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 | 811-5857 | ||||||
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Columbia Funds Institutional Trust | |||||||
(Exact name of registrant as specified in charter) | |||||||
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One Financial Center, Boston, Massachusetts |
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(Address of principal executive offices) |
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James R. Bordewick, Jr., Esq. Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 | |||||||
(Name and address of agent for service) | |||||||
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Registrant’s telephone number, including area code: | 1-617-426-3750 |
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Date of fiscal year end: | July 31, 2008 |
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Date of reporting period: | January 31, 2008 |
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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.
CMG CORE BOND FUND
CMG SHORT TERM BOND FUND
CMG ULTRA SHORT TERM BOND FUND
CMG HIGH YIELD FUND
PORTFOLIOS OF COLUMBIA FUNDS INSTITUTIONAL TRUST
Semiannual Report
January 31, 2008
NOT FDIC INSURED
May Lose Value
No Bank Guarantee
NOT BANK ISSUED
Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. The funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.
Columbia Management Advisors, LLC ("CMA") is an SEC-registered investment advisor and an indirect, wholly owned subsidiary of Bank of America Corporation and is part of Columbia Management.
Table of Contents
Management Discussion of Fund Performances | |||||||
CMG Core Bond Fund | 1 | ||||||
CMG Short Term Bond Fund | 5 | ||||||
CMG Ultra Short Term Bond Fund | 9 | ||||||
CMG High Yield Fund | 13 | ||||||
Financial Statements | |||||||
Financial Highlights | 17 | ||||||
Schedules of Investments | 21 | ||||||
Statements of Assets and Liabilities | 62 | ||||||
Statements of Operations | 63 | ||||||
Statements of Changes in Net Assets | 64 | ||||||
Notes to Financial Statements | 66 | ||||||
Board Consideration and Approval of Investment Advisory Agreements | 77 | ||||||
Summary of Management Fee Evaluation by Independent Fee Consultant | 81 | ||||||
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 CMG Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular CMG Fund. References to specific securities should not be construed as a recommendation or investment advice.
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
For the six-month period ended January 31, 2008, CMG Core Bond Fund returned 5.53%. The fund's return was lower than the return of its benchmark, the Lehman Brothers U.S. Aggregate Bond Index,1 which returned 6.82%. It was higher than the average return of its peer group, the Lipper Corporate Debt Funds A Rated Classification,2 which was 4.53% over the same period. We believe that most funds in this category had more risk exposure than the index and therefore underperformed during what was an extremely challenging period in the credit markets.
As the period began, a spike in delinquencies among subprime mortgage holders was widely known but still contained, in the sense that these mortgages accounted for less than one percent of the Lehman Brothers U.S. Aggregate Bond Index. Unfortunately, any lingering hope that the damage might remain contained disappeared in August, when the performance of a wide range of subprime collateral loans, including some nominally investment-grade securities, began to deteriorate. Investors became skeptical of virtually all bond ratings outside AAA-rated federal agencies, and the result was a massive shutdown in market liquidity. The fund's positions in such sectors as commercial and residential mortgage-backed securities, which not long before had added important incremental yield to the fund's portfolio, were now unable to attract any meaningful bids. Together with an overweight position in corporate bonds, these holdings were responsibl e for the fund's underperformance relative to its benchmark.
Two fund initiatives helped bolster the fund's return: We extended the maturities of the fund's holdings in response to signs of a weakening economy. With the Federal Reserve Board actively intervening to push short-term rates lower, longer-term securities performed well and also regained some of their traditional yield advantage versus short-term securities. Where we could, we also reduced the portfolio's risk exposure, primarily through a systemic reduction in its corporate bond holdings. While market illiquidity constrained our efforts to reduce the fund's mortgage-backed holdings, we believe we improved its allocation mix as we entered 2008. Although we believe that bonds are now attractively priced, we caution that an overhang of market uncertainty could keep prices low in the months ahead.
1 The Lehman Brothers U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated and non-convertible investment grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.
1
Portfolio Management
Alexander D. Powers has co-managed the fund since December 2007 and has been with the advisor or its predecessors or affiliate organizations since 1996.
Jonathan P. Carlson has co-managed the fund since December 2007 and has been with the advisor or its predecessors or affiliate organizations since June 2007.
Michael Zazzarino has co-managed the fund since December 2007 and has been with the advisor or its predecessors or affiliate organizations since March 2005.
Brian Drainville has co-managed the fund since December 2007 and has been with the advisor or its predecessors or affiliate organizations since 1996.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Federal National Mortgage Association, 5.000% 05/01/2037 | 5.2 | ||||||
U.S. Treasury Bond, 4.750% 02/15/2037 | 4.1 | ||||||
Federal National Mortgage Association, 6.500% 02/01/2038 | 2.9 | ||||||
Federal National Mortgage Association, 6.500% 10/01/2036 | 2.7 | ||||||
U.S. Treasury Note, 2.875% 01/31/2013 | 2.5 | ||||||
Federal National Mortgage Association, 5.500% 06/01/2037 | 2.4 | ||||||
U.S. Treasury Note, 3.250% 12/31/2009 | 2.2 | ||||||
Federal National Mortgage Association, 6.000% 09/01/2037 | 2.1 | ||||||
Federal National Mortgage Association, 6.000% 11/01/2037 | 1.8 | ||||||
U.S. Treasury Note, 4.250% 11/15/2017 | 1.8 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices generally drop, and vice versa.
2
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Core Bond Fund | 09/01/00 | 5.53 | 6.95 | 4.40 | 5.85 | ||||||||||||||||||
Lehman Brothers U.S. Aggregate Bond Index | 6.82 | 8.81 | 4.75 | 6.39 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Core Bond Fund | 09/01/00 | 4.81 | 5.68 | 4.16 | 5.74 | ||||||||||||||||||
Lehman Brothers U.S. Aggregate Bond Index | 5.93 | 6.97 | 4.42 | 6.22 |
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.38%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.
Growth of a $3,000,000 investment, September 1, 2000 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the fund's benchmark during the stated time period.
The table and chart do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares.
The Lehman Brothers U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
Index performance is from September 1, 2000.
3
UNDERSTANDING YOUR EXPENSES – CMG Core Bond Fund
As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 1,055.30 | 1,023.88 | 1.29 | 1.27 | 0.25 |
Expenses paid during the period are equal to the annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half- year and divided by 366.
Had the investment advisor not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
4
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
For the six-month period that ended January 31, 2008, CMG Short Term Bond Fund returned 4.36%. The fund underperformed its benchmark the Merrill Lynch 1-3 Year U.S. Treasury Index,1 which returned 5.95% during the period. The fund outperformed the average return of its peer group, the Lipper Short Investment Grade Debt Funds Classification,2 which was 2.57%. Treasury securities dramatically outperformed all other short-term bonds during the period. Although well-diversified bond funds were hard-pressed to keep pace, the fund's high quality orientation gave it an advantage relative to its peer group.
During the period, lower quality securities were roiled by credit concerns as market liquidity contracted. In this environment, investors shied away from risk and favored U.S. Treasuries. Although the fund's exposure to Treasury securities was lower than the index, its investment-grade orientation helped it avoid many of the market's problem areas. As a result, the fund held up better than competing funds for the period. The fund also benefited as the yield on shorter-term securities declined more than the yield on longer-term securities during the period. (Bond yields and prices move in opposite directions.) This trend favored the fund's maturity structure, which emphasized bonds with maturities between one-and-a-half and two years, which tended to outperform bonds with five-year maturities.
Looking ahead, we note that there is considerable uncertainty about the strength of the economy and about the Federal Reserve's ability to stimulate the economy via cuts in short-term rates without simultaneously increasing inflationary pressures. The recent short-term rate cuts, coupled with the fixed-income market's recent "flight to quality," have had the effect of reducing Treasury yields across the board, giving the fund a potential yield advantage over Treasuries going forward.
1 The Merrill Lynch 1-3 Year U.S. Treasury Index tracks the performance of sovereign debt publicly issued in the US domestic market with maturities of 1-3 years and a minimum amount outstanding of $1 billion. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.
5
Portfolio Management
Leonard A. Aplet has co-managed the fund since February 1998 and has been with the advisor or its predecessors or affiliate organizations since 1987.
Ronald Stahl has co-managed the fund since November 2006 and has been with the advisor or its predecessors or affiliate organizations since 1998.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
U.S. Treasury Note, 4.875% 05/31/2011 | 5.3 | ||||||
Bear Stearns Commercial Mortgage Securities, Inc. 3.869% 02/11/2041 | 2.1 | ||||||
Federal National Mortgage Association, 6.250% 02/01/2011 | 2.0 | ||||||
Nissan Auto Receivables Owner Trust, 5.220% 11/15/2011 | 2.0 | ||||||
JPMorgan Mortgage Trust, 6.045% 10/25/2036 | 1.9 | ||||||
Washington Mutual Mortgage Pass-Through Certificates, 5.877% 07/25/2037 | 1.7 | ||||||
USAA Auto Owner Trust, 4.130% 11/15/2011 | 1.5 | ||||||
Structured Adjustable Rate Mortgage Loan Trust, 5.799% 07/25/2036 | 1.5 | ||||||
Triad Auto Receivables Owner Trust, 4.220% 06/12/2012 | 1.4 | ||||||
Washington Mutual Mortgage Pass-Through Certificates 5.647% 11/25/2036 | 1.4 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices generally drop, and vice versa.
6
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Short Term Bond Fund | 02/02/98 | 4.36 | 6.98 | 3.76 | 5.05 | ||||||||||||||||||
Merrill Lynch 1-3 Year U.S. Treasury Index | 5.95 | 8.95 | 3.48 | 4.84 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Short Term Bond Fund | 02/02/98 | 3.39 | 5.70 | 3.49 | 4.94 | ||||||||||||||||||
Merrill Lynch 1-3 Year U.S. Treasury Index | 5.09 | 7.32 | 3.12 | 4.70 |
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.32%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.
Growth of a $3,000,000 investment, February 2, 1998 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the fund's benchmark during the stated time period.
The table and chart do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares.
The Merrill Lynch 1-3 Year U.S. Treasury Index tracks the performance of sovereign debt publicly issued in the US domestic market with maturities of 1-3 years and a minimum amount outstanding of $1 billion. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
Index performance is from February 2, 1998.
7
UNDERSTANDING YOUR EXPENSES – CMG Short Term Bond Fund
As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 1,043.59 | 1,023.88 | 1.28 | 1.27 | 0.25 |
Expenses paid during the period are equal to the annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
8
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
For the six-month period that ended January 31, 2008, CMG Ultra Short Term Bond Fund returned 0.96%. The fund underperformed its benchmark, the Citigroup One-Year U.S. Treasury Bill Index1, which returned 4.02%. However, the fund outpaced the average return of its peer group, the Lipper Ultra-Short Obligations Funds Classification,2 which was 0.53%. The fund's performance relative to its benchmark was primarily due to an emphasis on non-Treasury bond sectors, which underperformed. Relative to its peers, we believe the fund benefited from an emphasis on high quality corporate bonds and commercial paper holdings.
At the outset of the period, credit issues in the subprime mortgage sector spilled over to other sectors of the bond market. As liquidity evaporated, bond sectors that trade in relationship to the Treasury market underperformed. Because the fund primarily invests in non-Treasury sectors, which typically provide higher yield potential in exchange for the additional risk, it underperformed its benchmark.
The fund's duration was also shorter than that of the benchmark. Duration is a complex measure of interest-rate sensitivity. The fund's short duration made it less sensitive to interest rate changes. Because interest rates fell during the period, the fund did not receive the full benefit of the corresponding price appreciation that the benchmark experienced. Exposure to the subprime mortgage market also detracted from performance during the period. Nevertheless, added income from high quality corporate bonds and commercial paper helped buoy the fund in a challenging market environment.
If the U.S. economy continues to slow, we believe that the Federal Reserve Board will continue to lower the federal funds rate and that short-term rates, in general, should continue to decline. Against this backdrop, we plan to extend the fund's duration to help minimize the impact of lower rates on the portfolio. In light of the weak economic outlook and continued troubles in the mortgage-backed sector, we also plan to continue to add higher quality issues to increase the overall credit quality of the portfolio.
1 The Citigroup One-Year U.S. Treasury Bill Index consists of a single 1-year U.S. Treasury Bill whose return is tracked until its maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with similar investment objectives as those of the fund. Lipper makes no adjustments for the effect of sales loads.
9
Portfolio Management
Guy C. Holbrook has managed the fund since March 2004 and has been with the advisor or its predecessors or affiliate organizations since 1998.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Grampian Funding LLC, 4.590% 04/02/08 | 1.9 | ||||||
Federal National Mortgage Association, 5.250% 01/15/09 | 1.8 | ||||||
Bank One Issuance Trust, 3.940% 04/16/12 | 1.8 | ||||||
Natixis NY, 3.170% 04/02/08 | 1.8 | ||||||
Triad Auto Receivables Owner Trust, 5.260% 11/14/11 | 1.6 | ||||||
AmeriCredit Automobile Receivables Trust, 5.420% 08/08/11 | 1.6 | ||||||
Carmax Auto Owners Trust, 5.150% 02/15/11 | 1.5 | ||||||
Capital One Bank, 6.700% 05/15/08 | 1.4 | ||||||
Grampian Funding LLC, 4.485% 03/10/08 | 1.4 | ||||||
E. I. Du Pont de Nemours & Co., 6.875% 10/15/09 | 1.4 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices generally drop, and vice versa.
10
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Ultra Short Term Bond Fund | 03/08/04 | 0.96 | 2.94 | 2.85 | |||||||||||||||
Citigroup One-Year U.S. Treasury Bill Index | 4.02 | 6.70 | 3.56 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Ultra Short Term Bond Fund | 03/08/04 | 0.05 | 2.62 | 2.72 | |||||||||||||||
Citigroup One-Year U.S. Treasury Bill Index | 3.20 | 5.72 | 3.29 |
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.31%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.
Growth of a $3,000,000 investment, March 8, 2004 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the fund's benchmark during the stated time period.
The table and chart do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares.
The Citigroup One-Year U.S. Treasury Bill Index consists of a single 1-year U.S. Treasury Bill whose return is tracked until its maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
Index performance is from March 8, 2004.
11
UNDERSTANDING YOUR EXPENSES – CMG Ultra Short Term Bond Fund
As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 1,009.60 | 1,023.88 | 1.26 | 1.27 | 0.25 |
Expenses paid during the period are equal to the annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
12
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
For the six-month period that ended January 31, 2008, CMG High Yield Fund returned 2.56%. It trailed the return of its benchmark, the JPMorgan Developed BB High Yield Index,1 which returned 4.12%. It outperformed the negative 0.10% average return of its peer group, the Lipper High Current Yields Classification.2 The fund was positioned more conservatively than its peers but less conservatively than the benchmark in a period of considerable volatility for the financial markets, which, in general, drove investors toward less risky market segments.
The well-publicized difficulties in the mortgage sector created a market environment in which creditworthiness commanded a premium and liquidity dried up for many classes of low-rated securities. In this setting, the fund benefited from its ownership of higher-quality BB-bonds and from its holdings in defensive sectors, such as health care, utilities and energy. The fund's position in chemicals manufacturer Lyondell aided returns as the company's bonds were redeemed at premium prices after it was acquired. Although the fund was underweight in the beleaguered finance and housing sectors, specific holdings, including GMAC LLC, E*Trade Financial Corp. and Hovnanian Enterprises (2.40% and 0.36% of net assets, respectively; Hovnanian Enterprises was sold from the portfolio) detracted from overall results.
Recognizing the market's reduced appetite for risk, we increased the fund's holdings in what we believe were good quality defensive bonds and steered away from credits with deteriorating credit profiles and poor liquidity. We believe that liquidity pressures faced by marginal credits could cause the corporate default rate to rise in the coming year, and we believe that the fund is well positioned with its focus on companies with strong balance sheets and robust asset values.
1 The JPMorgan Developed BB High Yield Index is designed to mirror the investable universe of the U.S. dollar developed, BB-rated, high yield corporate debt market. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.
13
Portfolio Management
Kevin L. Cronk has co-managed the fund since September 2005. He has been with the advisor or its predecessors or affiliate organizations since August 1999.
Thomas A. LaPointe has co-managed the fund since September 2005. He has been with the advisor or its predecessors or affiliate organizations since February 1999.
The fund's top ten issuers (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
GMAC LLC | 2.4 | ||||||
HCA, Inc. | 2.2 | ||||||
Qwest Corp. | 2.1 | ||||||
Nuveen Investments | 1.9 | ||||||
Texas Utilities Corp. | 1.8 | ||||||
Alltel Wireless | 1.8 | ||||||
AES Corporation | 1.5 | ||||||
Edison Mission Energy | 1.5 | ||||||
EchoStar DBS Corp. | 1.5 | ||||||
L-3 Communications Corp. | 1.4 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments, yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices generally drop, and vice versa.
Investments in high yield or "junk" bonds offer the potential for higher income than investments in investment-grade bonds, but they also have a higher degree of risk. Changes in economic conditions or other circumstances may adversely affect a high-yield bond issuer's ability to make timely principal and interest payments.
14
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | 10-year | |||||||||||||||||||
CMG High Yield Fund | 07/06/94 | 2.56 | 1.13 | 6.11 | 5.50 | ||||||||||||||||||
JPMorgan Developed BB High Yield Index | 4.12 | 3.27 | 8.16 | 7.12 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | 10-year | |||||||||||||||||||
CMG High Yield Fund | 07/06/94 | 1.52 | 3.15 | 6.65 | 5.83 | ||||||||||||||||||
JPMorgan Developed BB High Yield Index | 1.69 | 3.57 | 8.47 | 7.26 |
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.40% and 0.49%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.
Growth of a $3,000,000 investment, February 1, 1998 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the fund's benchmark during the stated time period.
The table and chart do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares.
The JPMorgan Developed BB High Yield Index is designed to mirror the investable universe of the U.S. dollar developed, BB-rated, high yield corporate debt market. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
15
UNDERSTANDING YOUR EXPENSES – CMG High Yield Fund
As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 1,025.59 | 1,023.13 | 2.04 | 2.03 | 0.40 |
Expenses paid during the period are equal to the annualized expense ratio of 0.40%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
16
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | Year Ended October 31, | ||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | 2002 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.03 | $ | 10.05 | $ | 10.42 | $ | 10.36 | $ | 10.38 | $ | 10.52 | $ | 10.83 | |||||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||||||
Net investment income (b) | 0.27 | 0.52 | 0.48 | 0.42 | 0.37 | 0.31 | 0.56 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and futures contracts | 0.28 | (0.02 | ) | (0.33 | ) | 0.09 | 0.11 | (0.12 | ) | (0.15 | ) | ||||||||||||||||||||
Total from investment operations | 0.55 | 0.50 | 0.15 | 0.51 | 0.48 | 0.19 | 0.41 | ||||||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||||||
From net investment income | (0.28 | ) | (0.52 | ) | (0.51 | ) | (0.45 | ) | (0.41 | ) | (0.33 | ) | (0.58 | ) | |||||||||||||||||
From net realized gain | - | - | (0.01 | ) | - | (0.09 | ) | - | (0.14 | ) | |||||||||||||||||||||
Total distributions | (0.28 | ) | (0.52 | ) | (0.52 | ) | (0.45 | ) | (0.50 | ) | (0.33 | ) | (0.72 | ) | |||||||||||||||||
Net asset value, end of period | $ | 10.30 | $ | 10.03 | $ | 10.05 | $ | 10.42 | $ | 10.36 | $ | 10.38 | $ | 10.52 | |||||||||||||||||
Total return (c)(d) | 5.53 | %(e) | 5.06 | % | 1.46 | % | 4.98 | % | 4.67 | % | 1.76 | %(e) | 3.97 | % | |||||||||||||||||
Ratios to Average Net Assets/ Supplemental Data: | |||||||||||||||||||||||||||||||
Net expenses | 0.25 | %(f) | 0.25 | % | 0.25 | %(g) | 0.25 | %(g) | 0.35 | %(g) | 0.40 | %(f)(g) | 0.40 | %(g) | |||||||||||||||||
Waiver/Reimbursement | 0.08 | %(f) | 0.13 | % | 0.10 | % | 0.06 | % | 0.25 | % | 0.29 | %(f) | 0.16 | % | |||||||||||||||||
Net investment income | 5.21 | %(f) | 5.07 | % | 4.65 | %(g) | 4.01 | %(g) | 3.54 | %(g) | 3.95 | %(f)(g) | 5.34 | %(g) | |||||||||||||||||
Portfolio turnover rate | 48 | %(e) | 95 | % | 109 | % | 130 | % | 231 | % | 181 | %(e) | 147 | % | |||||||||||||||||
Net assets, end of period (000's) | $ | 88,310 | $ | 67,673 | $ | 56,181 | $ | 79,102 | $ | 32,810 | $ | 30,512 | $ | 27,412 |
(a) The Fund changed its fiscal year end from October 31 to July 31.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Had the investment advisor not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(e) Not annualized.
