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)
225 Franklin Street
Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Ryan Larrenaga
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800) 345-6611
Date of fiscal year end: March 31
Date of reporting period: March 31, 2018
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.
Annual Report
March 31, 2018
Columbia Short Term Bond Fund
Not FDIC Insured • No bank guarantee • May lose value
Dear Shareholders,
The year 2017 was an extraordinary year in the financial markets. The S&P 500 Index didn’t experience a single down month and returned over 20%. Continuing this trend, January 2018 marked the fastest start for the index ever. Low volatility, which had been a feature of the U.S. equity market for several years, along with the surge in the S&P 500 Index, drove investor sentiment to very high levels. This arguably set the stage for an overdue correction, which we witnessed in February 2018.
A return to volatility
There have been few periods of market upheaval such as were experienced in the first part of 2018. While investors were taken by surprise by the sudden and pronounced market swings, the return to some level of volatility actually marked a resumption of relatively normal market conditions. Having said that, it’s important to distinguish between a good technical correction where excess enthusiasm in the marketplace is being let out, versus a real change in the underlying fundamentals – things like an underperforming economy or weaker corporate earnings. Our view is that the recent market volatility falls into the former category, and the fundamentals remain strong. We’re continuing to see improvements in global economic activity, and we’re seeing corporate earnings expectations continue to rise – and not just because of tax reform.
Consistency is more important than ever
It’s important to keep in mind that when it comes to long-term investing, it’s the destination, not the journey that matters most. If you have a financial goal that you’ve worked out with your financial advisor, and you have a good asset allocation plan to reach it, it’s a question of sticking with your plan rather than become focused on near-term volatility. Bouts of volatility are normal. After all, it’s hard to cross the ocean without hitting an occasional rough patch. You need to focus on the destination.
One final thought. In weathering volatility, it’s the consistency of the return that is essential. Investors who chase higher returns are usually the first to sell when an investment goes through a bad patch, and they therefore don’t tend to benefit from the recovery. More disciplined investors who perhaps panic less or not at all during periods of volatility, tend to have improved long-term results and are more likely to reach their financial goals. Nothing is more important to us than making sure those who have entrusted us to protect and grow their assets are able to do what matters most to them.
Your success is our priority. Talk to your financial advisor about how working with Columbia Threadneedle Investments may help you position your portfolio for consistent, sustainable outcomes, no matter the market conditions.
Sincerely,
Christopher O. Petersen
President, Columbia Funds
The S&P 500 Index, an unmanaged index, measures the performance of 500 widely held, large-capitalization U.S. stocks and is frequently used as a general measure of market performance. Past performance is no guarantee of future results.
Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2018 Columbia Management Investment Advisers, LLC. All rights reserved.
Columbia Short Term Bond Fund | Annual Report 2018
Columbia Short Term Bond Fund | Annual Report 2018
Investment objective
Columbia Short Term Bond Fund (the Fund) seeks current income, consistent with minimal fluctuation of principal.
Portfolio management
Leonard Aplet, CFA*
Co-Portfolio Manager
Managed Fund since 2004
Gregory Liechty
Co-Portfolio Manager
Managed Fund since 2010
Ronald Stahl, CFA
Co-Portfolio Manager
Managed Fund since 2006
*Mr. Aplet has announced that he plans to retire at the end of 2018.
| Average annual total returns (%) (for the period ended March 31, 2018) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 10/02/92 | 0.15 | 0.50 | 1.71 |
| | Including sales charges | | -0.84 | 0.30 | 1.60 |
| Advisor Class* | 11/08/12 | 0.40 | 0.77 | 1.97 |
| Class C | Excluding sales charges | 10/02/92 | -0.45 | -0.02 | 1.29 |
| | Including sales charges | | -1.44 | -0.02 | 1.29 |
| Institutional Class | 09/30/92 | 0.29 | 0.75 | 1.96 |
| Institutional 2 Class* | 11/08/12 | 0.39 | 0.83 | 2.01 |
| Institutional 3 Class* | 07/15/09 | 0.54 | 0.90 | 2.06 |
| Class R* | 09/27/10 | -0.20 | 0.25 | 1.44 |
| Class T* | Excluding sales charges | 09/27/10 | 0.05 | 0.50 | 1.70 |
| | Including sales charges | | -2.49 | -0.01 | 1.44 |
| Bloomberg Barclays 1-3 Year Government/Credit Index | | 0.24 | 0.76 | 1.56 |
Returns for Class A are shown with and without the maximum initial sales charge of 1.00%. Returns for Class C are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class T are shown with and without the maximum applicable sales charge of 2.50% per transaction. The Fund’s other classes are not subject to sales charges and have limited eligibility. Effective November 1, 2017, Class R4, Class R5, Class Y and Class Z shares were renamed Advisor Class, Institutional 2 Class, Institutional 3 Class and Institutional Class shares, respectively. 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. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg Barclays 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.
| 2 | Columbia Short Term Bond Fund | Annual Report 2018 |
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (March 31, 2008 — March 31, 2018)
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 redemption of Fund shares.
| Portfolio breakdown (%) (at March 31, 2018) |
| Asset-Backed Securities — Non-Agency | 24.1 |
| Commercial Mortgage-Backed Securities - Agency | 11.2 |
| Commercial Mortgage-Backed Securities - Non-Agency | 3.3 |
| Corporate Bonds & Notes | 35.3 |
| Foreign Government Obligations | 1.0 |
| Inflation-Indexed Bonds | 3.0 |
| Money Market Funds | 0.3 |
| Residential Mortgage-Backed Securities - Agency | 1.2 |
| Residential Mortgage-Backed Securities - Non-Agency | 3.6 |
| U.S. Government & Agency Obligations | 6.0 |
| U.S. Treasury Obligations | 11.0 |
| Total | 100.0 |
Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
| Quality breakdown (%) (at March 31, 2018) |
| AAA rating | 61.4 |
| AA rating | 5.7 |
| A rating | 17.4 |
| BBB rating | 15.5 |
| D rating | 0.0 (a) |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments (excluding Money Market Funds).
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
Columbia Short Term Bond Fund | Annual Report 2018
| 3 |
Manager Discussion of Fund Performance
For the 12-month period that ended March 31, 2018, the Fund’s Class A shares returned 0.15% excluding sales charges. The Fund’s benchmark, the Bloomberg Barclays 1-3 Year Government/Credit Index, returned 0.24%. Fees generally accounted for the modest difference between the Fund’s return and the benchmark’s. Exposure to sectors that trade on their spread to same-duration Treasuries aided performance, as all spread sectors produced returns higher than Treasuries for the year. The Fund’s shorter duration also contributed to results, as interest rates rose across the yield curve (a graphic depiction of Treasury yields from short- to long-term). Duration is a measure of interest rate sensitivity. In addition, a position in floating rate securities bolstered return.
Strong economy drove Fed rate hikes, rising yields
The Federal Reserve (Fed) raised a key short-term interest rate, the federal funds rate, three times in 2017 and once so far in 2018, driving interest rates higher and bond prices lower. U.S. economic growth picked up, as gross domestic product (GDP) expanded at an annualized rate of approximately 3.0% for three consecutive quarters; 3% is the long-term historical average growth rate of GDP. Even though jobs were lost as a result of hurricane disruptions during the third quarter of 2017, unemployment fell to 4.1%, as the U.S. labor market added an average of more than 188,000 new jobs per month during the period. Most segments within the corporate and structured securities sectors produced returns that were higher than similar-duration U.S. Treasuries, the result of strong investor demand for yield in a global environment of relatively low interest rates. Volatility picked up near the end of the 12-month period, as the equity market experienced some weakness and the yield spread between Treasury and non-Treasury sectors widened.
Contributors and detractors
The Fund’s duration was shorter than the benchmark by approximately 0.15 – 0.25 years, which benefited performance as interest rates rose between 64 and 107 basis points across the short end of the yield curve during the year. (A basis point is one hundredth of one percent.) Overweights in both corporate and structured securities also aided results, as the yield spread tightened relative to similar-duration Treasuries. The Fund’s largest overweights relative to the benchmark were in asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS). All major subsectors with the corporate market posted returns higher than similar-duration Treasuries. The real estate investment trust (REIT), finance and basic industry sectors performed the best. With respect to credit quality, BBB rated securities outperformed A and AA rated credit for the year, and the Fund was overweight in BBB rated securities. Corporate bonds in the capital goods, non-corporate and consumer non-cyclical sectors detracted from performance as they slightly underperformed other segments of the short-term corporate market.
Treasury futures helped manage duration
During the period, we used Treasury future contracts to hedge the Fund’s duration and to help manage the Fund’s yield curve exposure in a more efficient manner.
Portfolio activity
We modestly reduced the Fund’s allocation to corporate bonds during the period, because we believed that valuations are not as attractive as they were at the beginning of the period. We reinvested some of the proceeds in ABS, where we found valuations more attractive. We also increased the Fund’s position in Treasury inflation protected securities (TIPS) and modestly lengthened duration in these securities. As the yield curve flattened, we modified the Fund’s barbell positioning, which targets the short-end and long-end of the short-term universe. However, the Fund maintained a substantial weight in floating-rate securities, whose coupons adjust with changes in short-term interest rates.
At period’s end
In the final months of the reporting period, fixed-income markets looked for signs of accelerating inflation, which could cause the Fed to accelerate future short-term rate hikes. Treasury yields moved higher in January and February, as both hiring and wage growth exceeded expectations. In March, credit sentiment was dealt a setback on fears that a global trade war could result from plans to impose tariffs on imports from China.
| 4 | Columbia Short Term Bond Fund | Annual Report 2018 |
Manager Discussion of Fund Performance (continued)
Against that backdrop, we continued to target a duration that is shorter than that of the benchmark. Interest rate policy remains data dependent, and we continue to watch employment, global economic concerns and global fiscal and monetary policies. We also expect spread volatility but consider current risk premiums to be reasonably attractive in most sectors.
We continued to favor ABS and CMBS as we believed they offered relatively attractive yields relative to Treasuries. Within CMBS, we preferred seasoned, AAA, super senior holdings as well as short current-pay Government National Mortgage Association (GNMA) project loan tranches. We maintained a significant weight in the corporate sector, where issuance was the highest on record in 2017, largely because of acquisition financing and desired shareholder returns. The Fund remained overweight in the banking, consumer non-cyclical, insurance and electric utility segments of the corporate market.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Mortgage- and asset-backed securities are affected by interest rates, financial health of issuers/originators, creditworthiness of entities providing credit enhancements and the value of underlying assets. Fixed-income securities present issuer default risk. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. Investing in derivatives is a specialized activity that involves special risks, which may result in significant losses. See the Fund’s prospectus for more information on these and other risks.
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.
