColumbia LifeGoal^TM Balanced Growth Portfolio

^gColumbia LifeGoal^TM Income and Growth Portfolio

^gColumbia LifeGoal^TM Income Portfolio

Not FDIC Insured ⁿ May Lose Value ⁿ No Bank Guarantee

Table of Contents

Economic Update					1

LifeGoal^TM Growth Portfolio					3

LifeGoal^TM Balanced Growth Portfolio					8

LifeGoal^TM Income and Growth Portfolio					13

LifeGoal^TM Income Portfolio					18

Financial Statements					23

Report of Independent Registered Public Accounting Firm					67

Federal Income Tax Information					68

Fund Governance					69

Board Consideration and Re-Approval of Previous Investment Advisory Agreement					74

Board Consideration and Approval of New Investment Advisory Agreement					78

Summary of Management Fee Evaluation by Independent Fee Consultant (Columbia Management Advisors, LLC)					85

Summary of Management Fee Evaluation by Independent Fee Consultant (RiverSource Investments, LLC)					91

Proxy Voting Results					93

Important Information About This Report					97

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:

				Service provider name
Advisers				Columbia Management Investment Advisers, LLC Columbia Wanger Asset Management, LLC

Distributor				Columbia Management Investment Distributors, Inc.

Transfer Agent				Columbia Management Investment Services Corp.

Sincerely,

J. Kevin Connaughton
President, Columbia Funds

¹Source: Ameriprise Financial, Inc., based on March 31, 2010 data from the Investment Company Institute

Economic Update – Columbia LifeGoal Portfolios

In the beleaguered labor market, there was some good news. While businesses continued to shed jobs through most of 2009, raising the unemployment rate at the end of the period, job data turned solidly positive in March 2010, buoyed by a swell of temporary workers hired to conduct the national once-in-a-decade census. Consumer spending also trended higher in the second half of the period. In fact, March year-over-year sales made a significant jump upward. Despite these improvements, consumer confidence, as measured monthly by The Conference Board, an independent research organization, failed to gain much ground during the year. Consumers surveyed continue to cite uncertain business conditions and still-weak labor prospects for their concerns.

On the business side of the economy, manufacturing activity gained momentum. A key measure of the nation's manufacturing situation—the Institute for Supply Management's Index—rose above 50 in July 2009—then rose for eight consecutive months to remain well above 50 for the remainder of the period. (An index value of 50+ indicates a growing economy.) Industrial production moved higher for eleven out of the past 12 months, and durable goods orders took off, with a big jump upward in January. Manufacturing capacity utilization inched upward to 72.7%.

Stocks staged a solid comeback

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

Summary

For the 12-month period that ended March 31, 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				BofA ML Index

Economic Update (continued) – Columbia LifeGoal Portfolios

indices.² Outside the United States, stock market returns were slightly stronger. The MSCI EAFE Index,³ a broad gauge of stock market performance in foreign developed markets, gained 54.44% (net of dividends, in U.S. dollars) for the period. Emerging stock markets were caught in a downdraft in 2008, but they bounced back stronger than domestic or developed world markets as their economic growth generally outpaced the developed world. The MSCI Emerging Markets Index⁴ returned 81.08% (net of dividends, in U.S. dollars) for the 12-month period, after giving back some gains in the first quarter of 2010.

Bond returns ranged from solid to strong

Past performance is no guarantee of future results.

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 lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indicies.

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.

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 BofA Merrill Lynch U.S. High Yield Cash Pay Index tracks the performance of non-investment-grade corporate bonds.

Portfolio Profile – Columbia LifeGoal Growth Portfolio

Summary

^g For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 55.04% without sales charge.

^g The portfolio outperformed its benchmark, the S&P 500 Index¹, which rose 49.77%. Its return was significantly higher than the 48.45% average return of the funds in its peer group, the Lipper Large-Cap Core Funds Classification.²

^g We attribute the portfolio's strong relative performance to positive tactical allocations as well as to underlying funds that produced returns that surpassed their benchmarks.

Portfolio Management

Anwiti Bahuguna, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Colin Moore has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Kent M. Peterson, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2006.

Marie M. Schofield has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 1990.

Effective May 1, 2010, David Joy will also co-manage the fund.

¹The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. 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 portfolio 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 portfolio. Lipper makes no adjustment for the effect of sales loads.

Summary

1-year return as of 03/31/10

				+55.04%

				Class A shares (with sales charge)

				+49.77%

				S&P 500 Index

Morningstar Style Box^TM

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

Performance Information – Columbia LifeGoal Growth Portfolio

Annual operating expense ratio (%)*

Class A					1.49
Class B					2.24
Class C					2.24
Class R					1.74
Class Z					1.24

*The annual operating expense ratio is as stated in the portfolio's prospectus that is current as of the date of this report and includes the expenses incurred by the underlying funds in which the portfolio invests. Differences in expense ratios disclosed elsewhere in this report may result from the inclusion of expenses incurred by the underlying funds, fee waivers and expense reimbursements as well as the use of different time periods in calculating the ratios.

Performance of a $10,000 investment 04/01/00 – 03/31/10

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

Performance of a $10,000 investment 04/01/00 – 03/31/10 ($)

Sales charge	without		with
Class A		12,194		11,495
Class B		11,302		11,302
Class C		11,294		11,294
Class R		12,064		n/a
Class Z		12,474		n/a

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

Share class	A				B				C				R		Z
Inception	10/15/96				08/12/97				10/15/96				01/23/06		10/15/96
Sales charge	without		with		without		with		without		with		without		without
1-year		55.04		46.07		53.78		48.78		53.73		52.73		54.68		55.20
5-year		4.22		3.00		3.46		3.17		3.44		3.44		4.00		4.50
10-year		2.00		1.40		1.23		1.23		1.22		1.22		1.89		2.24

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 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.

Performance results reflect any fee waivers or reimbursements of portfolio 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.

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 R shares are sold at net asset value with distribution and service (Rule 12b-1) fees. Class R and Class Z shares have limited eligibility and the investment minimum requirements may vary. Please see the portfolio'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 portfolio distributions or on the redemption of portfolio shares.

The inception date of the portfolio's Class R shares is January 23, 2006. Class R shares have no performance prior to their inception date. The performance shown for Class R shares prior to their inception date is that of Class A shares. If Class R shares fees and expenses were included, performance would be lower.

Understanding Your Expenses – Columbia LifeGoal Growth Portfolio

As a portfolio 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 portfolio expenses. The information on this page is intended to help you understand the ongoing costs of investing in the portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your portfolio'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 portfolio'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 portfolio'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 cost of investing in the portfolio 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 portfolio 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 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.

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 portfolio and when comparing the expenses of this portfolio with other funds.

10/01/09 – 03/31/10

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)				Portfolio's annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Class A		1,000.00		1,000.00		1,102.50		1,022.44		2.62		2.52		0.50
Class B		1,000.00		1,000.00		1,098.50		1,018.70		6.54		6.29		1.25
Class C		1,000.00		1,000.00		1,099.40		1,018.70		6.54		6.29		1.25
Class R		1,000.00		1,000.00		1,101.00		1,021.19		3.93		3.78		0.75
Class Z		1,000.00		1,000.00		1,104.23		1,023.68		1.31		1.26		0.25

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 portfolio's most recent fiscal half-year and divided by 365.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the portfolio 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 portfolios. If these transaction costs were included, your costs would have been higher.

As a shareholder of the underlying funds in which it invests, the portfolio will bear its allocable share of the costs and expenses of these underlying funds. These costs and expenses are not included in expense information in the table above.

Portfolio Managers' Report – Columbia LifeGoal Growth Portfolio

Net asset value per share

as of 03/31/10 ($)

Class A					10.33
Class B					9.48
Class C					9.40
Class R					10.25
Class Z					10.49

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.02
Class B					0.01
Class C					0.01
Class R					0.02
Class Z					0.02

For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 55.04% without sales charge. The portfolio surpassed its benchmark, the S&P 500 Index, which returned 49.77% during the period. Its return was also higher than the average return of the funds in its peer group, the Lipper Large-Cap Core Funds Classification, which rose 48.45%. We attribute the portfolio's strong relative performance to positive tactical allocations, as well as to underlying funds that outperformed their benchmarks.

Tactical allocations, underlying funds benefited performance

In addition to positive tactical allocations, Columbia LifeGoal Growth Portfolio benefited from strong performance of several of its underlying funds. For the period, Columbia Value and Restructuring Fund, Columbia Contrarian Core Fund, Columbia Acorn USA, Columbia Marsico Focused Equities Fund and Columbia Pacific/Asia Fund all outperformed their respective benchmarks. However, Columbia Mid Cap Value Fund, Columbia Convertible Securities Fund and Columbia International Value Fund underperformed their benchmarks by considerable margins.

Portfolio Managers' Report (continued) – Columbia LifeGoal Growth Portfolio

Looking ahead

We believe that expectations for higher corporate earnings and a continued favorable interest rate climate could help support the U.S. stock market. Outside the United States, a debt rescue package for Greece and positive economic growth are also favorable signs for the financial markets. In this environment, the portfolio favors domestic and emerging markets over developed international markets.

Columbia LifeGoal Portfolios reserve the right to add or remove underlying funds at any time.

The portfolio is a "fund of funds." A fund of funds bears its allocable share of the costs and expenses of the underlying funds in which it invests. Such funds are thus subject to two levels of fees and a potentially higher expense ratio than would be associated with an investment in a fund that invests and trades directly in financial instruments under the direction of a single manager. Risks include stock market fluctuations due to business and economic developments.

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

Stocks of small- and mid-cap companies may pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments.

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.

Portfolio Allocation

as of 03/31/10 (%)

Columbia Mid Cap Growth Fund					10.9
Columbia Mid Cap Value Fund					10.8
Columbia Contrarian Core Fund					7.2
Columbia Emerging Markets Fund					6.6
Columbia Large Cap Core Fund					6.5
Columbia Small Cap Value Fund II					6.0
Columbia International Value Fund					6.0
Columbia Value and Restructuring Fund					4.9
Columbia Marsico Focused Equities Fund					4.2
Columbia Large Cap Growth Fund					4.1
Columbia Disciplined Value Fund					4.1
Columbia Select Large Cap Growth Fund					4.1
Columbia Large Cap Value Fund					4.1
Columbia Marsico International Opportunities Fund					3.2
Columbia Acorn International					3.1
Columbia Acorn USA					3.0
Columbia Energy and Natural Resources Fund					2.5
Columbia Convertible Securities Fund					2.3
iShares MSCI Japan Index Fund					1.5
Columbia Small Cap Growth Fund I					1.5
Columbia Small Cap Growth Fund II					1.5
Columbia U.S. Treasury Index Fund					1.4
Columbia Pacific/Asia Fund					0.5

Portfolio allocation is calculated as a percentage of total investments.

Portfolio Profile – Columbia LifeGoal Balanced Growth Portfolio

Summary

1-year return as of 03/31/10

				+42.94%

				Class A shares (without sales charge)

				+7.69%

				Barclays Capital Aggregate Bond Index

				+49.77%

				S&P 500 Index

Summary

^g For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 42.94% without sales charge.

^g The portfolio's equity benchmark, the S&P 500 Index¹, returned 49.77% while its fixed-income index, the Barclays Capital Aggregate Bond Index², returned 7.69%.

^g The portfolio significantly outperformed the average return of the funds in its peer group, the Lipper Mixed–Asset Target Allocation Moderate Funds Classification³, which returned 35.05%. Positive tactical allocations aided performance, and some underlying funds produced returns that surpassed their benchmarks.

Portfolio Management

Anwiti Bahuguna, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Colin Moore has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Kent M. Peterson, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2006.

Marie M. Schofield has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 1990.

Effective May 1, 2010, David Joy will also co-manage the fund.

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

Performance Information – Columbia LifeGoal Balanced Growth Portfolio

Performance of a $10,000 investment 04/01/00 – 03/31/10

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

Performance of a $10,000 investment 04/01/00 – 03/31/10 ($)

Sales charge	without		with
Class A		15,224		14,350
Class B		14,105		14,105
Class C		14,097		14,097
Class R		15,050		n/a
Class Z		15,603		n/a

Annual operating expense ratio (%)*

Class A					1.38
Class B					2.13
Class C					2.13
Class R					1.63
Class Z					1.13

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

Share class	A				B				C				R		Z
Inception	10/15/96				08/13/97				10/15/96				01/23/06		10/15/96
Sales charge	without		with		without		with		without		with		without		without
1-year		42.94		34.67		41.72		36.72		41.76		40.76		42.46		43.01
5-year		4.82		3.59		4.03		3.72		4.02		4.02		4.58		5.09
10-year		4.29		3.68		3.50		3.50		3.49		3.49		4.17		4.55

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

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

Understanding Your Expenses – Columbia LifeGoal Balanced Growth Portfolio

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 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.

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 portfolio and when comparing the expenses of this portfolio with other funds.

Analyzing your portfolio'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 portfolio'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 portfolio'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 cost of investing in the portfolio 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 portfolio and do not reflect any transaction costs, such as sales charges, redemption fees or exchange fees.

10/01/09 – 03/31/10

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)				Portfolio's annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Class A		1,000.00		1,000.00		1,079.60		1,022.44		2.59		2.52		0.50
Class B		1,000.00		1,000.00		1,075.10		1,018.70		6.47		6.29		1.25
Class C		1,000.00		1,000.00		1,075.20		1,018.70		6.47		6.29		1.25
Class R		1,000.00		1,000.00		1,077.30		1,021.19		3.88		3.78		0.75
Class Z		1,000.00		1,000.00		1,080.00		1,023.68		1.30		1.26		0.25

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 portfolio's most recent fiscal half-year and divided by 365.

Portfolio Managers' Report – Columbia LifeGoal Balanced Growth Portfolio

For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 42.94% without sales charge. The portfolio's equity benchmark, the broad-based S&P 500 Index, returned 49.77% and its fixed-income benchmark, the Barclays Capital Aggregate Bond Index, returned 7.69%. The portfolio significantly outperformed the average return of the funds in its peer group, the Lipper Mixed-Asset Target Allocation Moderate Funds Classification, which returned 35.05%. We attribute the portfolio's strong relative performance to tactical allocations as well as to underlying funds that outperformed their benchmarks.

Tactical allocations, underlying funds benefited performance

Early in the 12-month period, we increased the portfolio's exposure to equities. After a run-up in the markets, we took some steps to reduce the portfolio's risk exposure by reducing equities—including small caps—and establishing a position in commodities with an investment in Columbia Energy and Natural Resources Fund.

In the fixed-income portion of the portfolio, the management team maintained an overweight in investment-grade bonds and high-yield securities. The allocation to high-yield securities was particularly beneficial, as the Columbia High Income Fund returned 42.69% for the period. As the period wore on, the team raised its position in investment-grade bonds and cut back exposure to high yield. As part of a move to manage risk, we established a position in Columbia U.S. Treasury Index Fund.

In addition to positive tactical allocations, Columbia LifeGoal Balanced Growth Portfolio benefited from strong performance of several of its underlying funds. For the period, Columbia Value and Restructuring Fund, Columbia Contrarian Core Fund, Columbia Acorn USA, Columbia Marsico Focused Equities Fund, Columbia Pacific/Asia Fund, Columbia Total Return Bond Fund and Columbia Income Fund outperformed their respective benchmarks. However, Columbia Mid Cap Value Fund, Columbia Convertible Securities Fund, Columbia International Value Fund and Columbia High Income Fund underperformed their benchmarks by a considerable margin.