(f) Annualized.
(g) The benefits derived from custody credits had an impact of less than 0.01%.
See Accompanying Notes to Financial Statements.
17
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | Year Ended October 31, | ||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | 2002 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.58 | $ | 11.59 | $ | 11.79 | $ | 11.95 | $ | 12.01 | $ | 12.15 | $ | 12.41 | |||||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||||||
Net investment income (b) | 0.29 | 0.57 | 0.50 | 0.40 | 0.35 | 0.34 | 0.59 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments, foreign currency and futures contracts | 0.21 | 0.03 | (0.14 | ) | (0.11 | ) | (0.03 | ) | (0.11 | ) | (0.22 | ) | |||||||||||||||||||
Total from investment operations | 0.50 | 0.60 | 0.36 | 0.29 | 0.32 | 0.23 | 0.37 | ||||||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||||||
From net investment income | (0.31 | ) | (0.61 | ) | (0.56 | ) | (0.45 | ) | (0.38 | ) | (0.37 | ) | (0.63 | ) | |||||||||||||||||
Net asset value, end of period | $ | 11.77 | $ | 11.58 | $ | 11.59 | $ | 11.79 | $ | 11.95 | $ | 12.01 | $ | 12.15 | |||||||||||||||||
Total return (c)(d) | 4.36 | %(e) | 5.25 | % | 3.15 | % | 2.47 | % | 2.72 | % | 1.91 | %(e) | 3.12 | % | |||||||||||||||||
Ratios to Average Net Assets/ Supplemental Data: | |||||||||||||||||||||||||||||||
Expenses before interest expense | 0.25 | %(f) | 0.25 | % | 0.25 | %(g) | 0.25 | %(g) | 0.25 | %(g) | 0.25 | %(f)(g) | 0.25 | %(g) | |||||||||||||||||
Interest expense | _ | _ | _ | _ | _ | _%(f)(h) | _ | ||||||||||||||||||||||||
Net expenses | 0.25 | %(f) | 0.25 | % | 0.25 | %(g) | 0.25 | %(g) | 0.25 | %(g) | 0.25 | %(f)(g) | 0.25 | %(g) | |||||||||||||||||
Waiver/Reimbursement | 0.04 | %(f) | 0.07 | % | 0.08 | % | 0.04 | % | 0.10 | % | 0.08 | %(f) | 0.05 | % | |||||||||||||||||
Net investment income | 4.95 | %(f) | 4.87 | % | 4.31 | %(g) | 3.38 | %(g) | 2.91 | %(g) | 3.79 | %(f)(g) | 4.73 | %(g) | |||||||||||||||||
Portfolio turnover rate | 27 | %(e) | 67 | % | 128 | % | 51 | % | 79 | % | 93 | %(e) | 132 | % | |||||||||||||||||
Net assets, end of period (000's) | $ | 163,628 | $ | 138,432 | $ | 83,984 | $ | 95,842 | $ | 119,125 | $ | 113,193 | $ | 140,757 |
(a) The Fund changed its fiscal year end from October 31 to July 31.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Had the investment advisor not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(e) Not annualized.
(f) Annualized.
(g) The benefits derived from custody credits had an impact of less than 0.01%.
(h) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
18
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | |||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 (a) | |||||||||||||||||||
Net asset value, beginning of period | $ | 9.59 | $ | 9.62 | $ | 9.67 | $ | 9.88 | $ | 10.00 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (b) | 0.24 | 0.47 | 0.38 | 0.24 | 0.07 | ||||||||||||||||||
Net realized and unrealized loss on investments | (0.15 | ) | (0.03 | ) | (0.02 | ) | (0.06 | ) | (0.08 | ) | |||||||||||||
Total from investment operations | 0.09 | 0.44 | 0.36 | 0.18 | (0.01 | ) | |||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||
From net investment income | (0.24 | ) | (0.47 | ) | (0.41 | ) | (0.36 | ) | (0.11 | ) | |||||||||||||
Return of capital | - | - | - | (c) | (0.03 | ) | - | ||||||||||||||||
Total distributions | (0.24 | ) | (0.47 | ) | (0.41 | ) | (0.39 | ) | (0.11 | ) | |||||||||||||
Net asset value, end of period | $ | 9.44 | $ | 9.59 | $ | 9.62 | $ | 9.67 | $ | 9.88 | |||||||||||||
Total return (d)(e) | 0.96 | %(f) | 4.62 | %(g) | 3.84 | % | 1.83 | % | (0.08 | )%(f) | |||||||||||||
Ratios to Average Net Assets/Supplemental Data: | |||||||||||||||||||||||
Net expenses | 0.25 | %(h) | 0.25 | % | 0.25 | %(i) | 0.25 | %(i) | 0.25 | %(h)(i) | |||||||||||||
Waiver/Reimbursement | 0.05 | %(h) | 0.06 | % | 0.07 | % | 0.05 | % | 0.22 | %(h) | |||||||||||||
Net investment income | 5.00 | %(h) | 4.88 | % | 3.93 | %(i) | 2.44 | %(i) | 1.69 | %(h)(i) | |||||||||||||
Portfolio turnover rate | 42 | %(f) | 108 | % | 48 | % | 75 | % | 12 | %(f) | |||||||||||||
Net assets, end of period (000's) | $ | 112,558 | $ | 152,793 | $ | 89,863 | $ | 81,575 | $ | 67,235 |
(a) The Fund commenced investment operations on March 8, 2004. Per share data, total return and portfolio turnover reflect activity from that date.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Had the investment advisor not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) Total return includes a voluntary reimbursement by the invesment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.
(h) Annualized.
(i) The benefits derived from custody credits had an impact of less than 0.01%.
See Accompanying Notes to Financial Statements.
19
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | Year Ended October 31, | ||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | 2002 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 7.48 | $ | 7.66 | $ | 8.08 | $ | 8.00 | $ | 7.90 | $ | 7.55 | $ | 8.14 | |||||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||||||
Net investment income (b) | 0.27 | 0.53 | 0.50 | 0.51 | 0.53 | 0.43 | 0.64 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (0.08 | ) | (0.16 | ) | (0.38 | ) | 0.11 | 0.14 | 0.37 | (0.58 | ) | ||||||||||||||||||||
Total from investment operations | 0.19 | 0.37 | 0.12 | 0.62 | 0.67 | 0.80 | 0.06 | ||||||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||||||
From net investment income | (0.27 | ) | (0.55 | ) | (0.54 | ) | (0.54 | ) | (0.57 | ) | (0.45 | ) | (0.65 | ) | |||||||||||||||||
Net asset value, end of period | $ | 7.40 | $ | 7.48 | $ | 7.66 | $ | 8.08 | $ | 8.00 | $ | 7.90 | $ | 7.55 | |||||||||||||||||
Total return (c) | 2.56 | %(d)(e) | 4.76 | %(d) | 1.47 | %(d) | 7.98 | %(d) | 8.60 | %(d) | 10.67 | %(d)(e) | 0.60 | % | |||||||||||||||||
Ratios to Average Net Assets/ Supplemental Data: | |||||||||||||||||||||||||||||||
Expenses before interest expense | 0.40 | %(f) | 0.40 | % | 0.40 | %(g) | 0.40 | %(g) | 0.40 | %(g) | 0.42 | %(f)(g) | 0.42 | %(g) | |||||||||||||||||
Interest expense | - | %(f)(h) | - | - | - | - | - | - | |||||||||||||||||||||||
Net expenses | 0.40 | %(f) | 0.40 | % | 0.40 | %(g) | 0.40 | %(g) | 0.40 | %(g) | 0.42 | %(f)(g) | 0.42 | %(g) | |||||||||||||||||
Waiver/Reimbursement | 0.12 | %(f) | 0.09 | % | 0.04 | % | 0.02 | % | 0.02 | % | 0.01 | %(f) | - | ||||||||||||||||||
Net investment income | 7.00 | %(f) | 6.70 | % | 6.38 | %(g) | 6.26 | %(g) | 6.64 | %(g) | 7.32 | %(f)(g) | 7.98 | %(g) | |||||||||||||||||
Portfolio turnover rate | 24 | %(e) | 57 | % | 30 | % | 39 | % | 47 | % | 47 | %(e) | 62 | % | |||||||||||||||||
Net assets, end of period (000's) | $ | 51,498 | $ | 62,173 | $ | 96,120 | $ | 269,243 | $ | 382,157 | $ | 429,042 | $ | 286,228 |
(a) The Fund changed its fiscal year end from October 31 to July 31.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Had the investment advisor not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(e) Not annualized.
(f) Annualized.
(g) The benefits derived from custody credits had an impact of less than 0.01%.
(h) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
20
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Par | Value | ||||||||||
Mortgage-Backed Securities (36.4%) | |||||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
4.000% 11/01/20 | $ | 232,991 | $ | 228,583 | |||||||
5.000% 11/01/21 | 337,057 | 341,569 | |||||||||
5.500% 11/01/17 | 77,906 | 79,952 | |||||||||
5.500% 03/01/18 | 61,801 | 63,424 | |||||||||
5.500% 07/01/21 | 121,512 | 124,376 | |||||||||
5.500% 08/01/21 | 518,605 | 530,827 | |||||||||
5.500% 11/01/21 | 265,850 | 272,115 | |||||||||
5.500% 08/01/35 | 1,307,379 | 1,324,364 | |||||||||
5.500% 06/01/37 | 755,900 | 765,414 | |||||||||
5.500% 12/01/37 | 831,184 | 841,646 | |||||||||
6.000% 05/01/17 | 117,494 | 121,509 | |||||||||
TBA, | |||||||||||
5.500% 02/01/38 (a) | 1,730,000 | 1,751,085 | |||||||||
Federal National Mortgage Association | |||||||||||
5.000% 05/01/37 | 4,577,658 | 4,559,463 | |||||||||
5.500% 11/01/21 | 660,998 | 677,196 | |||||||||
5.500% 04/01/36 | 152,889 | 154,980 | |||||||||
5.500% 11/01/36 | 1,411,820 | 1,431,134 | |||||||||
5.500% 04/01/37 | 778,127 | 788,646 | |||||||||
5.500% 05/01/37 | 785,201 | 795,815 | |||||||||
5.500% 06/01/37 | 2,062,740 | 2,090,622 | |||||||||
6.000% 07/01/35 | 152,672 | 156,822 | |||||||||
6.000% 05/01/36 | 501,215 | 514,409 | |||||||||
6.000% 09/01/36 | 1,020,388 | 1,047,250 | |||||||||
6.000% 10/01/36 | 321,598 | 330,064 | |||||||||
6.000% 11/01/36 | 429,726 | 441,038 | |||||||||
6.000% 03/01/37 | 73,138 | 75,062 | |||||||||
6.000% 06/01/37 | 812,091 | 833,444 | |||||||||
6.000% 07/01/37 | 1,253,005 | 1,285,950 | |||||||||
6.000% 08/01/37 | 878,633 | 901,735 | |||||||||
6.000% 09/01/37 | 1,798,178 | 1,845,458 | |||||||||
6.000% 11/01/37 | 1,563,641 | 1,604,755 | |||||||||
6.500% 02/01/13 | 10,061 | 10,522 | |||||||||
6.500% 08/01/34 | 62,048 | 64,575 | |||||||||
6.500% 10/01/36 | 2,257,608 | 2,343,891 | |||||||||
6.500% 12/01/36 | 771,932 | 801,433 | |||||||||
6.500% 09/01/37 | 316,348 | 328,420 | |||||||||
7.000% 07/01/32 | 12,753 | 13,608 | |||||||||
TBA, | |||||||||||
6.500% 02/01/38 (a) | 2,487,000 | 2,581,038 | |||||||||
Government National Mortgage Association | |||||||||||
7.000% 01/15/32 | 6,557 | 7,019 | |||||||||
7.000% 03/15/32 | 22,480 | 24,065 | |||||||||
7.000% 06/15/32 | 3,573 | 3,825 | |||||||||
Total Mortgage-Backed Securities (Cost of $31,345,645) | 32,157,103 |
See Accompanying Notes to Financial Statements.
21
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (21.9%) | |||||||||||
Basic Materials (0.2%) | |||||||||||
Metals & Mining (0.2%) | |||||||||||
Vale Overseas Ltd. | |||||||||||
6.875% 11/21/36 | $ | 200,000 | $ | 185,258 | |||||||
Communications (3.1%) | |||||||||||
Media (1.2%) | |||||||||||
Comcast Corp. | |||||||||||
7.050% 03/15/33 | 350,000 | 363,796 | |||||||||
News America, Inc. | |||||||||||
6.550% 03/15/33 (b) | 275,000 | 276,367 | |||||||||
Time Warner Cable, Inc. | |||||||||||
6.550% 05/01/37 (b) | 325,000 | 321,949 | |||||||||
Viacom, Inc. | |||||||||||
6.125% 10/05/17 | 100,000 | 100,926 | |||||||||
1,063,038 | |||||||||||
Telecommunication Services (1.9%) | |||||||||||
AT&T, Inc. | |||||||||||
5.100% 09/15/14 | 325,000 | 326,502 | |||||||||
New Cingular Wireless Services, Inc. | |||||||||||
8.750% 03/01/31 | 250,000 | 313,842 | |||||||||
Sprint Capital Corp. | |||||||||||
6.875% 11/15/28 | 200,000 | 167,799 | |||||||||
Telefonica Emisones SAU | |||||||||||
5.984% 06/20/11 | 225,000 | 233,856 | |||||||||
Verizon Global Funding Corp. | |||||||||||
7.750% 12/01/30 | 250,000 | 291,782 | |||||||||
Vodafone Group PLC | |||||||||||
5.000% 12/16/13 | 313,000 | 313,659 | |||||||||
1,647,440 | |||||||||||
2,710,478 | |||||||||||
Consumer Cyclical (1.6%) | |||||||||||
Lodging (0.2%) | |||||||||||
Marriott International, Inc. | |||||||||||
5.625% 02/15/13 | 200,000 | 204,640 | |||||||||
Retail (1.4%) | |||||||||||
CVS Caremark Corp. | |||||||||||
5.750% 06/01/17 | 250,000 | 258,356 | |||||||||
Home Depot, Inc. | |||||||||||
5.875% 12/16/36 | 250,000 | 208,630 |
See Accompanying Notes to Financial Statements.
22
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Retail (continued) | |||||||||||
Macy's Retail Holdings, Inc. | |||||||||||
5.900% 12/01/16 | $ | 225,000 | $ | 209,727 | |||||||
Wal-Mart Stores, Inc. | |||||||||||
4.125% 07/01/10 (b) | 525,000 | 533,627 | |||||||||
1,210,340 | |||||||||||
1,414,980 | |||||||||||
Consumer Non-Cyclical (2.2%) | |||||||||||
Beverages (0.3%) | |||||||||||
Anheuser-Busch Companies, Inc. | |||||||||||
5.950% 01/15/33 (b) | 12,000 | 12,267 | |||||||||
Coca-Cola Co. | |||||||||||
5.750% 03/15/11 | 4,000 | 4,267 | |||||||||
Diageo Capital PLC | |||||||||||
3.375% 03/20/08 | 175,000 | 175,105 | |||||||||
4.375% 05/03/10 | 75,000 | 75,745 | |||||||||
267,384 | |||||||||||
Cosmetics/Personal Care (0.1%) | |||||||||||
Gillette Co. | |||||||||||
2.500% 06/01/08 | 85,000 | 84,801 | |||||||||
Food (0.9%) | |||||||||||
ConAgra Foods, Inc. | |||||||||||
6.750% 09/15/11 (b) | 150,000 | 161,783 | |||||||||
7.875% 09/15/10 | 185,000 | 201,803 | |||||||||
Kraft Foods, Inc. | |||||||||||
6.500% 08/11/17 | 240,000 | 250,547 | |||||||||
Kroger Co. | |||||||||||
6.200% 06/15/12 | 185,000 | 195,442 | |||||||||
809,575 | |||||||||||
Healthcare Products (0.0%) | |||||||||||
Johnson & Johnson | |||||||||||
6.625% 09/01/09 | 7,000 | 7,408 | |||||||||
Healthcare Services (0.3%) | |||||||||||
UnitedHealth Group, Inc. | |||||||||||
5.250% 03/15/11 | 250,000 | 254,743 | |||||||||
Household Products/Wares (0.3%) | |||||||||||
Fortune Brands, Inc. | |||||||||||
5.375% 01/15/16 | 225,000 | 216,185 | |||||||||
Kimberly-Clark Corp. | |||||||||||
5.625% 02/15/12 | 7,000 | 7,417 | |||||||||
223,602 | |||||||||||
Pharmaceuticals (0.3%) | |||||||||||
Wyeth | |||||||||||
5.500% 02/01/14 | 250,000 | 259,001 | |||||||||
1,906,514 |
See Accompanying Notes to Financial Statements.
23
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Energy (1.5%) | |||||||||||
Oil & Gas (1.1%) | |||||||||||
Canadian Natural Resources Ltd. | |||||||||||
5.700% 05/15/17 | $ | 275,000 | $ | 276,231 | |||||||
Nexen, Inc. | |||||||||||
5.875% 03/10/35 | 250,000 | 227,480 | |||||||||
Talisman Energy, Inc. | |||||||||||
6.250% 02/01/38 | 290,000 | 278,564 | |||||||||
Valero Energy Corp. | |||||||||||
6.875% 04/15/12 | 200,000 | 215,643 | |||||||||
997,918 | |||||||||||
Pipelines (0.4%) | |||||||||||
Energy Transfer Partners LP | |||||||||||
6.625% 10/15/36 (b) | 200,000 | 190,273 | |||||||||
TransCanada Pipelines Ltd. | |||||||||||
6.350% 05/15/67 (c) | 190,000 | 176,920 | |||||||||
367,193 | |||||||||||
1,365,111 | |||||||||||
Financials (9.7%) | |||||||||||
Banks (2.8%) | |||||||||||
Bank One Corp. | |||||||||||
6.000% 08/01/08 | 27,000 | 27,310 | |||||||||
Barclays Bank PLC | |||||||||||
7.400% 12/15/09 | 3,000 | 3,210 | |||||||||
Marshall & Ilsley Corp. | |||||||||||
4.375% 08/01/09 | 525,000 | 526,309 | |||||||||
National City Bank | |||||||||||
4.625% 05/01/13 | 18,000 | 17,247 | |||||||||
PNC Funding Corp. | |||||||||||
5.625% 02/01/17 | 310,000 | 308,809 | |||||||||
SunTrust Banks, Inc. | |||||||||||
6.375% 04/01/11 | 3,000 | 3,168 | |||||||||
SunTrust Preferred Capital I | |||||||||||
5.853% 12/15/11 (c) | 240,000 | 204,247 | |||||||||
USB Capital IX | |||||||||||
6.189% 04/15/49 (c) | 375,000 | 298,125 | |||||||||
Wachovia Corp. | |||||||||||
4.875% 02/15/14 (b) | 525,000 | 514,925 | |||||||||
Wells Fargo & Co. | |||||||||||
3.500% 04/04/08 (b) | 120,000 | 119,969 | |||||||||
5.125% 09/01/12 | 400,000 | 413,051 | |||||||||
2,436,370 | |||||||||||
Diversified Financial Services (5.6%) | |||||||||||
AGFC Capital Trust I | |||||||||||
6.000% 01/15/67 (c)(d) | 185,000 | 172,426 | |||||||||
American Express Centurion Bank | |||||||||||
5.200% 11/26/10 | 250,000 | 256,769 |
See Accompanying Notes to Financial Statements.