Columbia Short Term Bond Fund | Annual Report 2018
| 5 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated 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. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| October 1, 2017 — March 31, 2018 |
| | Account value at the
beginning of the
period ($) | 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 | 995.20 | 1,020.83 | 3.96 | 4.01 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 996.40 | 1,022.07 | 2.72 | 2.76 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 992.20 | 1,017.85 | 6.92 | 7.00 | 1.40 |
| Institutional Class | 1,000.00 | 1,000.00 | 995.40 | 1,022.07 | 2.72 | 2.76 | 0.55 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 995.80 | 1,022.51 | 2.28 | 2.31 | 0.46 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 997.10 | 1,022.76 | 2.03 | 2.06 | 0.41 |
| Class R | 1,000.00 | 1,000.00 | 993.90 | 1,019.59 | 5.19 | 5.26 | 1.05 |
| Class T | 1,000.00 | 1,000.00 | 995.20 | 1,020.83 | 3.96 | 4.01 | 0.80 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| 6 | Columbia Short Term Bond Fund | Annual Report 2018 |
Portfolio of Investments
March 31, 2018
(Percentages represent value of investments compared to net assets)
Investments in securities
| Asset-Backed Securities — Non-Agency 24.1% |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Ally Master Owner Trust |
| Series 2018-1 Class A2 |
| 01/17/2023 | 2.700% | | 4,410,000 | 4,390,252 |
| American Credit Acceptance Receivables Trust(a) |
| Series 2016-3 Class A |
| 11/12/2020 | 1.700% | | 1,385,985 | 1,384,889 |
| Series 2016-4 Class A |
| 06/12/2020 | 1.500% | | 49,910 | 49,896 |
| Series 2017-2 Class A |
| 07/13/2020 | 1.840% | | 1,150,370 | 1,149,063 |
| Series 2017-3 Class A |
| 03/10/2020 | 1.820% | | 1,152,808 | 1,150,271 |
| Series 2017-4 Class A |
| 07/10/2020 | 2.000% | | 5,869,019 | 5,854,815 |
| AmeriCredit Automobile Receivables Trust |
| Series 2017-3 Class A2A |
| 12/18/2020 | 1.690% | | 3,360,450 | 3,347,710 |
| Ascentium Equipment Receivables Trust(a) |
| Series 2017-1A Class A2 |
| 07/10/2019 | 1.870% | | 2,500,735 | 2,493,585 |
| Avis Budget Rental Car Funding AESOP LLC(a) |
| Series 2015-1A Class A |
| 07/20/2021 | 2.500% | | 10,930,000 | 10,811,489 |
| Bank of the West Auto Trust(a) |
| Series 2017-1 Class A2 |
| 02/15/2021 | 1.780% | | 5,100,000 | 5,073,149 |
| BMW Floorplan Master Owner Trust(a),(b) |
| Series 2015-1A Class A |
1-month USD LIBOR + 0.500%
07/15/2020 | 2.277% | | 5,205,000 | 5,210,614 |
| BMW Vehicle Lease Trust |
| Series 2016-2 Class A2 |
| 01/22/2019 | 1.230% | | 443,055 | 442,613 |
| Canadian Pacer Auto Receivables Trust(a) |
| Series 2017-1A Class A3 |
| 03/19/2021 | 2.050% | | 3,350,000 | 3,296,810 |
| CarFinance Capital Auto Trust(a) |
| Series 2015-1A Class A |
| 06/15/2021 | 1.750% | | 647,091 | 646,031 |
| CarMax Auto Owner Trust |
| Series 2016-4 Class A2 |
| 11/15/2019 | 1.210% | | 1,072,289 | 1,069,925 |
| CCG Receivables Trust(a) |
| Series 2017-1 Class A2 |
| 11/14/2023 | 1.840% | | 4,300,000 | 4,262,379 |
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Chesapeake Funding II LLC(a) |
| Series 2016-1A Class A1 |
| 03/15/2028 | 2.110% | | 3,247,963 | 3,237,394 |
| Series 2017-4A Class A1 |
| 11/15/2029 | 2.120% | | 5,940,000 | 5,866,392 |
| Chesapeake Funding II LLC(a),(b) |
| Series 2017-2A Class A2 |
1-month USD LIBOR + 0.450%
05/15/2029 | 2.227% | | 5,698,415 | 5,707,444 |
| Chrysler Capital Auto Receivables Trust(a) |
| Series 2016-BA Class A3 |
| 07/15/2021 | 1.640% | | 3,100,000 | 3,077,895 |
| CNH Equipment Trust |
| Series 2016-C Class A2 |
| 02/18/2020 | 1.260% | | 2,714,637 | 2,708,245 |
| Dell Equipment Finance Trust(a) |
| Series 2017-2 Class A2A |
| 02/24/2020 | 1.970% | | 5,025,000 | 4,998,490 |
| Diamond Resorts Owner Trust(a) |
| Series 2013-2 Class A |
| 05/20/2026 | 2.270% | | 1,450,989 | 1,450,945 |
| DLL Securitization Trust(a) |
| Series 2017-A Class A3 |
| 12/15/2021 | 2.140% | | 4,900,000 | 4,831,794 |
| Enterprise Fleet Financing LLC(a) |
| Series 2015-2 Class A2 |
| 02/22/2021 | 1.590% | | 610,818 | 610,299 |
| Series 2016-1 Class A2 |
| 09/20/2021 | 1.830% | | 2,336,135 | 2,330,378 |
| Series 2016-2 Class A2 |
| 02/22/2022 | 1.740% | | 2,239,904 | 2,228,830 |
| Series 2017-1 Class A2 |
| 07/20/2022 | 2.130% | | 3,293,998 | 3,278,104 |
| Series 2017-2 Class A2 |
| 01/20/2023 | 1.970% | | 6,400,000 | 6,350,817 |
| Series 2017-3 Class A2 |
| 05/22/2023 | 2.130% | | 3,075,000 | 3,043,293 |
| Exeter Automobile Receivables Trust(a) |
| Series 2016-1A Class A |
| 07/15/2020 | 2.350% | | 91,937 | 91,920 |
| Series 2016-3A Class A |
| 11/16/2020 | 1.840% | | 966,858 | 963,261 |
| Series 2017-3A Class A |
| 12/15/2021 | 2.050% | | 2,485,522 | 2,471,778 |
| Series 2018-1A Class A |
| 05/17/2021 | 2.210% | | 4,313,391 | 4,300,351 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 7 |
Portfolio of Investments (continued)
March 31, 2018
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| First Investors Auto Owner Trust(a) |
| Series 2015-1A Class A3 |
| 11/16/2020 | 1.710% | | 687,357 | 686,168 |
| Flagship Credit Auto Trust(a) |
| Series 2016-3 Class A1 |
| 12/15/2019 | 1.610% | | 195,655 | 195,602 |
| Ford Credit Auto Owner Trust(a) |
| Series 2015-1 Class A |
| 07/15/2026 | 2.120% | | 11,440,000 | 11,303,390 |
| Ford Credit Floorplan Master Owner Trust |
| Series 2017-2 Class A1 |
| 09/15/2022 | 2.160% | | 2,200,000 | 2,166,372 |
| Ford Credit Floorplan Master Owner Trust A |
| Series 2016-5 Class 1A |
| 11/15/2021 | 1.950% | | 7,400,000 | 7,309,395 |
| Series 2017-1 Class A1 |
| 05/15/2022 | 2.070% | | 3,275,000 | 3,222,734 |
| GMF Floorplan Owner Revolving Trust(a) |
| Series 2017-1 Class A1 |
| 01/18/2022 | 2.220% | | 4,615,000 | 4,564,355 |
| GreatAmerica Leasing Receivables Funding LLC(a) |
| Series 2017-1 Class A2 |
| 04/22/2019 | 1.720% | | 2,145,851 | 2,141,120 |
| Hertz Fleet Lease Funding LP(a) |
| Series 2016-1 Class A2 |
| 04/10/2030 | 1.960% | | 6,262,047 | 6,214,043 |
| Hertz Fleet Lease Funding LP(a),(b) |
| Series 2017-1 Class A1 |
1-month USD LIBOR + 0.650%
04/10/2031 | 2.390% | | 8,935,000 | 8,945,191 |
| Hertz Vehicle Financing II LP(a) |
| Series 2016-3A Class A |
| 07/25/2020 | 2.270% | | 8,048,000 | 7,951,472 |
| Hilton Grand Vacations Trust(a) |
| Series 2013-A Class A |
| 01/25/2026 | 2.280% | | 2,922,780 | 2,891,876 |
| Series 2014-AA Class A |
| 11/25/2026 | 1.770% | | 3,349,440 | 3,274,082 |
| Honda Auto Receivables Owner Trust |
| Series 2017-4 Class A2 |
| 01/21/2020 | 1.800% | | 8,200,000 | 8,169,624 |
| Hyundai Auto Lease Securitization Trust(a) |
| Series 2017-A Class A2A |
| 07/15/2019 | 1.560% | | 1,280,379 | 1,277,346 |
| Kubota Credit Owner Trust(a) |
| Series 2017-1A Class A2 |
| 05/15/2020 | 1.660% | | 4,375,000 | 4,348,187 |
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| MMAF Equipment Finance LLC(a) |
| Series 2017-B Class A2 |
| 10/15/2020 | 1.930% | | 6,700,000 | 6,653,107 |
| MVW Owner Trust(a) |
| Series 2014-1A Class A |
| 09/22/2031 | 2.250% | | 1,256,182 | 1,233,034 |
| Series 2015-1A Class A |
| 12/20/2032 | 2.520% | | 2,457,241 | 2,431,199 |
| Series 2016-1A Class A |
| 12/20/2033 | 2.250% | | 3,493,318 | 3,414,138 |
| Navient Private Education Refi Loan Trust(a) |
| Series 2018-A Class A1 |
| 02/18/2042 | 2.530% | | 4,200,000 | 4,184,260 |
| Navient Student Loan Trust(a),(b) |
| Series 2016-3A Class A1 |
1-month USD LIBOR + 0.600%
06/25/2065 | 2.472% | | 545,581 | 545,971 |
| Navitas Equipment Receivables LLC(a) |
| Series 2016-1 Class A2 |
| 06/15/2021 | 2.200% | | 2,132,965 | 2,128,484 |
| New York City Tax Lien Trust(a) |
| Series 2016-A Class A |
| 11/10/2029 | 1.470% | | 417,359 | 413,631 |
| Series 2017-A Class A |
| 11/10/2030 | 1.870% | | 1,916,053 | 1,897,067 |
| NextGear Floorplan Master Owner Trust(a) |
| Series 2017-2A Class A2 |
| 10/17/2022 | 2.560% | | 6,600,000 | 6,517,379 |
| Nissan Auto Lease Trust |
| Series 2017-B Class A3 |
| 09/15/2020 | 2.050% | | 2,720,000 | 2,691,576 |
| Nissan Master Owner Trust Receivables(b) |
| Series 2017-A Class A |
1-month USD LIBOR + 0.310%
04/15/2021 | 2.087% | | 6,000,000 | 6,014,281 |
| OneMain Direct Auto Receivables Trust(a) |
| Series 2016-1A Class A |
| 01/15/2021 | 2.040% | | 180,195 | 180,040 |
| Prestige Auto Receivables Trust(a) |
| Series 2016-1A Class A3 |
| 06/15/2020 | 1.990% | | 3,467,082 | 3,459,594 |
| Prosper Marketplace Issuance Trust(a) |
| Series 2018-1A Class A |
| 06/17/2024 | 3.110% | | 7,500,000 | 7,498,670 |
| Santander Drive Auto Receivables Trust |
| Series 2017-1 Class A2 |
| 02/18/2020 | 1.490% | | 532,120 | 531,544 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Short Term Bond Fund | Annual Report 2018 |
Portfolio of Investments (continued)
March 31, 2018
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Santander Retail Auto Lease Trust(a) |
| Series 2017-A Class A3 |
| 01/20/2021 | 2.220% | | 5,865,000 | 5,805,376 |
| Securitized Term Auto Receivables Trust(a) |
| Series 2017-1A Class A3 |
| 08/25/2020 | 1.890% | | 6,200,000 | 6,164,201 |
| Sierra Timeshare Receivables Funding LLC(a) |
| Series 2016-3A Class A |
| 10/20/2033 | 2.430% | | 3,371,685 | 3,250,121 |
| SLM Private Education Loan Trust(a) |
| Series 2012-A Class A2 |
| 01/17/2045 | 3.830% | | 3,169,786 | 3,195,855 |
| SLM Student Loan Trust(a),(b) |
| Series 2004-8A Class A5 |
3-month USD LIBOR + 0.500%
04/25/2024 | 2.245% | | 6,281,463 | 6,295,448 |
| SoFi Consumer Loan Program LLC(a) |
| Series 2017-4 Class A |
| 05/26/2026 | 2.500% | | 3,018,040 | 2,982,248 |
| SoFi Consumer Loan Program Trust(a) |
| Series 2018-1 Class A1 |
| 02/25/2027 | 2.550% | | 2,411,657 | 2,403,466 |
| SoFi Professional Loan Program LLC(a) |
| Series 2016-B Class A2A |
| 03/25/2031 | 1.680% | | 395,191 | 394,505 |
| Series 2016-C Class A2A |
| 05/26/2031 | 1.480% | | 2,037,723 | 2,027,184 |
| Series 2017-A Class A2A |
| 03/26/2040 | 1.550% | | 3,425,476 | 3,396,745 |
| Series 2017-C Class A2A |
| 07/25/2040 | 1.750% | | 2,192,159 | 2,174,039 |
| Series 2017-F Class A1FX |
| 01/25/2041 | 2.050% | | 3,355,020 | 3,319,614 |
| Series 2018-A Class A2A |
| 02/25/2042 | 2.390% | | 3,744,473 | 3,725,703 |
| SVO VOI Mortgage LLC(a) |
| Series 2012-AA Class A |
| 09/20/2029 | 2.000% | | 725,477 | 712,816 |
| TAL Advantage V LLC(a) |
| Series 2014-2A Class A1 |
| 05/20/2039 | 1.700% | | 163,949 | 163,965 |
| TCF Auto Receivables Owner Trust(a) |
| Series 2016-1A Class A2 |
| 11/15/2019 | 1.390% | | 16,147 | 16,140 |
| Series 2016-PT1A Class A |
| 06/15/2022 | 1.930% | | 4,111,373 | 4,071,229 |
| Verizon Owner Trust(a) |
| Series 2017-1A Class A |
| 09/20/2021 | 2.060% | | 4,350,000 | 4,308,108 |
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2018-1A Class A1A |
| 09/20/2022 | 2.820% | | 2,025,000 | 2,023,335 |
| Volvo Financial Equipment Master Owner Trust(a),(b) |
| Series 2017-A Class A |
1-month USD LIBOR + 0.500%
11/15/2022 | 2.277% | | 2,745,000 | 2,759,050 |
| Westlake Automobile Receivables Trust(a) |
| Series 2016-3A Class A2 |
| 10/15/2019 | 1.420% | | 1,402,699 | 1,400,773 |
| Series 2018-1A Class A2A |
| 12/15/2020 | 2.240% | | 4,625,000 | 4,608,556 |
| Wheels SPV 2 LLC(a) |
| Series 2015-1A Class A2 |
| 04/22/2024 | 1.270% | | 50,718 | 50,688 |
| World Omni Auto Receivables Trust |
| Series 2017-A Class A3 |
| 09/15/2022 | 1.930% | | 13,525,000 | 13,358,818 |
Total Asset-Backed Securities — Non-Agency
(Cost $313,543,093) | 311,244,036 |
|
| Commercial Mortgage-Backed Securities - Agency 11.2% |
| | | | |
| Government National Mortgage Association |
| CMO Series 2012-142 Class A |
| 05/16/2037 | 1.105% | | 5,606,582 | 5,450,441 |
| CMO Series 2012-4 Class A |
| 05/16/2040 | 2.120% | | 418,289 | 417,592 |
| CMO Series 2012-58 Class A |
| 01/16/2040 | 2.500% | | 9,069,224 | 8,985,952 |
| CMO Series 2012-89 Class A |
| 01/16/2036 | 1.537% | | 1,198,446 | 1,187,728 |
| CMO Series 2013-12 Class A |
| 10/16/2042 | 1.410% | | 9,070,201 | 8,866,532 |
| CMO Series 2013-126 Class AB |
| 04/16/2038 | 1.540% | | 5,370,795 | 5,221,594 |
| CMO Series 2013-17 Class AF |
| 11/16/2043 | 1.210% | | 6,335,751 | 6,068,542 |
| CMO Series 2013-17 Class AH |