Net asset value per share

as of 03/31/10 ($)

Class A					10.23
Class B					10.16
Class C					10.29
Class R					10.22
Class Z					10.21

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.22
Class B					0.16
Class C					0.16
Class R					0.20
Class Z					0.25

Portfolio Managers' Report (continued) – Columbia LifeGoal Balanced Growth Portfolio

Portfolio Allocation

as of 03/31/10 (%)

Columbia Total Return Bond Fund	18.8
Columbia Income Fund	9.4
Columbia High Income Fund	8.4
Columbia International Value Fund	5.7
Columbia Mid Cap Growth Fund	4.7
Columbia Mid Cap Value Fund	4.7
Columbia Contrarian Core Fund	4.7
Columbia Emerging Markets Fund	4.6
Columbia Small Cap Value Fund II	3.9
Columbia Large Cap Core Fund	3.4
Columbia Value and Restructuring Fund	3.3
Columbia Marsico International Opportunities Fund	3.0
Columbia Acorn International	2.9
Columbia Energy and Natural Resources Fund	2.6
Columbia Convertible Securities Fund	2.1
Columbia Marsico Focused Equities Fund	2.1
Columbia Select Large Cap Growth Fund	2.1
Columbia Large Cap Growth Fund	2.1
Columbia Large Cap Value Fund	2.1
Columbia Disciplined Value Fund	2.0
Columbia Acorn USA	1.9
iShares MSCI Japan Index Fund	1.6
Columbia U.S. Treasury Index Fund	1.4
Columbia Small Cap Growth Fund I	1.0
Columbia Small Cap Growth Fund II	1.0
Columbia Pacific/Asia Fund	0.5
Columbia Cash Reserves	0.0	*

Portfolio allocation is calculated as a percentage of total investments.

*Rounds to less then 0.1%

Looking ahead

We believe that expectations for higher corporate earnings and a continued favorable interest-rate climate could help support the U.S. stock market. Outside the United States, a debt rescue package for Greece and positive economic growth are also favorable signs for the financial markets. In this environment, the portfolio favors domestic and emerging markets over developed international markets.

Columbia LifeGoal Portfolios reserve the right to add or remove underlying funds at any time.

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

Stocks of small- and mid-cap companies may pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

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.

Investments in high-yield bonds (sometimes referred to as "junk" bonds) offer the potential for high current income and attractive total return, but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a high-yield bond issuer's ability to make principal and interest payments. High-yield bonds issued by foreign entities have greater potential risks, including less regulation, currency fluctuations, economic instability and political developments.

Portfolio Profile – Columbia LifeGoal Income and Growth Portfolio

Summary

^g For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 29.06% without sales charge.

^g The portfolio's equity benchmark, the S& P 500 Index¹, rose 49.77%, while its fixed-income index, the Barclays Capital Aggregate Bond Index², returned 7.69%.

^g The portfolio outperformed the average return of the funds in its peer group, the Lipper Mixed-Asset Target Allocation Conservative Funds Classification,³ which returned 27.20%. Positive tactical allocations as well as underlying funds that outperformed their benchmarks generally accounted for the portfolio's strong results.

Portfolio Management

Anwiti Bahuguna, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Colin Moore has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Kent M. Peterson, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2006.

Marie M. Schofield has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 1990.

Effective May 1, 2010, David Joy will also co-manage the fund.

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

Summary

1-year return as of 03/31/10

				+29.06%

				Class A shares (without sales charge)

				+7.69%

				Barclays Capital Aggregate Bond Index

				+49.77%

				S&P 500 Index

Performance Information – Columbia LifeGoal Income and Growth Portfolio

Annual operating expense ratio (%)*

Class A					1.23
Class B					1.98
Class C					1.98
Class R					1.48
Class Z					0.98

Performance of a $10,000 investment 04/01/00 – 03/31/10

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

Performance of a $10,000 investment 04/01/00 – 03/31/10 ($)

Sales charge	without		with
Class A		15,799		14,893
Class B		14,643		14,643
Class C		14,635		14,635
Class R		15,632		n/a
Class Z		16,166		n/a

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

Share class	A				B				C				R		Z
Inception	10/15/96				08/07/97				10/15/96				01/23/06		10/15/96
Sales charge	without		with		without		with		without		with		without		without
1-year		29.06		21.64		27.94		22.94		27.99		26.99		28.58		29.25
5-year		4.73		3.50		3.94		3.63		3.94		3.94		4.50		4.96
10-year		4.68		4.06		3.89		3.89		3.88		3.88		4.57		4.92

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

Understanding Your Expenses – Columbia LifeGoal Income and Growth Portfolio

Analyzing your portfolio'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 portfolio'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 portfolio'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 cost of investing in the portfolio 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 portfolio 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 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.

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 portfolio and when comparing the expenses of this portfolio with other funds.

10/01/09 – 03/31/10

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)				Portfolio's annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Class A		1,000.00		1,000.00		1,061.00		1,022.44		2.57		2.52		0.50
Class B		1,000.00		1,000.00		1,056.30		1,018.70		6.41		6.29		1.25
Class C		1,000.00		1,000.00		1,056.60		1,018.70		6.41		6.29		1.25
Class R		1,000.00		1,000.00		1,058.60		1,021.19		3.85		3.78		0.75
Class Z		1,000.00		1,000.00		1,061.90		1,023.68		1.29		1.26		0.25

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 portfolio's most recent fiscal half-year and divided by 365.

Portfolio Managers' Report – Columbia LifeGoal Income and Growth Portfolio

Net asset value per share

as of 03/31/10 ($)

Class A					10.04
Class B					10.00
Class C					9.94
Class R					10.04
Class Z					9.94

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.30
Class B					0.23
Class C					0.23
Class R					0.28
Class Z					0.33

For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 29.06% without sales charge. The portfolio's equity benchmark, the broad-based S&P 500 Index, returned 49.77% and its fixed-income benchmark, the Barclays Capital Aggregate Bond Index, rose 7.69%. The portfolio surpassed the average return of the funds in its peer group, the Lipper Mixed-Asset Target Allocation Conservative Funds Classification, which returned 27.20%. We attribute the portfolio's strong relative performance to positive tactical allocations, as well as to underlying funds that outperformed their benchmarks.

Tactical allocations, underlying funds benefited performance

With a strengthening economy as its backdrop, stock markets around the world rallied from mid-March 2009 through the end of the period. U.S. stocks rose strongly, and developed and emerging international markets produced even heftier gains. In this environment, the portfolio's asset allocation team added to equities and reduced fixed income. We maintained an overweight in small-cap stocks but cut back slightly on the portfolio's small-cap position after a strong run up in the sector. Small-cap stocks returned 64.00%, as measured by the S&P SmallCap 600 Index. We also overweighted emerging markets, adding positions in Columbia Pacific/Asia Fund and iShares MSCI Japan Index Fund, which helped boost performance as emerging markets rose 81.08%, as measured by the MSCI Emerging Markets Index. Within fixed income, the team added to corporate bond holdings by reducing cash. We maintained an overweight in high-yield securities, whic h was particularly beneficial as Columbia High Income Fund returned 42.69% for the period. However, we cut back exposure to high yield later in the period and raised the portfolio's exposure to investment-grade bonds, which was another positive performer for the portfolio. As part of a move to broaden diversification and manage risk, we established new positions in commodities and U.S. Treasuries through investments in Columbia Energy and Natural Resources Fund and Columbia U.S. Treasury Index Fund.

In addition to positive tactical allocations, Columbia LifeGoal Income and Growth Portfolio benefited from strong performance of several of its underlying funds. For the period, Columbia Value and Restructuring Fund, Columbia Contrarian Core Fund, Columbia Acorn USA, Columbia Marsico Focused Equities Fund, Columbia Pacific/Asia Fund, Columbia Total Return Bond Fund, Columbia Short Term Bond Fund and Columbia Income Fund outperformed their respective benchmarks. Columbia Mid Cap Value Fund, Columbia Convertible Securities Fund, Columbia International Value Fund and Columbia High Income Fund underperformed their respective benchmarks by considerable margins.

Portfolio Managers' Report (continued) – Columbia LifeGoal Income and Growth Portfolio

Looking ahead

Columbia LifeGoal Portfolios reserve the right to add or remove underlying funds at any time.

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

Stocks of small- and mid-cap companies may pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

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.

Portfolio Allocation

as of 03/31/10 (%)

Columbia Short Term Bond Fund					24.7
Columbia Total Return Bond Fund					19.5
Columbia High Income Fund					11.5
Columbia Income Fund					8.8
Columbia Emerging Markets Fund					3.6
Columbia Energy and Natural Resources Fund					2.5
Columbia Contrarian Core Fund					2.5
Columbia Convertible Securities Fund					2.1
Columbia Mid Cap Growth Fund					2.0
Columbia Mid Cap Value Fund					2.0
Columbia Large Cap Core Fund					2.0
Columbia International Value Fund					1.7
iShares MSCI Japan Index Fund					1.6
Columbia Small Cap Value Fund II					1.5
Columbia U.S. Treasury Index Fund					1.5
Columbia Marsico Focused Equities Fund					1.3
Columbia Large Cap Growth Fund					1.3
Columbia Disciplined Value Fund					1.3
Columbia Large Cap Value Fund					1.3
Columbia Value and Restructuring Fund					1.3
Columbia Select Large Cap Growth Fund					1.3
Columbia Acorn International					1.0
Columbia Marsico International Opportunities Fund					1.0
Columbia Acorn USA					0.8
Columbia Cash Reserves					0.6
Columbia Pacific/Asia Fund					0.5
Columbia Small Cap Growth Fund I					0.4
Columbia Small Cap Growth Fund II					0.4

Portfolio allocation is calculated as a percentage of total investments.

Portfolio Profile – Columbia LifeGoal Income Portfolio

Summary

1-year return as of 03/31/10

				+19.77%

				Class A shares (without sales charge)

				+4.72%

				Barclays Capital U.S. Aggregate 1-3 Years Index

				+13.66%

				Blended 80% Barclays Capital U.S. Aggregate 1-3 Years Index / 20% Barclays Capital U.S. Corporate High Yield Bond Index

Summary

^g For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 19.77% without sales charge.

^g The portfolio outperformed its fixed-income index, the Barclays Capital U.S. Aggregate 1-3 Years Index¹; a customized benchmark² created by Columbia Management Advisors, blending 80% Barclays Capital U.S. Aggregate 1-3 Years Index and 20% Barclays Capital U.S. Corporate High Yield Bond Index; and the average return of the funds in its peer group, the Lipper General Bond Funds Classification.³

^g Positive tactical allocations and underlying funds that produced returns that surpassed their benchmarks generally accounted for the portfolio's strong performance.

Portfolio Management

Anwiti Bahuguna, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Colin Moore has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2002.

Kent M. Peterson, PhD has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 2006.

Marie M. Schofield has co-managed the portfolio since February 2009 and has been associated with the advisor or its predecessors since 1990.

Effective May 1, 2010, David Joy will also co-manage the fund.

¹The Barclays Capital U.S. Aggregate 1-3 Years Index is an index of publicly-issued investment-grade corporate, U.S. Treasury and government agency securities with remaining maturities of one to three years.

²This blend is 80% Barclays Capital U.S. Aggregate 1-3 Years Index and 20% Barclays Capital U.S. Corporate High Yield Bond Index. The Barclays Capital U.S. Corporate High Yield Bond Index is a market value-weighted index, which covers the U.S. non-investment grade fixed-rate debt market. The index is composed of US. dollar-denominated corporate debt in industrial, utility and finance sectors with a minimum $150 million par amount outstanding and a maturity greater than one year. The index includes reinvestment of income.

Performance Information – Columbia LifeGoal Income Portfolio

Performance of a $10,000 investment 09/04/03 – 03/31/10

*Benchmark performance is as of 08/31/03

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

Performance of a $10,000 investment 09/04/03 – 03/31/10 ($)

Sales charge	without		with
Class A		13,087		12,656
Class B		12,455		12,455
Class C		12,447		12,447
Class Z		13,312		n/a

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

Share class	A				B				C				Z
Inception	09/04/03				09/04/03				09/05/03				09/04/03
Sales charge	without		with		without		with		without		with		without
1-year		19.77		15.86		19.04		16.04		19.07		18.07		20.33
5-year		4.03		3.34		3.26		3.26		3.26		3.26		4.29
Life		4.18		3.65		3.40		3.40		3.39		3.39		4.45

The "with sales charge" returns include the maximum initial sales charge of 3.25% for Class A shares and the applicable contingent deferred sales charge of 3.00% in the first year, declining to 1.00% in the fourth 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 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 portfolio'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 portfolio distributions or on the redemption of portfolio shares.

Annual operating expense ratio (%)*

Class A					1.63
Class B					2.38
Class C					2.38
Class Z					1.38

Annual operating expense ratio

after contractual waivers (%)*

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

*The annual operating expense ratio and annual operating expense ratio after contractual waivers are as stated in the portfolio's prospectus that is current as of the date of this report and include the expenses incurred by the underlying funds in which the portfolio invests. The contractual waiver expires 07/31/10. Differences in expense ratios disclosed elsewhere in this report may result from including expenses incurred by the underlying funds, fee waivers and expense reimbursements as well as the use of different time periods in calculating the ratios.

Understanding Your Expenses – Columbia LifeGoal Income Portfolio

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 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.

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 portfolio and when comparing the expenses of this portfolio with other funds.

Analyzing your portfolio'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 portfolio'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 portfolio'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 cost of investing in the portfolio 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 portfolio and do not reflect any transaction costs, such as sales charges, redemption fees or exchange fees.

10/01/09 – 03/31/10

	Account value at the beginning of the period ($)				Account value at the end of the period ($)				Expenses paid during the period ($)				Portfolio's annualized expense ratio (%)
	Actual		Hypothetical		Actual		Hypothetical		Actual		Hypothetical		Actual
Class A		1,000.00		1,000.00		1,048.20		1,021.59		3.42		3.38		0.67
Class B		1,000.00		1,000.00		1,044.30		1,017.85		7.24		7.14		1.42
Class C		1,000.00		1,000.00		1,045.50		1,017.85		7.24		7.14		1.42
Class Z		1,000.00		1,000.00		1,050.50		1,022.84		2.15		2.12		0.42

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 portfolio'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, account value at the end of the period would have been reduced.

Portfolio Managers' Report – Columbia LifeGoal Income Portfolio

For the 12-month period that ended March 31, 2010, the portfolio's Class A shares returned 19.77% without sales charge. The portfolio's return was sharply higher than the 4.72% return of its benchmark, the Barclays Capital U.S. Aggregate 1-3 Years Index. It also did better than its customized blended benchmark—80% Barclays Capital U.S. Aggregate 1-3 Years Index and 20% Barclays Capital U.S. Corporate High Yield Bond Index—which returned 13.66%. In addition, the portfolio outpaced the average return of the funds in its peer group, the Lipper General Bond Funds Classification, which returned 15.41%. We attribute the portfolio's strong relative performance to positive tactical allocations, as well as to underlying funds that outperformed their benchmarks.

Tactical allocations, underlying funds benefited performance

With a strengthening economy as its backdrop, stock markets around the world rallied from mid-March 2009 through the end of the period. U.S. stocks rose strongly and both developed and emerging international markets produced even heftier gains. In this environment, the portfolio's asset allocation team added to the portfolio's small equity position and slightly reduced exposure to fixed income. A very small position in small-cap stocks helped boost performance as small-cap stocks returned 64.00%, as measured by the S&P SmallCap 600 Index.