24
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Diversified Financial Services (continued) | |||||||||||
American General Finance Corp. | |||||||||||
2.750% 06/15/08 | $ | 5,000 | $ | 4,980 | |||||||
Associates Corp. of North America | |||||||||||
6.950% 11/01/18 | 11,000 | 12,286 | |||||||||
Capital One Financial Corp. | |||||||||||
5.500% 06/01/15 | 400,000 | 361,013 | |||||||||
CIT Group, Inc. | |||||||||||
3.375% 04/01/09 (b) | 23,000 | 22,223 | |||||||||
6.100% 03/15/67 (c) | 75,000 | 53,369 | |||||||||
Citigroup, Inc. | |||||||||||
5.000% 09/15/14 | 460,000 | 447,788 | |||||||||
Credit Suisse First Boston USA, Inc. | |||||||||||
4.875% 08/15/10 (b) | 500,000 | 515,550 | |||||||||
General Electric Capital Corp. | |||||||||||
5.000% 01/08/16 (b) | 765,000 | 777,046 | |||||||||
Goldman Sachs Group, Inc. | |||||||||||
6.345% 02/15/34 (b) | 400,000 | 361,754 | |||||||||
HSBC Finance Corp. | |||||||||||
5.000% 06/30/15 | 475,000 | 462,148 | |||||||||
International Lease Finance Corp. | |||||||||||
4.500% 05/01/08 | 4,000 | 4,004 | |||||||||
Lehman Brothers Holdings, Inc. | |||||||||||
5.750% 07/18/11 | 325,000 | 330,325 | |||||||||
Merrill Lynch & Co., Inc. | |||||||||||
3.700% 04/21/08 | 8,000 | 7,979 | |||||||||
6.050% 08/15/12 | 475,000 | 494,289 | |||||||||
Morgan Stanley | |||||||||||
4.750% 04/01/14 | 550,000 | 528,912 | |||||||||
SLM Corp. | |||||||||||
5.375% 05/15/14 | 150,000 | 130,131 | |||||||||
4,942,992 | |||||||||||
Insurance (0.3%) | |||||||||||
American International Group, Inc. | |||||||||||
2.875% 05/15/08 | 250,000 | 249,003 | |||||||||
John Hancock Financial Services, Inc. | |||||||||||
5.625% 12/01/08 | 15,000 | 15,302 | |||||||||
Metlife, Inc. | |||||||||||
5.375% 12/15/12 | 20,000 | 20,727 | |||||||||
285,032 | |||||||||||
Real Estate Investment Trusts (REITs) (0.6%) | |||||||||||
Health Care Property Investors, Inc. | |||||||||||
6.450% 06/25/12 (b) | 150,000 | 147,878 | |||||||||
Simon Property Group LP | |||||||||||
5.750% 12/01/15 | 400,000 | 382,735 | |||||||||
530,613 | |||||||||||
Savings & Loans (0.4%) | |||||||||||
Washington Mutual, Inc. | |||||||||||
4.200% 01/15/10 | 400,000 | 364,733 | |||||||||
8,559,740 |
See Accompanying Notes to Financial Statements.
25
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Industrials (1.5%) | |||||||||||
Aerospace & Defense (0.5%) | |||||||||||
Boeing Co. | |||||||||||
5.125% 02/15/13 | $ | 1,000 | $ | 1,042 | |||||||
United Technologies Corp. | |||||||||||
5.375% 12/15/17 | 405,000 | 421,112 | |||||||||
422,154 | |||||||||||
Machinery (0.4%) | |||||||||||
Caterpillar Financial Services Corp. | |||||||||||
4.300% 06/01/10 | 400,000 | 405,097 | |||||||||
Transportation (0.6%) | |||||||||||
Burlington Northern Santa Fe Corp. | |||||||||||
6.200% 08/15/36 | 200,000 | 193,510 | |||||||||
Union Pacific Corp. | |||||||||||
3.875% 02/15/09 | 310,000 | 310,922 | |||||||||
504,432 | |||||||||||
1,331,683 | |||||||||||
Utilities (2.1%) | |||||||||||
Electric (1.5%) | |||||||||||
Commonwealth Edison Co. | |||||||||||
3.700% 02/01/08 (b) | 11,000 | 11,000 | |||||||||
5.950% 08/15/16 | 200,000 | 205,564 | |||||||||
Indiana Michigan Power Co. | |||||||||||
5.650% 12/01/15 | 205,000 | 206,449 | |||||||||
Pacific Gas & Electric Co. | |||||||||||
5.800% 03/01/37 | 340,000 | 326,086 | |||||||||
Progress Energy, Inc. | |||||||||||
7.750% 03/01/31 | 200,000 | 236,327 | |||||||||
Public Service Electric & Gas Co. | |||||||||||
4.000% 11/01/08 | 5,000 | 4,992 | |||||||||
Southern California Edison Co. | |||||||||||
5.000% 01/15/14 (b) | 350,000 | 353,465 | |||||||||
1,343,883 | |||||||||||
Gas (0.6%) | |||||||||||
Atmos Energy Corp. | |||||||||||
6.350% 06/15/17 | 175,000 | 180,130 | |||||||||
Sempra Energy | |||||||||||
4.750% 05/15/09 (b) | 300,000 | 303,816 | |||||||||
483,946 | |||||||||||
1,827,829 | |||||||||||
Total Corporate Fixed-Income Bonds & Notes (Cost of $19,362,065) | 19,301,593 |
See Accompanying Notes to Financial Statements.
26
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Government & Agency Obligations (14.8%) | |||||||||||
Foreign Government Obligations (0.7%) | |||||||||||
Hellenic Republic of Greece | |||||||||||
6.950% 03/04/08 | $ | 13,000 | $ | 13,035 | |||||||
Province of Quebec | |||||||||||
5.000% 07/17/09 (b) | 350,000 | 360,272 | |||||||||
United Mexican States | |||||||||||
7.500% 04/08/33 | 205,000 | 240,362 | |||||||||
613,669 | |||||||||||
U.S. Government Agencies (2.4%) | |||||||||||
Federal Home Loan Bank | |||||||||||
5.500% 08/13/14 | 1,050,000 | 1,156,748 | |||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
4.875% 11/15/13 (b) | 130,000 | 138,724 | |||||||||
5.500% 08/23/17 (b) | 725,000 | 797,262 | |||||||||
Federal National Mortgage Association | |||||||||||
4.625% 10/15/14 (b) | 34,000 | 35,710 | |||||||||
2,128,444 | |||||||||||
U.S. Government Obligations (11.7%) | |||||||||||
U.S. Treasury Bonds | |||||||||||
4.750% 02/15/37 | 3,410,000 | 3,632,714 | |||||||||
5.000% 05/15/37 (b) | 75,000 | 83,068 | |||||||||
U.S. Treasury Inflation Indexed Bond | |||||||||||
3.500% 01/15/11 (b) | 821,012 | 896,955 | |||||||||
U.S. Treasury Notes | |||||||||||
2.875% 01/31/13 | 2,215,000 | 2,220,538 | |||||||||
3.250% 12/31/09 | 1,885,000 | 1,922,994 | |||||||||
4.250% 11/15/17 | 1,490,000 | 1,564,733 | |||||||||
10,321,002 | |||||||||||
Total Government & Agency Obligations (Cost of $12,820,904) | 13,063,115 | ||||||||||
Collateralized Mortgage Obligations (12.0%) | |||||||||||
Agency (2.5%) | |||||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
3.750% 12/15/11 | 54,447 | 54,330 | |||||||||
4.000% 09/15/15 | 510,000 | 511,683 | |||||||||
4.500% 10/15/18 | 257,305 | 260,486 | |||||||||
6.500% 10/15/23 | 100,000 | 105,896 | |||||||||
Government National Mortgage Association | |||||||||||
4.430% 04/16/34 | 90,000 | 91,206 | |||||||||
4.500% 04/16/28 | 1,000,000 | 1,010,224 | |||||||||
4.807% 08/16/32 | 90,000 | 92,027 | |||||||||
4.954% 05/16/31 | 100,000 | 100,457 | |||||||||
2,226,309 |
See Accompanying Notes to Financial Statements.
27
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Collateralized Mortgage Obligations (continued) | |||||||||||
Non-Agency (9.5%) | |||||||||||
Bear Stearns Adjustable Rate Mortgage Trust | |||||||||||
5.476% 02/25/47 (c) | $ | 999,552 | $ | 1,022,516 | |||||||
Bear Stearns Asset Backed Securities Trust | |||||||||||
5.000% 01/25/34 (c) | 212,448 | 213,036 | |||||||||
Chase Mortgage Finance Corp. | |||||||||||
6.020% 03/25/37 (c) | 1,470,577 | 1,486,115 | |||||||||
Countrywide Alternative Loan Trust | |||||||||||
5.250% 03/25/35 | 643,657 | 635,440 | |||||||||
5.250% 08/25/35 | 498,307 | 500,314 | |||||||||
5.500% 10/25/35 | 590,970 | 588,391 | |||||||||
Countrywide Home Loan Mortgage Pass Through Trust | |||||||||||
4.592% 12/19/33 (c) | 216,077 | 210,644 | |||||||||
Lehman Mortgage Trust | |||||||||||
6.500% 01/25/38 | 815,608 | 828,462 | |||||||||
Structured Asset Securities Corp. | |||||||||||
5.500% 07/25/33 | 857,384 | 818,361 | |||||||||
WaMu Mortgage Pass-Through Certificates | |||||||||||
5.715% 02/25/37 (c) | 1,016,703 | 1,024,355 | |||||||||
Washington Mutual Alternative Mortgage Pass-Through Certificates | |||||||||||
5.500% 10/25/35 | 1,032,490 | 1,037,905 | |||||||||
8,365,539 | |||||||||||
Total Collateralized Mortgage Obligations (Cost of $10,609,138) | 10,591,848 | ||||||||||
Commercial Mortgage-Backed Securities (10.0%) | |||||||||||
Bear Stearns Commercial Mortgage Securities | |||||||||||
4.680% 08/13/39 (c) | 30,000 | 29,246 | |||||||||
5.624% 03/11/39 (c) | 730,000 | 696,291 | |||||||||
CS First Boston Mortgage Securities Corp. | |||||||||||
4.512% 07/15/37 | 500,000 | 494,266 | |||||||||
4.577% 04/15/37 | 998,000 | 987,850 | |||||||||
Greenwich Capital Commercial Funding Corp. | |||||||||||
5.479% 04/10/37 (c) | 100,000 | 90,158 | |||||||||
GS Mortgage Securities Corp. II | |||||||||||
5.993% 08/10/45 (c) | 1,000,000 | 1,012,583 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | |||||||||||
4.780% 07/15/42 | 1,040,000 | 940,812 | |||||||||
5.447% 06/12/47 | 539,000 | 521,138 | |||||||||
5.525% 04/15/43 (c) | 1,211,000 | 1,151,031 | |||||||||
5.857% 10/12/35 | 900,000 | 923,952 | |||||||||
5.992% 06/15/49 (c) | 600,000 | 608,712 | |||||||||
LB-UBS Commercial Mortgage Trust | |||||||||||
5.103% 11/15/30 | 600,000 | 600,102 | |||||||||
Merrill Lynch Mortgage Trust | |||||||||||
5.416% 11/12/37 (c) | 720,000 | 673,553 | |||||||||
Morgan Stanley Capital I | |||||||||||
4.970% 12/15/41 | 71,000 | 70,352 | |||||||||
Total Commercial Mortgage-Backed Securities (Cost of $8,977,924) | 8,800,046 |
See Accompanying Notes to Financial Statements.
28
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Asset-Backed Securities (2.2%) | |||||||||||
ABFS Mortgage Loan Trust | |||||||||||
4.428% 12/15/33 | $ | 18,683 | $ | 18,639 | |||||||
AmeriCredit Automobile Receivables Trust | |||||||||||
4.870% 12/06/10 | 120,229 | 120,165 | |||||||||
Capital One Multi-Asset Execution Trust | |||||||||||
4.050% 03/15/13 | 250,000 | 252,944 | |||||||||
Citibank Credit Card Issuance Trust | |||||||||||
5.350% 02/07/20 (a) | 450,000 | 447,867 | |||||||||
Citicorp Residential Mortgage Securities, Inc. | |||||||||||
6.080% 06/25/37 | 310,000 | 294,894 | |||||||||
GE Capital Credit Card Master Note Trust | |||||||||||
4.130% 06/15/13 | 450,000 | 455,801 | |||||||||
IMC Home Equity Loan Trust | |||||||||||
7.310% 11/20/28 | 49,500 | 49,389 | |||||||||
7.520% 08/20/28 | 34,033 | 33,956 | |||||||||
Onyx Acceptance Grantor Trust | |||||||||||
3.890% 02/15/11 | 281,589 | 281,673 | |||||||||
Wilshire Mortgage Loan Trust | |||||||||||
7.255% 05/25/28 (c) | 11,436 | 11,408 | |||||||||
Total Asset-Backed Securities (Cost of $1,967,137) | 1,966,736 | ||||||||||
Shares | |||||||||||
Securities Lending Collateral (16.0%) | |||||||||||
State Street Navigator Securities Lending Prime Portfolio (e) (7 day yield of 4.147%) | 14,161,566 | 14,161,566 | |||||||||
Total Securities Lending Collateral (Cost of $14,161,566) | 14,161,566 | ||||||||||
Par | |||||||||||
Short-Term Obligation (5.1%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due on 02/01/08, at 2.740%, collateralized by a U.S. Treasury Obligation maturing 07/06/17, market value of $4,620,000 (repurchase proceeds $4,525,344) | $ | 4,525,000 | 4,525,000 | ||||||||
Total Short-Term Obligation (Cost of $4,525,000) | 4,525,000 | ||||||||||
Total Investments (118.4%) (Cost of $103,769,379) (f) | 104,567,007 | ||||||||||
Other Assets & Liabilities, Net (-18.4%) | (16,257,478 | ) | |||||||||
Net Assets (100.0%) | $ | 88,309,529 |
See Accompanying Notes to Financial Statements.
29
CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Notes to Schedule of Investments:
(a) Security purchased on a delayed delivery basis.
(b) All or a portion of this security was on loan at January 31, 2008. The total market value of securities on loan at January 31, 2008 is $5,413,628.
(c) The interest rate shown on floating rate or variable rate securities reflects the rate at January 31, 2008.
(d) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2008, the value of this security, which is not illiquid, with a market value of $172,426 represents 0.2% of net assets.
(e) Investment made with cash collateral received from securities lending activity.
(f) Cost for federal income tax purposes is $103,795,451.
At January 31, 2008, the asset allocation of the Fund is as follows:
Asset Allocation | % of Net Assets | ||||||
Mortgage-Backed Securities | 36.4 | ||||||
Corporate Fixed-Income Bonds & Notes | 21.9 | ||||||
Government & Agency Obligations | 14.8 | ||||||
Collateralized Mortgage Obligations | 12.0 | ||||||
Commercial Mortgage-Backed Securities | 10.0 | ||||||
Asset-Backed Securities | 2.2 | ||||||
97.3 | |||||||
Securities Lending Collateral | 16.0 | ||||||
Short-Term Obligation | 5.1 | ||||||
Other Assets & Liabilities, Net | (18.4 | ) | |||||
100.0 |
Acronym | Name | ||||||
TBA | To Be Announced |
See Accompanying Notes to Financial Statements.
30
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (31.8%) | |||||||||||
Communications (3.0%) | |||||||||||
Media (0.8%) | |||||||||||
Comcast Corp. | |||||||||||
5.850% 01/15/10 | $ | 600,000 | $ | 618,204 | |||||||
Jones Intercable, Inc. | |||||||||||
7.625% 04/15/08 | 110,000 | 110,685 | |||||||||
Time Warner Entertainment Co. LP | |||||||||||
7.250% 09/01/08 | 625,000 | 634,831 | |||||||||
1,363,720 | |||||||||||
Telecommunication Services (2.2%) | |||||||||||
AT&T, Inc. | |||||||||||
4.125% 09/15/09 | 1,000,000 | 1,003,183 | |||||||||
Deutsche Telekom International Finance BV | |||||||||||
3.875% 07/22/08 | 600,000 | 599,187 | |||||||||
Sprint Capital Corp. | |||||||||||
6.375% 05/01/09 | 470,000 | 470,041 | |||||||||
Telefonica Emisones SAU | |||||||||||
5.984% 06/20/11 | 650,000 | 675,583 | |||||||||
Vodafone Group PLC | |||||||||||
7.750% 02/15/10 (a) | 800,000 | 853,564 | |||||||||
3,601,558 | |||||||||||
4,965,278 | |||||||||||
Consumer Cyclical (1.2%) | |||||||||||
Retail (1.2%) | |||||||||||
Target Corp. | |||||||||||
3.375% 03/01/08 (a) | 500,000 | 500,003 | |||||||||
Wal-Mart Stores, Inc. | |||||||||||
6.875% 08/10/09 | 1,350,000 | 1,421,839 | |||||||||
1,921,842 | |||||||||||
Consumer Non-Cyclical (2.4%) | |||||||||||
Beverages (0.9%) | |||||||||||
Coca-Cola Enterprises, Inc. | |||||||||||
5.750% 11/01/08 | 725,000 | 737,026 | |||||||||
Diageo Capital PLC | |||||||||||
3.375% 03/20/08 | 700,000 | 700,419 | |||||||||
1,437,445 | |||||||||||
Food (1.1%) | |||||||||||
ConAgra Foods, Inc. | |||||||||||
7.875% 09/15/10 | 700,000 | 763,581 | |||||||||
Fred Meyer, Inc. | |||||||||||
7.450% 03/01/08 | 425,000 | 426,045 | |||||||||
Kraft Foods, Inc. | |||||||||||
5.625% 08/11/10 | 625,000 | 649,521 | |||||||||
1,839,147 |
See Accompanying Notes to Financial Statements.