| 10/16/2043 | 1.558% | | 7,888,778 | 7,606,129 |
| CMO Series 2013-194 Class AB |
| 05/16/2038 | 2.250% | | 5,602,844 | 5,539,868 |
| CMO Series 2013-2 Class AB |
| 12/16/2042 | 1.600% | | 7,361,294 | 7,245,539 |
| CMO Series 2013-30 Class A |
| 05/16/2042 | 1.500% | | 5,157,850 | 4,981,065 |
| CMO Series 2013-32 Class AB |
| 01/16/2042 | 1.900% | | 4,578,303 | 4,477,188 |
| CMO Series 2013-33 Class A |
| 07/16/2038 | 1.061% | | 16,858,705 | 16,243,692 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 9 |
Portfolio of Investments (continued)
March 31, 2018
| Commercial Mortgage-Backed Securities - Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| CMO Series 2013-35 Class A |
| 02/16/2040 | 1.618% | | 5,879,063 | 5,684,992 |
| CMO Series 2013-40 Class A |
| 10/16/2041 | 1.511% | | 7,251,727 | 7,070,270 |
| CMO Series 2013-45 Class A |
| 10/16/2040 | 1.450% | | 3,170,614 | 3,097,033 |
| CMO Series 2013-50 Class AH |
| 06/16/2039 | 2.100% | | 8,669,752 | 8,518,879 |
| CMO Series 2013-57 Class A |
| 06/16/2037 | 1.350% | | 7,320,100 | 7,108,252 |
| CMO Series 2013-61 Class A |
| 01/16/2043 | 1.450% | | 8,674,461 | 8,347,522 |
| CMO Series 2014-135 Class AD |
| 08/16/2045 | 2.400% | | 2,438,386 | 2,405,012 |
| CMO Series 2015-109 Class A |
| 02/16/2040 | 2.528% | | 1,994,500 | 1,961,951 |
| CMO Series 2015-78 Class A |
| 06/16/2040 | 2.918% | | 3,899,300 | 3,863,622 |
| CMO Series 2015-85 Class AF |
| 05/16/2044 | 2.400% | | 4,639,229 | 4,568,970 |
| Series 2011-20 Class A |
| 04/16/2032 | 1.883% | | 68,351 | 68,184 |
| Series 2013-118 Class AC |
| 06/16/2036 | 1.700% | | 3,606,738 | 3,533,513 |
| Government National Mortgage Association(c) |
| CMO Series 2015-71 Class DA |
| 09/16/2049 | 2.151% | | 6,259,141 | 6,106,215 |
Total Commercial Mortgage-Backed Securities - Agency
(Cost $149,631,398) | 144,626,277 |
|
| Commercial Mortgage-Backed Securities - Non-Agency 3.3% |
| | | | |
| CFCRE Commercial Mortgage Trust |
| Series 2016-C4 Class A1 |
| 05/10/2058 | 1.501% | | 2,782,177 | 2,729,251 |
| Colony Multifamily Mortgage Trust(a) |
| Series 2014-1 Class A |
| 04/20/2050 | 2.543% | | 1,316,231 | 1,308,285 |
| Commercial Mortgage Trust |
| Series 2013-CR10 Class A2 |
| 08/10/2046 | 2.972% | | 2,350,000 | 2,353,011 |
| Series 2013-CR6 Class A2 |
| 03/10/2046 | 2.122% | | 1,711,503 | 1,710,269 |
| Series 2014-CR15 Class A2 |
| 02/10/2047 | 2.928% | | 6,090,532 | 6,106,173 |
| Series 2014-CR17 Class A1 |
| 05/10/2047 | 1.275% | | 693,964 | 690,693 |
| Commercial Mortgage-Backed Securities - Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| GS Mortgage Securities Corp. II |
| Series 2015-GC30 Class A1 |
| 05/10/2050 | 1.439% | | 5,448,795 | 5,385,260 |
| Morgan Stanley Bank of America Merrill Lynch Trust |
| Series 2014-C17 Class A1 |
| 08/15/2047 | 1.551% | | 800,907 | 798,949 |
| Series 2016-C29 Class A1 |
| 05/15/2049 | 1.597% | | 3,127,359 | 3,075,613 |
| SG Commercial Mortgage Securities Trust |
| Series 2016-C5 Class A1 |
| 10/10/2048 | 1.345% | | 5,516,507 | 5,387,789 |
| UBS Commercial Mortgage Trust |
| Series 2012-C1 Class AAB |
| 05/10/2045 | 3.002% | | 7,912,647 | 7,943,520 |
| Wells Fargo Commercial Mortgage Trust |
| Series 2016-C33 Class A1 |
| 03/15/2059 | 1.775% | | 3,051,176 | 3,008,826 |
| WF-RBS Commercial Mortgage Trust |
| Series 2014-C20 Class A1 |
| 05/15/2047 | 1.283% | | 41,180 | 41,138 |
| Series 2014-C21 Class A1 |
| 08/15/2047 | 1.413% | | 1,890,408 | 1,880,774 |
Total Commercial Mortgage-Backed Securities - Non-Agency
(Cost $42,861,214) | 42,419,551 |
|
| Corporate Bonds & Notes 35.2% |
| | | | |
| Aerospace & Defense 0.6% |
| L-3 Communications Corp. |
| 02/15/2021 | 4.950% | | 3,220,000 | 3,355,388 |
| Lockheed Martin Corp. |
| 11/23/2020 | 2.500% | | 4,000,000 | 3,961,864 |
| Total | 7,317,252 |
| Automotive 0.9% |
| Ford Motor Credit Co. LLC |
| 01/15/2021 | 3.200% | | 6,000,000 | 5,954,994 |
| Toyota Motor Credit Corp.(b) |
3-month USD LIBOR + 0.260%
04/17/2020 | 1.991% | | 6,000,000 | 6,009,174 |
| Total | 11,964,168 |
| Banking 10.9% |
| American Express Credit Corp.(b) |
3-month USD LIBOR + 0.550%
03/18/2019 | 2.728% | | 5,500,000 | 5,517,342 |
| ANZ New Zealand International Ltd.(a) |
| 01/22/2021 | 2.750% | | 4,000,000 | 3,950,192 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Short Term Bond Fund | Annual Report 2018 |
Portfolio of Investments (continued)
March 31, 2018
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Bank of America Corp.(b) |
3-month USD LIBOR + 0.870%
04/01/2019 | 3.178% | | 7,670,000 | 7,717,799 |
| Bank of Montreal(b) |
3-month USD LIBOR + 0.600%
12/12/2019 | 2.671% | | 4,000,000 | 4,019,724 |
| Bank of New York Mellon Corp. (The) |
| 08/17/2020 | 2.600% | | 4,000,000 | 3,969,852 |
| Bank of Nova Scotia (The)(b) |
3-month USD LIBOR + 0.390%
07/14/2020 | 2.112% | | 4,000,000 | 4,004,716 |
| Barclays Bank PLC |
| 01/11/2021 | 2.650% | | 4,025,000 | 3,960,177 |
| BB&T Corp.(b) |
3-month USD LIBOR + 0.530%
05/01/2019 | 2.303% | | 4,000,000 | 4,013,556 |
| Capital One Financial Corp.(b) |
3-month USD LIBOR + 0.760%
05/12/2020 | 2.571% | | 4,200,000 | 4,215,670 |
| Citigroup, Inc. |
| 01/10/2020 | 2.450% | | 8,000,000 | 7,922,320 |
| Discover Bank |
| 06/04/2020 | 3.100% | | 4,327,000 | 4,313,556 |
| Fifth Third Bank |
| 10/30/2020 | 2.200% | | 3,450,000 | 3,371,737 |
| Goldman Sachs Group, Inc. (The)(b) |
3-month USD LIBOR + 1.160%
04/23/2020 | 2.905% | | 7,500,000 | 7,603,538 |
| HSBC Holdings PLC |
| 04/05/2021 | 5.100% | | 4,000,000 | 4,209,184 |
| Huntington National Bank (The) |
| 03/10/2020 | 2.375% | | 3,104,000 | 3,061,637 |
| ING Bank NV(a),(b) |
3-month USD LIBOR + 1.130%
03/22/2019 | 3.378% | | 3,940,000 | 3,973,927 |
| JPMorgan Chase & Co. |
| 06/23/2020 | 2.750% | | 9,000,000 | 8,953,470 |
| KeyBank NA |
| 08/22/2019 | 1.600% | | 3,750,000 | 3,689,171 |
| Lloyds Bank PLC |
| 08/17/2020 | 2.700% | | 4,000,000 | 3,959,580 |
| Manufacturers & Traders Trust Co. |
| 02/06/2020 | 2.100% | | 3,000,000 | 2,951,532 |
| Morgan Stanley |
| 01/27/2020 | 2.650% | | 8,000,000 | 7,947,368 |
| PNC Bank NA |
| 01/22/2021 | 2.500% | | 5,000,000 | 4,923,655 |
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Regions Financial Corp. |
| 02/08/2021 | 3.200% | | 3,000,000 | 2,995,806 |
| Royal Bank of Canada(b) |
3-month USD LIBOR + 0.380%
03/02/2020 | 2.397% | | 5,000,000 | 5,009,690 |
| Synovus Financial Corp. |
| 11/01/2022 | 3.125% | | 3,800,000 | 3,692,019 |
| Toronto-Dominion Bank (The) |
| 12/14/2020 | 2.500% | | 4,000,000 | 3,947,228 |
| U.S. Bank NA(b) |
3-month USD LIBOR + 0.150%
05/24/2019 | 2.094% | | 4,000,000 | 3,995,556 |
| Wells Fargo & Co.(b) |
3-month USD LIBOR + 0.880%
07/22/2020 | 2.625% | | 7,000,000 | 7,068,768 |
| Westpac Banking Corp. |
| 03/06/2020 | 2.150% | | 5,539,000 | 5,454,209 |
| Total | 140,412,979 |
| Cable and Satellite 0.5% |
| Comcast Corp. |
| 03/01/2020 | 5.150% | | 3,000,000 | 3,125,166 |
| Sky PLC(a) |
| 09/16/2019 | 2.625% | | 3,000,000 | 2,985,885 |
| Total | 6,111,051 |
| Chemicals 0.8% |
| Celanese U.S. Holdings LLC |
| 06/15/2021 | 5.875% | | 3,425,000 | 3,676,820 |
| Eastman Chemical Co. |
| 01/15/2020 | 2.700% | | 3,000,000 | 2,981,700 |
| LyondellBasell Industries NV |
| 04/15/2019 | 5.000% | | 3,900,000 | 3,959,178 |
| Total | 10,617,698 |
| Construction Machinery 0.7% |
| Caterpillar Financial Services Corp. |
| 09/04/2020 | 1.850% | | 4,000,000 | 3,903,300 |
| John Deere Capital Corp.(b) |
3-month USD LIBOR + 0.240%
03/12/2021 | 2.329% | | 4,700,000 | 4,701,246 |
| Total | 8,604,546 |
| Diversified Manufacturing 1.0% |
| General Electric Co.(b) |
3-month USD LIBOR + 0.800%
04/15/2020 | 2.522% | | 5,350,000 | 5,372,213 |
| Honeywell International, Inc. |
| 10/30/2019 | 1.400% | | 4,000,000 | 3,927,756 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 11 |
Portfolio of Investments (continued)
March 31, 2018
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| United Technologies Corp. |
| 11/01/2019 | 1.500% | | 4,000,000 | 3,921,700 |
| Total | 13,221,669 |
| Electric 2.4% |
| American Electric Power Co., Inc. |
| 11/13/2020 | 2.150% | | 4,000,000 | 3,910,968 |
| Dominion Resources, Inc. |
| 03/15/2021 | 4.450% | | 4,055,000 | 4,180,896 |
| Emera U.S. Finance LP |
| 06/15/2019 | 2.150% | | 3,700,000 | 3,656,721 |
| Exelon Corp. |
| 06/15/2020 | 2.850% | | 3,595,000 | 3,563,346 |
| Nevada Power Co. |
| 08/01/2018 | 6.500% | | 4,143,000 | 4,193,731 |
| NextEra Energy Capital Holdings, Inc. |
| 04/01/2019 | 2.300% | | 3,800,000 | 3,777,458 |
| Progress Energy, Inc. |
| 01/15/2021 | 4.400% | | 4,000,000 | 4,114,132 |
| Southern Co. (The) |
| 07/01/2021 | 2.350% | | 4,000,000 | 3,881,064 |
| Total | 31,278,316 |
| Food and Beverage 1.9% |
| Anheuser-Busch InBev Finance, Inc. |
| 02/01/2021 | 2.650% | | 7,100,000 | 7,041,176 |
| Constellation Brands, Inc. |
| 05/01/2021 | 3.750% | | 3,000,000 | 3,044,409 |
| Diageo Capital PLC |
| 07/15/2020 | 4.828% | | 3,600,000 | 3,751,056 |
| Kraft Heinz Foods Co. |
| 07/02/2020 | 2.800% | | 3,500,000 | 3,475,819 |
| Molson Coors Brewing Co. |
| 07/15/2019 | 1.450% | | 2,860,000 | 2,807,582 |
| PepsiCo, Inc.(b) |
3-month USD LIBOR + 0.590%
02/22/2019 | 2.494% | | 4,000,000 | 4,018,080 |
| Total | 24,138,122 |
| Health Care 1.7% |
| Becton Dickinson and Co.(b) |
3-month USD LIBOR + 0.875%
12/29/2020 | 2.881% | | 4,000,000 | 4,003,388 |
| Cardinal Health, Inc. |
| 12/15/2020 | 4.625% | | 2,655,000 | 2,756,185 |
| CVS Health Corp. |
| 03/09/2021 | 3.350% | | 4,570,000 | 4,595,176 |
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Express Scripts Holding Co. |
| 02/25/2021 | 3.300% | | 4,000,000 | 3,995,452 |
| McKesson Corp. |
| 03/15/2019 | 2.284% | | 3,250,000 | 3,231,400 |
| Medtronic, Inc. |
| 03/15/2020 | 2.500% | | 3,000,000 | 2,981,832 |
| Total | 21,563,433 |
| Healthcare Insurance 0.9% |
| Aetna, Inc. |
| 03/15/2019 | 2.200% | | 3,462,000 | 3,441,820 |
| Anthem, Inc. |
| 08/15/2021 | 3.700% | | 3,300,000 | 3,338,782 |
| UnitedHealth Group, Inc. |
| 10/15/2020 | 1.950% | | 5,000,000 | 4,882,035 |
| Total | 11,662,637 |
| Independent Energy 0.5% |
| Canadian Natural Resources Ltd. |
| 11/15/2021 | 3.450% | | 3,484,000 | 3,505,430 |
| Woodside Finance Ltd.(a) |
| 03/01/2019 | 8.750% | | 3,326,000 | 3,496,604 |
| Total | 7,002,034 |
| Integrated Energy 0.8% |
| BP Capital Markets PLC |
| 02/13/2020 | 2.315% | | 5,800,000 | 5,743,131 |
| Chevron Corp.(b) |
3-month USD LIBOR + 0.210%
03/03/2020 | 2.235% | | 5,000,000 | 5,011,740 |
| Total | 10,754,871 |
| Life Insurance 1.2% |
| American International Group, Inc. |
| 03/01/2021 | 3.300% | | 3,375,000 | 3,378,608 |
| MetLife Global Funding I(a) |
| 04/10/2019 | 2.300% | | 3,875,000 | 3,856,663 |
| Principal Life Global Funding II(a) |
| 11/19/2020 | 2.625% | | 3,825,000 | 3,779,743 |
| Prudential Financial, Inc. |
| 06/21/2020 | 5.375% | | 4,000,000 | 4,201,772 |
| Total | 15,216,786 |
| Media and Entertainment 0.5% |
| 21st Century Fox America, Inc. |
| 08/15/2020 | 5.650% | | 3,345,000 | 3,545,937 |
| Scripps Networks Interactive, Inc. |
| 06/15/2020 | 2.800% | | 2,460,000 | 2,440,699 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Short Term Bond Fund | Annual Report 2018 |
Portfolio of Investments (continued)
March 31, 2018
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Thomson Reuters Corp. |
| 10/15/2019 | 4.700% | | 637,000 | 654,136 |
| Total | 6,640,772 |
| Midstream 0.9% |
| Enterprise Products Operating LLC |
| 10/15/2019 | 2.550% | | 3,500,000 | 3,477,408 |
| Kinder Morgan Energy Partners LP |
| 03/01/2021 | 3.500% | | 5,000,000 | 4,999,425 |
| Williams Partners LP |
| 03/15/2022 | 3.600% | | 4,000,000 | 3,986,592 |
| Total | 12,463,425 |
| Natural Gas 0.3% |
| NiSource Finance Corp. |
| 01/15/2019 | 6.800% | | 789,000 | 811,763 |
| Southern California Gas Co. |
| 06/15/2018 | 1.550% | | 3,000,000 | 2,994,969 |
| Total | 3,806,732 |
| Pharmaceuticals 2.4% |
| AbbVie, Inc. |
| 05/14/2020 | 2.500% | | 3,700,000 | 3,654,338 |
| Allergan, Inc. |
| 09/15/2020 | 3.375% | | 4,000,000 | 4,003,096 |
| Amgen, Inc. |
| 05/11/2020 | 2.200% | | 3,500,000 | 3,445,004 |
| Baxalta, Inc. |
| 06/23/2020 | 2.875% | | 4,300,000 | 4,266,787 |