Within fixed income, the team reduced its exposure to mortgage-backed securities and cash, adding to investment-grade corporate bonds and high-yield securities. The allocation to high-yield securities was particularly beneficial as Columbia High Income Fund returned 42.69% for the period. To help broaden the portfolio's diversification we established new positions in Columbia U.S. Treasury Index Fund and Columbia Energy and Natural Resources Fund.

In addition to positive tactical allocations, Columbia LifeGoal Income Portfolio benefited from strong performance of several of its underlying funds: Columbia Total Return Bond Fund, Columbia Income Fund, Columbia Short Term Bond Fund, Mortgage- and Asset-Backed Portfolio and Columbia Value and Restructuring Fund. However, Columbia High Income Fund, Columbia Mid Cap Value Fund and Columbia Convertible Securities Fund underperformed their respective benchmarks by considerable margins.

Net asset value per share

as of 03/31/10 ($)

Class A					9.90
Class B					9.89
Class C					9.88
Class Z					9.91

Distributions declared per share

04/01/09 – 03/31/10 ($)

Class A					0.35
Class B					0.28
Class C					0.28
Class Z					0.38

Portfolio Managers' Report (continued) – Columbia LifeGoal Income Portfolio

Portfolio Allocation

as of 03/31/10 (%)

Columbia Short Term Bond Fund					34.9
Columbia Total Return Bond Fund					18.0
Columbia High Income Fund					16.6
Columbia Income Fund					9.2
Mortgage- and Asset-Backed Portfolio					5.8
Columbia Convertible Securities Fund					5.0
Columbia Energy and Natural Resources Fund					2.5
Columbia Value and Restructuring Fund					1.5
Columbia Large Cap Value Fund					1.5
Columbia U.S. Treasury Index Fund					1.5
Columbia Mid Cap Value Fund					1.3
Columbia Disciplined Value Fund					1.0
Columbia Small Cap Value Fund II					0.7
Columbia Cash Reserves					0.5

Portfolio allocation is calculated as a percentage of total investments.

Looking ahead

We believe that expectations for higher corporate earnings and a continued favorable interest rate climate could help support the U.S. stock and bond markets. Outside the United States, a debt rescue package for Greece and positive economic growth are also favorable signs for the financial markets.

Columbia LifeGoal Portfolios reserve the right to add or remove underlying funds at any time.

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

Stocks of small- and mid-cap companies may pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

Investments in high-yield bonds (sometimes referred to as "junk" bonds) offer the potential for high current income and attractive total return, but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a high-yield bond issuer's ability to make principal and interest payments. High-yield bonds issued by foreign entities have greataer potential risks, including less regulation, currency fluctuation, economic instability and political developments.

Investment Portfolio – Columbia LifeGoal Growth Portfolio

March 31, 2010

Investment Companies (a) – 100.1%
	Shares		Value ($)
Columbia Acorn International, Class Z		347,984		12,339,497
Columbia Acorn USA, Class Z		477,005		11,801,116
Columbia Contrarian Core Fund, Class Z		2,167,158		28,368,103
Columbia Convertible Securities Fund, Class Z		667,233		8,947,597
Columbia Disciplined Value Fund, Class Z		1,533,705		16,211,260
Columbia Emerging Markets Fund, Class Z		2,299,953		25,897,474
Columbia Energy and Natural Resources Fund, Class Z		480,405		9,689,779
Columbia International Value Fund, Class Z		1,637,875		23,470,748
Columbia Large Cap Core Fund, Class Z		2,087,246		25,339,163
Columbia Large Cap Growth Fund, Class Z		765,877		16,198,300
Columbia Large Cap Value Fund, Class Z		1,507,431		16,174,729
Columbia Marsico Focused Equities Fund, Class Z		782,143		16,284,214
Columbia Marsico International Opportunities Fund, Class Z		1,161,244		12,564,662
Columbia Mid Cap Growth Fund, Class Z		1,919,775		42,427,029
Columbia Mid Cap Value Fund, Class Z		3,537,184		42,340,095
Columbia Pacific/Asia Fund, Class Z		258,421		1,987,259
Columbia Select Large Cap Growth Fund, Class Z		1,522,967		16,219,598
Columbia Small Cap Growth Fund I, Class Z		222,857		5,919,073
Columbia Small Cap Growth Fund II, Class Z		582,550		5,895,406
Columbia Small Cap Value Fund II, Class Z		1,984,896		23,540,867
Columbia U.S. Treasury Index Fund, Class Z		500,619		5,566,878
Columbia Value and Restructuring Fund, Class Z		428,641		19,143,123
iShares MSCI Japan Index Fund		573,000		5,982,120
Total Investment Companies (cost of $369,767,877)				392,308,090
Total Investments – 100.1% (cost of $369,767,877) (b)				392,308,090
Other Assets & Liabilities, Net – (0.1)%				(476,789	)
Net Assets – 100.0%				391,831,301

Notes to Investment Portfolio:

(a) Mutual funds registered under the Investment Company Act of 1940, as amended, and advised by Columbia Management Advisors, LLC or one of its affiliates.

(b) Cost for federal income tax purposes is $380,385,189.

Quoted prices in active markets for identical securities (level 1 measurements) were used in determining value for all securities in the Portfolio as of March 31, 2010.

For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See Accompanying Notes to Financial Statements.

Investment Portfolio – Columbia LifeGoal Balanced Growth Portfolio

March 31, 2010

Investment Companies (a) – 100.1%
	Shares		Value ($)
Columbia Acorn International, Class Z		482,809		17,120,410
Columbia Acorn USA, Class Z		459,293		11,362,901
Columbia Cash Reserves, Capital Class Shares		2		2
Columbia Contrarian Core Fund, Class Z		2,074,605		27,156,583
Columbia Convertible Securities Fund, Class Z		914,756		12,266,879
Columbia Disciplined Value Fund, Class Z		1,123,067		11,870,822
Columbia Emerging Markets Fund, Class Z		2,401,886		27,045,231
Columbia Energy and Natural Resources Fund, Class Z		736,144		14,848,023
Columbia High Income Fund, Class Z		6,168,860		48,672,304
Columbia Income Fund, Class Z		5,732,056		54,626,489
Columbia International Value Fund, Class Z		2,309,152		33,090,152
Columbia Large Cap Core Fund, Class Z		1,644,072		19,959,029
Columbia Large Cap Growth Fund, Class Z		568,255		12,018,587
Columbia Large Cap Value Fund, Class Z		1,110,872		11,919,654
Columbia Marsico Focused Equities Fund, Class Z		581,766		12,112,362
Columbia Marsico International Opportunities Fund, Class Z		1,589,745		17,201,041
Columbia Mid Cap Growth Fund, Class Z		1,240,139		27,407,065
Columbia Mid Cap Value Fund, Class Z		2,272,238		27,198,694
Columbia Pacific/Asia Fund, Class Z		391,368		3,009,623
Columbia Select Large Cap Growth Fund, Class Z		1,132,817		12,064,504
Columbia Small Cap Growth Fund I, Class Z		215,654		5,727,782
Columbia Small Cap Growth Fund II, Class Z		561,238		5,679,731
Columbia Small Cap Value Fund II, Class Z		1,906,057		22,605,831
Columbia Total Return Bond Fund, Class Z		11,126,043		109,591,521
Columbia U.S. Treasury Index Fund, Class Z		754,952		8,395,062

	Shares		Value ($)
Columbia Value and Restructuring Fund, Class Z		425,364		18,996,743
iShares MSCI Japan Index Fund		865,000		9,030,600
Total Investment Companies (cost of $525,960,419)				580,977,625
Total Investments – 100.1% (cost of $525,960,419) (b)				580,977,625
Other Assets & Liabilities, Net – (0.1)%				(421,461	)
Net Assets – 100.0%				580,556,164

Notes to Investment Portfolio:

(a) Mutual funds registered under the Investment Company Act of 1940, as amended, and advised by Columbia Management Advisors, LLC or one of its affiliates.

(b) Cost for federal income tax purposes is $540,603,783.

Quoted prices in active markets for identical securities (level 1 measurements) were used in determining value for all securities in the Portfolio as of March 31, 2010.

For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See Accompanying Notes to Financial Statements.

Investment Portfolio – Columbia LifeGoal Income and Growth Portfolio

March 31, 2010

Investment Companies (a) – 100.0%
	Shares		Value ($)
Columbia Acorn International, Class Z		41,224		1,461,794
Columbia Acorn USA, Class Z		44,522		1,101,472
Columbia Cash Reserves, Capital Class Shares		860,920		860,920
Columbia Contrarian Core Fund, Class Z		274,089		3,587,830
Columbia Convertible Securities Fund, Class Z		228,409		3,062,961
Columbia Disciplined Value Fund, Class Z		179,402		1,896,281
Columbia Emerging Markets Fund, Class Z		463,662		5,220,833
Columbia Energy and Natural Resources Fund, Class Z		181,113		3,653,057
Columbia High Income Fund, Class Z		2,124,696		16,763,849
Columbia Income Fund, Class Z		1,354,840		12,911,623
Columbia International Value Fund, Class Z		175,605		2,516,424
Columbia Large Cap Core Fund, Class Z		233,630		2,836,268
Columbia Large Cap Growth Fund, Class Z		89,509		1,893,119
Columbia Large Cap Value Fund, Class Z		176,823		1,897,307
Columbia Marsico Focused Equities Fund, Class Z		91,590		1,906,911
Columbia Marsico International Opportunities Fund, Class Z		135,403		1,465,057
Columbia Mid Cap Growth Fund, Class Z		133,591		2,952,354
Columbia Mid Cap Value Fund, Class Z		245,851		2,942,838
Columbia Pacific/Asia Fund, Class Z		96,838		744,684
Columbia Select Large Cap Growth Fund, Class Z		177,984		1,895,534
Columbia Short Term Bond Fund, Class Z		3,623,877		35,985,103
Columbia Small Cap Growth Fund I, Class Z		20,549		545,787
Columbia Small Cap Growth Fund II, Class Z		55,087		557,478
Columbia Small Cap Value Fund II, Class Z		185,255		2,197,127
Columbia Total Return Bond Fund, Class Z		2,892,055		28,486,747

	Shares		Value ($)
Columbia U.S. Treasury Index Fund, Class Z		192,769		2,143,594
Columbia Value and Restructuring Fund, Class Z		42,485		1,897,382
iShares MSCI Japan Index Fund		218,000		2,275,920
Total Investment Companies (cost of $134,091,040)				145,660,254
Total Investments – 100.0% (cost of $134,091,040) (b)				145,660,254
Other Assets & Liabilities, Net – 0.0%				(18,379	)
Net Assets – 100.0%				145,641,875

Notes to Investment Portfolio:

(a) Mutual funds registered under the Investment Company Act of 1940, as amended, and advised by Columbia Management Advisors, LLC or its affiliates.

(b) Cost for federal income tax purposes is $140,708,467.

Quoted prices in active markets for identical securities (level 1 measurements) were used in determining value for all securities in the Portfolio as of March 31, 2010.

For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See Accompanying Notes to Financial Statements.

Investment Portfolio – Columbia LifeGoal Income Portfolio

March 31, 2010

Investment Companies (a) – 99.9%
	Shares		Value ($)
Columbia Cash Reserves, Capital Class Shares		151,509		151,509
Columbia Convertible Securities Fund, Class Z		112,822		1,512,945
Columbia Disciplined Value Fund, Class Z		28,581		302,101
Columbia Energy and Natural Resources Fund, Class Z		38,118		768,847
Columbia High Income Fund, Class Z		640,710		5,055,204
Columbia Income Fund, Class Z		294,596		2,807,499
Columbia Large Cap Value Fund, Class Z		42,316		454,049
Columbia Mid Cap Value Fund, Class Z		32,874		393,500
Columbia Short Term Bond Fund, Class Z		1,072,745		10,652,354
Columbia Small Cap Value Fund II, Class Z		17,809		211,212
Columbia Total Return Bond Fund, Class Z		557,616		5,492,516
Columbia U.S. Treasury Index Fund, Class Z		40,825		453,969
Columbia Value and Restructuring Fund, Class Z		10,218		456,318
Mortgage- and Asset-Backed Portfolio		190,502		1,764,047
Total Investment Companies (cost of $28,315,492)				30,476,070
Total Investments – 99.9% (cost of $28,315,492) (b)				30,476,070
Other Assets & Liabilities, Net – 0.1%				41,072
Net Assets – 100.0%				30,517,142

Notes to Investment Portfolio:

(a) Mutual funds registered under the Investment Company Act of 1940, as amended, and advised by Columbia Management Advisors, LLC or its affiliates.

(b) Cost for federal income tax purposes is $30,406,517.

Quoted prices in active markets for identical securities (level 1 measurements) were used in determining value for all securities in the Portfolio as of March 31, 2010.

For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See Accompanying Notes to Financial Statements.

Statements of Assets and Liabilities – Columbia LifeGoal Portfolios
March 31, 2010

	($)				($)			($)			($)
	Columbia LifeGoal Growth Portfolio				Columbia LifeGoal Balanced Growth Portfolio			Columbia LifeGoal Income and Growth Portfolio			Columbia LifeGoal Income Portfolio
Assets
Affiliated investments, at identified cost		369,767,877				525,960,419			134,091,040			28,315,492
Affiliated investments, at value		392,308,090				580,977,625			145,660,254			30,476,070
Cash		—				—			21,093			—
Receivable for:
Investments sold		156,909				345,899			—			10,506
Portfolio shares sold		305,832				629,329			211,472			140,982
Expense reimbursement due from investment advisor		—				—			—			16,875
Prepaid expenses		—				—			—			303
Total Assets		392,770,831				581,952,853			145,892,819			30,644,736
Liabilities
Payable for:
Investments purchased		—				—			1,573			—
Portfolio shares repurchased		683,862				995,143			151,474			35,988
Investment advisory fee		82,144				121,850			30,544			599
Administration fee		—				—			—			927
Pricing and bookkeeping fees		—				—			—			2,189
Transfer agent fee		—				—			—			3,420
Trustees' fees		—				—			—			34,571
Audit fee		—				—			—			21,202
Legal fee		—		��		—			—			12,499
Custody fee		—				—			—			599
Distribution and service fees		173,524				279,696			67,353			13,675
Chief compliance officer expenses		—				—			—			153
Other liabilities		—				—			—			1,772
Total Liabilities		939,530				1,396,689			250,944			127,594
Net Assets		391,831,301				580,556,164			145,641,875			30,517,142
Net Assets Consist of
Paid-in capital		458,744,710				621,736,038			153,497,650			31,801,112
Undistributed net investment income		274,839				279,115			74,079			22,128
Accumulated net realized loss		(89,728,461	)			(96,476,195	)		(19,499,068	)		(3,466,676	)
Net unrealized appreciation (depreciation) on investments		22,540,213				55,017,206			11,569,214			2,160,578
Net Assets		391,831,301				580,556,164			145,641,875			30,517,142

See Accompanying Notes to Financial Statements.