31
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Healthcare Services (0.4%) | |||||||||||
UnitedHealth Group, Inc. | |||||||||||
4.125% 08/15/09 | $ | 650,000 | $ | 652,680 | |||||||
3,929,272 | |||||||||||
Energy (0.2%) | |||||||||||
Pipelines (0.2%) | |||||||||||
TransCanada Pipelines Ltd. | |||||||||||
6.125% 02/19/10 | 350,000 | 372,128 | |||||||||
Financials (19.1%) | |||||||||||
Banks (6.6%) | |||||||||||
Barclays Bank PLC | |||||||||||
7.400% 12/15/09 | 1,300,000 | 1,390,940 | |||||||||
Fifth Third Bank | |||||||||||
4.200% 02/23/10 | 1,000,000 | 1,001,519 | |||||||||
Marshall & Ilsley Corp. | |||||||||||
4.375% 08/01/09 | 1,000,000 | 1,002,494 | |||||||||
Mellon Funding Corp. | |||||||||||
3.250% 04/01/09 | 1,175,000 | 1,166,842 | |||||||||
PNC Funding Corp. | |||||||||||
4.500% 03/10/10 | 1,300,000 | 1,315,090 | |||||||||
Regions Financial Corp. | |||||||||||
4.500% 08/08/08 | 790,000 | 793,219 | |||||||||
SunTrust Banks, Inc. | |||||||||||
4.250% 10/15/09 | 1,425,000 | 1,431,470 | |||||||||
U.S. Bancorp | |||||||||||
3.125% 03/15/08 | 1,250,000 | 1,249,051 | |||||||||
Wells Fargo & Co. | |||||||||||
3.120% 08/15/08 | 810,000 | 806,408 | |||||||||
4.000% 08/15/08 | 600,000 | 600,722 | |||||||||
10,757,755 | |||||||||||
Diversified Financial Services (8.8%) | |||||||||||
American Express Centurion Bank | |||||||||||
4.375% 07/30/09 | 1,350,000 | 1,360,989 | |||||||||
Bear Stearns Co., Inc. | |||||||||||
4.550% 06/23/10 (a) | 1,000,000 | 975,393 | |||||||||
Capital One Bank | |||||||||||
5.750% 09/15/10 | 925,000 | 912,911 | |||||||||
CIT Group, Inc. | |||||||||||
4.250% 02/01/10 (a) | 580,000 | 557,988 | |||||||||
Citigroup, Inc. | |||||||||||
4.250% 07/29/09 (a) | 1,300,000 | 1,309,708 | |||||||||
Countrywide Home Loans, Inc. | |||||||||||
4.125% 09/15/09 | 600,000 | 535,000 | |||||||||
Credit Suisse First Boston USA, Inc. | |||||||||||
4.875% 08/15/10 | 1,300,000 | 1,340,429 |
See Accompanying Notes to Financial Statements.
32
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Diversified Financial Services (continued) | |||||||||||
Goldman Sachs Group, Inc. | |||||||||||
4.500% 06/15/10 | $ | 1,200,000 | $ | 1,223,635 | |||||||
HSBC Finance Corp. | |||||||||||
6.400% 06/17/08 | 1,375,000 | 1,387,720 | |||||||||
JPMorgan Chase & Co. | |||||||||||
3.800% 10/02/09 (a) | 1,100,000 | 1,101,585 | |||||||||
Lehman Brothers Holdings, Inc. | |||||||||||
3.950% 11/10/09 | 1,100,000 | 1,080,802 | |||||||||
Merrill Lynch & Co., Inc. | |||||||||||
4.125% 01/15/09 | 1,000,000 | 996,502 | |||||||||
Morgan Stanley | |||||||||||
3.875% 01/15/09 | 1,200,000 | 1,200,145 | |||||||||
SLM Corp. | |||||||||||
4.000% 01/15/09 (a) | 400,000 | 386,410 | |||||||||
14,369,217 | |||||||||||
Insurance (2.1%) | |||||||||||
Allstate Corp. | |||||||||||
7.200% 12/01/09 | 1,050,000 | 1,109,791 | |||||||||
American International Group, Inc. | |||||||||||
2.875% 05/15/08 | 1,000,000 | 996,013 | |||||||||
Berkshire Hathaway Finance Corp. | |||||||||||
4.125% 01/15/10 | 785,000 | 797,533 | |||||||||
Genworth Financial, Inc. | |||||||||||
4.750% 06/15/09 | 600,000 | 603,331 | |||||||||
3,506,668 | |||||||||||
Real Estate Investment Trusts (REITs) (0.4%) | |||||||||||
Simon Property Group LP | |||||||||||
4.875% 03/18/10 | 600,000 | 603,266 | |||||||||
Savings & Loans (1.2%) | |||||||||||
Washington Mutual, Inc. | |||||||||||
4.000% 01/15/09 | 625,000 | 594,312 | |||||||||
Western Financial Bank | |||||||||||
9.625% 05/15/12 | 1,325,000 | 1,431,731 | |||||||||
2,026,043 | |||||||||||
31,262,949 | |||||||||||
Industrials (2.8%) | |||||||||||
Aerospace & Defense (1.2%) | |||||||||||
Boeing Capital Corp., Ltd. | |||||||||||
7.375% 09/27/10 | 900,000 | 984,664 | |||||||||
United Technologies Corp. | |||||||||||
6.500% 06/01/09 | 970,000 | 1,013,507 | |||||||||
1,998,171 |
See Accompanying Notes to Financial Statements.
33
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Machinery (1.2%) | |||||||||||
Caterpillar Financial Services Corp. | |||||||||||
4.300% 06/01/10 | $ | 1,175,000 | $ | 1,189,973 | |||||||
John Deere Capital Corp. | |||||||||||
4.875% 03/16/09 | 700,000 | 709,062 | |||||||||
1,899,035 | |||||||||||
Miscellaneous Manufacturing (0.1%) | |||||||||||
3M Co. | |||||||||||
5.125% 11/06/09 (a) | 225,000 | 233,215 | |||||||||
Transportation (0.3%) | |||||||||||
Union Pacific Corp. | |||||||||||
3.875% 02/15/09 | 415,000 | 416,233 | |||||||||
4,546,654 | |||||||||||
Technology (0.5%) | |||||||||||
Computers (0.5%) | |||||||||||
International Business Machines Corp. | |||||||||||
3.800% 02/01/08 | 725,000 | 725,000 | |||||||||
Utilities (2.6%) | |||||||||||
Electric (2.3%) | |||||||||||
American Electric Power Co., Inc. | |||||||||||
5.375% 03/15/10 | 800,000 | 822,560 | |||||||||
Commonwealth Edison Co. | |||||||||||
3.700% 02/01/08 (a) | 350,000 | 350,000 | |||||||||
Consolidated Edison Co. of New York | |||||||||||
4.700% 06/15/09 | 1,000,000 | 1,014,882 | |||||||||
Dominion Resources, Inc. | |||||||||||
5.125% 12/15/09 | 450,000 | 459,643 | |||||||||
5.687% 05/15/08 (b) | 400,000 | 401,668 | |||||||||
National Rural Utilities Cooperative Finance Corp. | |||||||||||
5.750% 08/28/09 | 675,000 | 695,163 | |||||||||
3,743,916 | |||||||||||
Gas (0.3%) | |||||||||||
Sempra Energy | |||||||||||
4.750% 05/15/09 (a) | 484,000 | 490,157 | |||||||||
4,234,073 | |||||||||||
Total Corporate Fixed-Income Bonds & Notes (Cost of $51,278,488) | 51,957,196 |
See Accompanying Notes to Financial Statements.
34
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Collateralized Mortgage Obligations (22.1%) | |||||||||||
Agency (7.3%) | |||||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
4.000% 09/15/15 | $ | 443,258 | $ | 443,921 | |||||||
4.500% 02/15/15 | 806,072 | 815,093 | |||||||||
5.000% 09/15/24 | 828,662 | 837,309 | |||||||||
5.000% 05/15/26 | 173,987 | 176,057 | |||||||||
5.500% 02/15/25 | 1,777,914 | 1,816,997 | |||||||||
5.500% 12/15/26 | 676,309 | 690,393 | |||||||||
6.000% 06/15/25 | 1,062,180 | 1,090,802 | |||||||||
6.000% 05/15/27 | 1,200,182 | 1,232,620 | |||||||||
Federal National Mortgage Association | |||||||||||
5.500% 07/25/25 | 1,542,094 | 1,572,790 | |||||||||
6.000% 06/25/27 | 1,195,584 | 1,226,702 | |||||||||
Government National Mortgage Association | |||||||||||
5.000% 06/20/28 | 1,940,000 | 1,967,620 | |||||||||
11,870,304 | |||||||||||
Non-Agency (14.8%) | |||||||||||
Bear Stearns Adjustable Rate Mortgage Trust | |||||||||||
3.544% 06/25/34 (b) | 1,000,000 | 999,604 | |||||||||
Bear Stearns Asset Backed Securities Trust | |||||||||||
5.000% 01/25/34 (b) | 690,088 | 692,000 | |||||||||
Chase Mortgage Finance Corp. | |||||||||||
5.686% 03/25/37 (b) | 1,076,560 | 1,088,404 | |||||||||
Countrywide Alternative Loan Trust | |||||||||||
5.250% 08/25/35 | 747,461 | 750,471 | |||||||||
5.500% 02/25/36 | 2,066,868 | 2,037,639 | |||||||||
Countrywide Home Loan Mortgage Pass Through Trust | |||||||||||
5.360% 05/25/37 (b) | 868,662 | 886,979 | |||||||||
5.492% 01/25/36 (b) | 1,151,969 | 1,163,873 | |||||||||
6.000% 12/25/36 | 516,383 | 524,922 | |||||||||
JPMorgan Mortgage Trust | |||||||||||
5.753% 04/25/36 (b) | 1,451,493 | 1,469,224 | |||||||||
6.045% 10/25/36 (b) | 3,020,064 | 3,045,252 | |||||||||
MASTR Asset Securitization Trust | |||||||||||
5.750% 05/25/36 | 1,359,631 | 1,378,259 | |||||||||
PNC Mortgage Securities Corp. | |||||||||||
0.000% 04/28/27 (b) | 5,428 | 5,410 | |||||||||
Residential Accredit Loans, Inc. | |||||||||||
5.750% 01/25/36 | 260,274 | 262,095 | |||||||||
SACO I, Inc. | |||||||||||
7.000% 08/25/36 (c) | 82,229 | 81,869 | |||||||||
Structured Adjustable Rate Mortgage Loan Trust | |||||||||||
5.799% 07/25/36 (b) | 2,519,637 | 2,391,885 | |||||||||
Structured Asset Securities Corp. | |||||||||||
5.750% 04/25/33 | 563,540 | 561,758 | |||||||||
Washington Mutual Mortgage Pass-Through Certificates | |||||||||||
5.647% 11/25/36 (b) | 2,260,954 | 2,280,293 | |||||||||
5.877% 07/25/37 (b) | 2,740,441 | 2,781,085 |
See Accompanying Notes to Financial Statements.
35
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Collateralized Mortgage Obligations (continued) | |||||||||||
Non-Agency (continued) | |||||||||||
Wells Fargo Mortgage Backed Securities Trust | |||||||||||
5.240% 04/25/36 (b) | $ | 532,942 | $ | 539,151 | |||||||
6.000% 07/25/37 | 1,338,346 | 1,357,583 | |||||||||
24,297,756 | |||||||||||
Total Collateralized Mortgage Obligations (Cost of $35,873,718) | 36,168,060 | ||||||||||
Asset-Backed Securities (17.9%) | |||||||||||
AmeriCredit Automobile Receivables Trust | |||||||||||
4.050% 02/06/10 | 65,811 | 65,858 | |||||||||
4.870% 12/06/10 | 865,645 | 865,186 | |||||||||
Americredit Prime Automobile Receivable | |||||||||||
5.270% 11/08/11 | 1,000,000 | 1,021,713 | |||||||||
Capital Auto Receivables Asset Trust | |||||||||||
3.580% 01/15/09 | 441,345 | 441,568 | |||||||||
Cityscape Home Equity Loan Trust | |||||||||||
7.380% 07/25/28 | 429,406 | 428,204 | |||||||||
7.410% 05/25/28 | 49,810 | 49,637 | |||||||||
CPS Auto Trust | |||||||||||
5.040% 09/15/11 (c) | 400,000 | 408,169 | |||||||||
Daimler Chrysler Auto Trust | |||||||||||
4.980% 02/08/11 | 1,200,000 | 1,218,233 | |||||||||
Ford Credit Auto Owner Trust | |||||||||||
5.050% 03/15/10 | 1,826,262 | 1,839,814 | |||||||||
Franklin Auto Trust | |||||||||||
5.040% 01/20/11 | 1,000,000 | 1,009,378 | |||||||||
GE Equipment Midticket LLC | |||||||||||
4.530% 06/14/11 | 2,000,000 | 2,007,980 | |||||||||
Harley-Davidson Motorcycle Trust | |||||||||||
2.760% 05/15/11 | 387,365 | 385,746 | |||||||||
Hyundai Auto Receivables Trust | |||||||||||
5.110% 04/15/11 | 770,000 | 783,286 | |||||||||
IMC Home Equity Loan Trust | |||||||||||
7.500% 04/25/26 | 165,966 | 165,621 | |||||||||
7.520% 08/20/28 | 460,749 | 459,717 | |||||||||
Long Beach Auto Receivables Trust | |||||||||||
4.050% 04/15/11 | 1,246,337 | 1,248,300 | |||||||||
Navistar Financial Corp. Owner Trust | |||||||||||
3.250% 10/15/10 | 456,667 | 456,692 | |||||||||
Nissan Auto Lease Trust | |||||||||||
5.200% 05/17/10 | 1,000,000 | 1,016,781 | |||||||||
Nissan Auto Receivables Owner Trust | |||||||||||
5.220% 11/15/11 | 3,150,000 | 3,236,185 | |||||||||
Pinnacle Capital Asset Trust | |||||||||||
5.770% 05/25/10 (c) | 870,000 | 874,787 |
See Accompanying Notes to Financial Statements.
36
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Asset-Backed Securities (continued) | |||||||||||
SLM Student Loan Trust | |||||||||||
5.051% 03/15/17 (b) | $ | 1,061,365 | $ | 1,057,226 | |||||||
5.071% 12/15/20 (b) | 1,532,000 | 1,532,077 | |||||||||
Triad Auto Receivables Owner Trust | |||||||||||
4.220% 06/12/12 | 2,300,000 | 2,316,927 | |||||||||
UCFC Home Equity Loan | |||||||||||
6.315% 04/15/30 | 294,833 | 294,382 | |||||||||
USAA Auto Owner Trust | |||||||||||
4.130% 11/15/11 | 2,500,000 | 2,512,547 | |||||||||
4.170% 02/15/11 | 1,430,000 | 1,440,829 | |||||||||
5.070% 06/15/13 | 750,000 | 767,858 | |||||||||
Wachovia Auto Loan Owner Trust | |||||||||||
5.080% 04/20/12 (c) | 1,000,000 | 1,023,789 | |||||||||
WFS Financial Owner Trust | |||||||||||
2.810% 08/22/11 | 342,950 | 342,843 | |||||||||
Total Asset-Backed Securities (Cost of $28,823,125) | 29,271,333 | ||||||||||
Government & Agency Obligations (10.9%) | |||||||||||
Foreign Government Obligations (0.9%) | |||||||||||
Morocco Government AID Bond | |||||||||||
3.313% 05/01/23 (b) | 310,000 | 299,339 | |||||||||
Province of Quebec | |||||||||||
5.000% 07/17/09 (a) | 875,000 | 900,679 | |||||||||
United Mexican States | |||||||||||
4.625% 10/08/08 (a) | 325,000 | 326,950 | |||||||||
1,526,968 | |||||||||||
U.S. Government Agencies (3.9%) | |||||||||||
Federal Home Loan Bank | |||||||||||
5.125% 08/08/08 (d) | 85,000 | 86,015 | |||||||||
5.250% 06/11/10 | 1,500,000 | 1,583,121 | |||||||||
Federal National Mortgage Association | |||||||||||
5.000% 04/20/09 | 1,400,000 | 1,439,253 | |||||||||
6.250% 02/01/11 | 3,000,000 | 3,261,546 | |||||||||
6,369,935 | |||||||||||
U.S. Government Obligations (6.1%) | |||||||||||
U.S. Treasury Note | |||||||||||
4.875% 05/31/11 (a) | 8,000,000 | 8,625,624 | |||||||||
U.S. Treasury Inflation Indexed Note | |||||||||||
3.500% 01/15/11 (a) | 1,183,223 | 1,292,671 | |||||||||
9,918,295 | |||||||||||
Total Government & Agency Obligations (Cost of $17,646,591) | 17,815,198 |
See Accompanying Notes to Financial Statements.
37
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Mortgage-Backed Securities (8.4%) | |||||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
4.000% 05/01/11 | $ | 1,240,781 | $ | 1,241,560 | |||||||
4.500% 03/01/21 | 1,499,001 | 1,497,566 | |||||||||
5.000% 06/01/22 | 951,019 | 963,275 | |||||||||
5.500% 01/01/21 | 373,420 | 382,277 | |||||||||
5.500% 07/01/21 | 98,980 | 101,313 | |||||||||
5.500% 08/01/21 | 1,191,706 | 1,219,791 | |||||||||
5.500% 09/01/21 | 857,235 | 877,437 | |||||||||
5.500% 01/01/22 | 881,163 | 901,877 | |||||||||
5.500% 03/01/22 | 914,152 | 935,641 | |||||||||
6.000% 07/01/08 | 1,432 | 1,439 | |||||||||
6.000% 11/01/14 | 5,598 | 5,786 | |||||||||
6.000% 08/01/21 | 573,857 | 592,770 | |||||||||
6.000% 02/01/22 | 431,937 | 446,009 | |||||||||
6.000% 06/01/22 | 974,305 | 1,006,048 | |||||||||
6.000% 08/01/22 | 670,137 | 691,970 | |||||||||
6.000% 10/01/22 | 1,048,245 | 1,082,396 | |||||||||
Federal National Mortgage Association | |||||||||||
5.000% 06/01/20 | 1,091,326 | 1,106,787 | |||||||||
5.500% 11/01/21 | 366,279 | 375,255 | |||||||||
6.000% 03/01/09 | 15,582 | 15,927 | |||||||||
6.000% 05/01/09 | 141,601 | 144,734 | |||||||||
Small Business Administration | |||||||||||
4.875% 03/25/22 (b) | 72,381 | 71,234 | |||||||||
4.875% 06/25/22 (b) | 166,085 | 163,434 | |||||||||
Total Mortgage-Backed Securities (Cost of $13,504,143) | 13,824,526 | ||||||||||
Commercial Mortgage-Backed Securities (7.9%) | |||||||||||
Bear Stearns Commercial Mortgage Securities, Inc. | |||||||||||
3.869% 02/11/41 | 3,425,000 | 3,397,708 | |||||||||
Chase Commercial Mortgage Securities Corp. | |||||||||||
7.093% 10/15/32 | 9,439 | 9,420 | |||||||||
CS First Boston Mortgage Securities Corp. | |||||||||||
4.512% 07/15/37 | 800,000 | 790,825 | |||||||||
5.017% 08/15/38 | 350,000 | 349,234 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | |||||||||||
4.914% 07/12/37 | 1,547,389 | 1,551,398 | |||||||||
5.538% 02/12/49 | 1,853,657 | 1,870,573 | |||||||||
LB-UBS Commercial Mortgage Trust | |||||||||||
5.642% 12/15/25 | 406,324 | 411,513 | |||||||||
Merrill Lynch Mortgage Trust | |||||||||||
4.446% 09/12/42 | 1,644,209 | 1,636,782 | |||||||||
Merrill Lynch/Countrywide Commercial Mortgage Trust | |||||||||||
5.549% 06/12/50 | 1,881,161 | 1,898,586 | |||||||||
Prudential Securities Secured Financing Corp. | |||||||||||
6.480% 11/01/31 | 946,010 | 952,118 | |||||||||
Total Commercial Mortgage-Backed Securities (Cost of $12,845,783) | 12,868,157 |
See Accompanying Notes to Financial Statements.