| Gilead Sciences, Inc. |
| 09/01/2020 | 2.550% | | 4,000,000 | 3,967,448 |
| Johnson & Johnson(b) |
3-month USD LIBOR + 0.270%
03/01/2019 | 2.276% | | 3,000,000 | 3,006,624 |
| Merck & Co., Inc. |
| 05/18/2018 | 1.300% | | 2,999,000 | 2,994,878 |
| Pfizer, Inc. |
| 12/15/2019 | 1.700% | | 3,000,000 | 2,957,454 |
| Roche Holdings, Inc.(a),(b) |
3-month USD LIBOR + 0.340%
09/30/2019 | 2.642% | | 3,000,000 | 3,001,356 |
| Total | 31,296,985 |
| Property & Casualty 0.9% |
| Berkshire Hathaway Finance Corp.(b) |
3-month USD LIBOR + 0.690%
03/15/2019 | 2.815% | | 4,000,000 | 4,019,472 |
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Chubb INA Holdings, Inc. |
| 11/03/2020 | 2.300% | | 4,000,000 | 3,935,688 |
| Hartford Financial Services Group, Inc. (The) |
| 01/15/2019 | 6.000% | | 3,500,000 | 3,586,132 |
| Total | 11,541,292 |
| Railroads 0.2% |
| CSX Corp. |
| 06/01/2021 | 4.250% | | 2,375,000 | 2,452,729 |
| Refining 0.2% |
| Marathon Petroleum Corp. |
| 03/01/2021 | 5.125% | | 3,000,000 | 3,166,416 |
| Retail REIT 0.6% |
| Kimco Realty Corp. |
| 05/01/2021 | 3.200% | | 3,470,000 | 3,472,485 |
| Simon Property Group LP |
| 09/01/2020 | 2.500% | | 4,125,000 | 4,080,528 |
| Total | 7,553,013 |
| Retailers 0.5% |
| Lowe’s Companies, Inc.(b) |
3-month USD LIBOR + 0.420%
09/10/2019 | 2.491% | | 3,000,000 | 3,012,384 |
| Walmart, Inc. |
| 12/15/2020 | 1.900% | | 3,250,000 | 3,182,524 |
| Total | 6,194,908 |
| Technology 2.1% |
| Apple, Inc.(b) |
3-month USD LIBOR + 0.300%
05/06/2019 | 2.089% | | 5,500,000 | 5,514,767 |
| Broadcom Corp./Cayman Finance Ltd. |
| 01/15/2022 | 3.000% | | 4,000,000 | 3,923,848 |
| Cisco Systems, Inc.(b) |
3-month USD LIBOR + 0.500%
03/01/2019 | 2.506% | | 5,000,000 | 5,019,945 |
| Microsoft Corp. |
| 02/06/2020 | 1.850% | | 4,500,000 | 4,450,923 |
| Oracle Corp. |
| 07/15/2020 | 3.875% | | 3,600,000 | 3,693,251 |
| QUALCOMM, Inc.(b) |
3-month USD LIBOR + 0.450%
05/20/2020 | 2.335% | | 4,065,000 | 4,070,541 |
| Total | 26,673,275 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 13 |
Portfolio of Investments (continued)
March 31, 2018
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Transportation Services 0.3% |
| ERAC U.S.A. Finance LLC(a) |
| 10/15/2019 | 2.350% | | 2,079,000 | 2,058,455 |
| 10/01/2020 | 5.250% | | 2,000,000 | 2,098,378 |
| Total | 4,156,833 |
| Wirelines 1.5% |
| AT&T, Inc. |
| 02/17/2021 | 2.800% | | 6,500,000 | 6,435,442 |
| Deutsche Telekom International Finance BV |
| 08/20/2018 | 6.750% | | 3,003,000 | 3,050,321 |
| Orange SA |
| 07/08/2019 | 5.375% | | 3,000,000 | 3,093,891 |
| Telefonica Emisiones SAU |
| 04/27/2020 | 5.134% | | 2,869,000 | 2,982,564 |
| Verizon Communications, Inc. |
| 03/15/2022 | 2.946% | | 3,500,000 | 3,446,978 |
| Total | 19,009,196 |
Total Corporate Bonds & Notes
(Cost $459,115,995) | 454,821,138 |
|
| Foreign Government Obligations(d) 1.0% |
| | | | |
| Canada 0.6% |
| Province of Ontario |
| 05/21/2020 | 1.875% | | 4,000,000 | 3,936,632 |
| Province of Quebec |
| 07/29/2020 | 3.500% | | 4,000,000 | 4,078,092 |
| Total | 8,014,724 |
| Mexico 0.4% |
| Petroleos Mexicanos |
| 03/13/2022 | 5.375% | | 5,000,000 | 5,205,440 |
Total Foreign Government Obligations
(Cost $13,183,831) | 13,220,164 |
|
| Inflation-Indexed Bonds 3.0% |
| | | | |
| United States 3.0% |
| U.S. Treasury Inflation-Indexed Bond |
| 04/15/2021 | 0.125% | | 39,204,750 | 38,876,548 |
Total Inflation-Indexed Bonds
(Cost $38,980,537) | 38,876,548 |
|
| Residential Mortgage-Backed Securities - Agency 1.2% |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Federal Home Loan Mortgage Corp. |
05/01/2018-
07/01/2025 | 5.000% | | 1,672,799 | 1,743,493 |
10/01/2018-
09/01/2022 | 5.500% | | 1,195,391 | 1,231,436 |
03/01/2019-
10/01/2024 | 4.500% | | 956,589 | 994,015 |
06/01/2021-
09/01/2026 | 3.500% | | 397,039 | 405,127 |
08/01/2021-
10/01/2021 | 6.000% | | 229,101 | 235,484 |
05/01/2024-
07/01/2026 | 4.000% | | 1,722,443 | 1,776,086 |
| Federal Home Loan Mortgage Corp.(e) |
| 07/01/2026 | 3.500% | | 89,157 | 90,972 |
| Federal Home Loan Mortgage Corp.(b) |
1-year CMT + 2.223%
03/01/2034 | 3.749% | | 165,119 | 173,806 |
12-month USD LIBOR + 1.735%
07/01/2036 | 3.485% | | 7,759 | 8,148 |
12-month USD LIBOR + 0.017%
08/01/2036 | 3.509% | | 78,357 | 82,013 |
12-month USD LIBOR + 0.018%
12/01/2036 | 3.515% | | 21,340 | 22,138 |
| Federal National Mortgage Association |
05/01/2021-
10/01/2024 | 5.500% | | 2,928,711 | 3,064,693 |
07/01/2022-
08/01/2024 | 5.000% | | 1,052,619 | 1,090,118 |
03/01/2024-
02/01/2027 | 4.000% | | 3,932,572 | 4,047,300 |
12/01/2025-
09/01/2026 | 3.500% | | 17,429 | 17,786 |
| Federal National Mortgage Association(b) |
6-month USD LIBOR + 1.413%
07/01/2033 | 2.916% | | 27,225 | 27,428 |
12-month USD LIBOR + 1.830%
04/01/2036 | 3.790% | | 23,131 | 24,315 |
12-month USD LIBOR + 1.783%
09/01/2037 | 3.533% | | 35,139 | 35,896 |
| Federal National Mortgage Association(c) |
| CMO Series 2003-W11 Class A1 |
| 06/25/2033 | 4.581% | | 17,749 | 18,498 |
| Federal National Mortgage Association(f) |
| CMO Series G-15 Class A |
| 06/25/2021 | 0.000% | | 1,276 | 1,250 |
| Government National Mortgage Association(b) |
1-year CMT + 1.500%
07/20/2018 | 3.000% | | 1,936 | 1,931 |
1-year CMT + 1.500%
03/20/2030 | 2.375% | | 19,817 | 20,532 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Short Term Bond Fund | Annual Report 2018 |
Portfolio of Investments (continued)
March 31, 2018
| Residential Mortgage-Backed Securities - Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Government National Mortgage Association |
| 09/20/2021 | 6.000% | | 21,417 | 21,665 |
Total Residential Mortgage-Backed Securities - Agency
(Cost $15,068,899) | 15,134,130 |
|
| Residential Mortgage-Backed Securities - Non-Agency 3.6% |
| | | | |
| AMRESCO Residential Securities Corp. Mortgage Loan Trust(b) |
| CMO Series 1998-3 Class A7 |
1-month USD LIBOR + 0.480%
07/25/2028 | 2.352% | | 14,774 | 14,729 |
| Angel Oak Mortgage Trust LLC(a),(c) |
| CMO Series 2017-1 Class A1 |
| 01/25/2047 | 2.810% | | 1,930,197 | 1,899,808 |
| Bayview Opportunity Master Fund IVA Trust(a) |
| CMO Series 2016-SPL1 Class A |
| 04/28/2055 | 4.000% | | 3,395,981 | 3,454,157 |
| Cityscape Home Equity Loan Trust(g),(h),(i) |
| CMO Series 1997-C Class A3 |
| 07/25/2028 | 0.000% | | 607,537 | 1 |
| COLT Mortgage Loan Trust(a) |
| CMO Series 2016-1 Class A1 |
| 05/25/2046 | 3.000% | | 718,887 | 727,830 |
| COLT Mortgage Loan Trust(a),(c) |
| CMO Series 2016-2 Class A1 |
| 09/25/2046 | 2.750% | | 1,896,215 | 1,890,335 |
| CMO Series 2017-1 Class A1 |
| 05/27/2047 | 2.614% | | 3,215,373 | 3,129,905 |
| Credit Suisse Mortgage Capital Certificates(a),(c) |
| CMO Series 2009-9R Class 12A1 |
| 08/26/2035 | 3.463% | | 1,093,896 | 1,099,717 |
| Mill City Mortgage Trust(a) |
| CMO Series 2016-1 Class A1 |
| 04/25/2057 | 2.500% | | 3,819,574 | 3,763,518 |
| Residential Funding Mortgage Securities II(b) |
| CMO Series 2003-HS3 Class A2B (NPFGC) |
1-month USD LIBOR + 0.290%
08/25/2033 | 2.162% | | 1,425 | 1,422 |
| Towd Point Mortgage Trust(a) |
| CMO Series 2015-4 Class A1 |
| 04/25/2055 | 3.500% | | 3,887,741 | 3,910,129 |
| CMO Series 2015-6 Class A1 |
| 04/25/2055 | 3.500% | | 6,341,158 | 6,375,748 |
| CMO Series 2016-2 Class A1 |
| 08/25/2055 | 3.000% | | 6,439,243 | 6,404,267 |
| Residential Mortgage-Backed Securities - Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| CMO Series 2016-3 Class A1 |
| 04/25/2056 | 2.250% | | 3,188,309 | 3,137,229 |
| CMO Series 2017-1 Class A1 |
| 10/25/2056 | 2.750% | | 3,275,705 | 3,244,109 |
| CMO Series 2017-4 Class A1 |
| 06/25/2057 | 2.750% | | 4,343,718 | 4,289,044 |
| Series 2015-3 Class A1B |
| 03/25/2054 | 3.000% | | 1,085,707 | 1,082,582 |
| Verus Securitization Trust(a),(c) |
| CMO Series 2017-1A Class A1 |
| 01/25/2047 | 2.853% | | 2,400,642 | 2,404,043 |
Total Residential Mortgage-Backed Securities - Non-Agency
(Cost $48,039,946) | 46,828,573 |
|
| U.S. Government & Agency Obligations 6.0% |
| | | | |
| Federal Home Loan Mortgage Corp. |
| 01/17/2020 | 1.500% | | 78,100,000 | 76,943,573 |
| Morocco Government AID Bond(b),(g),(i) |
6-month USD LIBOR + 0.000%
05/01/2023 | 1.250% | | 467,500 | 455,345 |
Total U.S. Government & Agency Obligations
(Cost $78,188,747) | 77,398,918 |
|
| U.S. Treasury Obligations 11.0% |
| | | | |
| U.S. Treasury |
| 04/30/2021 | 1.375% | | 146,275,000 | 141,816,180 |
Total U.S. Treasury Obligations
(Cost $142,043,540) | 141,816,180 |
| Money Market Funds 0.3% |
| | Shares | Value ($) |
| Columbia Short-Term Cash Fund, 1.738%(j),(k) | 3,594,249 | 3,593,890 |
Total Money Market Funds
(Cost $3,593,890) | 3,593,890 |
Total Investments in Securities
(Cost: $1,304,251,090) | 1,289,979,405 |
| Other Assets & Liabilities, Net | | 915,223 |
| Net Assets | 1,290,894,628 |
At March 31, 2018, securities and/or cash totaling $63,433 were pledged as collateral.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 15 |
Portfolio of Investments (continued)
March 31, 2018
Investments in derivatives
| Long futures contracts |
| Description | Number of
contracts | Expiration
date | Trading
currency | Notional
amount | Value/Unrealized
appreciation ($) | Value/Unrealized
depreciation ($) |
| U.S. Treasury 2-Year Note | 170 | 06/2018 | USD | 36,137,478 | 3,807 | — |
| Short futures contracts |
| Description | Number of
contracts | Expiration
date | Trading
currency | Notional
amount | Value/Unrealized
appreciation ($) | Value/Unrealized
depreciation ($) |
| U.S. Treasury 5-Year Note | (125) | 06/2018 | USD | (14,332,114) | — | (46,155) |
Notes to Portfolio of Investments
| (a) | Represents privately placed and other securities and instruments exempt from SEC registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At March 31, 2018, the value of these securities amounted to $333,142,856, which represents 25.81% of net assets. |
| (b) | Variable rate security. |
| (c) | Represents a variable rate security where the coupon rate adjusts periodically using the weighted average coupon of the underlying mortgages. |
| (d) | Principal and interest may not be guaranteed by the government. |
| (e) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
| (f) | Represents principal only securities which have the right to receive the principal portion only on an underlying pool of mortgage loans. |
| (g) | Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2018, the value of these securities amounted to $455,346, which represents 0.04% of net assets. |
| (h) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At March 31, 2018, the value of these securities amounted to $1, which represents less than 0.01% of net assets. |
| (i) | Valuation based on significant unobservable inputs. |
| (j) | The rate shown is the seven-day current annualized yield at March 31, 2018. |
| (k) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the year ended March 31, 2018 are as follows: |
| Issuer | Beginning
shares | Shares
purchased | Shares
sold | Ending
shares | Realized gain
(loss) —
affiliated
issuers ($) | Net change in
unrealized
appreciation
(depreciation) —
affiliated
issuers ($) | Dividends —
affiliated
issuers ($) | Value —
affiliated
issuers
at end of
period ($) |
| Columbia Short-Term Cash Fund, 1.738% |
| | 26,158,595 | 491,551,815 | (514,116,161) | 3,594,249 | (1,858) | (1,819) | 230,514 | 3,593,890 |
Abbreviation Legend
| AID | Agency for International Development |
| CMO | Collateralized Mortgage Obligation |
| NPFGC | National Public Finance Guarantee Corporation |
Currency Legend
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Short Term Bond Fund | Annual Report 2018 |
Portfolio of Investments (continued)
March 31, 2018
Fair value measurements (continued)
pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Certain investments that have been measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Short-Term Cash Fund seeks to provide shareholders with maximum current income consistent with liquidity and stability of principal. Columbia Short-Term Cash Fund prices its shares with a floating NAV and no longer seeks to maintain a stable NAV.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.