Statements of Assets and Liabilities (continued) – Columbia LifeGoal Portfolios
March 31, 2010

	Columbia LifeGoal Growth Portfolio			Columbia LifeGoal Balanced Growth Portfolio			Columbia LifeGoal Income and Growth Portfolio			Columbia LifeGoal Income Portfolio
Class A
Net assets	$	178,768,775		$	245,326,799		$	60,848,059		$	13,390,343
Shares outstanding		17,309,068			23,987,666			6,060,745			1,352,052
Net asset value and redemption price per share (a)	$	10.33		$	10.23		$	10.04		$	9.90
Maximum sales charge		5.75	%		5.75	%		5.75	%		3.25	%
Maximum offering price per share	$	10.96	(b)	$	10.85	(b)	$	10.65	(b)	$	10.23	(c)
Class B
Net assets	$	91,699,483		$	181,026,513		$	40,508,027		$	7,079,001
Shares outstanding		9,677,652			17,822,043			4,049,344			715,696
Net asset value and offering price per share (a)	$	9.48		$	10.16		$	10.00		$	9.89
Class C
Net assets	$	68,149,568		$	87,495,908		$	23,320,882		$	5,572,744
Shares outstanding		7,252,274			8,505,938			2,345,881			564,242
Net asset value and offering price per share (a)	$	9.40		$	10.29		$	9.94		$	9.88
Class R
Net assets	$	1,586,186		$	1,740,332		$	558,813			—
Shares outstanding		154,801			170,309			55,634			—
Net asset value and offering price per share	$	10.25		$	10.22		$	10.04			—
Class Z
Net assets	$	51,627,289		$	64,966,612		$	20,406,094		$	4,475,054
Shares outstanding		4,921,009			6,359,979			2,052,516			451,783
Net asset value and offering price per share	$	10.49		$	10.21		$	9.94		$	9.91

(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.

Statements of Operations – Columbia LifeGoal Portfolios
For the Year Ended March 31, 2010

	($)			($)			($)			($)
	Columbia LifeGoal Growth Portfolio			Columbia LifeGoal Balanced Growth Portfolio			Columbia LifeGoal Income and Growth Portfolio			Columbia LifeGoal Income Portfolio
Investment Income
Dividends from affiliates		3,650,950			15,855,235			5,210,279			1,369,547
Expenses
Investment advisory fee		879,067			1,343,431			346,254			15,573
Administration fee		—			—			—			39,883
Distribution and service fees:
Class A		391,736			546,946			136,936			33,338
Distribution fee:
Class B		671,947			1,354,042			322,250			56,642
Class C		471,008			596,938			161,951			41,333
Class R		6,656			9,178			2,344			—
Service fee:
Class B		223,982			451,347			107,417			18,891
Class C		157,003			198,979			54,049			13,781
Transfer agent fee		—			—			—			29,173
Pricing and bookkeeping fees		—			—			—			26,283
Trustees' fees		—			—			—			41,196
Custody fee		—			—			—			5,558
Registration fees		—			—			—			47,599
Audit fee		—			—			—			26,255
Legal fees		—			—			—			54,417
Chief compliance officer expenses		—			—			—			606
Other expenses		—			—			—			20,767
Total Expenses		2,801,399			4,500,861			1,131,201			471,295
Fees waived or expenses reimbursed by investment advisor and/or administrator		—			—			—			(178,022	)
Net Expenses		2,801,399			4,500,861			1,131,201			293,273
Net Investment Income		849,551			11,354,374			4,079,078			1,076,274
Net Realized and Unrealized Gain (Loss) on Investments and Capital Gains Distributions Received
Net realized gain (loss) on:
Affiliated investments		(15,019,613	)		(22,054,826	)		(1,712,598	)		(514,171	)
Capital gains distributions received from affiliates		559			853			323			68
Net realized loss		(15,019,054	)		(22,053,973	)		(1,712,275	)		(514,103	)
Net change in unrealized appreciation (depreciation) on investments		158,467,291			191,543,831			31,464,277			4,929,754
Net Gain		143,448,237			169,489,858			29,752,002			4,415,651
Net Increase Resulting from Operations		144,297,788			180,844,232			33,831,080			5,491,925

See Accompanying Notes to Financial Statements.

Statements of Changes in Net Assets – Columbia LifeGoal Portfolios

Increase (Decrease) in Net Assets	Columbia LifeGoal Growth Portfolio						Columbia LifeGoal Balanced Growth Portfolio
	Year Ended March 31,						Year Ended March 31,
	2010 ($)			2009 ($)			2010 ($)			2009 ($)
Operations
Net investment income		849,551			1,351,880			11,354,374			12,188,685
Net realized loss on investments and capital gains distributions received		(15,019,054	)		(71,642,109	)		(22,053,973	)		(70,465,213	)
Net change in unrealized appreciation (depreciation) on investments		158,467,291			(112,051,391	)		191,543,831			(125,990,158	)
Net increase (decrease) resulting from operations		144,297,788			(182,341,620	)		180,844,232			(184,266,686	)
Distributions to Shareholders
From net investment income:
Class A		(354,759	)		(676,822	)		(5,327,779	)		(5,515,625	)
Class B		(72,537	)		(278,679	)		(3,029,203	)		(3,736,680	)
Class C		(49,902	)		(193,667	)		(1,330,248	)		(1,496,200	)
Class R		(2,306	)		(3,186	)		(37,238	)		(39,486	)
Class Z		(102,921	)		(199,526	)		(1,522,123	)		(1,365,743	)
From net realized gains:
Class A		—			(39,083,644	)		—			(26,940,878	)
Class B		—			(28,904,759	)		—			(26,954,090	)
Class C		—			(19,597,408	)		—			(10,746,472	)
Class R		—			(223,911	)		—			(123,428	)
Class Z		—			(9,633,365	)		—			(4,698,253	)
From return of capital:
Class A		—			(119,590	)		—			—
Class B		—			(82,772	)		—			—
Class C		—			(56,631	)		—			—
Class R		—			(860	)		—			—
Class Z		—			(29,920	)		—			—
Total distributions to shareholders		(582,425	)		(99,084,740	)		(11,246,591	)		(81,616,855	)
Net Capital Stock Transactions		(22,899,343	)		35,570,771			(26,500,404	)		(16,014,725	)
Increase from regulatory settlements		7,713			—			—			—
Total increase (decrease) in net assets		120,823,733			(245,855,589	)		143,097,237			(281,898,266	)
Net Assets
Beginning of period		271,007,568			516,863,157			437,458,927			719,357,193
End of period		391,831,301			271,007,568			580,556,164			437,458,927
Undistributed net investment income at end of period		274,839			—			279,115			171,332

See Accompanying Notes to Financial Statements.

Increase (Decrease) in Net Assets	Columbia LifeGoal Income and Growth Portfolio						Columbia LifeGoal Income Portfolio
	Year Ended March 31,						Year Ended March 31,
	2010 ($)			2009 ($)			2010 ($)			2009 ($)
Operations
Net investment income		4,079,078			4,664,612			1,076,274			1,249,346
Net realized loss on investments and capital gains distributions received		(1,712,275	)		(16,576,091	)		(514,103	)		(2,348,379	)
Net change in unrealized appreciation (depreciation) on investments		31,464,277			(15,800,904	)		4,929,754			(1,700,679	)
Net increase (decrease) resulting from operations		33,831,080			(27,712,383	)		5,491,925			(2,799,712	)
Distributions to Shareholders
From net investment income:
Class A		(1,774,246	)		(1,787,275	)		(500,449	)		(528,217	)
Class B		(1,045,055	)		(1,496,820	)		(224,860	)		(289,485	)
Class C		(542,321	)		(642,374	)		(164,769	)		(178,485	)
Class R		(14,094	)		(13,665	)		—			—
Class Z		(647,227	)		(728,571	)		(176,430	)		(252,288	)
From net realized gains:
Class A		—			(2,138,677	)		—			(52,628	)
Class B		—			(2,476,269	)		—			(32,624	)
Class C		—			(1,034,082	)		—			(19,422	)
Class R		—			(18,411	)		—			—
Class Z		—			(691,717	)		—			(25,388	)
From return of capital:
Class A		—			—			—			—
Class B		—			—			—			—
Class C		—			—			—			—
Class R		—			—			—			—
Class Z		—			—			—			—
Total distributions to shareholders		(4,022,943	)		(11,027,861	)		(1,066,508	)		(1,378,537	)
Net Capital Stock Transactions		(4,264,005	)		(2,640,145	)		(2,232,566	)		(1,032,311	)
Increase from regulatory settlements		—			—			—			—
Total increase (decrease) in net assets		25,544,132			(41,380,389	)		2,192,851			(5,210,560	)
Net Assets
Beginning of period		120,097,743			161,478,132			28,324,291			33,534,851
End of period		145,641,875			120,097,743			30,517,142			28,324,291
Undistributed net investment income at end of period		74,079			17,944			22,128			12,362

See Accompanying Notes to Financial Statements.

Statements of Changes in Net Assets – Capital Stock Activity

	Columbia LifeGoal Growth Portfolio
	Year Ended March 31, 2010						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		3,091,308			27,588,415			3,454,524			32,525,153
Distributions reinvested		43,067			335,160			3,505,856			37,286,239
Redemptions		(3,207,836	)		(29,248,812	)		(5,508,191	)		(48,589,833	)
Net increase (decrease)		(73,461	)		(1,325,237	)		1,452,189			21,221,559
Class B
Subscriptions		300,175			2,294,384			817,201			7,608,028
Distributions reinvested		9,589			68,850			2,787,933			27,567,429
Redemptions		(2,663,286	)		(21,979,706	)		(3,664,323	)		(30,142,955	)
Net increase (decrease)		(2,353,522	)		(19,616,472	)		(59,189	)		5,032,502
Class C
Subscriptions		961,091			7,928,734			1,747,721			16,328,504
Distributions reinvested		5,627			40,063			1,567,012			15,367,263
Redemptions		(1,945,856	)		(15,923,996	)		(3,069,876	)		(24,575,462	)
Net increase (decrease)		(979,138	)		(7,955,199	)		244,857			7,120,305
Class R
Subscriptions		59,693			489,491			40,684			338,883
Distributions reinvested		298			2,306			21,524			227,957
Redemptions		(30,267	)		(272,508	)		(28,559	)		(282,138	)
Net increase (decrease)		29,724			219,289			33,649			284,702
Class Z
Subscriptions		1,752,025			16,262,948			1,843,568			14,777,449
Distributions reinvested		7,159			56,483			511,180			5,503,378
Redemptions		(1,187,216	)		(10,541,155	)		(2,134,711	)		(18,369,124	)
Net increase		571,968			5,778,276			220,037			1,911,703

See Accompanying Notes to Financial Statements.

	Columbia LifeGoal Balanced Growth Portfolio
	Year Ended March 31, 2010						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		4,803,386			44,609,724			4,291,111			39,976,547
Distributions reinvested		532,093			4,997,088			3,112,699			30,437,602
Redemptions		(4,546,857	)		(42,351,740	)		(8,457,706	)		(73,707,271	)
Net increase (decrease)		788,622			7,255,072			(1,053,896	)		(3,293,122	)
Class B
Subscriptions		589,083			5,178,715			1,510,474			14,118,684
Distributions reinvested		310,682			2,872,923			2,960,121			29,013,590
Redemptions		(4,573,702	)		(41,976,618	)		(8,006,306	)		(68,629,338	)
Net increase (decrease)		(3,673,937	)		(33,924,980	)		(3,535,711	)		(25,497,064	)
Class C
Subscriptions		1,437,027			13,435,382			1,758,967			16,578,329
Distributions reinvested		115,164			1,082,100			961,892			9,540,633
Redemptions		(1,846,000	)		(17,014,082	)		(3,801,694	)		(33,379,383	)
Net increase (decrease)		(293,809	)		(2,496,600	)		(1,080,835	)		(7,260,421	)
Class R
Subscriptions		60,150			539,862			125,717			1,150,078
Distributions reinvested		4,033			37,237			17,084			162,914
Redemptions		(121,078	)		(1,160,141	)		(26,244	)		(237,623	)
Net increase (decrease)		(56,895	)		(583,042	)		116,557			1,075,369
Class Z
Subscriptions		1,506,119			13,977,974			3,371,764			31,627,836
Distributions reinvested		114,054			1,061,854			506,774			4,879,824
Redemptions		(1,268,234	)		(11,790,682	)		(1,983,230	)		(17,547,147	)
Net increase		351,939			3,249,146			1,895,308			18,960,513

See Accompanying Notes to Financial Statements.

Statements of Changes in Net Assets (continued) – Capital Stock Activity

	Columbia LifeGoal Income and Growth Portfolio
	Year Ended March 31, 2010						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		1,792,223			16,683,536			2,073,776			18,288,125
Distributions reinvested		159,758			1,519,412			381,961			3,562,465
Redemptions		(1,470,993	)		(13,754,411	)		(2,105,575	)		(18,655,380	)
Net increase (decrease)		480,988			4,448,537			350,162			3,195,210
Class B
Subscriptions		209,608			1,919,007			770,389			6,937,048
Distributions reinvested		101,019			952,550			388,937			3,656,519
Redemptions		(1,290,520	)		(12,149,208	)		(2,552,583	)		(22,444,006	)
Net decrease		(979,893	)		(9,277,651	)		(1,393,257	)		(11,850,439	)
Class C
Subscriptions		555,399			5,176,368			729,163			6,566,710
Distributions reinvested		47,502			445,991			141,359			1,316,982
Redemptions		(565,216	)		(5,289,047	)		(1,134,246	)		(9,870,305	)
Net increase (decrease)		37,685			333,312			(263,724	)		(1,986,613	)
Class R
Subscriptions		24,710			228,170			15,285			136,565
Distributions reinvested		1,484			14,094			3,424			32,076
Redemptions		(15,095	)		(140,807	)		(17,563	)		(157,356	)
Net increase		11,099			101,457			1,146			11,285
Class Z
Subscriptions		579,483			5,364,435			2,090,216			19,404,505
Distributions reinvested		43,544			408,286			105,495			967,099
Redemptions		(615,771	)		(5,642,381	)		(1,470,029	)		(12,381,192	)
Net increase (decrease)		7,256			130,340			725,682			7,990,412

See Accompanying Notes to Financial Statements.