38
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Securities Lending Collateral (9.2%) | |||||||||||
State Street Navigator Securities Lending Prime Portfolio (e) (7 day yield of 4.147%) | 15,161,975 | $ | 15,161,975 | ||||||||
Total Securities Lending Collateral (Cost of $15,161,975) | 15,161,975 | ||||||||||
Par | |||||||||||
Short-Term Obligation (0.5%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 2.740%, collateralized by a U.S. Government Agency Obligation maturing 01/09/18, market value $859,788 (repurchase proceeds $840,064) | $ | 840,000 | 840,000 | ||||||||
Total Short-Term Obligation (Cost of $840,000) | 840,000 | ||||||||||
Total Investments (108.7%) (Cost of $175,973,823) (f) | 177,906,445 | ||||||||||
Other Assets & Liabilities, Net (-8.7%) | (14,277,965 | ) | |||||||||
Net Assets (100.0%) | $ | 163,628,480 |
Notes to Schedule of Investments:
(a) All or a portion of this security was on loan at January 31, 2008. The total market value of securities on loan at January 31, 2008 is $14,901,539.
(b) The interest rate shown on floating rate or variable rate securities reflects the rate at January 31, 2008.
(c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2008, these securities, which are not illiquid, amounted to $2,388,614, which represents 1.5% of net assets.
(d) All or a portion of this security is pledged as collateral for open futures contracts.
(e) Investment made with cash collateral received from securities lending activity.
(f) Cost for federal income tax purposes is $176,194,454.
At January 31, 2008, the Fund held the following open long futures contracts:
Type | Number of Contracts | Value | Aggregate Face Value | Expiration Date | Unrealized Appreciation | ||||||||||||||||||
U.S. Treasury Note 2 year | 69 | $ | 14,712,093 | $ | 14,511,224 | Mar-2008 | $ | 200,869 |
See Accompanying Notes to Financial Statements.
39
CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the asset allocation of the Fund is as follows:
Asset Allocation | % of Net Assets | ||||||
Corporate Fixed-Income Bonds & Notes | 31.8 | ||||||
Collateralized Mortgage Obligations | 22.1 | ||||||
Asset-Backed Securities | 17.9 | ||||||
Government & Agency Obligations | 10.9 | ||||||
Mortgage-Backed Securities | 8.4 | ||||||
Commercial Mortgage-Backed Securities | 7.9 | ||||||
99.0 | |||||||
Securities Lending Collateral | 9.2 | ||||||
Short-Term Obligation | 0.5 | ||||||
Other Assets & Liabilities, Net | (8.7 | ) | |||||
100.0 |
See Accompanying Notes to Financial Statements.
40
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Par | Value | ||||||||||
Asset-Backed Securities (37.7%) | |||||||||||
Advanta Business Card Master Trust | |||||||||||
5.300% 05/21/12 | $ | 1,000,000 | $ | 1,017,767 | |||||||
American Express Credit Account Master Trust | |||||||||||
4.606% 10/15/10 (a) | 500,000 | 500,143 | |||||||||
AmeriCredit Automobile Receivables Trust | |||||||||||
3.930% 10/06/11 | 491,921 | 480,712 | |||||||||
5.190% 11/06/11 | 1,500,000 | 1,470,689 | |||||||||
5.210% 10/06/11 | 1,000,000 | 997,367 | |||||||||
5.420% 08/08/11 | 1,750,000 | 1,745,966 | |||||||||
Bank One Issuance Trust | |||||||||||
3.940% 04/16/12 | 2,000,000 | 2,019,770 | |||||||||
Bay View Auto Trust | |||||||||||
4.550% 02/25/14 | 1,000,000 | 1,011,075 | |||||||||
5.010% 06/25/14 | 300,000 | 303,816 | |||||||||
Capital Auto Receivables Asset Trust | |||||||||||
5.400% 01/20/09 (b) | 250,026 | 250,333 | |||||||||
Capital One Master Trust | |||||||||||
6.356% 06/15/11 | 1,000,000 | 1,009,113 | |||||||||
Capital One Multi-Asset Execution Trust | |||||||||||
4.400% 08/15/11 | 1,000,000 | 1,007,758 | |||||||||
Capital One Prime Auto Receivables Trust | |||||||||||
4.990% 09/15/10 | 461,820 | 465,777 | |||||||||
5.222% 10/15/08 | 915,407 | 919,402 | |||||||||
Carmax Auto Owner Trust | |||||||||||
5.150% 02/15/11 | 1,700,000 | 1,719,853 | |||||||||
Centex Home Equity | |||||||||||
6.540% 01/25/32 (a) | 192,642 | 132,477 | |||||||||
Chase Issuance Trust | |||||||||||
4.520% 12/15/10 | 1,300,000 | 1,303,550 | |||||||||
CIT Equipment Collateral | |||||||||||
4.420% 05/20/09 | 128,823 | 129,066 | |||||||||
5.070% 02/20/10 | 1,000,000 | 1,009,847 | |||||||||
5.160% 02/20/13 | 600,000 | 611,281 | |||||||||
Citibank Credit Card Issuance Trust | |||||||||||
4.400% 09/15/10 | 1,500,000 | 1,503,128 | |||||||||
5.300% 05/20/11 | 1,000,000 | 1,025,515 | |||||||||
CNH Equipment Trust | |||||||||||
5.200% 06/15/10 | 908,831 | 916,719 | |||||||||
5.200% 08/16/10 | 1,157,554 | 1,163,967 | |||||||||
Drive Auto Receivables Trust | |||||||||||
5.300% 07/15/11 (b) | 1,276,540 | 1,276,414 | |||||||||
5.490% 05/15/11 (b) | 656,426 | 656,734 | |||||||||
Ford Credit Floorplan Master Owner Trust | |||||||||||
4.416% 06/15/11 (a) | 700,000 | 685,952 | |||||||||
Franklin Auto Trust | |||||||||||
4.910% 04/20/10 | 349,888 | 351,143 | |||||||||
GE Equipment Small Ticket LLC | |||||||||||
4.880% 10/22/09 (b) | 527,855 | 531,162 | |||||||||
GMAC Mortgage Corp. Loan Trust | |||||||||||
6.310% 05/25/36 | 373,661 | 364,141 |
See Accompanying Notes to Financial Statements.
41
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Asset-Backed Securities (continued) | |||||||||||
Gracechurch Card Funding PLC | |||||||||||
4.346% 03/15/10 (a) | $ | 1,000,000 | $ | 999,593 | |||||||
GS Auto Loan Trust | |||||||||||
4.450% 05/17/10 | 322,784 | 324,143 | |||||||||
Harley-Davidson Motorcycle Trust | |||||||||||
5.360% 10/15/10 | 194,156 | 194,978 | |||||||||
Household Automotive Trust | |||||||||||
5.280% 09/17/11 | 1,500,000 | 1,519,734 | |||||||||
5.300% 11/17/11 | 1,000,000 | 1,018,475 | |||||||||
5.430% 06/17/11 | 806,218 | 817,335 | |||||||||
Long Beach Auto Receivables Trust | |||||||||||
4.050% 04/15/11 | 586,512 | 587,435 | |||||||||
4.080% 06/15/10 | 168,833 | 168,505 | |||||||||
4.406% 05/15/10 | 182,571 | 182,805 | |||||||||
4.972% 10/15/11 | 750,000 | 758,945 | |||||||||
5.170% 08/15/11 | 1,500,000 | 1,505,029 | |||||||||
Nomura Asset Acceptance Corp. | |||||||||||
3.516% 01/25/36 (a)(b) | 133,825 | 127,195 | |||||||||
Onyx Acceptance Grantor Trust | |||||||||||
4.180% 03/15/10 | 233,821 | 233,220 | |||||||||
Ownit Mortgage Loan Asset-Backed Certificates | |||||||||||
5.424% 12/25/36 | 263,643 | 261,738 | |||||||||
Providian Master Note Trust | |||||||||||
4.296% 07/16/12 (a)(b) | 750,000 | 750,469 | |||||||||
Residential Funding Mortgage Securities II, Inc. | |||||||||||
3.496% 09/25/35 (a) | 174,833 | 171,363 | |||||||||
Santander Drive Auto Receivables Trust | |||||||||||
5.050% 09/15/11 | 1,000,000 | 992,810 | |||||||||
Triad Auto Receivables Owner Trust | |||||||||||
4.220% 06/12/12 | 750,000 | 755,520 | |||||||||
4.280% 06/14/10 | 299,288 | 298,549 | |||||||||
4.770% 01/12/11 | 646,161 | 643,981 | |||||||||
5.260% 11/14/11 | 1,750,000 | 1,749,004 | |||||||||
5.410% 08/12/11 | 1,273,689 | 1,274,244 | |||||||||
Wachovia Auto Owner Trust | |||||||||||
4.790% 04/20/10 | 509,546 | 511,315 | |||||||||
Total Asset-Backed Securities (Cost of $42,095,648) | 42,427,022 | ||||||||||
Corporate Fixed-Income Bonds & Notes (30.6%) | |||||||||||
Basic Materials (2.3%) | |||||||||||
Chemicals (2.3%) | |||||||||||
E.I. Du Pont de Nemours & Co. | |||||||||||
6.875% 10/15/09 (c) | 1,500,000 | 1,583,991 | |||||||||
Praxair, Inc. | |||||||||||
2.750% 06/15/08 | 1,000,000 | 997,471 | |||||||||
2,581,462 |
See Accompanying Notes to Financial Statements.
42
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Communications (3.7%) | |||||||||||
Media (2.3%) | |||||||||||
Comcast MO of Delaware LLC | |||||||||||
9.000% 09/01/08 | $ | 1,000,000 | $ | 1,020,133 | |||||||
Time Warner Entertainment Co. LP | |||||||||||
7.250% 09/01/08 | 1,000,000 | 1,015,730 | |||||||||
Walt Disney Co. | |||||||||||
5.246% 09/10/09 (a)(c) | 580,000 | 580,193 | |||||||||
2,616,056 | |||||||||||
Telecommunications (1.4%) | |||||||||||
AT&T, Inc. | |||||||||||
4.959% 05/15/08 (a) | 1,000,000 | 999,641 | |||||||||
BellSouth Corp. | |||||||||||
4.969% 08/15/08 (a) | 600,000 | 599,384 | |||||||||
1,599,025 | |||||||||||
4,215,081 | |||||||||||
Consumer Cyclical (0.5%) | |||||||||||
Retail (0.5%) | |||||||||||
Wal-Mart Stores, Inc. | |||||||||||
6.875% 08/10/09 | 500,000 | 526,607 | |||||||||
Consumer Non-Cyclical (1.8%) | |||||||||||
Beverages (0.9%) | |||||||||||
Diageo Finance BV | |||||||||||
4.950% 03/30/09 (a) | 1,000,000 | 993,793 | |||||||||
Healthcare Services (0.9%) | |||||||||||
UnitedHealth Group Inc. | |||||||||||
5.204% 03/02/09 (a) | 1,000,000 | 992,911 | |||||||||
1,986,704 | |||||||||||
Financials (16.8%) | |||||||||||
Banks (3.9%) | |||||||||||
American Express Centurion Bank | |||||||||||
5.200% 11/26/10 (c) | 750,000 | 770,306 | |||||||||
Capital One Bank | |||||||||||
6.700% 05/15/08 | 1,600,000 | 1,604,498 | |||||||||
Comerica Bank | |||||||||||
5.180% 08/24/11 (a) | 1,000,000 | 993,073 | |||||||||
Westpac Banking Corp. | |||||||||||
5.103% 07/11/08 (a)(b) | 1,000,000 | 995,055 | |||||||||
4,362,932 | |||||||||||
Diversified Financial Services (9.4%) | |||||||||||
American Honda Finance Corp. | |||||||||||
4.904% 06/23/08 (a)(b) | 1,200,000 | 1,202,460 |
See Accompanying Notes to Financial Statements.
43
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Diversified Financial Services (continued) | |||||||||||
Bear Stearns Companies, Inc. | |||||||||||
2.875% 07/02/08 | $ | 750,000 | $ | 743,197 | |||||||
3.551% 01/30/09 (a) | 1,000,000 | 970,093 | |||||||||
Caterpillar Financial Services Corp. | |||||||||||
3.146% 08/11/09 (a) | 700,000 | 696,415 | |||||||||
Citigroup Global Markets Holdings, Inc. | |||||||||||
6.500% 02/15/08 | 1,000,000 | 1,000,886 | |||||||||
General Electric Capital Corp. | |||||||||||
3.294% 01/26/11 (a)(c) | 1,000,000 | 987,554 | |||||||||
Goldman Sachs Group, Inc. | |||||||||||
3.325% 02/06/12 (a)(c) | 1,000,000 | 967,825 | |||||||||
HSBC Finance Corp. | |||||||||||
3.306% 08/09/11 (a) | 850,000 | 820,355 | |||||||||
Lehman Brothers Holdings, Inc. | |||||||||||
4.954% 03/23/09 (a) | 750,000 | 744,596 | |||||||||
Morgan Stanley | |||||||||||
4.201% 01/18/11 (a)(c) | 1,000,000 | 967,180 | |||||||||
SLM Corp. | |||||||||||
3.471% 07/27/09 (a)(c) | 1,000,000 | 928,031 | |||||||||
Textron Financial Corp. | |||||||||||
4.125% 03/03/08 | 600,000 | 600,431 | |||||||||
10,629,023 | |||||||||||
Insurance (1.8%) | |||||||||||
Berkshire Hathaway Finance Corp. | |||||||||||
4.743% 01/11/11 (a)(b) | 1,500,000 | 1,499,413 | |||||||||
4.938% 05/16/08 (a)(c) | 500,000 | 500,393 | |||||||||
1,999,806 | |||||||||||
Savings & Loans (1.7%) | |||||||||||
Washington Mutual Bank | |||||||||||
3.235% 11/06/09 (a) | 1,000,000 | 928,987 | |||||||||
World Savings Bank FSB | |||||||||||
5.249% 03/02/09 (a) | 1,000,000 | 1,003,603 | |||||||||
1,932,590 | |||||||||||
18,924,351 | |||||||||||
Industrials (2.4%) | |||||||||||
Miscellaneous Manufacturing (0.9%) | |||||||||||
Honeywell International, Inc. | |||||||||||
5.171% 03/13/09 (a) | 1,000,000 | 999,207 | |||||||||
Transportation (1.5%) | |||||||||||
Norfolk Southern Corp. | |||||||||||
6.000% 04/30/08 | 700,000 | 704,150 | |||||||||
Union Pacific Corp. | |||||||||||
3.875% 02/15/09 | 1,000,000 | 1,002,972 | |||||||||
1,707,122 | |||||||||||
2,706,329 |
See Accompanying Notes to Financial Statements.
44
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Technology (0.9%) | |||||||||||
Computers (0.9%) | |||||||||||
Hewlett-Packard Co. | |||||||||||
5.001% 06/15/09 (a) | $ | 1,000,000 | $ | 995,419 | |||||||
Utilities (2.2%) | |||||||||||
Electric (1.3%) | |||||||||||
Consolidated Edison Co. of New York, Inc. | |||||||||||
4.700% 06/15/09 (c) | 500,000 | 507,441 | |||||||||
Duke Energy Carolinas LLC | |||||||||||
4.500% 04/01/10 | 1,000,000 | 1,020,193 | |||||||||
1,527,634 | |||||||||||
Gas (0.9%) | |||||||||||
Sempra Energy | |||||||||||
4.750% 05/15/09 (c) | 1,000,000 | 1,012,721 | |||||||||
2,540,355 | |||||||||||
Total Corporate Fixed-Income Bonds & Notes (Cost of $34,706,968) | 34,476,308 | ||||||||||
Collateralized Mortgage Obligations (9.0%) | |||||||||||
Agency (3.6%) | |||||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
4.000% 05/15/14 | 65,027 | 65,082 | |||||||||
4.000% 07/15/24 | 203,652 | 203,759 | |||||||||
4.500% 11/15/16 | 272,483 | 275,006 | |||||||||
5.000% 07/15/14 | 306,948 | 307,940 | |||||||||
5.000% 11/15/15 | 149,675 | 151,312 | |||||||||
5.000% 02/15/16 | 522,592 | 528,922 | |||||||||
5.000% 05/15/26 | 282,854 | 286,219 | |||||||||
5.500% 02/15/24 | 268,189 | 271,993 | |||||||||
Federal National Mortgage Association | |||||||||||
4.500% 03/25/13 | 418,584 | 419,556 | |||||||||
5.000% 01/25/23 | 182,150 | 182,626 | |||||||||
5.500% 11/25/26 | 912,438 | 931,633 | |||||||||
6.000% 01/25/31 | 367,839 | 370,162 | |||||||||
3,994,210 | |||||||||||
Non-Agency (5.4%) | |||||||||||
Axon Financial Funding Ltd. | |||||||||||
5.281% 04/04/17 (a)(b)(d)(e)(j) | 1,750,000 | 17,500 | |||||||||
Bear Stearns Alt-A Trust | |||||||||||
3.596% 12/25/46 (a)(d) | 905,082 | 723,362 | |||||||||
Granite Master Issuer PLC | |||||||||||
4.158% 12/17/54 (a) | 750,000 | 675,000 |
See Accompanying Notes to Financial Statements.
45
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Collateralized Mortgage Obligations (continued) | |||||||||||
Non-Agency (continued) | |||||||||||
Indymac Index Mortgage Loan Trust | |||||||||||
3.616% 04/25/37 (a) | $ | 304,010 | $ | 248,255 | |||||||
JPMorgan Mortgage Trust | |||||||||||
5.500% 04/25/36 | 335,200 | 337,996 | |||||||||
Kildare Securities Ltd. | |||||||||||
5.166% 06/10/14 (a)(b) | 131,781 | 131,583 | |||||||||
5.206% 12/10/43 (a)(b) | 1,000,000 | 982,475 | |||||||||
Leek Finance PLC | |||||||||||
5.020% 12/21/38 (a)(b) | 1,500,000 | 1,469,115 | |||||||||
Opteum Mortgage Acceptance Corp. | |||||||||||
5.470% 12/25/35 (a) | 188,811 | 189,553 | |||||||||
Residential Mortgage Securities PLC | |||||||||||
4.940% 11/14/31 (a)(b) | 451,470 | 449,452 | |||||||||
Washington Mutual, Inc. | |||||||||||
4.834% 10/25/35 (a) | 594,203 | 598,238 | |||||||||
6.250% 07/25/36 | 293,302 | 296,715 | |||||||||
6,119,244 | |||||||||||
Total Collateralized Mortgage Obligations (Cost of $11,969,746) | 10,113,454 | ||||||||||
Government & Agency Obligations (6.2%) | |||||||||||
U.S. Government Agencies (5.0%) | |||||||||||
Federal Home Loan Bank | |||||||||||
4.375% 10/22/10 (c) | 1,000,000 | 1,037,670 | |||||||||
4.650% 11/20/09 | 1,000,000 | 1,001,088 | |||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
5.000% 06/11/09 (c) | 1,500,000 | 1,546,998 | |||||||||
Federal National Mortgage Association | |||||||||||
5.250% 01/15/09 (c) | 2,000,000 | 2,049,100 | |||||||||
5,634,856 | |||||||||||
U.S. Government Obligations (1.2%) | |||||||||||
U.S. Treasury Notes | |||||||||||
3.875% 05/15/09 | 250,000 | 255,371 | |||||||||
4.875% 01/31/09 (c) | 1,000,000 | 1,026,875 | |||||||||
1,282,246 | |||||||||||
Total Government & Agency Obligations (Cost of $6,834,429) | 6,917,102 | ||||||||||
Mortgage-Backed Securities (3.2%) | |||||||||||
Federal Home Loan Mortgage Corp. | |||||||||||
3.500% 09/01/08 | 1,094,327 | 1,089,832 | |||||||||
5.079% 02/01/36 (a) | 1,190,123 | 1,193,618 | |||||||||
Federal National Mortgage Association | |||||||||||
4.025% 03/01/34 (a) | 1,306,627 | 1,305,847 | |||||||||
Total Mortgage-Backed Securities (Cost of $3,557,384) | 3,589,297 |
See Accompanying Notes to Financial Statements.