The following table is a summary of the inputs used to value the Fund’s investments at March 31, 2018:
| | Level 1
quoted prices
in active
markets for
identical
assets ($) | Level 2
other
significant
observable
inputs ($) | Level 3
significant
unobservable
inputs ($) | Investments
measured at
net asset
value ($) | Total ($) |
| Investments in Securities | | | | | |
| Asset-Backed Securities — Non-Agency | — | 311,244,036 | — | — | 311,244,036 |
| Commercial Mortgage-Backed Securities - Agency | — | 144,626,277 | — | — | 144,626,277 |
| Commercial Mortgage-Backed Securities - Non-Agency | — | 42,419,551 | — | — | 42,419,551 |
| Corporate Bonds & Notes | — | 454,821,138 | — | — | 454,821,138 |
| Foreign Government Obligations | — | 13,220,164 | — | — | 13,220,164 |
| Inflation-Indexed Bonds | — | 38,876,548 | — | — | 38,876,548 |
| Residential Mortgage-Backed Securities - Agency | — | 15,134,130 | — | — | 15,134,130 |
| Residential Mortgage-Backed Securities - Non-Agency | — | 46,828,572 | 1 | — | 46,828,573 |
| U.S. Government & Agency Obligations | — | 76,943,573 | 455,345 | — | 77,398,918 |
| U.S. Treasury Obligations | 141,816,180 | — | — | — | 141,816,180 |
| Money Market Funds | — | — | — | 3,593,890 | 3,593,890 |
| Total Investments in Securities | 141,816,180 | 1,144,113,989 | 455,346 | 3,593,890 | 1,289,979,405 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 17 |
Portfolio of Investments (continued)
March 31, 2018
Fair value measurements (continued)
| | Level 1
quoted prices
in active
markets for
identical
assets ($) | Level 2
other
significant
observable
inputs ($) | Level 3
significant
unobservable
inputs ($) | Investments
measured at
net asset
value ($) | Total ($) |
| Investments in Derivatives | | | | | |
| Asset | | | | | |
| Futures Contracts | 3,807 | — | — | — | 3,807 |
| Liability | | | | | |
| Futures Contracts | (46,155) | — | — | — | (46,155) |
| Total | 141,773,832 | 1,144,113,989 | 455,346 | 3,593,890 | 1,289,937,057 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
Derivative instruments are valued at unrealized appreciation (depreciation).
There were no transfers of financial assets between levels during the period.
The Fund does not hold any significant investments (greater than one percent of net assets) categorized as Level 3.
The Fund’s assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain residential mortgage backed securities and U.S. Government and Agency Obligations classified as Level 3 securities are valued using the market approach. To determine fair value for these securities, management considered various factors which may have included, but were not limited to, estimated cash flows of the securities, discount rates observed in the market for similar assets as well as observed yields on securities management deemed comparable. Significant increases (decreases) to any of these inputs would result in a significantly lower (higher) fair value measurement. Generally, a change in observable yields on comparable securities would result in a directionally similar change to discount rates.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Short Term Bond Fund | Annual Report 2018 |
Statement of Assets and Liabilities
March 31, 2018
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $1,300,657,200) | $1,286,385,515 |
| Affiliated issuers (cost $3,593,890) | 3,593,890 |
| Cash | 24 |
| Receivable for: | |
| Investments sold | 1,263,272 |
| Capital shares sold | 953,936 |
| Dividends | 12,723 |
| Interest | 4,508,902 |
| Foreign tax reclaims | 3,008 |
| Variation margin for futures contracts | 5,313 |
| Expense reimbursement due from Investment Manager | 1,673 |
| Prepaid expenses | 2,380 |
| Total assets | 1,296,730,636 |
| Liabilities | |
| Payable for: | |
| Capital shares purchased | 4,178,811 |
| Distributions to shareholders | 1,233,961 |
| Variation margin for futures contracts | 13,672 |
| Management services fees | 15,059 |
| Distribution and/or service fees | 2,674 |
| Transfer agent fees | 61,814 |
| Compensation of board members | 245,565 |
| Other expenses | 84,452 |
| Total liabilities | 5,836,008 |
| Net assets applicable to outstanding capital stock | $1,290,894,628 |
| Represented by | |
| Paid in capital | 1,312,624,424 |
| Excess of distributions over net investment income | (415,168) |
| Accumulated net realized loss | (7,000,595) |
| Unrealized appreciation (depreciation) on: | |
| Investments - unaffiliated issuers | (14,271,685) |
| Futures contracts | (42,348) |
| Total - representing net assets applicable to outstanding capital stock | $1,290,894,628 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 19 |
Statement of Assets and Liabilities (continued)
March 31, 2018
| Class A | |
| Net assets | $242,169,722 |
| Shares outstanding | 24,517,683 |
| Net asset value per share | $9.88 |
| Maximum sales charge | 1.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $9.98 |
| Advisor Class | |
| Net assets | $7,420,412 |
| Shares outstanding | 752,158 |
| Net asset value per share | $9.87 |
| Class C | |
| Net assets | $42,010,137 |
| Shares outstanding | 4,262,264 |
| Net asset value per share | $9.86 |
| Institutional Class | |
| Net assets | $194,235,998 |
| Shares outstanding | 19,696,838 |
| Net asset value per share | $9.86 |
| Institutional 2 Class | |
| Net assets | $30,580,321 |
| Shares outstanding | 3,104,095 |
| Net asset value per share | $9.85 |
| Institutional 3 Class | |
| Net assets | $771,726,383 |
| Shares outstanding | 78,283,070 |
| Net asset value per share | $9.86 |
| Class R | |
| Net assets | $2,535,438 |
| Shares outstanding | 256,630 |
| Net asset value per share | $9.88 |
| Class T | |
| Net assets | $216,217 |
| Shares outstanding | 21,886 |
| Net asset value per share | $9.88 |
| Maximum sales charge | 2.50% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge per transaction for Class T shares) | $10.13 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Short Term Bond Fund | Annual Report 2018 |
Statement of Operations
Year Ended March 31, 2018
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $230,514 |
| Interest | 28,052,777 |
| Total income | 28,283,291 |
| Expenses: | |
| Management services fees | 6,440,283 |
| Distribution and/or service fees | |
| Class A | 662,547 |
| Class B | 2,704 |
| Class C | 495,412 |
| Class R | 14,707 |
| Class T | 962 |
| Transfer agent fees | |
| Class A | 405,351 |
| Advisor Class | 12,327 |
| Class B | 477 |
| Class C | 76,046 |
| Institutional Class | 785,489 |
| Institutional 2 Class | 13,191 |
| Institutional 3 Class | 58,053 |
| Class K | 7 |
| Class R | 4,496 |
| Class T | 607 |
| Plan administration fees | |
| Class K | 31 |
| Compensation of board members | 63,798 |
| Custodian fees | 31,925 |
| Printing and postage fees | 87,161 |
| Registration fees | 149,921 |
| Audit fees | 42,454 |
| Legal fees | 19,823 |
| Compensation of chief compliance officer | 338 |
| Other | 41,216 |
| Total expenses | 9,409,326 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (848,588) |
| Fees waived by distributor | |
| Class B | (1,217) |
| Class C | (74,312) |
| Expense reduction | (1,440) |
| Total net expenses | 8,483,769 |
| Net investment income | 19,799,522 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (5,198,202) |
| Investments — affiliated issuers | (1,858) |
| Futures contracts | 49,842 |
| Net realized loss | (5,150,218) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (8,590,443) |
| Investments — affiliated issuers | (1,819) |
| Futures contracts | (72,037) |
| Net change in unrealized appreciation (depreciation) | (8,664,299) |
| Net realized and unrealized loss | (13,814,517) |
| Net increase in net assets resulting from operations | $5,985,005 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 21 |
Statement of Changes in Net Assets
| | Year Ended
March 31, 2018 | Year Ended
March 31, 2017 |
| Operations | | |
| Net investment income | $19,799,522 | $19,257,401 |
| Net realized loss | (5,150,218) | (477,929) |
| Net change in unrealized appreciation (depreciation) | (8,664,299) | 3,062,186 |
| Net increase in net assets resulting from operations | 5,985,005 | 21,841,658 |
| Distributions to shareholders | | |
| Net investment income | | |
| Class A | (3,097,995) | (2,798,069) |
| Advisor Class | (114,546) | (101,246) |
| Class B | (2,484) | (5,447) |
| Class C | (282,074) | (146,669) |
| Class I | — | (4,327,938) |
| Institutional Class | (7,001,998) | (10,829,213) |
| Institutional 2 Class | (327,334) | (184,403) |
| Institutional 3 Class | (10,620,896) | (375,465) |
| Class K | (155) | (25,349) |
| Class R | (27,048) | (20,949) |
| Class T | (4,606) | (42,414) |
| Total distributions to shareholders | (21,479,136) | (18,857,162) |
| Decrease in net assets from capital stock activity | (455,980,400) | (160,642,889) |
| Total decrease in net assets | (471,474,531) | (157,658,393) |
| Net assets at beginning of year | 1,762,369,159 | 1,920,027,552 |
| Net assets at end of year | $1,290,894,628 | $1,762,369,159 |
| Undistributed (excess of distributions over) net investment income | $(415,168) | $1,085,404 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Short Term Bond Fund | Annual Report 2018 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | March 31, 2018 | March 31, 2017 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 3,511,885 | 34,982,737 | 6,260,578 | 62,593,349 |
| Distributions reinvested | 279,830 | 2,787,553 | 245,209 | 2,451,675 |
| Redemptions | (8,351,105) | (83,165,683) | (14,689,267) | (146,687,853) |
| Net decrease | (4,559,390) | (45,395,393) | (8,183,480) | (81,642,829) |
| Advisor Class | | | | |
| Subscriptions | 181,208 | 1,805,453 | 259,797 | 2,591,974 |
| Distributions reinvested | 11,498 | 114,391 | 10,106 | 100,915 |
| Redemptions | (419,498) | (4,176,538) | (344,920) | (3,442,684) |
| Net decrease | (226,792) | (2,256,694) | (75,017) | (749,795) |
| Class B | | | | |
| Subscriptions | — | — | 5,610 | 56,070 |
| Distributions reinvested | 49 | 493 | 182 | 1,823 |
| Redemptions | (94,932) | (951,844) | (49,139) | (490,842) |
| Net decrease | (94,883) | (951,351) | (43,347) | (432,949) |
| Class C | | | | |
| Subscriptions | 601,870 | 5,972,792 | 1,142,028 | 11,395,648 |
| Distributions reinvested | 22,000 | 218,844 | 11,108 | 110,785 |
| Redemptions | (2,302,854) | (22,887,472) | (2,508,666) | (25,027,904) |
| Net decrease | (1,678,984) | (16,695,836) | (1,355,530) | (13,521,471) |
| Class I | | | | |
| Subscriptions | — | — | 14,523,619 | 144,872,303 |