	Columbia LifeGoal Income Portfolio
	Year Ended March 31, 2010						Year Ended March 31, 2009
	Shares			Dollars ($)			Shares			Dollars ($)
Class A
Subscriptions		414,030			3,845,408			483,618			4,352,189
Distributions reinvested		44,786			422,811			52,394			477,949
Redemptions		(422,314	)		(4,050,740	)		(638,467	)		(5,860,303	)
Net increase (decrease)		36,502			217,479			(102,455	)		(1,030,165	)
Class B
Subscriptions		81,196			758,008			341,660			3,079,717
Distributions reinvested		20,424			192,117			29,995			272,820
Redemptions		(257,918	)		(2,441,151	)		(400,796	)		(3,631,237	)
Net decrease		(156,298	)		(1,491,026	)		(29,141	)		(278,700	)
Class C
Subscriptions		126,587			1,191,173			258,374			2,290,418
Distributions reinvested		14,092			132,492			17,439			157,675
Redemptions		(173,176	)		(1,638,681	)		(181,977	)		(1,630,292	)
Net increase (decrease)		(32,497	)		(315,016	)		93,836			817,801
Class R
Subscriptions		—			—			—			—
Distributions reinvested		—			—			—			—
Redemptions		—			—			—			—
Net increase		—			—			—			—
Class Z
Subscriptions		204,365			1,949,223			338,678			3,057,723
Distributions reinvested		11,166			105,281			19,946			183,722
Redemptions		(285,245	)		(2,698,507	)		(428,497	)		(3,782,692	)
Net increase (decrease)		(69,714	)		(644,003	)		(69,873	)		(541,247	)

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Growth Portfolio

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

	Year Ended March 31,
Class A Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	6.68		$	13.24		$	14.69		$	13.92		$	12.19
Income from Investment Operations:
Net investment income (b)		0.05			0.06			0.05			0.07			0.05
Net realized and unrealized gain (loss) on investments and capital gains distributions received		3.62			(4.12	)		(0.59	)		1.38			2.34
Total from investment operations		3.67			(4.06	)		(0.54	)		1.45			2.39
Less Distributions to Shareholders:
From net investment income		(0.02	)		(0.03	)		(0.05	)		(0.05	)		(0.09	)
From net realized gains		—			(2.46	)		(0.86	)		(0.63	)		(0.57	)
From return of capital		—			(0.01	)		—			—			—
Total distributions to shareholders		(0.02	)		(2.50	)		(0.91	)		(0.68	)		(0.66	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	10.33		$	6.68		$	13.24		$	14.69		$	13.92
Total return (d)		55.04	%		(37.62	)%		(4.31	)%		10.74	%		20.01	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		0.50	%		0.50	%(f)		0.50	%(f)		0.50	%		0.50	%
Net investment income		0.54	%		0.68	%(f)		0.31	%(f)		0.31	%		0.37	%
Portfolio turnover rate		19	%		45	%		21	%		8	%		30	%
Net assets, end of period (000s)	$	178,769		$	116,169		$	210,861		$	206,715		$	142,967

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

(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 and no initial sales charge or contingent deferred sales charge.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Growth Portfolio

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

	Year Ended March 31,
Class B Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	6.17		$	12.46		$	13.93		$	13.28		$	11.72
Income from Investment Operations:
Net investment loss (b)		(0.02	)		(0.01	)		(0.06	)		(0.04	)		(0.05	)
Net realized and unrealized gain (loss) on investments and capital gains distributions received		3.34			(3.80	)		(0.55	)		1.32			2.25
Total from investment operations		3.32			(3.81	)		(0.61	)		1.28			2.20
Less Distributions to Shareholders:
From net investment income		(0.01	)		(0.01	)		—			—			(0.07	)
From net realized gains		—			(2.46	)		(0.86	)		(0.63	)		(0.57	)
From return of capital		—			(0.01	)		—			—			—
Total distributions to shareholders		(0.01	)		(2.48	)		(0.86	)		(0.63	)		(0.64	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	9.48		$	6.17		$	12.46		$	13.93		$	13.28
Total return (d)		53.78	%		(37.99	)%		(5.08	)%		9.90	%		19.13	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		1.25	%		1.25	%(f)		1.25	%(f)		1.25	%		1.25	%
Net investment loss		(0.21	)%		(0.09	)%(f)		(0.46	)%(f)		(0.45	)%		(0.38	)%
Portfolio turnover rate		19	%		45	%		21	%		8	%		30	%
Net assets, end of period (000s)	$	91,699		$	74,197		$	150,705		$	170,971		$	153,920

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

(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 and no contingent deferred sales charge.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Growth Portfolio

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

	Year Ended March 31,
Class C Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	6.12		$	12.38		$	13.85		$	13.20		$	11.66
Income from Investment Operations:
Net investment loss (b)		(0.02	)		(0.01	)		(0.06	)		(0.04	)		(0.05	)
Net realized and unrealized gain (loss) on investments and capital gains distributions received		3.31			(3.77	)		(0.55	)		1.32			2.23
Total from investment operations		3.29			(3.78	)		(0.61	)		1.28			2.18
Less Distributions to Shareholders:
From net investment income		(0.01	)		(0.01	)		—			—			(0.07	)
From net realized gains		—			(2.46	)		(0.86	)		(0.63	)		(0.57	)
From return of capital		—			(0.01	)		—			—			—
Total distributions to shareholders		(0.01	)		(2.48	)		(0.86	)		(0.63	)		(0.64	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	9.40		$	6.12		$	12.38		$	13.85		$	13.20
Total return (d)		53.73	%		(37.99	)%		(5.11	)%		9.97	%		19.06	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		1.25	%		1.25	%(f)		1.25	%(f)		1.25	%		1.25	%
Net investment loss		(0.21	)%		(0.09	)%(f)		(0.41	)%(f)		(0.43	)%		(0.38	)%
Portfolio turnover rate		19	%		45	%		21	%		8	%		30	%
Net assets, end of period (000s)	$	68,150		$	50,343		$	98,889		$	96,558		$	66,261

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

(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 and no contingent deferred sales charge.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Growth Portfolio

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

	Year Ended March 31,												Period Ended March 31,
Class R Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	6.64		$	13.19		$	14.67		$	13.92		$	13.19
Income from Investment Operations:
Net investment income (loss) (b)		0.03			0.04			0.02			0.14			(0.03	)
Net realized and unrealized gain (loss) on investments and capital gains distributions received		3.60			(4.10	)		(0.60	)		1.27			0.76
Total from investment operations		3.63			(4.06	)		(0.58	)		1.41			0.73
Less Distributions to Shareholders:
From net investment income		(0.02	)		(0.02	)		(0.04	)		(0.03	)		—
From net realized gains		—			(2.46	)		(0.86	)		(0.63	)		—
From return of capital		—			(0.01	)		—			—			—
Total distributions to shareholders		(0.02	)		(2.49	)		(0.90	)		(0.66	)		—
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	10.25		$	6.64		$	13.19		$	14.67		$	13.92
Total return (d)		54.68	%		(37.76	)%		(4.65	)%		10.45	%		5.53	%(e)
Ratios to Average Net Assets/Supplemental Data:
Net expenses (f)		0.75	%		0.75	%(g)		0.75	%(g)		0.75	%		0.75	%(h)
Net investment income (loss)		0.29	%		0.45	%(g)		0.12	%(g)		0.76	%		(1.15	)%(h)
Portfolio turnover rate		19	%		45	%		21	%		8	%		30	%(e)
Net assets, end of period (000s)	$	1,586		$	831		$	1,206		$	1,169	��	$	10

(a) The Portfolio's Class R shares commenced operations on January 23, 2006.

(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) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

(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 LifeGoal Growth Portfolio

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

	Year Ended March 31,
Class Z Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	6.78		$	13.37		$	14.80		$	14.01		$	12.24
Income from Investment Operations:
Net investment income (b)		0.07			0.09			0.16			0.10			0.08
Net realized and unrealized gain (loss) on investments and capital gains distributions received		3.66			(4.17	)		(0.66	)		1.40			2.36
Total from investment operations		3.73			(4.08	)		(0.50	)		1.50			2.44
Less Distributions to Shareholders:
From net investment income		(0.02	)		(0.04	)		(0.07	)		(0.08	)		(0.10	)
From net realized gains		—			(2.46	)		(0.86	)		(0.63	)		(0.57	)
From return of capital		—			(0.01	)		—			—			—
Total distributions to shareholders		(0.02	)		(2.51	)		(0.93	)		(0.71	)		(0.67	)
Increase from regulatory settlements		—	(c)		—			—			—			—
Net Asset Value, End of Period	$	10.49		$	6.78		$	13.37		$	14.80		$	14.01
Total return (d)		55.20	%		(37.38	)%		(4.02	)%		11.01	%		20.33	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		0.25	%		0.25	%(f)		0.25	%(f)		0.25	%		0.25	%
Net investment income		0.78	%		0.90	%(f)		1.07	%(f)		0.55	%		0.62	%
Portfolio turnover rate		19	%		45	%		21	%		8	%		30	%
Net assets, end of period (000s)	$	51,627		$	29,467		$	55,202		$	252,536		$	188,132

(a) On August 22, 2005, the Portfolio's Primary A shares were renamed Class Z shares.

(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) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Balanced Growth Portfolio

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

	Year Ended March 31,
Class A Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	7.33		$	11.36		$	12.38		$	11.86		$	11.50
Income from Investment Operations:
Net investment income (b)		0.23			0.22			0.25			0.26			0.22
Net realized and unrealized gain (loss) on investments and capital gains distributions received		2.89			(2.91	)		(0.45	)		0.88			1.08
Total from investment operations		3.12			(2.69	)		(0.20	)		1.14			1.30
Less Distributions to Shareholders:
From net investment income		(0.22	)		(0.22	)		(0.25	)		(0.26	)		(0.27	)
From net realized gains		—			(1.12	)		(0.57	)		(0.36	)		(0.67	)
Total distributions to shareholders		(0.22	)		(1.34	)		(0.82	)		(0.62	)		(0.94	)
Net Asset Value, End of Period	$	10.23		$	7.33		$	11.36		$	12.38		$	11.86
Total return (c)		42.94	%		(26.48	)%		(1.99	)%		9.95	%		11.75	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (d)		0.50	%		0.50	%(e)		0.50	%(e)		0.50	%		0.50	%
Net investment income		2.45	%		2.44	%(e)		2.05	%(e)		2.17	%		1.89	%
Portfolio turnover rate		27	%		47	%		18	%		18	%		46	%
Net assets, end of period (000s)	$	245,327		$	170,155		$	275,576		$	266,506		$	219,302

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

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

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Balanced Growth Portfolio

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

	Year Ended March 31,
Class B Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	7.29		$	11.30		$	12.31		$	11.81		$	11.45
Income from Investment Operations:
Net investment income (b)		0.16			0.15			0.16			0.17			0.13
Net realized and unrealized gain (loss) on investments and capital gains distributions received		2.87			(2.89	)		(0.44	)		0.86			1.08
Total from investment operations		3.03			(2.74	)		(0.28	)		1.03			1.21
Less Distributions to Shareholders:
From net investment income		(0.16	)		(0.15	)		(0.16	)		(0.17	)		(0.18	)
From net realized gains		—			(1.12	)		(0.57	)		(0.36	)		(0.67	)
Total distributions to shareholders		(0.16	)		(1.27	)		(0.73	)		(0.53	)		(0.85	)
Net Asset Value, End of Period	$	10.16		$	7.29		$	11.30		$	12.31		$	11.81
Total return (c)		41.72	%		(27.01	)%		(2.66	)%		9.00	%		10.99	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (d)		1.25	%		1.25	%(e)		1.25	%(e)		1.25	%		1.25	%
Net investment income		1.70	%		1.67	%(e)		1.28	%(e)		1.42	%		1.14	%
Portfolio turnover rate		27	%		47	%		18	%		18	%		46	%
Net assets, end of period (000s)	$	181,026		$	156,679		$	282,912		$	325,190		$	318,564

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

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Balanced Growth Portfolio

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

	Year Ended March 31,
Class C Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	7.38		$	11.43		$	12.44		$	11.92		$	11.56
Income from Investment Operations:
Net investment income (b)		0.16			0.15			0.16			0.17			0.14
Net realized and unrealized gain (loss) on investments and capital gains distributions received		2.91			(2.93	)		(0.44	)		0.88			1.07
Total from investment operations		3.07			(2.78	)		(0.28	)		1.05			1.21
Less Distributions to Shareholders:
From net investment income		(0.16	)		(0.15	)		(0.16	)		(0.17	)		(0.18	)
From net realized gains		—			(1.12	)		(0.57	)		(0.36	)		(0.67	)
Total distributions to shareholders		(0.16	)		(1.27	)		(0.73	)		(0.53	)		(0.85	)
Net Asset Value, End of Period	$	10.29		$	7.38		$	11.43		$	12.44		$	11.92
Total return (c)		41.76	%		(27.05	)%		(2.63	)%		9.09	%		10.88	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (d)		1.25	%		1.25	%(e)		1.25	%(e)		1.25	%		1.25	%
Net investment income		1.70	%		1.67	%(e)		1.30	%(e)		1.42	%		1.14	%
Portfolio turnover rate		27	%		47	%		18	%		18	%		46	%
Net assets, end of period (000s)	$	87,496		$	64,940		$	112,902		$	118,747		$	98,160

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

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Balanced Growth Portfolio

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

	Year Ended March 31,												Period Ended March 31,
Class R Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	7.33		$	11.36		$	12.37		$	11.86		$	11.59
Income from Investment Operations:
Net investment income (b)		0.20			0.22			0.21			0.29			0.03
Net realized and unrealized gain (loss) on investments and capital gains distributions received		2.89			(2.94	)		(0.43	)		0.81			0.28
Total from investment operations		3.09			(2.72	)		(0.22	)		1.10			0.31
Less Distributions to Shareholders:
From net investment income		(0.20	)		(0.19	)		(0.22	)		(0.23	)		(0.04	)
From net realized gains		—			(1.12	)		(0.57	)		(0.36	)		—
Total distributions to shareholders		(0.20	)		(1.31	)		(0.79	)		(0.59	)		(0.04	)
Net Asset Value, End of Period	$	10.22		$	7.33		$	11.36		$	12.37		$	11.86
Total return (c)		42.46	%		(26.67	)%		(2.15	)%		9.59	%		2.68	%(d)
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		0.75	%		0.75	%(f)		0.75	%(f)		0.75	%		0.75	%(g)
Net investment income		2.16	%		2.48	%(f)		1.69	%(f)		2.34	%		1.13	%(g)
Portfolio turnover rate		27	%		47	%		18	%		18	%		46	%(d)
Net assets, end of period (000s)	$	1,740		$	1,666		$	1,257		$	1,916		$	10

(a) The Portfolio's Class R shares commenced operations on January 23, 2006.

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

(d) Not annualized.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

(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 LifeGoal Balanced Growth Portfolio

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

	Year Ended March 31,
Class Z Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	7.33		$	11.36		$	12.35		$	11.84		$	11.48
Income from Investment Operations:
Net investment income (b)		0.25			0.25			0.34			0.29			0.25
Net realized and unrealized gain (loss) on investments and capital gains distributions received		2.88			(2.92	)		(0.47	)		0.87			1.08
Total from investment operations		3.13			(2.67	)		(0.13	)		1.16			1.33
Less Distributions to Shareholders:
From net investment income		(0.25	)		(0.24	)		(0.29	)		(0.29	)		(0.30	)
From net realized gains		—			(1.12	)		(0.57	)		(0.36	)		(0.67	)
Total distributions to shareholders		(0.25	)		(1.36	)		(0.86	)		(0.65	)		(0.97	)
Net Asset Value, End of Period	$	10.21		$	7.33		$	11.36		$	12.35		$	11.84
Total return (c)		43.01	%		(26.28	)%		(1.49	)%		10.15	%		12.05	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (d)		0.25	%		0.25	%(e)		0.25	%(e)		0.25	%		0.25	%
Net investment income		2.69	%		2.83	%(e)		2.68	%(e)		2.42	%		2.14	%
Portfolio turnover rate		27	%		47	%		18	%		18	%		46	%
Net assets, end of period (000s)	$	64,967		$	44,020		$	46,711		$	292,939		$	251,980

(a) On August 22, 2005, the Portfolio's Primary A shares were renamed Class Z shares.