46
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Securities Lending Collateral (11.1%) | |||||||||||
State Street Navigator Securities Lending Prime Portfolio (f) (7 day yield of 4.147%) | 12,462,769 | $ | 12,462,769 | ||||||||
Total Securities Lending Collateral (Cost of $12,462,769) | 12,462,769 | ||||||||||
Par | |||||||||||
Short-Term Obligations (13.0%) | |||||||||||
Commercial Paper (11.3%) | |||||||||||
Bank of Tokyo Mitsubishi Ltd. NY | |||||||||||
4.950% 02/20/08 | $ | 1,500,000 | 1,500,000 | ||||||||
Barclays Bank PLC | |||||||||||
5.000% 02/19/08 | 1,500,000 | 1,500,000 | |||||||||
Concord Minutemen Capital Co. LLC | |||||||||||
3.450% 04/17/08 (g) | 500,000 | 496,358 | |||||||||
Galaxy Funding, Inc. | |||||||||||
4.500% 03/13/08 (g) | 1,000,000 | 994,875 | |||||||||
Grampian Funding LLC | |||||||||||
4.485% 03/10/08 (g) | 1,600,000 | 1,592,425 | |||||||||
4.590% 04/02/08 (g) | 2,200,000 | 2,182,890 | |||||||||
Irish Life & Permanent PLC | |||||||||||
4.565% 04/08/08 (g) | 1,500,000 | 1,487,256 | |||||||||
Lake Constance Funding LLC | |||||||||||
4.585% 04/10/08 (g) | 1,000,000 | 989,938 | |||||||||
Natixis NY | |||||||||||
3.170% 04/02/08 (g) | 2,000,000 | 1,999,967 | |||||||||
12,743,709 | |||||||||||
Repurchase Agreement (0.8%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 2.740%, collateralized by a U.S. Government Agency Obligation maturing 01/09/18, market value $971,713 (repurchase proceeds $948,072) | 948,000 | 948,000 | |||||||||
U.S. Government Agencies (0.9%) | |||||||||||
Federal National Mortgage Association | |||||||||||
3.750% 07/09/08 (h) | 1,000,000 | 983,438 | |||||||||
Total Short-Term Obligations (Cost of $14,675,147) | 14,675,147 | ||||||||||
Total Investments (110.8%) (Cost of $126,302,091) (i) | 124,661,099 | ||||||||||
Other Assets & Liabilities, Net (-10.8%) | (12,102,937 | ) | |||||||||
Net Assets (100.0%) | $ | 112,558,162 |
See Accompanying Notes to Financial Statements.
47
CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Notes to Schedule of Investments:
(a) The interest rate shown on floating rate or variable rate securities reflects the rate at January 31, 2008.
(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2008, these securities, which are not illiquid except for those in the following table, amounted to $10,339,360, which represents 9.2% of net assets.
Security | Acquisition Date | Par/Unit | Cost | Value | |||||||||||||||
Axon Financial Funding Ltd. 5.281% 04/04/17 | 04/04/07 | $ | 1,750,000 | $ | 1,750,000 | $ | 17,500 |
(c) All or a portion of this security was on loan at January 31, 2008. The total market value of securities on loan at January 31, 2008 is $12,228,364.
(d) Represents fair value as determined in good faith under procedures approved by the Board of Trustees.
(e) Security issued by a structured investment vehicle.
(f) Investment made with cash collateral received from securities lending activity.
(g) The rate shown represents the discount rate at the date of purchase.
(h) The rate shown represents the annualized yield at the date of purchase.
(i) Cost for federal income tax purposes is $126,396,786.
(j) The issuer is in default of certain debt covenants. Income is being accrued. At January 31, 2008, the value of this security represents less than 0.1% of net assets.
At January 31, 2008, the asset allocation of the Fund is as follows:
Asset Allocation | % of Net Assets | ||||||
Asset-Backed Securities | 37.7 | ||||||
Corporate Fixed-Income Bonds & Notes | 30.6 | ||||||
Collateralized Mortgage Obligations | 9.0 | ||||||
Government & Agency Obligations | 6.2 | ||||||
Mortgage-Backed Securities | 3.2 | ||||||
86.7 | |||||||
Securities Lending Collateral | 11.1 | ||||||
Short-Term Obligations | 13.0 | ||||||
Other Assets & Liabilities, Net | (10.8 | ) | |||||
100.0 |
See Accompanying Notes to Financial Statements.
48
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (93.9%) | |||||||||||
Basic Materials (7.7%) | |||||||||||
Chemicals (3.2%) | |||||||||||
Agricultural Chemicals (0.9%) | |||||||||||
Mosaic Co. | |||||||||||
7.875% 12/01/16 (b) | $ | 420,000 | $ | 453,600 | |||||||
Chemicals-Diversified (1.5%) | |||||||||||
Huntsman International LLC | |||||||||||
6.875% 11/15/13 (b) | EUR | 165,000 | 231,814 | ||||||||
7.875% 11/15/14 | 290,000 | 301,600 | |||||||||
NOVA Chemicals Corp. | |||||||||||
6.500% 01/15/12 | 275,000 | 253,000 | |||||||||
786,414 | |||||||||||
Chemicals-Specialty (0.8%) | |||||||||||
Chemtura Corp. | |||||||||||
6.875% 06/01/16 | 440,000 | 400,400 | |||||||||
1,640,414 | |||||||||||
Forest Products & Paper (1.7%) | |||||||||||
Paper & Related Products (1.7%) | |||||||||||
Cascades, Inc. | |||||||||||
7.250% 02/15/13 | 300,000 | 275,250 | |||||||||
Domtar Corp. | |||||||||||
7.125% 08/15/15 | 305,000 | 293,562 | |||||||||
Georgia-Pacific Corp. | |||||||||||
8.000% 01/15/24 | 300,000 | 274,500 | |||||||||
843,312 | |||||||||||
Iron/Steel (0.8%) | |||||||||||
Steel-Producers (0.8%) | |||||||||||
Russel Metals, Inc. | |||||||||||
6.375% 03/01/14 | 470,000 | 418,300 | |||||||||
Metals & Mining (2.0%) | |||||||||||
Diversified Minerals (1.0%) | |||||||||||
FMG Finance Ltd. | |||||||||||
10.625% 09/01/16 (b) | 445,000 | 505,075 | |||||||||
Metal-Diversified (1.0%) | |||||||||||
Freeport-McMoRan Copper & Gold, Inc. | |||||||||||
8.375% 04/01/17 | 500,000 | 531,250 | |||||||||
1,036,325 | |||||||||||
3,938,351 | |||||||||||
Communications (17.7%) | |||||||||||
Media (8.1%) | |||||||||||
Broadcast Services/Programs (0.7%) | |||||||||||
Liberty Media LLC | |||||||||||
8.250% 02/01/30 | 425,000 | 385,263 |
See Accompanying Notes to Financial Statements.
49
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Cable TV (4.3%) | |||||||||||
Charter Communications Holdings II LLC | |||||||||||
10.250% 09/15/10 | $ | 305,000 | $ | 288,988 | |||||||
CSC Holdings, Inc. | |||||||||||
7.625% 04/01/11 | 345,000 | 341,550 | |||||||||
7.625% 07/15/18 | 130,000 | 116,350 | |||||||||
DirecTV Holdings LLC | |||||||||||
6.375% 06/15/15 | 745,000 | 700,300 | |||||||||
EchoStar DBS Corp. | |||||||||||
6.625% 10/01/14 | 805,000 | 785,881 | |||||||||
2,233,069 | |||||||||||
Multimedia (1.6%) | |||||||||||
Lamar Media Corp. | |||||||||||
7.250% 01/01/13 | 465,000 | 459,187 | |||||||||
Quebecor Media, Inc. | |||||||||||
7.750% 03/15/16 | 385,000 | 357,088 | |||||||||
816,275 | |||||||||||
Publishing-Periodicals (0.9%) | |||||||||||
Idearc, Inc. | |||||||||||
8.000% 11/15/16 | 245,000 | 219,275 | |||||||||
R.H. Donnelley Corp. | |||||||||||
8.875% 10/15/17 (b) | 275,000 | 233,063 | |||||||||
452,338 | |||||||||||
Television (0.6%) | |||||||||||
Univision Communications, Inc. | |||||||||||
7.850% 07/15/11 | 300,000 | 286,125 | |||||||||
4,173,070 | |||||||||||
Telecommunication Services (9.6%) | |||||||||||
Cellular Telecommunications (2.4%) | |||||||||||
Alltel Wireless | |||||||||||
6.773% 05/15/15 (c)(d) | 997,500 | 906,339 | |||||||||
Nextel Communications, Inc. | |||||||||||
7.375% 08/01/15 | 360,000 | 329,323 | |||||||||
1,235,662 | |||||||||||
Satellite Telecommunications (0.5%) | |||||||||||
Intelsat Bermuda Ltd. | |||||||||||
9.250% 06/15/16 | 285,000 | 284,288 | |||||||||
Telecommunication Equipment (0.8%) | |||||||||||
Lucent Technologies, Inc. | |||||||||||
6.450% 03/15/29 | 515,000 | 414,575 | |||||||||
Telecommunication Services (0.6%) | |||||||||||
Time Warner Telecom Holdings, Inc. | |||||||||||
9.250% 02/15/14 | 290,000 | 290,000 |
See Accompanying Notes to Financial Statements.
50
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Telephone-Integrated (5.3%) | |||||||||||
Cincinnati Bell, Inc. | |||||||||||
7.000% 02/15/15 | $ | 330,000 | $ | 308,550 | |||||||
Citizens Communications Co. | |||||||||||
7.875% 01/15/27 | 490,000 | 448,350 | |||||||||
Qwest Communications International, Inc. | |||||||||||
7.500% 02/15/14 | 200,000 | 198,000 | |||||||||
Qwest Corp. | |||||||||||
7.500% 10/01/14 | 580,000 | 582,900 | |||||||||
7.500% 06/15/23 | 545,000 | 513,662 | |||||||||
Windstream Corp. | |||||||||||
7.000% 03/15/19 | 250,000 | 234,375 | |||||||||
8.625% 08/01/16 | 440,000 | 455,400 | |||||||||
2,741,237 | |||||||||||
4,965,762 | |||||||||||
9,138,832 | |||||||||||
Consumer Cyclical (11.1%) | |||||||||||
Apparel (0.7%) | |||||||||||
Apparel Manufacturers (0.7%) | |||||||||||
Levi Strauss & Co. | |||||||||||
9.750% 01/15/15 | 360,000 | 350,100 | |||||||||
Auto Parts & Equipment (1.4%) | |||||||||||
Auto/Truck Parts & Equipment-Original (0.7%) | |||||||||||
ArvinMeritor, Inc. | |||||||||||
8.125% 09/15/15 | 130,000 | 109,850 | |||||||||
TRW Automotive, Inc. | |||||||||||
7.000% 03/15/14 (b) | 305,000 | 279,837 | |||||||||
389,687 | |||||||||||
Auto/Truck Parts & Equipment-Replacement (0.2%) | |||||||||||
Commercial Vehicle Group, Inc. | |||||||||||
8.000% 07/01/13 | 100,000 | 84,625 | |||||||||
Rubber-Tires (0.5%) | |||||||||||
Goodyear Tire & Rubber Co. | |||||||||||
8.625% 12/01/11 | 81,000 | 83,329 | |||||||||
9.000% 07/01/15 | 175,000 | 182,875 | |||||||||
266,204 | |||||||||||
740,516 | |||||||||||
Entertainment (2.6%) | |||||||||||
Gambling (Non-Hotel) (0.7%) | |||||||||||
Mashantucket Western Pequot Tribe | |||||||||||
8.500% 11/15/15 (b) | 370,000 | 351,500 | |||||||||
Music (1.0%) | |||||||||||
Steinway Musical Instruments, Inc. | |||||||||||
7.000% 03/01/14 (b) | 360,000 | 324,000 |
See Accompanying Notes to Financial Statements.
51
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Music (continued) | |||||||||||
WMG Acquisition Corp. | |||||||||||
7.375% 04/15/14 | $ | 210,000 | $ | 163,800 | |||||||
487,800 | |||||||||||
Racetracks (0.9%) | |||||||||||
Speedway Motorsports, Inc. | |||||||||||
6.750% 06/01/13 | 490,000 | 481,425 | |||||||||
1,320,725 | |||||||||||
Home Builders (1.1%) | |||||||||||
Building-Residential/Commercial (1.1%) | |||||||||||
KB Home | |||||||||||
5.875% 01/15/15 | 615,000 | 553,500 | |||||||||
Home Furnishings (0.3%) | |||||||||||
Home Furnishings (0.3%) | |||||||||||
Sealy Mattress Co. | |||||||||||
8.250% 06/15/14 | 210,000 | 181,650 | |||||||||
Leisure Time (0.9%) | |||||||||||
Cruise Lines (0.9%) | |||||||||||
Royal Caribbean Cruises Ltd. | |||||||||||
6.875% 12/01/13 | 465,000 | 452,338 | |||||||||
Lodging (1.6%) | |||||||||||
Casino Hotels (1.6%) | |||||||||||
Galaxy Entertainment Finance Co., Ltd. | |||||||||||
9.875% 12/15/12 (b) | 235,000 | 240,875 | |||||||||
MGM Mirage | |||||||||||
7.500% 06/01/16 | 400,000 | 384,000 | |||||||||
Pinnacle Entertainment, Inc. | |||||||||||
7.500% 06/15/15 (b) | 155,000 | 123,225 | |||||||||
Station Casinos, Inc. | |||||||||||
6.625% 03/15/18 | 150,000 | 96,375 | |||||||||
844,475 | |||||||||||
Retail (1.9%) | |||||||||||
Retail-Apparel/Shoe (0.4%) | |||||||||||
Phillips-Van Heusen Corp. | |||||||||||
7.250% 02/15/11 | 195,000 | 195,488 | |||||||||
Retail-Automobiles (0.4%) | |||||||||||
AutoNation, Inc. | |||||||||||
7.000% 04/15/14 | 235,000 | 209,150 | |||||||||
Retail-Convenience Store (0.5%) | |||||||||||
Couche-Tard US LP | |||||||||||
7.500% 12/15/13 | 255,000 | 253,406 | |||||||||
Retail-Propane Distributors (0.6%) | |||||||||||
AmeriGas Partners LP | |||||||||||
7.125% 05/20/16 | 305,000 | 296,612 | |||||||||
954,656 |
See Accompanying Notes to Financial Statements.
52
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Textiles (0.6%) | |||||||||||
Textile-Products (0.6%) | |||||||||||
INVISTA | |||||||||||
9.250% 05/01/12 (b) | $ | 295,000 | $ | 300,163 | |||||||
5,698,123 | |||||||||||
Consumer Non-Cyclical (11.5%) | |||||||||||
Agriculture (0.6%) | |||||||||||
Tobacco (0.6%) | |||||||||||
Reynolds American, Inc. | |||||||||||
7.625% 06/01/16 | 305,000 | 323,011 | |||||||||
Beverages (1.3%) | |||||||||||
Beverages-Non-Alcoholic (0.5%) | |||||||||||
Cott Beverages, Inc. | |||||||||||
8.000% 12/15/11 | 295,000 | 266,975 | |||||||||
Beverages-Wine/Spirits (0.8%) | |||||||||||
Constellation Brands, Inc. | |||||||||||
8.125% 01/15/12 | 385,000 | 385,963 | |||||||||
652,938 | |||||||||||
Biotechnology (0.6%) | |||||||||||
Medical-Biomedical/Gene (0.6%) | |||||||||||
Bio-Rad Laboratories, Inc. | |||||||||||
7.500% 08/15/13 | 295,000 | 297,950 | |||||||||
Commercial Services (3.4%) | |||||||||||
Commercial Services (0.7%) | |||||||||||
Iron Mountain, Inc. | |||||||||||
7.750% 01/15/15 | 365,000 | 371,387 | |||||||||
Funeral Services & Related Items (0.6%) | |||||||||||
Service Corp. International | |||||||||||
6.750% 04/01/16 | 100,000 | 97,750 | |||||||||
7.375% 10/01/14 | 215,000 | 219,300 | |||||||||
317,050 | |||||||||||
Non-Profit Charity (0.5%) | |||||||||||
Seminole Indian Tribe of Florida | |||||||||||
7.804% 10/01/20 (b) | 260,000 | 272,371 | |||||||||
Private Corrections (0.8%) | |||||||||||
Corrections Corp. of America | |||||||||||
6.250% 03/15/13 | 415,000 | 412,925 | |||||||||
Rental Auto/Equipment (0.8%) | |||||||||||
Ashtead Capital, Inc. | |||||||||||
9.000% 08/15/16 (b) | 295,000 | 246,325 |
See Accompanying Notes to Financial Statements.
53
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Rental Auto/Equipment (continued) | |||||||||||
United Rentals North America, Inc. | |||||||||||
7.750% 11/15/13 | $ | 180,000 | $ | 147,825 | |||||||
394,150 | |||||||||||
1,767,883 | |||||||||||
Food (1.0%) | |||||||||||
Food-Dairy Products (0.2%) | |||||||||||
Dean Foods Co. | |||||||||||
7.000% 06/01/16 | 110,000 | 100,100 | |||||||||
Food-Meat Products (0.4%) | |||||||||||
Smithfield Foods, Inc. | |||||||||||
7.750% 07/01/17 | 240,000 | 226,800 | |||||||||
Food-Miscellaneous/Diversified (0.4%) | |||||||||||
Del Monte Corp. | |||||||||||
6.750% 02/15/15 | 200,000 | 186,000 | |||||||||
512,900 | |||||||||||
Healthcare Services (2.3%) | |||||||||||
Medical-Hospitals (2.3%) | |||||||||||
HCA, Inc. | |||||||||||
9.250% 11/15/16 | 315,000 | 330,356 | |||||||||
PIK, | |||||||||||
9.625% 11/15/16 | 785,000 | 826,213 | |||||||||
1,156,569 | |||||||||||
Household Products/Wares (0.8%) | |||||||||||
Consumer Products-Miscellaneous (0.8%) | |||||||||||
American Greetings Corp. | |||||||||||
7.375% 06/01/16 | 280,000 | 277,200 | |||||||||
Jarden Corp. | |||||||||||
7.500% 05/01/17 | 165,000 | 141,075 | |||||||||
418,275 | |||||||||||
Pharmaceuticals (1.5%) | |||||||||||
Medical-Drugs (0.8%) | |||||||||||
Elan Finance PLC | |||||||||||
8.875% 12/01/13 | 225,000 | 214,875 | |||||||||
Mylan Laboratories, Inc. | |||||||||||
6.625% 10/02/14 (c)(d) | 121,753 | 120,535 | |||||||||
8.125% 10/02/14 (c)(d) | 78,247 | 77,465 | |||||||||
412,875 | |||||||||||
Pharmacy Services (0.7%) | |||||||||||
Omnicare, Inc. | |||||||||||
6.750% 12/15/13 | 410,000 | 375,150 | |||||||||
788,025 | |||||||||||
5,917,551 |
See Accompanying Notes to Financial Statements.