| Distributions reinvested | — | — | 397,351 | 3,966,396 |
| Redemptions | — | — | (48,614,589) | (484,608,747) |
| Net decrease | — | — | (33,693,619) | (335,770,048) |
| Institutional Class | | | | |
| Subscriptions | 9,311,246 | 92,665,870 | 26,158,895 | 260,911,239 |
| Distributions reinvested | 265,099 | 2,636,941 | 199,376 | 1,990,499 |
| Redemptions | (88,797,971) | (885,734,356) | (37,329,744) | (372,536,159) |
| Net decrease | (79,221,626) | (790,431,545) | (10,971,473) | (109,634,421) |
| Institutional 2 Class | | | | |
| Subscriptions | 2,701,724 | 26,788,324 | 1,589,856 | 15,886,128 |
| Distributions reinvested | 32,957 | 327,194 | 18,476 | 184,277 |
| Redemptions | (1,354,160) | (13,425,290) | (1,316,359) | (13,117,884) |
| Net increase | 1,380,521 | 13,690,228 | 291,973 | 2,952,521 |
| Institutional 3 Class | | | | |
| Subscriptions | 74,118,174 | 739,299,755 | 39,497,527 | 393,386,561 |
| Distributions reinvested | 507,848 | 5,048,609 | 32,442 | 323,563 |
| Redemptions | (35,977,636) | (356,732,120) | (601,728) | (6,001,477) |
| Net increase | 38,648,386 | 387,616,244 | 38,928,241 | 387,708,647 |
| Class K | | | | |
| Subscriptions | — | — | 54,242 | 540,970 |
| Distributions reinvested | 3 | 35 | 2,218 | 22,147 |
| Redemptions | (1,309) | (12,900) | (414,701) | (4,131,348) |
| Net decrease | (1,306) | (12,865) | (358,241) | (3,568,231) |
| Class R | | | | |
| Subscriptions | 51,870 | 516,662 | 127,486 | 1,275,525 |
| Distributions reinvested | 1,186 | 11,827 | 1,060 | 10,597 |
| Redemptions | (145,988) | (1,453,840) | (117,976) | (1,178,731) |
| Net increase (decrease) | (92,932) | (925,351) | 10,570 | 107,391 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Bond Fund | Annual Report 2018
| 23 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | March 31, 2018 | March 31, 2017 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Class T | | | | |
| Subscriptions | 44 | 442 | 79,906 | 799,239 |
| Distributions reinvested | 451 | 4,497 | 4,231 | 42,331 |
| Redemptions | (62,377) | (622,776) | (694,570) | (6,933,274) |
| Net decrease | (61,882) | (617,837) | (610,433) | (6,091,704) |
| Total net decrease | (45,908,888) | (455,980,400) | (16,060,356) | (160,642,889) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia Short Term Bond Fund | Annual Report 2018 |
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Columbia Short Term Bond Fund | Annual Report 2018
| 25 |
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income
(loss) | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income |
| Class A |
| Year Ended 3/31/2018 | $9.98 | 0.11 | (0.09) | 0.02 | (0.12) |
| Year Ended 3/31/2017 | $9.97 | 0.08 | 0.01 | 0.09 | (0.08) |
| Year Ended 3/31/2016 | $9.98 | 0.06 | (0.02) | 0.04 | (0.05) |
| Year Ended 3/31/2015 | $9.98 | 0.07 | 0.02 | 0.09 | (0.09) |
| Year Ended 3/31/2014 | $10.03 | 0.08 | (0.06) | 0.02 | (0.07) |
| Advisor Class |
| Year Ended 3/31/2018 | $9.97 | 0.13 | (0.09) | 0.04 | (0.14) |
| Year Ended 3/31/2017 | $9.96 | 0.11 | 0.00 (d) | 0.11 | (0.10) |
| Year Ended 3/31/2016 | $9.97 | 0.08 | (0.01) | 0.07 | (0.08) |
| Year Ended 3/31/2015 | $9.97 | 0.10 | 0.01 | 0.11 | (0.11) |
| Year Ended 3/31/2014 | $10.01 | 0.10 | (0.05) | 0.05 | (0.09) |
| Class C |
| Year Ended 3/31/2018 | $9.96 | 0.05 | (0.09) | (0.04) | (0.06) |
| Year Ended 3/31/2017 | $9.95 | 0.02 | 0.01 | 0.03 | (0.02) |
| Year Ended 3/31/2016 | $9.97 | (0.00) (d) | (0.02) | (0.02) | (0.00) (d) |
| Year Ended 3/31/2015 | $9.98 | 0.02 | 0.01 | 0.03 | (0.04) |
| Year Ended 3/31/2014 | $10.02 | 0.05 | (0.05) | 0.00 (d) | (0.04) |
| Institutional Class |
| Year Ended 3/31/2018 | $9.97 | 0.12 | (0.09) | 0.03 | (0.14) |
| Year Ended 3/31/2017 | $9.95 | 0.11 | 0.01 | 0.12 | (0.10) |
| Year Ended 3/31/2016 | $9.96 | 0.08 | (0.02) | 0.06 | (0.07) |
| Year Ended 3/31/2015 | $9.97 | 0.10 | 0.00 (d) | 0.10 | (0.11) |
| Year Ended 3/31/2014 | $10.01 | 0.10 | (0.05) | 0.05 | (0.09) |
| Institutional 2 Class |
| Year Ended 3/31/2018 | $9.96 | 0.14 | (0.10) | 0.04 | (0.15) |
| Year Ended 3/31/2017 | $9.95 | 0.12 | 0.00 (d) | 0.12 | (0.11) |
| Year Ended 3/31/2016 | $9.96 | 0.09 | (0.01) | 0.08 | (0.09) |
| Year Ended 3/31/2015 | $9.97 | 0.11 | 0.00 (d) | 0.11 | (0.12) |
| Year Ended 3/31/2014 | $10.01 | 0.11 | (0.05) | 0.06 | (0.10) |
| Institutional 3 Class |
| Year Ended 3/31/2018 | $9.96 | 0.15 | (0.10) | 0.05 | (0.15) |
| Year Ended 3/31/2017 | $9.95 | 0.13 | 0.00 (d) | 0.13 | (0.12) |
| Year Ended 3/31/2016 | $9.96 | 0.09 | (0.01) | 0.08 | (0.09) |
| Year Ended 3/31/2015 | $9.97 | 0.11 | 0.01 | 0.12 | (0.13) |
| Year Ended 3/31/2014 | $10.01 | 0.12 | (0.05) | 0.07 | (0.11) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 26 | Columbia Short Term Bond Fund | Annual Report 2018 |
Total
distributions to
shareholders | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income (loss)
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| |
| (0.12) | $9.88 | 0.15% | 0.86% | 0.80% (c) | 1.06% | 86% | $242,170 |
| (0.08) | $9.98 | 0.90% | 0.88% | 0.80% (c) | 0.82% | 68% | $290,277 |
| (0.05) | $9.97 | 0.41% | 0.89% | 0.80% (c) | 0.58% | 73% | $371,442 |
| (0.09) | $9.98 | 0.86% | 0.89% | 0.80% (c) | 0.75% | 60% | $414,188 |
| (0.07) | $9.98 | 0.19% | 0.89% | 0.80% (c) | 0.77% | 81% | $479,831 |
| |
| (0.14) | $9.87 | 0.40% | 0.60% | 0.55% (c) | 1.31% | 86% | $7,420 |
| (0.10) | $9.97 | 1.16% | 0.63% | 0.55% (c) | 1.07% | 68% | $9,760 |
| (0.08) | $9.96 | 0.66% | 0.64% | 0.55% (c) | 0.82% | 73% | $10,494 |
| (0.11) | $9.97 | 1.11% | 0.64% | 0.55% (c) | 0.98% | 60% | $8,945 |
| (0.09) | $9.97 | 0.54% | 0.64% | 0.55% (c) | 1.03% | 81% | $7,056 |
| |
| (0.06) | $9.86 | (0.45%) | 1.61% | 1.40% (c) | 0.46% | 86% | $42,010 |
| (0.02) | $9.96 | 0.33% | 1.62% | 1.40% (c) | 0.22% | 68% | $59,183 |
| (0.00) (d) | $9.95 | (0.19%) | 1.64% | 1.40% (c) | (0.02%) | 73% | $72,602 |
| (0.04) | $9.97 | 0.25% | 1.64% | 1.30% (c) | 0.25% | 60% | $75,284 |
| (0.04) | $9.98 | (0.02%) | 1.64% | 1.11% (c) | 0.46% | 81% | $88,042 |
| |
| (0.14) | $9.86 | 0.29% | 0.61% | 0.55% (c) | 1.23% | 86% | $194,236 |
| (0.10) | $9.97 | 1.26% | 0.63% | 0.55% (c) | 1.07% | 68% | $985,868 |
| (0.07) | $9.95 | 0.66% | 0.64% | 0.55% (c) | 0.82% | 73% | $1,093,664 |
| (0.11) | $9.96 | 1.01% | 0.64% | 0.55% (c) | 1.00% | 60% | $1,296,171 |
| (0.09) | $9.97 | 0.54% | 0.64% | 0.55% (c) | 1.02% | 81% | $1,537,794 |
| |
| (0.15) | $9.85 | 0.39% | 0.51% | 0.46% | 1.44% | 86% | $30,580 |
| (0.11) | $9.96 | 1.25% | 0.50% | 0.45% | 1.16% | 68% | $17,167 |
| (0.09) | $9.95 | 0.76% | 0.49% | 0.44% | 0.89% | 73% | $14,242 |
| (0.12) | $9.96 | 1.11% | 0.49% | 0.45% | 1.09% | 60% | $53,516 |
| (0.10) | $9.97 | 0.64% | 0.49% | 0.46% | 1.13% | 81% | $40,717 |
| |
| (0.15) | $9.86 | 0.54% | 0.46% | 0.41% | 1.50% | 86% | $771,726 |
| (0.12) | $9.96 | 1.30% | 0.45% | 0.40% | 1.28% | 68% | $394,827 |
| (0.09) | $9.95 | 0.81% | 0.44% | 0.40% | 0.88% | 73% | $7,030 |
| (0.13) | $9.96 | 1.16% | 0.44% | 0.40% | 1.06% | 60% | $22,996 |
| (0.11) | $9.97 | 0.69% | 0.44% | 0.41% | 1.17% | 81% | $6,368 |
Columbia Short Term Bond Fund | Annual Report 2018
| 27 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income
(loss) | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income |
| Class R |
| Year Ended 3/31/2018 | $9.99 | 0.08 | (0.10) | (0.02) | (0.09) |
| Year Ended 3/31/2017 | $9.97 | 0.06 | 0.02 | 0.08 | (0.06) |
| Year Ended 3/31/2016 | $9.98 | 0.03 | (0.01) | 0.02 | (0.03) |
| Year Ended 3/31/2015 | $9.99 | 0.05 | 0.00 (d) | 0.05 | (0.06) |
| Year Ended 3/31/2014 | $10.03 | 0.05 | (0.05) | 0.00 (d) | (0.04) |
| Class T |
| Year Ended 3/31/2018 | $9.99 | 0.10 | (0.09) | 0.01 | (0.12) |
| Year Ended 3/31/2017 | $9.97 | 0.08 | 0.02 | 0.10 | (0.08) |
| Year Ended 3/31/2016 | $9.98 | 0.06 | (0.02) | 0.04 | (0.05) |
| Year Ended 3/31/2015 | $9.99 | 0.07 | 0.01 | 0.08 | (0.09) |
| Year Ended 3/31/2014 | $10.03 | 0.08 | (0.05) | 0.03 | (0.07) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (d) | Rounds to zero. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 28 | Columbia Short Term Bond Fund | Annual Report 2018 |
Total
distributions to
shareholders | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income (loss)
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| |
| (0.09) | $9.88 | (0.20%) | 1.10% | 1.05% (c) | 0.81% | 86% | $2,535 |
| (0.06) | $9.99 | 0.75% | 1.12% | 1.05% (c) | 0.56% | 68% | $3,490 |
| (0.03) | $9.97 | 0.16% | 1.14% | 1.05% (c) | 0.32% | 73% | $3,380 |
| (0.06) | $9.98 | 0.50% | 1.14% | 1.05% (c) | 0.50% | 60% | $3,373 |
| (0.04) | $9.99 | 0.04% | 1.14% | 1.05% (c) | 0.52% | 81% | $3,838 |
| |
| (0.12) | $9.88 | 0.05% | 0.86% | 0.80% (c) | 1.04% | 86% | $216 |
| (0.08) | $9.99 | 1.01% | 0.88% | 0.80% (c) | 0.82% | 68% | $836 |
| (0.05) | $9.97 | 0.41% | 0.89% | 0.80% (c) | 0.58% | 73% | $6,922 |
| (0.09) | $9.98 | 0.76% | 0.89% | 0.80% (c) | 0.74% | 60% | $6,597 |
| (0.07) | $9.99 | 0.29% | 0.89% | 0.81% (c) | 0.78% | 81% | $7,009 |
Columbia Short Term Bond Fund | Annual Report 2018
| 29 |
Notes to Financial Statements
March 31, 2018
Note 1. Organization
Columbia Short Term Bond Fund (the Fund), a series of Columbia Funds Series Trust (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware statutory trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Different share classes pay different distribution amounts to the extent the expenses of such share classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense and sales charge structure. The Fund offers each of the share classes identified below.
Class A shares are subject to a maximum front-end sales charge of 1.00% based on the initial investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a contingent deferred sales charge (CDSC) if the shares are sold within 18 months after purchase, charged as follows: 1.00% CDSC if redeemed within 12 months after purchase, and 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase.
Advisor Class shares are not subject to sales charges and are generally available only to omnibus retirement plans and certain investors as described in the Fund’s prospectus. Prior to November 1, 2017, Advisor Class shares were known as Class R4 shares.
Class B shares of the Fund are no longer offered for sale. When available, Class B shares were subject to a maximum CDSC of 3.00% based upon the holding period after purchase. Effective July 17, 2017, Class B shares were automatically converted to Class A shares without a CDSC. On August 4, 2017, the capital owned by Columbia Management Investment Advisers, LLC in Class B shares was redeemed without a CDSC.