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income and Growth Portfolio

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

	Year Ended March 31,
Class A Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.03		$	10.40		$	11.04		$	10.80		$	11.04
Income from Investment Operations:
Net investment income (b)		0.31			0.33			0.36			0.34			0.28
Net realized and unrealized gain (loss) on investments and capital gains distributions received		2.00			(1.97	)		(0.30	)		0.50			0.54
Total from investment operations		2.31			(1.64	)		0.06			0.84			0.82
Less Distributions to Shareholders:
From net investment income		(0.30	)		(0.33	)		(0.36	)		(0.34	)		(0.32	)
From net realized gains		—			(0.40	)		(0.34	)		(0.26	)		(0.74	)
Total distributions to shareholders		(0.30	)		(0.73	)		(0.70	)		(0.60	)		(1.06	)
Net Asset Value, End of Period	$	10.04		$	8.03		$	10.40		$	11.04		$	10.80
Total return (c)		29.06	%		(16.58	)%		0.34	%		8.07	%		7.91	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (d)		0.50	%		0.50	%(e)		0.50	%(e)		0.50	%		0.50	%
Interest expense		—			—	%(f)		—			—			—
Net expenses (d)		0.50	%		0.50	%(e)		0.50	%(e)		0.50	%		0.50	%
Net investment income		3.26	%		3.59	%(e)		3.29	%(e)		3.15	%		2.61	%
Portfolio turnover rate		34	%		52	%		20	%		25	%		30	%
Net assets, end of period (000s)	$	60,848		$	44,825		$	54,370		$	50,829		$	48,112

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

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

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

(f) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income and Growth Portfolio

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

	Year Ended March 31,
Class B Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.01		$	10.36		$	11.00		$	10.77		$	11.01
Income from Investment Operations:
Net investment income (b)		0.23			0.26			0.28			0.26			0.20
Net realized and unrealized gain (loss) on investments and capital gains distributions received		1.99			(1.95	)		(0.31	)		0.49			0.54
Total from investment operations		2.22			(1.69	)		(0.03	)		0.75			0.74
Less Distributions to Shareholders:
From net investment income		(0.23	)		(0.26	)		(0.27	)		(0.26	)		(0.24	)
From net realized gains		—			(0.40	)		(0.34	)		(0.26	)		(0.74	)
Total distributions to shareholders		(0.23	)		(0.66	)		(0.61	)		(0.52	)		(0.98	)
Net Asset Value, End of Period	$	10.00		$	8.01		$	10.36		$	11.00		$	10.77
Total return (c)		27.94	%		(17.09	)%		(0.41	)%		7.20	%		7.12	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (d)		1.25	%		1.25	%(e)		1.25	%(e)		1.25	%		1.25	%
Interest expense		—			—	%(f)		—			—			—
Net expenses (d)		1.25	%		1.25	%(e)		1.25	%(e)		1.25	%		1.25	%
Net investment income		2.51	%		2.80	%(e)		2.53	%(e)		2.39	%		1.86	%
Portfolio turnover rate		34	%		52	%		20	%		25	%		30	%
Net assets, end of period (000s)	$	40,508		$	40,270		$	66,558		$	75,119		$	82,098

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

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

(f) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income and Growth Portfolio

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

	Year Ended March 31,
Class C Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	7.96		$	10.30		$	10.94		$	10.71		$	10.96
Income from Investment Operations:
Net investment income (b)		0.23			0.26			0.28			0.26			0.20
Net realized and unrealized gain (loss) on investments and capital gains distributions received		1.98			(1.94	)		(0.31	)		0.49			0.53
Total from investment operations		2.21			(1.68	)		(0.03	)		0.75			0.73
Less Distributions to Shareholders:
From net investment income		(0.23	)		(0.26	)		(0.27	)		(0.26	)		(0.24	)
From net realized gains		—			(0.40	)		(0.34	)		(0.26	)		(0.74	)
Total distributions to shareholders		(0.23	)		(0.66	)		(0.61	)		(0.52	)		(0.98	)
Net Asset Value, End of Period	$	9.94		$	7.96		$	10.30		$	10.94		$	10.71
Total return (c)		27.99	%		(17.09	)%		(0.41	)%		7.24	%		7.06	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (d)		1.25	%		1.25	%(e)		1.25	%(e)		1.25	%		1.25	%
Interest expense		—			—	%(f)		—			—			—
Net expenses (d)		1.25	%		1.25	%(e)		1.25	%(e)		1.25	%		1.25	%
Net investment income		2.51	%		2.81	%(e)		2.55	%(e)		2.41	%		1.86	%
Portfolio turnover rate		34	%		52	%		20	%		25	%		30	%
Net assets, end of period (000s)	$	23,321		$	18,370		$	26,501		$	24,367		$	21,104

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

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

(f) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income and Growth Portfolio

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

	Year Ended March 31,												Period Ended March 31,
Class R Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.04		$	10.40		$	11.04		$	10.80		$	10.69
Income from Investment Operations:
Net investment income (b)		0.28			0.31			0.32			0.36			0.05
Net realized and unrealized gain (loss) on investments and capital gains distributions received		2.00			(1.96	)		(0.29	)		0.46			0.12
Total from investment operations		2.28			(1.65	)		0.03			0.82			0.17
Less Distributions to Shareholders:
From net investment income		(0.28	)		(0.31	)		(0.33	)		(0.32	)		(0.06	)
From net realized gains		—			(0.40	)		(0.34	)		(0.26	)		—
Total distributions to shareholders		(0.28	)		(0.71	)		(0.67	)		(0.58	)		(0.06	)
Net Asset Value, End of Period	$	10.04		$	8.04		$	10.40		$	11.04		$	10.80
Total return (c)		28.58	%		(16.69	)%		0.09	%		7.80	%		1.62	%(d)
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (e)		0.75	%		0.75	%(f)		0.75	%(f)		0.75	%		0.75	%(g)
Interest expense		—			—	%(h)		—			—			—
Net expenses (e)		0.75	%		0.75	%(f)		0.75	%(f)		0.75	%		0.75	%(g)
Net investment income		3.00	%		3.34	%(f)		2.93	%(f)		3.25	%		2.61	%(g)
Portfolio turnover rate		34	%		52	%		20	%		25	%		30	%(d)
Net assets, end of period (000s)	$	559		$	358		$	451		$	896		$	10

(a) The Portfolio's Class R shares commenced operations on January 23, 2006.

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

(d) Not annualized.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

(g) Annualized.

(h) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income and Growth Portfolio

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

	Year Ended March 31,
Class Z Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	7.96		$	10.30		$	10.96		$	10.73		$	10.97
Income from Investment Operations:
Net investment income (b)		0.33			0.35			0.42			0.37			0.31
Net realized and unrealized gain (loss) on investments and capital gains distributions received		1.98			(1.93	)		(0.36	)		0.49			0.54
Total from investment operations		2.31			(1.58	)		0.06			0.86			0.85
Less Distributions to Shareholders:
From net investment income		(0.33	)		(0.36	)		(0.38	)		(0.37	)		(0.35	)
From net realized gains		—			(0.40	)		(0.34	)		(0.26	)		(0.74	)
Total distributions to shareholders		(0.33	)		(0.76	)		(0.72	)		(0.63	)		(1.09	)
Net Asset Value, End of Period	$	9.94		$	7.96		$	10.30		$	10.96		$	10.73
Total return (c)		29.25	%		(16.23	)%		0.40	%		8.30	%		8.22	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense (d)		0.25	%		0.25	%(e)		0.25	%(e)		0.25	%		0.25	%
Interest expense		—			—	%(f)		—			—			—
Net expenses (d)		0.25	%		0.25	%(e)		0.25	%(e)		0.25	%		0.25	%
Net investment income		3.51	%		3.98	%(e)		3.78	%(e)		3.42	%		2.86	%
Portfolio turnover rate		34	%		52	%		20	%		25	%		30	%
Net assets, end of period (000s)	$	20,406		$	16,275		$	13,598		$	68,749		$	66,806

(a) On August 22, 2005, the Portfolio's Primary A shares were renamed Class Z shares.

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

(d) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

(f) Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income Portfolio

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

	Year Ended March 31,
Class A Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.58		$	9.83		$	10.22		$	9.99		$	10.07
Income from Investment Operations:
Net investment income (b)		0.36			0.38			0.44			0.42			0.38
Net realized and unrealized gain (loss) on investments and capital gains distributions received		1.31			(1.19	)		(0.38	)		0.25			(0.06	)
Total from investment operations		1.67			(0.81	)		0.06			0.67			0.32
Less Distributions to Shareholders:
From net investment income		(0.35	)		(0.40	)		(0.43	)		(0.43	)		(0.38	)
From net realized gains		—			(0.04	)		(0.02	)		(0.01	)		(0.02	)
Total distributions to shareholders		(0.35	)		(0.44	)		(0.45	)		(0.44	)		(0.40	)
Net Asset Value, End of Period	$	9.90		$	8.58		$	9.83		$	10.22		$	9.99
Total return (c)(d)		19.77	%		(8.37	)%		0.60	%		6.91	%		3.22	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		0.67	%		0.67	%		0.67	%(f)		0.67	%		0.67	%
Waiver/Reimbursement		0.58	%		0.39	%		0.47	%		0.54	%		0.37	%
Net investment income		3.78	%		4.40	%		4.34	%(f)		4.19	%		3.60	%
Portfolio turnover rate		35	%		51	%		24	%		42	%		19	%
Net assets, end of period (000s)	$	13,390		$	11,281		$	13,941		$	15,240		$	15,687

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

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

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

(d) 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.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income Portfolio

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

	Year Ended March 31,
Class B Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.56		$	9.82		$	10.21		$	9.98		$	10.06
Income from Investment Operations:
Net investment income (b)		0.28			0.31			0.36			0.35			0.29
Net realized and unrealized gain (loss) on investments and capital gains distributions received		1.33			(1.20	)		(0.37	)		0.25			(0.05	)
Total from investment operations		1.61			(0.89	)		(0.01	)		0.60			0.24
Less Distributions to Shareholders:
From net investment income		(0.28	)		(0.33	)		(0.36	)		(0.36	)		(0.30	)
From net realized gains		—			(0.04	)		(0.02	)		(0.01	)		(0.02	)
Total distributions to shareholders		(0.28	)		(0.37	)		(0.38	)		(0.37	)		(0.32	)
Net Asset Value, End of Period	$	9.89		$	8.56		$	9.82		$	10.21		$	9.98
Total return (c)(d)		19.04	%		(9.17	)%		(0.15	)%		6.13	%		2.44	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		1.42	%		1.42	%		1.42	%(f)		1.42	%		1.42	%
Waiver/Reimbursement		0.58	%		0.39	%		0.47	%		0.54	%		0.37	%
Net investment income		3.02	%		3.66	%		3.58	%(f)		3.43	%		2.85	%
Portfolio turnover rate		35	%		51	%		24	%		42	%		19	%
Net assets, end of period (000s)	$	7,079		$	7,467		$	8,849		$	9,591		$	10,946

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

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

(d) 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.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income Portfolio

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

	Year Ended March 31,
Class C Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.55		$	9.81		$	10.19		$	9.97		$	10.05
Income from Investment Operations:
Net investment income (b)		0.28			0.31			0.36			0.35			0.30
Net realized and unrealized gain (loss) on investments and capital gains distributions received		1.33			(1.20	)		(0.36	)		0.24			(0.06	)
Total from investment operations		1.61			(0.89	)		0.00			0.59			0.24
Less Distributions to Shareholders:
From net investment income		(0.28	)		(0.33	)		(0.36	)		(0.36	)		(0.30	)
From net realized gains		—			(0.04	)		(0.02	)		(0.01	)		(0.02	)
Total distributions to shareholders		(0.28	)		(0.37	)		(0.38	)		(0.37	)		(0.32	)
Net Asset Value, End of Period	$	9.88		$	8.55		$	9.81		$	10.19		$	9.97
Total return (c)(d)		19.07	%		(9.18	)%		(0.05	)%		6.03	%		2.45	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		1.42	%		1.42	%		1.42	%(f)		1.42	%		1.42	%
Waiver/Reimbursement		0.58	%		0.39	%		0.47	%		0.54	%		0.37	%
Net investment income		3.02	%		3.70	%		3.59	%(f)		3.44	%		2.85	%
Portfolio turnover rate		35	%		51	%		24	%		42	%		19	%
Net assets, end of period (000s)	$	5,573		$	5,104		$	4,932		$	4,734		$	6,082

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

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

(d) 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.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Financial Highlights – Columbia LifeGoal Income Portfolio

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

	Year Ended March 31,
Class Z Shares	2010			2009			2008			2007			2006 (a)
Net Asset Value, Beginning of Period	$	8.57		$	9.83		$	10.22		$	10.00		$	10.08
Income from Investment Operations:
Net investment income (b)		0.38			0.42			0.46			0.46			0.38
Net realized and unrealized gain (loss) on investments and capital gains distributions received		1.34			(1.21	)		(0.37	)		0.23			(0.04	)
Total from investment operations		1.72			(0.79	)		0.09			0.69			0.34
Less Distributions to Shareholders:
From net investment income		(0.38	)		(0.43	)		(0.46	)		(0.46	)		(0.40	)
From net realized gains		—			(0.04	)		(0.02	)		(0.01	)		(0.02	)
Total distributions to shareholders		(0.38	)		(0.47	)		(0.48	)		(0.47	)		(0.42	)
Net Asset Value, End of Period	$	9.91		$	8.57		$	9.83		$	10.22		$	10.00
Total return (c)(d)		20.33	%		(8.25	)%		0.85	%		7.07	%		3.47	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses (e)		0.42	%		0.42	%		0.42	%(f)		0.42	%		0.42	%
Waiver/Reimbursement		0.58	%		0.39	%		0.47	%		0.54	%		0.37	%
Net investment income		4.04	%		4.60	%		4.57	%(f)		4.50	%		3.85	%
Portfolio turnover rate		35	%		51	%		24	%		42	%		19	%
Net assets, end of period (000s)	$	4,475		$	4,472		$	5,813		$	3,731		$	403

(a) On August 22, 2005, the Portfolio's Primary A shares were renamed Class Z shares.

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

(d) 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.

(e) Does not include expenses of the underlying investment companies in which the Portfolio invests. If these expenses were included, the expense ratios would have been higher.

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

See Accompanying Notes to Financial Statements.

Notes to Financial Statements – Columbia LifeGoal Portfolios
March 31, 2010

Note 1. Organization

Columbia Funds Series Trust (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. Information presented in these financial statements pertains to the following series of the Trust (each, a "Portfolio" and collectively, the "Portfolios"):

Columbia LifeGoal Growth Portfolio

Columbia LifeGoal Balanced Growth Portfolio

Columbia LifeGoal Income and Growth Portfolio

Columbia LifeGoal Income Portfolio

Investment Objectives

Columbia LifeGoal Growth Portfolio seeks capital appreciation. Columbia LifeGoal Balanced Growth Portfolio seeks total return, consisting of capital appreciation and current income. Columbia LifeGoal Income and Growth Portfolio seek total return, consisting of current income and modest capital appreciation. Columbia LifeGoal Income Portfolio seeks current income, consistent with relative stability of principal.

The Portfolios normally invest most of their assets in Class Z shares of other mutual funds advised by Columbia Management Advisors, LLC ("Columbia") and/or its affiliates, exchange traded funds and third party-advised funds (collectively, "Underlying Funds"), equity and fixed income securities including Treasury Inflation Protected Securities, and other instruments such as derivatives. The financial statements of the Underlying Funds in which the Portfolios invest should be read in conjunction with the Portfolios' financial statements.

Portfolio Shares

The Trust is authorized to issue an unlimited number of shares. The Trust's Declaration of Trust authorizes the Board of Trustees to classify or reclassify any authorized but unissued shares into one or more additional classes or series of shares. Columbia LifeGoal Income Portfolio offers four classes of shares: Class A, Class B, Class C and Class Z shares. Columbia LifeGoal Growth Portfolio, Columbia LifeGoal Balanced Growth Portfolio and Columbia LifeGoal Income and Growth Portfolio each offer five classes of shares: Class A, Class B, Class C, Class R and Class Z shares. Each share class has its own expense structure and sales charges, as applicable. Effective June 22, 2009, the Portfolios no longer accept investments in Class B shares from new or existing investors in the Portfolios' Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of each Portfolio 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% for each Portfolio with the exception of Columbia LifeGoal Income Portfolio. Columbia LifeGoal Income Portfolio is subject to a maximum front-end sales charge of 3.25% 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% (3.00% for Columbia LifeGoal Income Portfolio) 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 and Class Z shares are offered continuously at net asset value. There are certain restric tions on the purchase of Class R and Class Z shares, as described in each Portfolio's prospectus.