54
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Energy (12.4%) | |||||||||||
Coal (2.4%) | |||||||||||
Coal (2.4%) | |||||||||||
Arch Western Finance LLC | |||||||||||
6.750% 07/01/13 | $ | 475,000 | $ | 459,562 | |||||||
Massey Energy Co. | |||||||||||
6.875% 12/15/13 | 330,000 | 314,325 | |||||||||
Peabody Energy Corp. | |||||||||||
6.875% 03/15/13 | 455,000 | 451,588 | |||||||||
1,225,475 | |||||||||||
Oil & Gas (5.8%) | |||||||||||
Oil & Gas Drilling (0.8%) | |||||||||||
Pride International, Inc. | |||||||||||
7.375% 07/15/14 | 400,000 | 412,000 | |||||||||
Oil Companies-Exploration & Production (4.4%) | |||||||||||
Chesapeake Energy Corp. | |||||||||||
6.375% 06/15/15 | 560,000 | 543,200 | |||||||||
Cimarex Energy Co. | |||||||||||
7.125% 05/01/17 | 200,000 | 195,500 | |||||||||
Compton Petroleum Corp. | |||||||||||
7.625% 12/01/13 | 320,000 | 296,000 | |||||||||
Newfield Exploration Co. | |||||||||||
6.625% 09/01/14 | 345,000 | 339,825 | |||||||||
OPTI Canada, Inc. | |||||||||||
8.250% 12/15/14 (b) | 395,000 | 387,100 | |||||||||
Quicksilver Resources, Inc. | |||||||||||
7.125% 04/01/16 | 320,000 | 310,400 | |||||||||
Southwestern Energy Co. | |||||||||||
7.500% 02/01/18 (b) | 200,000 | 205,500 | |||||||||
2,277,525 | |||||||||||
Oil Refining & Marketing (0.6%) | |||||||||||
Tesoro Corp. | |||||||||||
6.625% 11/01/15 | 295,000 | 286,888 | |||||||||
2,976,413 | |||||||||||
Pipelines (4.2%) | |||||||||||
Pipelines (4.2%) | |||||||||||
Atlas Pipeline Partners LP | |||||||||||
8.125% 12/15/15 | 315,000 | 302,400 | |||||||||
Colorado Interstate Gas Co. | |||||||||||
6.800% 11/15/15 | 555,000 | 586,228 | |||||||||
El Paso Corp. | |||||||||||
6.875% 06/15/14 | 295,000 | 294,052 | |||||||||
El Paso Performance-Linked Trust | |||||||||||
7.750% 07/15/11 (b) | 110,000 | 113,131 | |||||||||
MarkWest Energy Partners LP | |||||||||||
6.875% 11/01/14 | 715,000 | 675,675 | |||||||||
Williams Companies, Inc. | |||||||||||
7.750% 06/15/31 | 205,000 | 222,425 | |||||||||
2,193,911 | |||||||||||
6,395,799 |
See Accompanying Notes to Financial Statements.
55
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Financials (8.2%) | |||||||||||
Diversified Financial Services (5.6%) | |||||||||||
Finance-Auto Loans (2.4%) | |||||||||||
GMAC LLC | |||||||||||
8.000% 11/01/31 | $ | 1,490,000 | $ | 1,234,851 | |||||||
Finance-Investment Banker/Broker (0.4%) | |||||||||||
E*Trade Financial Corp. | |||||||||||
7.375% 09/15/13 | 245,000 | 186,812 | |||||||||
Investment Management/Advisor Service (2.4%) | |||||||||||
LVB Acquisition Merger Sub, Inc. | |||||||||||
PIK, | |||||||||||
10.375% 10/15/17 (b) | 255,000 | 256,275 | |||||||||
Nuveen Investments | |||||||||||
6.285% 11/15/14 (c)(d) | 352,052 | 340,280 | |||||||||
7.830% 11/15/14 (c)(d) | 518,359 | 501,026 | |||||||||
7.884% 11/15/14 (c)(d) | 129,590 | 125,257 | |||||||||
1,222,838 | |||||||||||
Special Purpose Entity (0.4%) | |||||||||||
Goldman Sachs Capital II | |||||||||||
5.793% 12/29/49 (d) | 300,000 | 232,131 | |||||||||
2,876,632 | |||||||||||
Insurance (0.6%) | |||||||||||
Property/Casualty Insurance (0.6%) | |||||||||||
Crum & Forster Holdings Corp. | |||||||||||
7.750% 05/01/17 | 290,000 | 282,025 | |||||||||
Real Estate Investment Trusts (REITs) (1.6%) | |||||||||||
REITS-Hotels (1.0%) | |||||||||||
Host Marriott LP | |||||||||||
6.375% 03/15/15 | 530,000 | 506,150 | |||||||||
REITS-Regional Malls (0.6%) | |||||||||||
Rouse Co. LP/TRC Co-Issuer, Inc. | |||||||||||
6.750% 05/01/13 (b) | 345,000 | 326,834 | |||||||||
832,984 | |||||||||||
Savings & Loans (0.4%) | |||||||||||
Savings & Loans/Thrifts-Western US (0.4%) | |||||||||||
Washington Mutual Preferred Funding | |||||||||||
9.750% 10/29/49 (b)(d) | 235,000 | 216,200 | |||||||||
4,207,841 | |||||||||||
Industrials (14.6%) | |||||||||||
Aerospace & Defense (2.0%) | |||||||||||
Aerospace/Defense-Equipment (0.6%) | |||||||||||
DRS Technologies, Inc. | |||||||||||
6.625% 02/01/16 | 290,000 | 283,475 |
See Accompanying Notes to Financial Statements.
56
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Electronics-Military (1.4%) | |||||||||||
L-3 Communications Corp. | |||||||||||
5.875% 01/15/15 | $ | 200,000 | $ | 194,500 | |||||||
6.375% 10/15/15 | 555,000 | 550,837 | |||||||||
745,337 | |||||||||||
1,028,812 | |||||||||||
Electrical Components & Equipment (1.0%) | |||||||||||
Wire & Cable Products (1.0%) | |||||||||||
Belden, Inc. | |||||||||||
7.000% 03/15/17 | 265,000 | 253,737 | |||||||||
General Cable Corp. | |||||||||||
7.104% 04/01/15 (d) | 145,000 | 129,050 | |||||||||
7.125% 04/01/17 | 145,000 | 138,113 | |||||||||
520,900 | |||||||||||
Electronics (0.5%) | |||||||||||
Electronic Components-Miscellaneous (0.5%) | |||||||||||
Flextronics International Ltd. | |||||||||||
6.250% 11/15/14 | 300,000 | 282,000 | |||||||||
Environmental Control (1.0%) | |||||||||||
Non-Hazardous Waste Disposal (1.0%) | |||||||||||
Allied Waste North America, Inc. | |||||||||||
7.125% 05/15/16 | 550,000 | 543,125 | |||||||||
Machinery-Construction & Mining (0.6%) | |||||||||||
Machinery-Construction & Mining (0.6%) | |||||||||||
Terex Corp. | |||||||||||
8.000% 11/15/17 | 305,000 | 299,663 | |||||||||
Machinery-Diversified (1.2%) | |||||||||||
Machinery-General Industry (1.2%) | |||||||||||
Manitowoc Co., Inc. | |||||||||||
7.125% 11/01/13 | 370,000 | 357,050 | |||||||||
Westinghouse Air Brake Technologies Corp. | |||||||||||
6.875% 07/31/13 | 250,000 | 245,000 | |||||||||
602,050 | |||||||||||
Miscellaneous Manufacturing (2.0%) | |||||||||||
Diversified Manufacturing Operators (1.5%) | |||||||||||
Bombardier, Inc. | |||||||||||
6.300% 05/01/14 (b) | 465,000 | 455,700 | |||||||||
Koppers Holdings, Inc. | |||||||||||
(e) 11/15/14 (9.875% 11/15/09) | 75,000 | 63,375 | |||||||||
Trinity Industries, Inc. | |||||||||||
6.500% 03/15/14 | 255,000 | 244,800 | |||||||||
763,875 |
See Accompanying Notes to Financial Statements.
57
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Miscellaneous Manufacturing (0.5%) | |||||||||||
American Railcar Industries, Inc. | |||||||||||
7.500% 03/01/14 | $ | 275,000 | $ | 247,500 | |||||||
1,011,375 | |||||||||||
Packaging & Containers (3.2%) | |||||||||||
Containers-Metal/Glass (3.2%) | |||||||||||
Ball Corp. | |||||||||||
6.875% 12/15/12 | 335,000 | 337,513 | |||||||||
Crown Americas LLC & Crown Americas Capital Corp. | |||||||||||
7.750% 11/15/15 | 370,000 | 376,475 | |||||||||
Owens-Illinois, Inc. | |||||||||||
7.500% 05/15/10 | 485,000 | 488,637 | |||||||||
Silgan Holdings, Inc. | |||||||||||
6.750% 11/15/13 | 460,000 | 430,100 | |||||||||
1,632,725 | |||||||||||
Transportation (3.1%) | |||||||||||
Transportation-Marine (2.3%) | |||||||||||
Overseas Shipholding Group | |||||||||||
8.250% 03/15/13 | 425,000 | 433,500 | |||||||||
Stena AB | |||||||||||
7.500% 11/01/13 | 460,000 | 450,225 | |||||||||
Teekay Corp. | |||||||||||
8.875% 07/15/11 | 310,000 | 327,050 | |||||||||
1,210,775 | |||||||||||
Transportation-Services (0.8%) | |||||||||||
Bristow Group, Inc. | |||||||||||
7.500% 09/15/17 (b) | 400,000 | 404,000 | |||||||||
1,614,775 | |||||||||||
7,535,425 | |||||||||||
Technology (0.9%) | |||||||||||
Semiconductors (0.9%) | |||||||||||
Electronic Components-Miscellaneous (0.4%) | |||||||||||
NXP BV/NXP Funding LLC | |||||||||||
7.875% 10/15/14 | 235,000 | 215,319 | |||||||||
Electronic Components-Semiconductors (0.5%) | |||||||||||
Freescale Semiconductor, Inc. | |||||||||||
PIK, | |||||||||||
9.125% 12/15/14 | 355,000 | 268,912 | |||||||||
484,231 | |||||||||||
Utilities (9.8%) | |||||||||||
Electric (9.8%) | |||||||||||
Electric-Generation (4.1%) | |||||||||||
AES Corp. | |||||||||||
7.750% 03/01/14 | 515,000 | 525,300 | |||||||||
8.000% 10/15/17 | 265,000 | 270,300 |
See Accompanying Notes to Financial Statements.
58
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Corporate Fixed-Income Bonds & Notes (continued) | |||||||||||
Electric-Generation (continued) | |||||||||||
Edison Mission Energy | |||||||||||
7.000% 05/15/17 | $ | 815,000 | $ | 792,587 | |||||||
Intergen NV | |||||||||||
9.000% 06/30/17 (b) | 485,000 | 505,613 | |||||||||
2,093,800 | |||||||||||
Electric-Integrated (2.0%) | |||||||||||
CMS Energy Corp. | |||||||||||
6.875% 12/15/15 | 140,000 | 141,157 | |||||||||
Texas Utilities Corp. | |||||||||||
8.396% 10/10/14 (c)(d) | 997,500 | 915,433 | |||||||||
1,056,590 | |||||||||||
Independent Power Producer (3.7%) | |||||||||||
Dynegy Holdings, Inc. | |||||||||||
7.125% 05/15/18 | 330,000 | 292,050 | |||||||||
7.750% 06/01/19 | 135,000 | 122,850 | |||||||||
Mirant North America LLC | |||||||||||
7.375% 12/31/13 | 545,000 | 545,000 | |||||||||
NRG Energy, Inc. | |||||||||||
7.250% 02/01/14 | 130,000 | 126,587 | |||||||||
7.375% 02/01/16 | 380,000 | 367,175 | |||||||||
7.375% 01/15/17 | 60,000 | 58,125 | |||||||||
NSG Holdings LLC/NSG Holdings, Inc. | |||||||||||
7.750% 12/15/25 (b) | 415,000 | 402,550 | |||||||||
1,914,337 | |||||||||||
5,064,727 | |||||||||||
Total Corporate Fixed-Income Bonds & Notes (Cost of $50,812,434) | 48,380,880 | ||||||||||
Municipal Bond (0.5%) | |||||||||||
Other (0.5%) | |||||||||||
Tobacco (0.5%) | |||||||||||
VA Tobacco Settlement Financing Corp. | |||||||||||
Series 2007 A1, | |||||||||||
6.706% 06/01/46 | 275,000 | 248,820 | |||||||||
Total Municipal Bond (Cost of $274,972) | 248,820 |
See Accompanying Notes to Financial Statements.
59
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par (a) | Value | ||||||||||
Short-Term Obligation (3.5%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 2.740%, collateralized by a U.S. Government Agency Obligation maturing 01/09/18, market value $1,821,325 (repurchase proceeds $1,782,136) | $ | 1,782,000 | $ | 1,782,000 | |||||||
Total Short-Term Obligation (Cost of $1,782,000) | 1,782,000 | ||||||||||
Total Investments (97.9%) (Cost of $52,869,406) (f) | 50,411,700 | ||||||||||
Other Assets & Liabilities, Net (2.1%) | 1,086,060 | ||||||||||
Net Assets (100.0%) | $ | 51,497,760 |
Notes to Schedule of Investments:
(a) Principal amount is stated in United States dollars unless otherwise noted.
(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2008, these securities, which are not illiquid except for those in the following table, amounted to $6,834,751, which represents 13.3% of net assets.
Security | Acquisition Date | Par/Unit | Cost | Value | |||||||||||||||
Rouse Co. LP/TRC Co-Issuer, Inc. 6.750% 05/01/13 | 05/02/06 | $ | 345,000 | $ | 346,757 | $ | 326,834 | ||||||||||||
Steinway Musical Instruments, Inc. 7.000% 03/01/14 | 03/24/06 | 360,000 | 362,823 | 324,000 | |||||||||||||||
$ | 650,834 |
(c) Loan participation agreement.
(d) The interest rate shown on floating rate or variable rate securities reflects the rate at January 31, 2008.
(e) Step bond. This security is currently not paying coupon. Shown parenthetically is the next coupon rate to be paid.
(f) Cost for federal income tax purposes is $53,084,851.
At January 31, 2008, the asset allocation of the Fund was as follows:
Asset Allocation | % of Net Assets | ||||||
Communications | 17.7 | ||||||
Industrials | 14.6 | ||||||
Energy | 12.4 | ||||||
Consumer Non-Cyclical | 11.5 | ||||||
Consumer Cyclical | 11.1 | ||||||
Utilities | 9.8 | ||||||
Financials | 8.2 | ||||||
Basic Materials | 7.7 | ||||||
Technology | 0.9 | ||||||
Municipal Bond | 0.5 | ||||||
94.4 | |||||||
Short-Term Obligation | 3.5 | ||||||
Other Assets & Liabilities, Net | 2.1 | ||||||
100.0 |
See Accompanying Notes to Financial Statements.
60
CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the Fund had entered into the following forward foreign currency exchange contract:
Forward Currency Contract to Sell | Value | Aggregate Face Value | Settlement Date | Unrealized Depreciation | |||||||||||||||
EUR | $ | 245,146 | $ | 241,147 | 02/25/08 | $ | (3,999 | ) |
Acronym | Name | ||||||
EUR | Euro | ||||||
PIK | Payment-In-Kind |
See Accompanying Notes to Financial Statements.
61
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 2008 (Unaudited)
CMG Core Bond Fund | CMG Short Term Bond Fund | CMG Ultra Short Term Bond Fund | CMG High Yield Fund | ||||||||||||||||
ASSETS: | |||||||||||||||||||
Investments, at identified cost (including repurchase agreements) | $ | 103,769,379 | $ | 175,973,823 | $ | 126,302,091 | $ | 52,869,406 | |||||||||||
Investments, at value (including securities on loan of 5,413,628, $14,901,539, $ $12,228,364 and $-, respectively) | $ | 104,567,007 | $ | 177,906,445 | $ | 124,661,099 | $ | 50,411,700 | |||||||||||
Cash | - | 174 | 884 | 72 | |||||||||||||||
Receivable for: | |||||||||||||||||||
Investments sold | 12,231,149 | - | - | 510,474 | |||||||||||||||
Capital stock sold | - | 250,000 | - | - | |||||||||||||||
Interest | 684,612 | 1,267,663 | 732,311 | 874,409 | |||||||||||||||
Futures variation margin | - | 26,953 | - | - | |||||||||||||||
Securities lending | 9,169 | 5,467 | 3,914 | - | |||||||||||||||
Foreign tax reclaim | - | - | 1,757 | - | |||||||||||||||
Expense reimbursement due from investment advisor | 5,480 | 5,597 | 6,810 | 6,226 | |||||||||||||||
Trustees' deferred compensation plan | 10,940 | 13,277 | 10,820 | 17,542 | |||||||||||||||
Other assets | - | - | 74,142 | - | |||||||||||||||
Total Assets | 117,508,357 | 179,475,576 | 125,491,737 | 51,820,423 | |||||||||||||||
LIABILITIES: | |||||||||||||||||||
Collateral on securities loaned | 14,161,566 | 15,161,975 | 12,462,769 | - | |||||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | - | - | - | 3,999 | |||||||||||||||
Payable to custodian bank | 1,889,548 | - | - | - | |||||||||||||||
Payable for: | |||||||||||||||||||
Investments purchased | 6,459,488 | - | - | 98,941 | |||||||||||||||
Investments purchased on a delayed delivery basis | 6,380,648 | - | - | - | |||||||||||||||
Distributions | 253,749 | 614,083 | 422,742 | 155,239 | |||||||||||||||
Investment advisory fee | 19,566 | 36,431 | 23,247 | 17,708 | |||||||||||||||
Trustees' fees | 107 | 177 | 59 | 90 | |||||||||||||||
Audit fee | 21,655 | 20,853 | 13,926 | 26,212 | |||||||||||||||
Interest expense | - | - | - | 658 | |||||||||||||||
Trustees' deferred compensation plan | 10,940 | 13,277 | 10,820 | 17,542 | |||||||||||||||
Other liabilities | 1,561 | 300 | 12 | 2,274 | |||||||||||||||
Total liabilities | 29,198,828 | 15,847,096 | 12,933,575 | 322,663 | |||||||||||||||
NET ASSETS | $ | 88,309,529 | $ | 163,628,480 | $ | 112,558,162 | $ | 51,497,760 | |||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||
Paid-in capital | $ | 88,986,079 | $ | 166,885,690 | $ | 117,774,611 | $ | 69,662,935 | |||||||||||
Overdistributed net investment income | (84,687 | ) | (317,207 | ) | (148,267 | ) | (354,360 | ) | |||||||||||
Accumulated net realized loss | (1,389,491 | ) | (5,073,494 | ) | (3,427,190 | ) | (15,349,154 | ) | |||||||||||
Net unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments | 797,628 | 1,932,622 | (1,640,992 | ) | (2,457,706 | ) | |||||||||||||
Futures contracts | - | 200,869 | - | - | |||||||||||||||
Foreign currency translations | - | - | - | (3,955 | ) | ||||||||||||||
NET ASSETS | $ | 88,309,529 | $ | 163,628,480 | $ | 112,558,162 | $ | 51,497,760 | |||||||||||
Shares of capital stock outstanding | 8,572,412 | 13,905,880 | 11,924,117 | 6,959,920 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 10.30 | $ | 11.77 | $ | 9.44 | $ | 7.40 |
See Accompanying Notes to Financial Statements.