Class C shares are subject to a 1.00% CDSC on shares redeemed within 12 months after purchase.
Institutional Class shares are not subject to sales charges and are generally available only to eligible investors, which are subject to different investment minimums as described in the Fund’s prospectus. Prior to November 1, 2017, Institutional Class shares were known as Class Z shares.
Institutional 2 Class shares are not subject to sales charges and are generally available only to investors purchasing through authorized investment professionals and omnibus retirement plans as described in the Fund’s prospectus. Prior to November 1, 2017, Institutional 2 Class shares were known as Class R5 shares.
Institutional 3 Class shares are not subject to sales charges and are available to institutional and certain other investors as described in the Fund’s prospectus. Prior to November 1, 2017, Institutional 3 Class shares were known as Class Y shares.
The Fund no longer accepts investments by existing investors in Class K shares. When available, Class K shares were not subject to sales charges and were made available only to existing investors in Class K shares. On March 9, 2018, Class K shares were redeemed or exchanged for Advisor Class shares of the Fund in a tax free transaction that had no impact on fees and expenses paid by the shareholders.
Class R shares are not subject to sales charges and are generally available only to certain retirement plans and other investors as described in the Fund’s prospectus.
Class T shares are subject to a maximum front-end sales charge of 2.50% per transaction and must be purchased through financial intermediaries that, by written agreement with Columbia Management Investment Distributors, Inc., are specifically authorized to sell Class T shares.
| 30 | Columbia Short Term Bond Fund | Annual Report 2018 |
Notes to Financial Statements (continued)
March 31, 2018
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which 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 income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Asset- and mortgage-backed securities are generally valued by pricing services, which utilize pricing models that incorporate the securities’ cash flow and loan performance data. These models also take into account available market data, including trades, market quotations, and benchmark yield curves for identical or similar securities. Factors used to identify similar securities may include, but are not limited to, issuer, collateral type, vintage, prepayment speeds, collateral performance, credit ratings, credit enhancement and expected life. Asset-backed securities for which quotations are readily available may also be valued based upon an over-the-counter or exchange bid quote from an approved independent broker-dealer.
Investments in open-end investment companies, including money market funds, are valued at their latest net asset value.
Futures and options on futures contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of transactions, at the mean of the latest quoted bid and ask prices.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published 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 fair value.
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and
Columbia Short Term Bond Fund | Annual Report 2018
| 31 |
Notes to Financial Statements (continued)
March 31, 2018
credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract; therefore, additional counterparty credit risk is failure of the clearinghouse or CCP. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker’s customer account. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivatives contract counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain circumstances. Collateral terms are contract specific for over-the-counter derivatives. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In addition to considering counterparty credit risk, the Fund would consider terminating the derivatives contracts based on whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
| 32 | Columbia Short Term Bond Fund | Annual Report 2018 |
Notes to Financial Statements (continued)
March 31, 2018
Futures contracts
Futures contracts are exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are recorded as variation margin receivable or payable and are 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 in the Statement of Assets and Liabilities.
Effects of derivative transactions in the financial statements
The following tables are intended to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at March 31, 2018:
| | Asset derivatives | |
Risk exposure
category | Statement
of assets and liabilities
location | Fair value ($) |
| Interest rate risk | Net assets — unrealized appreciation on futures contracts | 3,807* |
| | Liability derivatives | |
Risk exposure
category | Statement
of assets and liabilities
location | Fair value ($) |
| Interest rate risk | Net assets — unrealized depreciation on futures contracts | 46,155* |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
Columbia Short Term Bond Fund | Annual Report 2018
| 33 |
Notes to Financial Statements (continued)
March 31, 2018
The following table indicates the effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the year ended March 31, 2018:
| Amount of realized gain (loss) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 49,842 |
| |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | (72,037) |
The following table is a summary of the average outstanding volume by derivative instrument for the year ended March 31, 2018:
| Derivative instrument | Average notional
amounts ($)* |
| Futures contracts — long | 44,392,528 |
| Futures contracts — short | 15,908,189 |
| * | Based on the ending quarterly outstanding amounts for the year ended March 31, 2018. |
Asset- and mortgage-backed securities
The Fund may invest in asset-backed and mortgage-backed securities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. All, or a portion, of the obligation may be prepaid at any time because the underlying asset may be prepaid. As a result, decreasing market interest rates could result in an increased level of prepayment. An increased prepayment rate will have the effect of shortening the maturity of the security. Unless otherwise noted, the coupon rates presented are fixed rates.
Treasury inflation protected securities
The Fund 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. These adjustments are recorded as interest income in the Statement of Operations. Coupon payments are based on the adjusted principal at the time the interest is paid.
Interest only and principal only securities
The Fund may invest in Interest Only (IO) or Principal Only (PO) securities. IOs are stripped securities entitled to receive all of the security’s interest, but none of its principal. IOs are particularly sensitive to changes in interest rates and therefore subject to greater fluctuations in price than typical interest bearing debt securities. IOs are also subject to credit risk because the Fund may not receive all or part of the interest payments if the issuer, obligor, guarantor or counterparty defaults on its obligation. Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. POs are stripped securities entitled to receive the principal from the underlying obligation, but not the interest. POs are particularly sensitive to changes in interest rates and therefore are subject to fluctuations in price. POs are also subject to credit risk because the Fund may not receive all or part of its principal if the issuer, obligor, guarantor or counterparty defaults on its obligation. The Fund may also invest in IO or PO stripped mortgage-backed securities. Payments received for POs are treated as reductions to the cost and par value of the securities.
| 34 | Columbia Short Term Bond Fund | Annual Report 2018 |
Notes to Financial Statements (continued)
March 31, 2018
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted. The Fund classifies gains and losses realized on prepayments received on mortgage-backed securities as adjustments to interest income.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
Expenses
General expenses of the Trust are allocated to the Fund and other funds 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. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, 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 ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Realized gains in certain countries may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily 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.
Columbia Short Term Bond Fund | Annual Report 2018
| 35 |
Notes to Financial Statements (continued)
March 31, 2018
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncement
Accounting Standards Update 2017-08 Premium Amortization on Purchased Callable Debt Securities
In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. At this time, management is evaluating the implication of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.43% to 0.28% as the Fund’s net assets increase. The effective management services fee rate for the year ended March 31, 2018 was 0.42% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Plan. All amounts payable under the Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated funds governed by the Board of Trustees, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
| 36 | Columbia Short Term Bond Fund | Annual Report 2018 |
Notes to Financial Statements (continued)
March 31, 2018
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Effective August 1, 2017, total transfer agency fees for Class K, Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07%, 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. Prior to August 1, 2017, these limitations were 0.075% for Class K and Institutional 2 Class shares and 0.025% for Institutional 3 Class shares.
For the year ended March 31, 2018, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.15 |
| Advisor Class | 0.15 |
| Class B | 0.06 (a) |
| Class C | 0.15 |
| Institutional Class | 0.16 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class K | 0.06 (a) |
| Class R | 0.15 |
| Class T | 0.16 |
The Fund and certain other associated investment companies have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), the former transfer agent, including the payment of rent by SDC (the Guaranty). SDC was the legacy Seligman funds’ former transfer agent.
The lease and the Guaranty expire in January 2019. At March 31, 2018, the Fund’s total potential future obligation over the life of the Guaranty is $9,176. The liability remaining at March 31, 2018 for non-recurring charges associated with the lease amounted to $2,724 and is recorded as a part of the payable for other expenses in the Statement of Assets and Liabilities.
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended March 31, 2018, these minimum account balance fees reduced total expenses of the Fund by $1,440.
Plan administration fees
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund pays an annual fee at a rate of 0.25% of the Fund’s average daily net assets attributable to Class K shares for the provision of various administrative, recordkeeping, communication and educational services. As a result of all Class K shares of the Fund being redeemed or exchanged for Advisor Class shares, March 9, 2018 was the last day the Fund paid a plan administration fee for Class K shares.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the
Columbia Short Term Bond Fund | Annual Report 2018
| 37 |
Notes to Financial Statements (continued)
March 31, 2018
Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A shares of the Fund. Also under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class B, Class C and Class T shares of the Fund and a monthly distribution fee to the Distributor at the maximum annual rates of 0.75%, 0.75%, 0.50% and 0.25% of the average daily net assets attributable to Class B, Class C, Class R and Class T shares of the Fund, respectively. As a result of all Class B shares of the Fund being redeemed or converted to Class A shares, August 4, 2017 was the last day the Fund paid a distribution and service fee for Class B shares.
Although the Fund may pay a distribution fee up to 0.25% of the Fund’s average daily net assets attributable to Class T shares and a service fee of up to 0.25% of the Fund’s average daily net assets attributable to Class T shares, the aggregate fee shall not exceed 0.25% of the Fund’s average daily net assets attributable to Class T shares.
The Distributor had voluntarily agreed to waive a portion of the distribution fee for Class B shares so that the distribution fee did not exceed 0.30% annually of the average daily net assets attributable to Class B shares. This arrangement was in effect through August 4, 2017.
The Distributor has voluntarily agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.60% annually of the average daily net assets attributable to Class C shares. This arrangement may be modified or terminated by the Distributor at any time.
Sales charges (unaudited)
Sales charges, including front-end charges and CDSCs, received by the Distributor for distributing Fund shares for the year ended March 31, 2018, if any, are listed below:
| | Amount ($) |
| Class A | 105,596 |
| Class C | 2,733 |
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| | Fee rate(s) contractual
through
July 31, 2018 |
| Class A | 0.80% |
| Advisor Class | 0.55 |
| Class C | 1.55 |
| Institutional Class | 0.55 |
| Institutional 2 Class | 0.46 |
| Institutional 3 Class | 0.41 |
| Class R | 1.05 |
| Class T | 0.80 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated
| 38 | Columbia Short Term Bond Fund | Annual Report 2018 |
Notes to Financial Statements (continued)
March 31, 2018
pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. Class C distribution and service fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
Note 4. 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 because of temporary or permanent book to tax differences.
At March 31, 2018, these differences were primarily due to differing treatment for deferral/reversal of wash sale losses, derivative investments, capital loss carryforwards, trustees’ deferred compensation, distributions and principal and/or interest from fixed income securities. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets in the Statement of Assets and Liabilities. Temporary differences do not require reclassifications.
In the Statement of Assets and Liabilities the following reclassifications were made:
Excess of distributions
over net investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| 179,042 | (179,042) | — |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended March 31, 2018 | Year Ended March 31, 2017 |
Ordinary
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Long-term
capital gains ($) | Total ($) |
| 21,479,136 | — | 21,479,136 | 18,857,162 | — | 18,857,162 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At March 31, 2018, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| 1,314,255 | — | (6,786,856) | (14,778,977) |
At March 31, 2018, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 1,304,716,034 | 588,050 | (15,367,027) | (14,778,977) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Columbia Short Term Bond Fund | Annual Report 2018
| 39 |
Notes to Financial Statements (continued)
March 31, 2018
The following capital loss carryforwards, determined at March 31, 2018, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. Capital loss carryforwards with no expiration are required to be utilized prior to any capital losses which carry an expiration date. As a result of this ordering rule, capital loss carryforwards which carry an expiration date may be more likely to expire unused. In addition, for the year ended March 31, 2018, capital loss carryforwards utilized, expired unused and permanently lost, if any, were as follows:
| 2019 ($) | No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) | Expired ($) | Permanently
lost ($) |
| — | 3,955,818 | 2,831,038 | 6,786,856 | — | — | — |
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $1,294,596,609 and $1,725,706,779, respectively, for the year ended March 31, 2018, of which $613,987,072 and $703,885,463, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money market fund
The Fund invests in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the overnight federal funds rate plus 1.00% or (ii) the one-month LIBOR rate plus 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations.
The Fund had no borrowings during the year ended March 31, 2018.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt securities in the Fund’s portfolio may decline because the issuer may default and fail to pay interest or repay principal when due. Rating agencies assign credit ratings to debt securities to indicate their credit risk. Lower rated or unrated debt securities held by the Fund may present increased credit risk as compared to higher-rated debt securities.
| 40 | Columbia Short Term Bond Fund | Annual Report 2018 |
Notes to Financial Statements (continued)
March 31, 2018
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise. Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Mortgage- and other asset-backed securities risk
The value of any mortgage-backed and other asset-backed securities held by the Fund may be affected by, among other things, changes or perceived changes in: interest rates; factors concerning the interests in and structure of the issuer or the originator of the mortgages or other assets; the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements; or the market’s assessment of the quality of underlying assets. Payment of principal and interest on some mortgage-backed securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of a particular U.S. Government agency, authority, enterprise or instrumentality, and some, but not all, are also insured or guaranteed by the U.S. Government. Mortgage-backed securities issued by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers) may entail greater risk than obligations guaranteed by the U.S. Government. Mortgage- and other asset-backed securities are subject to prepayment risk, which is the possibility that the underlying mortgage or other asset 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. Rising or high interest rates tend to extend the duration of mortgage- and other asset-backed securities, making their prices more volatile and more sensitive to changes in interest rates.
Shareholder concentration risk
At March 31, 2018, one unaffiliated shareholder of record owned 48.3% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of record owned 31.0% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory
Columbia Short Term Bond Fund | Annual Report 2018
| 41 |
Notes to Financial Statements (continued)
March 31, 2018
proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| 42 | Columbia Short Term Bond Fund | Annual Report 2018 |
Report of Independent Registered Public Accounting Firm
To the Trustees of Columbia Funds Series Trust and Shareholders of Columbia Short Term Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Short Term Bond Fund (one of the funds constituting Columbia Funds Series Trust, referred to hereafter as the "Fund") as of March 31, 2018, the related statement of operations for the year ended March 31, 2018, the statement of changes in net assets for each of the two years in the period ended March 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, 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 ended March 31, 2018 and the financial highlights for each of five years in the period ended March 31, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2018 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
May 22, 2018
We have served as auditors of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Short Term Bond Fund | Annual Report 2018
| 43 |
Shareholders elect the Board that oversees the Fund’s operations. The Board appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. Under current Board policy, Trustees not affiliated with the Investment Manager generally may serve through the end of the calendar year in which they reach either the mandatory retirement age established by the Board or the fifteenth anniversary of the first Columbia Funds board meeting they attended as a member of the Board.