Note 2. Significant Accounting Policies

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

Security Valuation

Investments in the Underlying Funds are valued at the net asset value of each class of the respective Underlying Fund determined as of the close of the New York Stock Exchange on the valuation date. Exchange-traded funds are valued at the last sale price on the principal exchange on which they trade,

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

except for securities traded on the NASDAQ, which are valued at the NASDAQ official close price. Exchange-traded funds for which there were no sales during the day are valued at the latest bid price on such exchanges.

• 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.

On January 21, 2010, the FASB issued an Accounting Standards Update (the amendment), Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements, which provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements for Level 2 or Level 3 positions. The amendment also requires that transfers between all levels (including Level 1 and Level 2) be disclosed on a gross basis (i.e., transfers out must be disclosed separately from transfers in), and the reason(s) for the transfer. Additionally purchases, sales, issuances and sett lements must be disclosed on a gross basis in the Level 3 rollforward. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of the amendment and the impact to the financial statements.

Security Transactions

Income Recognition

Distributions from the Underlying Funds are recorded on the ex-dividend date.

Expenses

General expenses of the Trust are allocated to the Portfolios 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 Portfolio are charged to such Portfolio.

Determination of Class Net Asset Value

All income, expenses (other than class-specific expenses, as shown on the Statements of Operations) and realized and unrealized gains (losses) are allocated to each class of the Portfolios on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.

Federal Income Tax Status

Each Portfolio 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 income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each Portfolio intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Portfolio should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

Distributions to Shareholders

Distributions from net investment income, if any, are declared and paid quarterly for each Portfolio, except Columbia LifeGoal Income Portfolio for which distributions from net investment income, if any, are declared and paid monthly. 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 differ from GAAP.

Indemnification

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 each Portfolio'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 March 31, 2010, permanent book and tax basis differences resulting primarily from differing treatments for proceeds received from regulatory settlements were identified and reclassified among the components of each Portfolios' net assets as follows:

	Undistributed Net Investment Income		Accumulated Net Realized Loss		Paid-In Capital
Columbia LifeGoal Growth Portfolio	$	7,713	$	1	$	(7,714	)
Columbia LifeGoal Balanced Growth Portfolio		—		—		—
Columbia LifeGoal Income and Growth Portfolio		—		—		—
Columbia LifeGoal Income Portfolio		—		—		—

Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the years ended March 31, 2010 and March 31, 2009 was as follows:

	March 31, 2010
	Ordinary Income*		Long-Term Capital Gains		Tax Return of Capital
Columbia LifeGoal Growth Portfolio	$	582,425	$	—	$	—
Columbia LifeGoal Balanced Growth Portfolio		11,246,591		—		—
Columbia LifeGoal Income and Growth Portfolio		4,022,943		—		—
Columbia LifeGoal Income Portfolio		1,066,508		—		—

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

	March 31, 2009
	Ordinary Income*		Long-Term Capital Gains		Tax Return of Capital
Columbia LifeGoal Growth Portfolio	$	1,646,065	$	97,148,901	$	289,773
Columbia LifeGoal Balanced Growth Portfolio		12,535,145		69,081,710		—
Columbia LifeGoal Income and Growth Portfolio		4,759,661		6,268,200		—
Columbia LifeGoal Income Portfolio		1,253,743		124,795		—

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

As of March 31, 2010, the components of distributable earnings on a tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Net Unrealized Appreciation (Depreciation)*
Columbia LifeGoal Growth Portfolio	$	274,839	$	—	$	11,922,901
Columbia LifeGoal Balanced Growth Portfolio		279,115		—		40,373,842
Columbia LifeGoal Income and Growth Portfolio		74,078		—		4,951,787
Columbia LifeGoal Income Portfolio		22,129		—		69,553

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

Unrealized appreciation and depreciation at March 31, 2010, based on cost of investments for federal income tax purposes, were:

	Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation
Columbia LifeGoal Growth Portfolio	$	49,714,604	$	(37,791,703	)	$	11,922,901
Columbia LifeGoal Balanced Growth Portfolio		65,926,860		(25,553,018	)		40,373,842
Columbia LifeGoal Income and Growth Portfolio		7,159,739		(2,207,952	)		4,951,787
Columbia LifeGoal Income Portfolio		289,175		(219,622	)		69,553

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
	2017		2018		Total
Columbia LifeGoal Growth Portfolio	$	40,958,553	$	32,807,517	$	73,766,070
Columbia LifeGoal Balanced Growth Portfolio		27,410,771		48,686,674		76,097,445
Columbia LifeGoal Income and Growth Portfolio		2,817,485		8,930,869		11,748,354
Columbia LifeGoal Income Portfolio		425,616		666,391		1,092,007

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

Under current tax rules, certain capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2010, post-October capital losses attributed to security transactions were deferred to April 1, 2010 as follows:

Columbia LifeGoal Growth Portfolio	$	5,345,079
Columbia LifeGoal Balanced
Growth Portfolio		5,735,387
Columbia LifeGoal Income and Growth Portfolio		1,133,289
Columbia LifeGoal Income Portfolio		283,646

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 Portfolios. Columbia receives a monthly investment advisory fee based on each Portfolio's average daily net assets at the following annual rates:

	Annual Fee Rate
Columbia LifeGoal Growth Portfolio		0.25	%
Columbia LifeGoal Balanced Growth Portfolio		0.25	%
Columbia LifeGoal Income and Growth Portfolio		0.25	%
Columbia LifeGoal Income Portfolio		0.50	%*

* Columbia is entitled to receive an investment advisory fee based on Columbia LifeGoal Income Portfolio's assets that are invested in individual securities and the Mortgage- and Asset-Backed Portfolio and the Corporate Bond Portfolio, each of which is a series of the Trust. Columbia LifeGoal Income Portfolio is not charged an advisory fee on its assets that are invested in other Columbia Funds (excluding the Mortgage- and Asset-Backed Portfolio and the Corporate Bond Portfolio. Actual management fees will be charged to Columbia LifeGoal Income Portfolio based on a weighted average of applicable underlying assets of the Portfolio.)

Columbia has contractually agreed to waive 0.10% of advisory fees payable by Columbia LifeGoal Income Portfolio on its assets that are invested in individual securities, the Mortgage- and Asset-Backed Portfolio and the Corporate Bond Portfolio until July 31, 2011. There is no guarantee that this arrangement will continue after July 31, 2011.

Under its investment advisory agreement, Columbia has agreed to bear all fees and expenses of the Portfolios, excluding Columbia LifeGoal Income Portfolio, (exclusive of investment advisory fees, brokerage fees and commissions, distribution and shareholder servicing fees, taxes, interest expense and extraordinary expenses, if any).

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 Portfolios. The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close on or about April 30, 2010 (the "Closing").

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

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 Portfolios. RiverSource Investments, LLC (the "New Advisor"), a subsidiary of Ameriprise Financial, will become the investment advisor of the Portfolios upon the Closing. On March 31, 2010, the Portfolios' shareholders approved, among other matters, the proposed investment management services agreement with the New Advisor. The New Advisor will serve as investment advisor under a new investment management services agreement effective upon the Closing. The New Advisor will 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 Portfolios. Under the administration agreement, Columbia does not receive any compensation for its services from the Portfolios, excluding Columbia LifeGoal Income Portfolio.

With respect to Columbia LifeGoal Income Portfolio, Columbia is entitled to receive an administration fee, computed daily and paid monthly, at the annual rate of 0.23% of its average daily net assets less the custody and the pricing and bookkeeping fees payable by the Portfolio.

Columbia has contractually agreed to waive 0.10% of administration fees on Columbia LifeGoal Income Portfolio's assets that are invested in Underlying Funds (excluding the Mortgage- and Asset-Backed Portfolio and the Corporate Bond Portfolio) until July 31, 2011. There is no guarantee that this arrangement will continue after July 31, 2011.

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

Pricing and Bookkeeping Fees

The Portfolios have 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 Portfolios. The Portfolios have 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 Portfolios. Under the State Street Agreements, Columbia LifeGoal Income Portfolio pays State Street an annual fee of $26,000 paid monthly. Columbia LifeGoal Income Portfolio also reimburses State Street for certain out-of-pocket expenses and charges. Except for Columbia LifeGoal Income Portfolio, the Portfolios do not pay any separate fees for services rendered under the State Street Agreements, and, except for Columbia LifeGoal Income Portfolio, the fees for pricing and bookkeeping services incurred by the Portfolios are paid as part of the management fee.

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 Portfolios have entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Portfolio 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, Columbia LifeGoal Income Portfolio reimburses Columbia for out-of-pocket expenses and charges, including fees payable to third parties, such as for pricing the Portfolio'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 Portfolios 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 for Columbia LifeGoal Income Portfolio 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

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

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 Portfolios.

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 Portfolios and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Portfolios. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.

Under certain circumstances, an annual minimum account balance fee of $20 may apply to certain accounts with a value below each Portfolio'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 Statements of Operations. For the year ended March 31, 2010, no minimum account balance fees were charged by the Portfolios.

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 Portfolios' shares. For the year ended March 31, 2010, the Distributor has retained net underwriting discounts on the sale of Class A shares and received net CDSC fees on Class A, Class B and Class C share redemptions as follows:

	Front-End Sales Charge		Contingent Deferred Sales Charge
	Class A		Class A		Class B		Class C
Columbia LifeGoal Growth Portfolio	$	54,669	$	139	$	109,835	$	6,240
Columbia LifeGoal Balanced Growth Portfolio		112,160		578		220,799		6,080
Columbia LifeGoal Income and Growth Portfolio		27,677		214		43,762		2,141
Columbia LifeGoal Income Portfolio		1,110		245		6,709		145

The Trust has adopted shareholder servicing plans and distribution plans for the Class B and Class C shares of each Portfolio and a combined distribution and shareholder servicing plan for the Class A shares of each Portfolio. The Trust has also adopted a distribution plan for the Class R shares of Columbia LifeGoal Growth Portfolio, Columbia LifeGoal Balanced Growth Portfolio and Columbia LifeGoal Income and Growth Portfolio. The shareholder servicing plans permit the Portfolios 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 Portfolios 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 ti me to time by the Board of Trustees, and are charged as expenses of each Portfolio 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.

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

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	%

Fee Waivers and Expense Reimbursements

For Columbia LifeGoal Income Portfolio, Columbia has contractually agreed to bear a portion of the Portfolio's expenses through July 31, 2011, so that the Portfolio's ordinary operating expenses (excluding any distribution and service fees, brokerage commissions, interest, taxes, extraordinary expenses and expenses associated with the Portfolio's investments in other investment companies, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Portfolio's custodian, do not exceed 0.42% annually of the Portfolio's average daily net assets. There is no guarantee that this expense limitation will continue after July 31, 2011.

Fees Paid to Officers and Trustees

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

Trustees are compensated for their services to the Portfolios, as set forth on the Statements of Operations for Columbia LifeGoal Income Portfolio. 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 Columbia LifeGoal Income Portfolio'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. 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 Statements of Operations. The liability for the deferred compensatio n plan is included in "Trustees' fees" on the Statements of Assets and Liabilities for Columbia LifeGoal Income Portfolio.

Note 5. Portfolio Information

For the year ended March 31, 2010, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, for the Portfolios were as follows:

	Purchases		Sales
Columbia LifeGoal Growth Portfolio	$	66,948,191	$	92,238,508
Columbia LifeGoal Balanced Growth Portfolio		143,949,783		186,312,046
Columbia LifeGoal Income and Growth Portfolio		46,657,741		56,320,408
Columbia LifeGoal Income Portfolio		10,784,191		14,487,752

Note 6. Regulatory Settlements

During the year ended March 31, 2010, Columbia LifeGoal Growth Portfolio received payments totaling $7,713 relating to certain regulatory settlements that the Portfolio had participated in during the year. The payments have been included in "Increase from regulatory settlements" on the Statements of Changes in Net Assets.

Note 7. Line of Credit

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

For the year ended March 31, 2010, the Portfolios did not borrow under these arrangements.

Note 8. Shares of Beneficial Interest

As of March 31, 2010, the Portfolios had shareholders that held greater than 5% of the shares outstanding of a Portfolio, whose shares were benefically owned by participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion. The percentages of shares of beneficial interest outstanding held therein are as follows:

	Number of Shareholders		% of Shares Outstanding Held
Columbia LifeGoal Growth Portfolio		2		11.8
Columbia LifeGoal Balanced Growth Portfolio		1		7.6
Columbia LifeGoal Income and Growth Portfolio		2		10.3
Columbia LifeGoal Income Portfolio		2		12.8

As of March 31, 2010, no other shareholders owned more than 5% of the outstanding shares of each Portfolio.

Subscription and redemption activity of these accounts may have a significant effect on the operations of the Portfolios.

Note 9. Significant Risks and Contingencies

Allocation Risk

Each Portfolio uses an asset allocation strategy in pursuing its investment objective. There is a risk that a Portfolio's allocation among asset classes or investments will cause the Portfolio to under-perform other funds with similar investment objectives, or that the investments themselves will not produce the returns expected.

Investing in Other Funds Risk

The performance of the Underlying Funds in which the Portfolios invest could be adversely affected if other entities investing in the same Underlying Funds make relatively large investments or redemptions in the Underlying Funds. Because the expenses and costs of the Underlying Funds are shared by the Portfolios, redemptions by other investors in the Underlying Funds could result in decreased economies of scale and increased operating expenses for the Portfolios. In addition, the Advisor has the authority to change the Underlying Funds in which the Portfolios invest or to change the percentage of each Portfolio's investments allocated to each Underlying Fund. If an Underlying Fund pays fees to the Advisor, such fees could result in the Advisor having a potential conflict of interest in selecting the Underlying Funds in which the Portfolios invest or in determining the percentage of the Portfolios' investments allocated to each U nderlying Fund.

Smaller Company Securities Risk

Securities of small- or mid-capitalization companies ("smaller companies") may have a higher potential for gains than securities of large-capitalization companies but also may involve more risk. Smaller companies may be more vulnerable to market downturns and adverse economic events than larger, more established companies because smaller companies may have more limited financial resources and business operations. Their securities may trade less frequently and in smaller volumes and may be less liquid and fluctuate more sharply in value than securities of larger companies.

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

Value Securities Risk

Certain Underlying Funds invest in value securities, which are securities of companies that may have experienced adverse business, industry or other developments that have caused the securities to be potentially undervalued. There is the risk that the market value of a portfolio security may not meet Columbia's future value assessment of that security. There is also a risk that it may take longer than expected for the value of these investments to rise to the believed value. In addition, value securities at times may not perform as well as growth securities or the stock market in general.

Interest Rate Risk

Certain Underlying Funds invest in debt securities, which are subject to interest rate risk. In general, if prevailing interest rates rise, the values of debt securities will tend to fall, and if interest rates fall, the values of debt securities will tend to rise. Changes in the value of a debt security may affect the value of the Underlying Fund's shares. Interest rate risk is generally greater for debt securities with longer maturities/durations.

Credit Risk

Certain Underlying Funds are subject to credit risk, which applies to most debt securities, but is generally not a factor for obligations backed by the "full faith and credit" of the U.S. Government. The Underlying Fund could lose money if the issuer of a debt security is unable or perceived to be unable to pay interest or principal when it becomes due. Various factors could affect the issuer's actual or perceived ability to make timely interest or principal payments, including changes in the issuer's financial condition or in general economic conditions. Debt securities backed by an issuer's taxing authority may be subject to legal limits on the issuer's ability to increase taxes or otherwise to raise revenue. Certain debt securities are backed only by revenues derived from a particular project, and thus may have a greater risk of default.

Low and Below Investment Grade Securities Risk

Certain Underlying Funds invest in debt securities with the lowest investment grade rating or that are below investment grade. These securities are more speculative than securities with higher ratings, and tend to be more sensitive to credit risk particularly during a downturn in the economy. These securities typically pay a premium in the form of a higher interest rate or yield because of the increased risk of loss, including default. These securities also are generally less liquid than higher-rated securities.

Foreign Securities Risk

Certain Underlying Funds invest in foreign securities which involves certain additional risks. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments or 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 as these countries are more likely to experience high levels of inflation, deflation or currency devaluation which could hurt their economies and securities markets.

Asset-Backed Securities Risk

The value of asset-backed securities may be affected by, among other factors, changes in interest rates, the market's assessment of the quality of underlying assets, the creditworthiness of the servicer for the underlying assets, factors concerning the interests in and structure of the issuer or the originator of the underlying assets, or the creditworthiness or rating of the entities that provide any supporting letters of credit, surety bonds, derivative instruments, or other credit enhancement. The value of asset-backed securities also will be affected by the exhaustion, termination or expiration of any credit enhancement. Most asset-backed securities are subject to prepayment risk, which is the possibility that the underlying debt may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Portfolios to have to reinvest the money received in securities that have lower yields. In addition, the impact of prepayments on the value of asset-backed securities may be difficult to predict and may result in greater volatility.

Mortgage-Backed Securities Risk

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

bonds or other credit enhancements or the quality of underlying assets or the market's assessment thereof. Mortgage-backed securities are subject to prepayment risk, which is the possibility that the underlying mortgage may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Portfolios to have to reinvest the money received in securities that have lower yields. In addition, the impact of prepayments on the value of mortgage-backed securities may be difficult to predict and may result in greater volatility.

Information Regarding Pending and Settled Legal Proceedings

Columbia LifeGoal Portfolios, March 31, 2010 (continued)

trading and, as a result, the prospectus disclosure used by the registered investment companies then managed by Seligman was and had been misleading. The NYAG included other related claims and also claimed that the fees charged by Seligman to the Seligman Funds were excessive. On March 13, 2009, without admitting or denying any violations of law or wrongdoing, the Seligman Parties entered into a stipulation of settlement with the NYAG and settled the claims made by the NYAG. Under the terms of the settlement, Seligman paid $11.3 million to four Seligman Funds. This settlement resolved all outstanding matters between the Seligman Parties and the NYAG. In addition to the foregoing matter, the New York staff of the SEC indicated in September 2005 that it was considering recommending to the Commissioners of the SEC the instituting of a formal action against Seligman and Seligman Advisors, Inc. relating to frequent trading in the Sel igman Funds. Seligman responded to the staff in October 2005 that it believed that any action would be both inappropriate and unnecessary, especially in light of the fact that Seligman had previously resolved the underlying issue with the Independent Directors of the Seligman Funds and made recompense to the affected Seligman Funds. There have been no further developments with the SEC on this matter.

Note 10. Subsequent Events

In connection with the preparation of the financial statements of the Portfolios as of and for the fiscal year ended March 31, 2010, events and transactions through the date the financial statements were issued have been evaluated by the Portfolios' management for possible adjustment and/or disclosure. No subsequent events or transactions have occurred that would require adjustment of the financial statements as presented. On April 30, 2010, the Transaction disclosed in Note 4 closed. Effective May 1, 2010, the New Advisor became the investment advisor and administrator of the Portfolios and subsequently changed its name to Columbia Management Investment Advisers, LLC. On that date, the New Transfer Agent became the transfer agent of the Portfolios and changed its name to Columbia Management Investment Services Corp. Also on that date, the New Distributor became the distributor of the Portfolios and changed its name to Columbia Management Investment Distributors, Inc.

Report of Independent Registered Public Accounting Firm

To the Shareholders and Trustees of Columbia Funds Series Trust

In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, 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 LifeGoal Growth Portfolio, Columbia LifeGoal Balanced Growth Portfolio, Columbia LifeGoal Income and Growth Portfolio and Columbia LifeGoal Income Portfolio (constituting part of Columbia Funds Series Trust, hereafter referred to as the "Portfolios") at March 31, 2010, the results of each of their operations and the changes in each of their net assets and the financial highlights for 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 Portfolios' 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 March 31, 2010 by correspondence with the transfer agents of the underlying funds, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
May 21, 2010

Federal Income Tax Information (Unaudited)

Columbia LifeGoal Growth Portfolio

100.00% of the ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 100.00%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010 may represent qualified dividend income.

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

Columbia LifeGoal Balanced Growth Portfolio

14.71% of the ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 30.26%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010 may represent qualified dividend income.

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

Columbia LifeGoal Income and Growth Portfolio

5.84% of the ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 10.97%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010 may represent qualified dividend income.

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

Columbia LifeGoal Income Portfolio

2.87% of the ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 2.86%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Portfolio for the fiscal year ended March 31, 2010 may represent qualified dividend income.

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

Fund Governance

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, Jr. (Born 1944)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2005)				Managing Director—E.J. Boudreau & Associates (consulting), from 2000 through current; oversees 52; Trustee—BofA Funds Series Trust.

William P. Carmichael (Born 1943)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 1999)				Retired; oversees 52; Director—Cobra Electronics Corporation (electronic equipment manufacturer); Director—Simmons Company (bedding); Director—The Finish Line (athletic shoes and apparel); Trustee—BofA Funds Series Trust.

William A. Hawkins (Born 1942)

c/o Columbia Management Investment Advisers, 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 52; Trustee—BofA Funds Series Trust.

R. Glenn Hilliard (Born 1943)

c/o Columbia Management Investment Advisers, 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 52; Director—Conseco, Inc. (insurance); Trustee—BofA Funds Series Trust.

John J. Nagorniak (Born 1944)

c/o Columbia Management Investment Advisers, 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 52; Trustee—Research Foundation of CFA Institute; Director—MIT Investment Company; Trustee—MIT 401k Plan; Trustee—BofA Funds Series Trust.

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 Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2003)				President—Micco Corporation and Mickel Investment Group; oversees 52; Board Member—Piedmont Natural Gas; Trustee—BofA Funds Series Trust.

Interested Trustee

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
Anthony M. Santomero¹ (Born 1946)

c/o Columbia Management Investment Advisers, LLC One Financial Center Boston, MA 02111 Trustee (since 2008)				Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, from 2002 through current; Senior Advisor—McKinsey & Company (consulting), 2006 through 2008; President and Chief Executive Officer—Federal Reserve Bank of Philadelphia, 2000 through 2006; oversees 52; Director—Renaissance Reinsurance Ltd; Trustee—Penn Mutual Life Insurance Company; Director—Citigroup; Trustee—BofA Funds Series Trust.

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, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
J. Kevin Connaughton (Born 1964)

One Financial Center Boston, MA 02111 President (since 2009)				Senior Vice President and General Manager—Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds, since 2009, and RiverSource Funds, since May 2010 (previously Senior Vice President and Chief Financial Officer, Columbia Funds, from June 2008 to January 2009, Treasurer, Columbia Funds, from October 2003 to May 2008, and senior officer of various other affiliated funds since 2000); Managing Director, Columbia Management Advisors, LLC from December 2004 to April 2010.

Michael G. Clarke (Born 1969)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2009)				Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, from September 2004 to April 2010; senior officer of Columbia Funds and affiliated funds since 2002.

Scott R. Plummer (Born 1959)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President, Secretary and Chief Legal Officer (since 2010)				Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Vice President and Lead Chief Counsel—Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel—Asset Management, from 2005 to April 2010, and Vice President—Asset Management Compliance from 2004 to 2005); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; Vice President, General Counsel and Secretary, RiverSource Funds, since December 2006; Senior Vice President, Secretary and Chief Legal Officer, Columbia Funds, since May 2010.

Linda J. Wondrack (Born 1964)

One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)				Vice President and Chief Compliance Officer, Columbia Management Investment Advisers, LLC since May 2010; Chief Compliance Officer, Columbia Funds, since 2007, and RiverSource Funds, since May 2010; Director (Columbia Management Group, LLC and Investment Product Group Compliance), Bank of America, from June 2005 to April 2010; Director of Corporate Compliance and Conflicts Officer of MFS Investment Management (investment management) from August 2004 to May 2005.

William F. Truscott (Born 1960)

53600 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 (previously President, Chairman of the Board and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, U.S. Asset Management & President, Annuities, Ameriprise Financial, Inc. since May 2010 (previously President—U.S. Asset Management and Chief Investment Officer from 2005 to April 2010, and Senior Vice President—Chief Investment Officer, from 2001 to 2005); Director, President and Chief Executive Officer, Ameriprise Certificate Company since 2006; Director, Columbia Management Investment Distributors, Inc. since May 2010 (previously Chairman of the Board and Chief Executive Officer from 2008 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006.

Fund Governance (continued)

Officers (continued)

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
Colin Moore (Born 1958)

One Financial Center Boston, MA 02111 Senior Vice President (since 2010)				Director and Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC from 2007 to April 2010; Head of Equities, Columbia Management Advisors, LLC from 2002 to 2007.

Michael A. Jones (Born 1959)

100 Federal Street Boston, MA 02110 Senior Vice President (since 2010)				Director and President, Columbia Management Investment Advisers, LLC since May 2010; President and Director, Columbia Management Investment Distributors, Inc. since May 2010; Manager, Chairman, Chief Executive Officer and President, Columbia Management Advisors, LLC from 2007 to April 2010; Chief Executive Officer, President and Director, Columbia Management Distributors, Inc. from November 2006 to April 2010; previously, co-president and senior managing director at Robeco Investment Management.

Amy Johnson (Born 1965)

5228 Ameriprise Financial Center Minneapolis, MN 55474 Senior Vice President (since 2010)				Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009 until April 2010, Vice President—Asset Management and Trust Company Services, from 2006 to 2009, and Vice President—Operations and Compliance from 2004 to 2006).

Joseph F. DiMaria (Born 1968)

One Financial Center Boston, MA 02111 Treasurer (since 2010) and Chief Accounting Officer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC from January 2006 to April 2010; Head of Tax/Compliance and Assistant Treasurer, Columbia Management Advisors, LLC, from November 2004 to December 2005.

Marybeth Pilat (Born 1968)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2010)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Vice President, Investment Operations, Bank of America, from October 2008 to April 2010; Finance Manager, Boston Children's Hospital from August 2008 to October 2008; Director, Mutual Fund Administration, Columbia Management Advisors, LLC, from May 2007 to July 2008; Vice President, Mutual Fund Valuation, Columbia Management Advisors, LLC, from January 2006 to May 2007; Vice President, Mutual Fund Accounting Oversight, Columbia Management Advisors, LLC from January 2005 to January 2006.

Julian Quero (Born 1967)

One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)				Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, from August 2008 to April 2010; Senior Tax Manager, Columbia Management Advisors, LLC from August 2006 to July 2008; Senior Compliance Manager, Columbia Management Advisors, LLC from April 2002 to August 2006.

Fund Governance (continued)

Officers (continued)

Name, Year of Birth and Address				Principal Occupation(s) During the Past Five Years
Stephen T. Welsh (Born 1957)

One Financial Center Boston, MA 02111 Vice President (since 2006)				President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc. from July 2004 to April 2010; Managing Director, Columbia Management Distributors, Inc. from August 2007 to April 2010.

Board Consideration and Re-Approval of Previous 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 agreement 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 agreement 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, the investment advisory agreement with Columbia Management Advisors, LLC ("CMA" or the "Adviser") for the Columbia LifeGoal Growth Portfolio, Columbia LifeGoal Income Portfolio, Columbia LifeGoal Income and Growth Portfolio and Columbia LifeGoal Balanced Growth Portfolio. The investment advisory agreement with CMA is referred to as an "Advisory Agreement." The portfoli os identified above are each referred to as a "Portfolio" and collectively referred to as the "Portfolios."

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 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 extent practicable, at a rms' 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.

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 Portfolio'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 Agreement. 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 Portfolio-by-Portfolio basis, and its determinations were made separately in respect of each Portfolio.

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 Portfolios by CMA under the Advisory Agreement. The most recent investment adviser registration forms for CMA were made available to the Board, as were CMA'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.

The Board reviewed and considered statistical information regarding each Portfolio'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 Portfolios determined by Lipper Inc. ("Lipper") to be most similar to a given Portfolio (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 Portfolio's Peer Group and Universe and considered potential imprecision resulting from the selection methodology. For certain Portfolios, 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 Portfolio based on: (i) each Portfolio's one- and three-year performance compared to actual management fees; and (ii) each Portfolio'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 Portfolios.

The Portfolio-by-Portfolio discussion set forth below in "Portfolio-Specific Considerations for Certain Review Portfolios" provides additional information regarding those Portfolios 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 Portfolio's Peer Group and/or Universe.

Portfolio Performance. The Board considered the performance results for each of the Portfolios over multiple measurement periods. They also considered these results in comparison to the performance results of each Portfolio's Peer Group and Universe, as well as to each Portfolio'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 Portfolios and other funds in the complex on the one hand and CMA affiliates on the other. The analysis included complex-wide and per-Portfolio 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 Portfolios, whether the Portfolios 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 Portfolio shareholders, most particularly through CMA's assumption of certain Portfolio expenses.

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

Other Factors and Broader Review. As discussed above, the Board reviews materials received from CMA 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 Portfolios receives throughout the year. In this regard, the Board and its Committees review reports of CMA at each of its quarterly meetings, which include, among other things, Portfolio 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.

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

Columbia LifeGoal Balanced Growth Portfolio—The Board engaged in further review of Columbia LifeGoal Balanced Growth Portfolio because its Actual Management Rate was appreciably above the median range of its Peer Group. However, the Board noted other factors such as recent changes to the Portfolio's investment strategies, a total expense ratio that was in line with the Portfolio's Peer Group and Universe and positive performance. Taking into account these matters and other factors considered, the Board concluded that the Actual Management Rate was acceptable.

Columbia LifeGoal Growth Portfolio—The Board engaged in further review of Columbia LifeGoal Growth Portfolio because its Actual Management Rate was appreciably above the median range of its Peer Group. Although the Portfolio's performance over certain periods was not appreciably above the median of its Universe, the Board noted other factors such as recent changes to the Portfolio's investment strategies, a total expense ratio that was in line with the Portfolio's Peer Group and below its Universe and positive performance over other periods. Taking into account these matters and other factors considered, the Board concluded that the Actual Management Rate was acceptable.

Columbia LifeGoal Income and Growth Portfolio—The Board engaged in further review of Columbia LifeGoal Income and Growth Portfolio because its Actual Management Rate was appreciably above the median range of its Peer Group. Although the Portfolio's performance over certain periods was not appreciably above the median of its Universe, the Board noted other factors such as recent changes to the Portfolio's investment strategies, a total expense ratio that was in line with the Portfolio's Peer Group and Universe and positive performance over other periods. Taking into account these matters and other factors considered, the Board concluded that the Actual Management Rate was acceptable.