Independent trustees
Name,
address,
year of birth | Position held
with the Trust and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
complex
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1953 | Trustee since 1/17 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 125 | Advisory Board Member, University of Colorado Business School since November 2015; former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011- 2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016 |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1954 | Trustee since 1/06 for RiverSource Funds and since 6/11 for Nations Funds | Attorney; specializing in arbitration and mediation; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance) since February 2018; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Interim Chair, Minnesota Sports Facilities Authority, March 2017-July 2017 | 125 | Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee since 2017); Chair of the Robina Foundation since August 2013; former Member of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017 |
Edward J. Boudreau, Jr.
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1944 | Chair of the Board since 1/18; Trustee since 6/11 for RiverSource Funds and since 1/05 for Nations Funds | Managing Director, E.J. Boudreau & Associates (consulting) since 2000; FINRA Industry Arbitrator, 2002-present; Chairman and Chief Executive Officer, John Hancock Investments (asset management), Chairman and Interested Trustee for open-end and closed-end funds offered by John Hancock, 1989-2000; John Hancock Mutual Life Insurance Company, including Senior Vice President and Treasurer and Senior Vice President Information Technology, 1968-1988 | 125 | Former Trustee, Boston Museum of Science (Chair of Finance Committee) 1985-2013; former Trustee, BofA Funds Series Trust (11 funds), 2005-2011 |
| 44 | Columbia Short Term Bond Fund | Annual Report 2018 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Trust and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
complex
overseen | Other directorships
held by Trustee
during the past
five years |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1954 | Trustee since 7/07 for RiverSource Funds and since 6/11 for Nations Funds | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991 | 125 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of Human Resources Committee) since 1996; Director, Darien Rowayton Bank (Audit Committee) since 2017 |
William P. Carmichael
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1943 | Trustee since 6/11 for RiverSource Funds and since 2003 for Nations Funds | Retired; Co-founder, The Succession Fund (provides exit strategies to owners of privately held companies), 1998-2007; Adjunct Professor of Finance, Kelley School of Business, Indiana University, 1993-2007; Senior Vice President, Sara Lee Corporation, 1991-1993; Senior Vice President and Chief Financial Officer, Beatrice Foods Company, 1984-1990; Vice President, Esmark, Inc., 1973-1984; Associate, Price Waterhouse, 1968-1972 | 125 | Director, The Finish Line (athletic shoes and apparel) since July 2003; former Director, Cobra Electronics Corporation (electronic equipment manufacturer), 1994-August 2014; former Director, Spectrum Brands, Inc. (consumer products), 2002-2009; former Director, Simmons Company (bedding), 2004-2010; former Trustee, BofA Funds Series Trust (11 funds) 2003-2011; former Director, McMoRan Exploration Company (oil and gas exploration and development) 2010 - 2013; former Director, International Textile Corp., 2012-2016; former Director, hhgregg, 2015-2017 |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1950 | Trustee since 11/04 for RiverSource Funds and since 6/11 for Nations Funds | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 125 | Trustee, MA Taxpayers Foundation since 1997; Board of Directors, The MA Business Roundtable since 2003; Board of Governors, Innovation Institute, MA Technology Collaborative since 2010 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1954 | Trustee since 12/17 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 123 | Trustee, Catholic Schools Foundation since 2004 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1952 | Trustee since 11/04 for RiverSource Funds and since 6/11 for Nations Funds | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Managing Director, Morgan Stanley, 1982-1989; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 125 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Columbia Short Term Bond Fund | Annual Report 2018
| 45 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Trust and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
complex
overseen | Other directorships
held by Trustee
during the past
five years |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1947 | Trustee since 6/11 for RiverSource Funds and since 2003 for Nations Funds | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 125 | Director, BlueCross BlueShield of South Carolina since April 2008; Director, National Association of Corporate Directors, Carolinas Chapter, since 2013; Board Chair, Hollingsworth Funds since 2016; Advisory Board member, Duke Energy Corp. since October 2016; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016 |
Sandra Yeager
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1964 | Trustee since 12/17 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016 | 123 | Director, NAPE Education Foundation since October 2016 |
Interested trustee not affiliated with Investment Manager*
Name,
address,
year of birth | Position held
with the Trust and
length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
complex overseen | Other directorships/
held by Trustee
during the past
five years |
Anthony M. Santomero
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Mail Drop BX32 05228
Boston, MA 02110
1946 | Trustee since 6/11 for RiverSource Funds and since 1/08 for Nations Funds | Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, since 2002; Senior Advisor, McKinsey & Company (consulting), 2006-2008; President, Federal Reserve Bank of Philadelphia, 2000-2006, Professor of Finance, The Wharton School, University of Pennsylvania, 1972-2002 | 123 | Trustee, Penn Mutual Life Insurance Company since March 2008; Director, Renaissance Reinsurance Ltd. since May 2008; Director, Citigroup Inc. since 2009; Director, Citibank, N.A. since 2009; former Trustee, BofA Funds Series Trust (11 funds), 2008-2011 |
| * | Dr. Santomero is not an affiliated person of the Investment Manager or Ameriprise Financial. However, he is currently deemed by the Funds to be 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., companies that may directly or through subsidiaries and affiliates engage from time-to-time in brokerage execution, principal transactions and lending relationships with the Funds or accounts advised/managed by the Investment Manager. |
| 46 | Columbia Short Term Bond Fund | Annual Report 2018 |
TRUSTEES AND OFFICERS (continued)
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Trusts and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
complex overseen | Other directorships
held by Trustee
during the past
five years |
William F. Truscott
c/o Columbia Management
Investment Advisers, LLC
225 Franklin St.
Boston, MA 02110
1960 | Trustee since 11/01 for RiverSource Funds and since 6/11 for Nations Funds; Senior Vice President since 2002 for RiverSource Funds and since 5/10 for Nations Funds | Chairman of the Board and President, Columbia Management Investment Advisers, LLC since May 2010 and February 2012, respectively; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously Chief Executive Officer, U.S. Asset Management & President, Annuities, May 2010 - September 2012); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006; Director, Threadneedle Asset Management Holdings, SARL since 2014; President and Chief Executive Officer, Ameriprise Certificate Company, 2006 - August 2012. | 196 | Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010; Director, Columbia Management Investment Distributors, Inc. since May 2010; former Director, Ameriprise Certificate Company, 2006-January 2013 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
Nations Funds refer to the Funds within the Columbia Funds Complex that historically bore the Nations brand and includes series of Columbia Funds Series Trust. RiverSource Funds refer to the Funds within the Columbia Funds Complex that historically bore the RiverSource brand and includes series of Columbia Funds Series Trust II.
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
Columbia Short Term Bond Fund | Annual Report 2018
| 47 |
TRUSTEES AND OFFICERS (continued)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Truscott, who is Senior Vice President, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds complex or a
predecessor thereof | Principal occupation(s) during past five years |
Christopher O. Petersen
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1970 | President and Principal Executive Officer (2015) | Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since January 2015 (previously, Vice President and Chief Counsel, January 2010 - December 2014; officer of Columbia Funds and affiliated funds since 2007. |
Michael G. Clarke
225 Franklin Street
Boston, MA 02110
Born 1969 | Treasurer (2011), Chief Financial Officer (2009) and Chief Accounting Officer (2015) | Vice President — Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; senior officer of Columbia Funds and affiliated funds since 2002. |
Paul B. Goucher
100 Park Avenue
New York, NY 10017
Born 1968 | Senior Vice President (2011) and Assistant Secretary (2008) | Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively; and Chief Counsel, January 2010 - January 2013); Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since May 2010. |
Thomas P. McGuire
225 Franklin Street
Boston, MA 02110
Born 1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President — Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise Certificate Company since September 2010. |
Colin Moore
225 Franklin Street
Boston, MA 02110
Born 1958 | Senior Vice President (2010) | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013 (previously Director and Global Chief Investment Officer, 2010 - 2013). |
Ryan C. Larrenaga
225 Franklin Street
Boston, MA 02110
Born 1970 | Senior Vice President (2017), Chief Legal Officer (2017) and Secretary (2015) | Vice President and Group Counsel, Ameriprise Financial, Inc. since August 2011; officer of Columbia Funds and affiliated funds since 2005. |
Michael E. DeFao
225 Franklin Street
Boston, MA 02110
Born 1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010. |
Amy Johnson
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1965 | Vice President (2006) | Managing Director and Global Head of Operations, Columbia Management Investment Advisers, LLC since April 2016 (previously Managing Director and Chief Operating Officer, 2010 - 2016). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
Born 1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
| 48 | Columbia Short Term Bond Fund | Annual Report 2018 |
The Fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of investments
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 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 800.SEC.0330. The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors, Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 8081
Boston, MA 02266-8081
Columbia Short Term Bond Fund | Annual Report 2018
| 49 |
Columbia Short Term Bond Fund
P.O. Box 8081
Boston, MA 02266-8081
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved. Columbia Management Investment Distributors, Inc., 225 Franklin Street, Boston, MA 02110-2804
© 2018 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus .com/investor/
Item 2. Code of Ethics.
| | (a) | The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
| | (b) | During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above. |
| | (c) | During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics described in 2(a) above that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that Pamela G. Carlton, William P. Carmichael, Brian J. Gallagher and Catherine James Paglia, each of whom are members of the registrant’s Board of Trustees and Audit Committee, each qualify as an audit committee financial expert. Ms. Carlton, Mr. Carmichael, Mr. Gallagher and Ms. Paglia are each independent trustees, as defined in paragraph (a)(2) of this item’s instructions.
Item 4. Principal Accountant Fees and Services.
Fee information below is disclosed for the one series of the registrant whose reports to stockholders are included in this annual filing.
(a) Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended March 31, 2018 and March 31, 2017 are approximately as follows:
| | | | |
| 2018 | | 2017 | |
| $35,500 | | $ | 33,400 | |
Audit Fees include amounts related to the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b) Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal years ended March 31, 2018 and March 31, 2017 are approximately as follows:
Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported in Audit Fees above. In fiscal year 2017, Audit-Related Fees consist of agreed-upon procedures performed for semi-annual shareholder reports.
During the fiscal years ended March 31, 2018 and March 31, 2017, there were no Audit-Related Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(c) Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended March 31, 2018 and March 31, 2017 are approximately as follows:
Tax Fees include amounts for the review of annual tax returns, the review of required shareholder distribution calculations and typically include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.
During the fiscal years ended March 31, 2018 and March 31, 2017, there were no Tax Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(d) All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended March 31, 2018 and March 31, 2017 are approximately as follows:
All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.
Aggregate All Other Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal years ended March 31, 2018 and March 31, 2017 are approximately as follows:
| | | | |
| 2018 | | 2017 | |
| $225,000 | | $ | 225,000 | |
In fiscal years 2018 and 2017, All Other Fees primarily consists of fees billed for internal control examinations of the registrant’s transfer agent and investment adviser.
(e)(1) Audit Committee Pre-Approval Policies and Procedures
The registrant’s Audit Committee is required to pre-approve the engagement of the registrant’s independent auditors to provide audit and non-audit services to the registrant and non-audit services to its investment adviser (excluding any sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser (the “Adviser”) or any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (a “Control Affiliate”) if the engagement relates directly to the operations and financial reporting of the registrant.
The Audit Committee has adopted a Policy for Engagement of Independent Auditors for Audit and Non-Audit Services (the “Policy”). The Policy sets forth the understanding of the Audit Committee regarding the engagement of the registrant’s independent accountants to provide (i) audit and permissible audit-related, tax and other services to the registrant (“Fund Services”); (ii) non-audit services to the registrant’s Adviser and any Control Affiliates, that relates directly to the operations and financial reporting of a Fund (“Fund-related Adviser Services”); and (iii) certain other audit and non-audit services to the registrant’s Adviser and its Control Affiliates. A service will require specific pre-approval by the Audit Committee if it is to be provided by the Fund’s independent auditor; provided, however, that pre-approval of non-audit services to the Fund, the Adviser or Control Affiliates may be waived if certain de minimis requirements set forth in the SEC’s rules are met.
Under the Policy, the Audit Committee may delegate pre-approval authority to any pre-designated member or members who are independent board members. The member(s) to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next regular meeting. The Audit Committee’s responsibilities with respect to the pre-approval of services performed by the independent auditor may not be delegated to management.
On an annual basis, at a regularly scheduled Audit Committee meeting, the Fund’s Treasurer or other Fund officer shall submit to the Audit Committee a schedule of the types of Fund Services and Fund-related Adviser Services that are subject to specific pre-approval.
This schedule will provide a description of each type of service that is subject to specific pre-approval, along with total projected fees for each service. The pre-approval will generally cover a one-year period. The Audit Committee will review and approve the types of services and the projected fees for the next one-year period and may add to, or subtract from, the list of pre-approved services from time to time, based on subsequent determinations. This specific approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent auditor will be permitted to perform and the projected fees for each service.
The Fund’s Treasurer or other Fund officer shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services provided since the last such report was rendered, including a description of the services, by category, with forecasted fees for the annual reporting period, proposed changes requiring specific pre-approval and a description of services provided by the independent auditor, by category, with actual fees during the current reporting period.
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(e)(2) 100% of the services performed for items (b) through (d) above during 2018 and 2017 were pre-approved by the registrant’s Audit Committee.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the fiscal years ended March 31, 2018 and March 31, 2017 are approximately as follows:
| | | | |
| 2018 | | 2017 | |
| $231,300 | | $ | 228,600 | |
(h) The registrant’s Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
| | (a) | The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11. Controls and Procedures.
| | (a) | The registrant’s principal executive officer and principal financial officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that material information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. |
| | (b) | There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
| (registrant) | | Columbia Funds Series Trust |
| | |
| By (Signature and Title) | | /s/ Christopher O. Petersen |
| | Christopher O. Petersen, President and Principal Executive Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By (Signature and Title) | | /s/ Christopher O. Petersen |
| | Christopher O. Petersen, President and Principal Executive Officer |
| | |
| By (Signature and Title) | | /s/ Michael G. Clarke |
| | Michael G. Clarke, Treasurer and Chief Financial Officer |