62
STATEMENTS OF OPERATIONS
For the Six Months Ended January 31, 2008 (Unaudited)
CMG Core Bond Fund | CMG Short Term Bond Fund | CMG Ultra Short Term Bond Fund | CMG High Yield Fund | ||||||||||||||||
NET INVESTMENT INCOME: | |||||||||||||||||||
Income: | |||||||||||||||||||
Interest | $ | 2,261,304 | $ | 4,121,494 | $ | 3,694,951 | $ | 2,226,277 | |||||||||||
Securities lending income | 35,413 | 24,271 | 23,229 | - | |||||||||||||||
Total investment income | 2,296,717 | 4,145,765 | 3,718,180 | 2,226,277 | |||||||||||||||
Expenses: | |||||||||||||||||||
Investment advisory fee | 104,944 | 199,279 | 177,359 | 120,263 | |||||||||||||||
Trustees' fees | 6,224 | 6,830 | 6,834 | 7,677 | |||||||||||||||
Audit fee | 21,522 | 21,882 | 20,832 | 23,900 | |||||||||||||||
Other expenses | 4,753 | 5,748 | 6,204 | 5,671 | |||||||||||||||
Expenses before interest expense | 137,443 | 233,739 | 211,229 | 157,511 | |||||||||||||||
Interest expense | - | - | - | 658 | |||||||||||||||
Total expenses | 137,443 | 233,739 | 211,229 | 158,169 | |||||||||||||||
Expenses waived or reimbursed by investment advisor | (32,499 | ) | (34,460 | ) | (33,870 | ) | (37,247 | ) | |||||||||||
Net expenses | 104,944 | 199,279 | 177,359 | 120,922 | |||||||||||||||
Net investment income | 2,191,773 | 3,946,486 | 3,540,821 | 2,105,355 | |||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FUTURES CONTRACTS: | |||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||
Investments | 696,534 | 210,674 | (1,810,898 | ) | (1,377,778 | ) | |||||||||||||
Foreign currency transactions | - | - | - | (9,999 | ) | ||||||||||||||
Futures contracts | - | 46,222 | - | - | |||||||||||||||
Net realized gain (loss) | 696,534 | 256,896 | (1,810,898 | ) | (1,387,777 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments | 1,686,879 | 2,281,898 | (671,216 | ) | 826,470 | ||||||||||||||
Foreign currency translations | - | - | - | (5,781 | ) | ||||||||||||||
Futures contracts | - | 212,123 | - | - | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,686,879 | 2,494,021 | (671,216 | ) | 820,689 | ||||||||||||||
Net gain (loss) | 2,383,413 | 2,750,917 | (2,482,114 | ) | (567,088 | ) | |||||||||||||
NET INCREASE RESULTING FROM OPERATIONS | $ | 4,575,186 | $ | 6,697,403 | $ | 1,058,707 | $ | 1,538,267 |
See Accompanying Notes to Financial Statements.
63
STATEMENTS OF CHANGES IN NET ASSETS
CMG Core Bond Fund | CMG Short Term Bond Fund | ||||||||||||||||||
(Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | (Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 2,191,773 | $ | 2,834,176 | $ | 3,946,486 | $ | 4,821,539 | |||||||||||
Net realized gain (loss) on investments and futures contracts | 696,534 | (370,838 | ) | 256,896 | (190,355 | ) | |||||||||||||
Net change in unrealized appreciation on investments and futures contracts | 1,686,879 | 199,022 | 2,494,021 | 414,582 | |||||||||||||||
Net increase resulting from operations | 4,575,186 | 2,662,360 | 6,697,403 | 5,045,766 | |||||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From net investment income | (2,296,148 | ) | (2,884,251 | ) | (4,197,857 | ) | (5,163,909 | ) | |||||||||||
Share transactions: | |||||||||||||||||||
Subscriptions | 22,208,310 | 22,467,688 | 51,213,033 | 84,402,331 | |||||||||||||||
Distributions reinvested | 788,495 | 1,175,961 | 820,492 | 2,006,462 | |||||||||||||||
Redemptions | (4,639,631 | ) | (11,929,545 | ) | (29,336,382 | ) | (31,843,019 | ) | |||||||||||
Net increase from share transactions | 18,357,174 | 11,714,104 | 22,697,143 | 54,565,774 | |||||||||||||||
Net increase in net assets | 20,636,212 | 11,492,213 | 25,196,689 | 54,447,631 | |||||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of period | 67,673,317 | 56,181,104 | 138,431,791 | 83,984,160 | |||||||||||||||
End of period | $ | 88,309,529 | $ | 67,673,317 | $ | 163,628,480 | $ | 138,431,791 | |||||||||||
Undistributed (overdistributed) net investment income | $ | (84,687 | ) | $ | 19,688 | $ | (317,207 | ) | $ | (65,836 | ) | ||||||||
Changes in shares: | |||||||||||||||||||
Subscriptions | 2,198,695 | 2,216,484 | 4,398,277 | 7,273,049 | |||||||||||||||
Issued for distributions reinvested | 77,325 | 115,624 | 70,495 | 172,759 | |||||||||||||||
Redemptions | (453,629 | ) | (1,172,762 | ) | (2,513,075 | ) | (2,741,444 | ) | |||||||||||
Net increase | 1,822,391 | 1,159,346 | 1,955,697 | 4,704,364 |
See Accompanying Notes to Financial Statements.
64
STATEMENTS OF CHANGES IN NET ASSETS
CMG Ultra Short Term Bond Fund | CMG High Yield Fund | ||||||||||||||||||
(Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | (Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 3,540,821 | $ | 5,601,789 | $ | 2,105,355 | $ | 5,624,962 | |||||||||||
Net realized loss on investments and foreign currency transactions | (1,810,898 | ) | (105,723 | ) | (1,387,777 | ) | (699,567 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (671,216 | ) | (495,504 | ) | 820,689 | 427,881 | |||||||||||||
Net increase resulting from operations | 1,058,707 | 5,000,562 | 1,538,267 | 5,353,276 | |||||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From net investment income | (3,586,130 | ) | (5,585,102 | ) | (2,125,385 | ) | (5,912,719 | ) | |||||||||||
Share transactions: | |||||||||||||||||||
Subscriptions | 18,275,163 | 83,925,690 | 9,551,461 | 25,687,068 | |||||||||||||||
Distributions reinvested | 717,639 | 1,714,428 | 1,162,072 | 3,327,328 | |||||||||||||||
Redemptions | (56,699,875 | ) | (22,126,272 | ) | (20,801,830 | ) | (62,401,951 | ) | |||||||||||
Net increase (decrease) from share transactions | (37,707,073 | ) | 63,513,846 | (10,088,297 | ) | (33,387,555 | ) | ||||||||||||
Net increase (decrease) in net assets | (40,234,496 | ) | 62,929,306 | (10,675,415 | ) | (33,946,998 | ) | ||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of period | 152,792,658 | 89,863,352 | 62,173,175 | 96,120,173 | |||||||||||||||
End of period | $ | 112,558,162 | $ | 152,792,658 | $ | 51,497,760 | $ | 62,173,175 | |||||||||||
Overdistributed net investment income | $ | (148,267 | ) | $ | (102,958 | ) | $ | (354,360 | ) | $ | (334,330 | ) | |||||||
Changes in shares: | |||||||||||||||||||
Subscriptions | 1,927,869 | 8,701,439 | 1,237,104 | 3,272,380 | |||||||||||||||
Issued for distributions reinvested | 75,993 | 177,745 | 153,227 | 425,081 | |||||||||||||||
Redemptions | (6,005,744 | ) | (2,294,253 | ) | (2,746,141 | ) | (7,930,977 | ) | |||||||||||
Net increase (decrease) | (4,001,882 | ) | 6,584,931 | (1,355,810 | ) | (4,233,516 | ) |
See Accompanying Notes to Financial Statements.
65
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
Note 1. Organization
Columbia Funds Institutional Trust (the "Trust") is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Information presented in these financial statements pertains only to the following diversified funds (individually referred to as a "Fund", collectively referred to as the "Funds"):
CMG Core Bond Fund
CMG Short Term Bond Fund
CMG Ultra Short Term Bond Fund
CMG High Yield Fund
Shares of the Funds are available for purchase by institutional buyers and certain advisory clients of Columbia Management Advisors, LLC ("Columbia"), the Funds' investment advisor, or its affiliates. Each Fund's minimum initial investment requirement for investors purchasing shares directly from Columbia is $3 million. The minimum initial investment requirement is $25,000 for advisory clients of Columbia or one of its affiliates with $1 million invested with Columbia and its affiliates. Please see the Funds' prospectuses for further details.
Investment objectives. CMG Core Bond Fund seeks to provide investors a high level of current income consistent with capital preservation. CMG Short Term Bond Fund seeks to provide investors a high level of current income consistent with a high degree of stability of principal. CMG Ultra Short Term Bond Fund seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital. CMG High Yield Fund seeks a high level of current income. Capital appreciation is a secondary objective when consistent with a high level of current income.
Fund shares. The Trust may issue an unlimited number of shares of beneficial interest which are offered continuously at net asset value.
Note 2. Significant accounting policies
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.
Security valuation. Debt securities generally are valued by pricing services approved by the Trust's Board of Trustees, based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available are valued at an over-the-counter or exchange bid quotation. Certain debt securities, which tend to be more thinly traded and of lesser quality, are priced based on fundamental analysis of the financial condition of the issuer and the estimated value of any collateral. Valuations developed through pricing techniques may vary from the actual amounts realized upon sale of the securities, and the potential variation may be greater for those securities valued using fundamental analysis.
66
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Forward foreign currency exchange contracts are valued at the prevailing forward exchange rate of the underlying currencies.
Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded.
Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Funds' shares are determined as of such times. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Funds' net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees.
Investments for which market quotations are not readily available, or that have quotations which Columbia believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. If a security is valued at fair value, such value is likely to be different from the last quoted market price for the security.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued. SFAS 157 is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is evaluating the impact the application of SFAS 157 will have on the Funds' financial statement disclosures.
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.
Futures contracts. Each Fund may invest in futures contracts to gain or reduce exposure to particular securities or segments of the bond markets. Futures contracts are financial instruments whose values depend on, or are derived from, the value of the underlying security, index or currency. The Funds may use futures contracts for both hedging and non-hedging purposes, such as to adjust the Funds' sensitivity to changes in interest rates, or to offset a potential loss in one position by establishing an opposite position. The Funds typically use futures contracts in an effort to achieve more efficiently, economic exposure similar to that which they could have achieved through the purchase and sale of fixed income securities.
The use of futures contracts involves certain risks, which include: (1) imperfect correlation between the price movement of the instruments and the underlying securities, (2) inability to close out positions due to differing trading hours, or the temporary absence of a liquid market for either the instruments or the underlying securities, and (3) an inaccurate prediction by Columbia of the future direction of interest rates. Any of these risks may involve amounts exceeding the variation margin recorded in the Funds' Statements of Assets and Liabilities at any given time.
67
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Upon entering into a futures contract, a Fund deposits cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by a Fund equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. A Fund recognizes a realized gain or loss when the contract is closed or expires.
Forward foreign currency exchange contracts. Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contract. Certain Funds may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. Certain Funds may also enter into these contracts to hedge certain other foreign currency denominated assets. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are used to hedge the Funds' investments against currency fluctuations. Forward foreign currency exchange contracts are valued daily at the current exchange rate of the underlyin g currency, resulting in unrealized gains (losses) which become realized at the time the forward foreign currency exchange contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Funds' portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Funds are also exposed to risk that counterparties of the contracts may be unable to fulfill the terms of the contracts.
Loan participations and commitments. CMG High Yield Fund may invest in loan participations. When the Fund purchases a loan participation, the Fund typically enters into a contractual relationship with the lender or third party selling such participation ("Selling Participant"), but not the borrower. However, the Fund assumes the credit risk of the borrower, Selling Participant and any other persons interpositioned between the Fund and the borrower. The Fund may not directly benefit from the collateral supporting the senior loan which it has purchased from the Selling Participant.
Repurchase agreements. Each Fund may engage in repurchase agreement transactions with institutions that Columbia has determined are creditworthy. Each Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Columbia is responsible for determining that collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays in or restrictions on each Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights.
Delayed delivery securities. The Funds may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes the Funds to subsequently invest at less advantageous prices. The Funds hold until the settlement date, in a segregated account, cash or liquid securities in an amount equal to the delayed delivery commitment.
Treasury inflation protected securities. The Funds may invest in treasury inflation protected securities ("TIPS"). The principal amount of TIPS is adjusted periodically for inflation based on a monthly published index. Interest payments are based on the inflation-adjusted principal at the time the interest is paid.
Stripped securities. Stripped mortgage-backed securities are derivative multi-class mortgage securities structured so that one class receives most, if not all, of the principal from the underlying mortgage assets, while the other class
68
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
receives most, if not all, of the interest and the remainder of the principal. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Fund may fail to fully recoup its initial investment in an interest-only security. The market value of these securities can be extremely volatile in response to changes in interest rates. Credit risk reflects the risk that a Fund may not receive all or part of its principal because the issuer or credit enhancer has defaulted on its obligation.
Mortgage dollar rolls. The Funds may enter into mortgage "dollar rolls" in which the Funds sell securities for delivery in the current month and simultaneously contract with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date not exceeding 120 days. During the roll period, the Funds lose the right to receive principal and interest paid on the securities sold. However, the Funds would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase (often referred to as the "drop") or fee income plus the interest earned on the cash proceeds of the securities sold until the settlement date of the forward purchase. Unless such benefits exceed the income, capital appreciation and gain or loss due to mortga ge prepayments that would have been realized on the securities sold as part of the mortgage dollar roll, the use of this technique will diminish the investment performance of the Funds compared with what such performance would have been without the use of mortgage dollar rolls. All cash proceeds will be invested in instruments that are permissible investments for the Funds. The Funds will hold and maintain in segregated accounts until the settlement date, cash or liquid securities in an amount equal to the forward purchase price.
The Funds' policy is to record the components of mortgage dollar rolls using "to be announced" mortgage-backed securities. For financial reporting and tax purposes, the Funds treat mortgage dollar rolls as two separate transactions, one involving the purchase of a security and a separate transaction involving a sale. The Funds do not currently enter into mortgage dollar rolls that are accounted for as financing.
Mortgage dollar rolls involve certain risks. If the broker-dealer to whom the Funds sell the securities becomes insolvent, the Funds' right to purchase or repurchase the mortgage-related securities may be restricted and the instruments which the Funds are required to repurchase may be worth less than instruments which the Funds originally held. Successful use of mortgage dollar rolls may depend upon the investment advisor's ability to predict correctly interest rates and mortgage prepayments. For these reasons, there is no assurance that mortgage dollar rolls can be successfully employed.
Foreign currency transactions. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes, the Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statements of Operations.
Income recognition. Interest income is recorded on an accrual basis and includes accretion of discounts, amortization of premiums and paydown gains and losses, net of any non-reclaimable tax withholding on foreign securities.
Expenses. General expenses of the Trust are allocated to the Funds and the other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Fund are charged to that Fund.
69
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Federal income tax status. Each Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders. Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually.
Indemnification. In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund's maximum exposure under these arrangements is unknown because this would involve future claims against the Fund. Also, under the Trust's organizational documents and by contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these representations, warranties and indemnities to be minimal.
Note 3. Federal tax information
The tax character of distributions paid during the year ended July 31, 2007 was as follows:
July 31, 2007 | |||||||||||||||
Ordinary Income* | Long-Term Capital Gains | Tax Return of Capital | |||||||||||||
CMG Core Bond Fund | $ | 2,884,251 | $ | - | $ | - | |||||||||
CMG Short Term Bond Fund | 5,163,909 | - | - | ||||||||||||
CMG Ultra Short Term Bond Fund | 5,585,102 | - | - | ||||||||||||
CMG High Yield Fund | 5,912,719 | - | - |
*For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions.
Unrealized appreciation and depreciation at January 31, 2008, based on cost of investments for federal income tax purposes, excluding any unrealized appreciation and depreciation from changes in the value of other assets and liabilities resulting from changes in exchange rates, were:
Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
CMG Core Bond Fund | $ | 1,518,089 | $ | (746,533 | ) | $ | 771,556 | ||||||||
CMG Short Term Bond Fund | 2,132,288 | (420,297 | ) | 1,711,991 | |||||||||||
CMG Ultra Short Term Bond Fund | 725,814 | (2,461,501 | ) | (1,735,687 | ) | ||||||||||
CMG High Yield Fund | 320,173 | (2,993,324 | ) | (2,673,151 | ) |
70
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
The following capital loss carryforwards, determined as of July 31, 2007, 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:
2008 | 2009 | 2010 | 2012 | 2013 | 2014 | 2015 | Total | ||||||||||||||||||||||||||||
CMG Core Bond Fund | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 304,526 | $ | 1,461,747 | $ | 1,766,273 | |||||||||||||||||||
CMG Short Term Bond Fund | 537,548 | - | 2,365,257 | 19,156 | 25,391 | 989,127 | 899,128 | 4,835,607 | |||||||||||||||||||||||||||
CMG Ultra Short Term Bond Fund | - | - | - | 29,640 | 47,961 | 627,248 | 685,751 | 1,390,600 | |||||||||||||||||||||||||||
CMG High Yield Fund | - | 6,776,032 | 2,987,019 | - | - | - | 3,691,106 | 13,454,157 |
Capital loss carryforwards of $35,477,813 for CMG High Yield Fund were permanently lost due to provisions under the Internal Revenue Code during the year ended July 31, 2007. Permanently lost and expired capital loss carryforwards are recorded as a reduction of paid-in capital.
Utilization of these losses could be subject to limitations imposed by the Internal Revenue Code.
Under current tax rules, certain capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of July 31, 2007, post-October capital losses attributed to security transactions were deferred to August 1, 2007, as follows:
Capital Losses | |||||||
CMG Core Bond Fund | $ | 296,771 | |||||
CMG Short Term Bond Fund | 494,987 | ||||||
CMG Ultra Short Term Bond Fund | 225,691 | ||||||
CMG High Yield Fund | 506,620 |
The Funds adopted Financial Accounting Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes- an Interpretation of FASB Statement No. 109 ("FIN 48") on January 31, 2008. FIN 48 requires management to determine whether a tax position of a Fund is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN 48 must be applied to all existing tax positions upon initial adoption and the cumulative effect, if any, is to be reported as an adju stment to net assets. Management has evaluated the known implications of FIN 48 on its computation of net assets for the Funds. As a result of this evaluation, management believes that FIN 48 does not have any effect on the Funds' financial statements. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions). The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
71
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Note 4. Fees and compensation paid to affiliates
Investment advisory fee. Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides the Funds with investment advisory, administrative and other services. Each Fund's investment advisory fee is a unified fee. Columbia, out of the unified fee it receives from the Funds, pays all accounting fees, legal fees, transfer agent fees, custody fees, expenses of the Chief Compliance Officer, fees for Sarbanes-Oxley compliance, the commitment fee for the line of credit and miscellaneous expenses of the Funds. The unified fee does not include brokerage fees, taxes, fees and expenses of the independent Trustees (including legal counsel fees), audit fees, interest expense associated with any borrowings by the Funds or extraordinary expenses, if any. The unified fees are paid monthly to Columbia based on each Fund's average daily net as sets at the following annual rates:
CMG Core Bond Fund | 0.25 | % | |||||
CMG Short Term Bond Fund | 0.25 | % | |||||
CMG Ultra Short Term Bond Fund | 0.25 | % | |||||
CMG High Yield Fund | 0.40 | % |
Pricing and bookkeeping fees. The Funds have entered into a Financial Reporting Services Agreement (the "Financial Reporting Services Agreement") with State Street Bank and Trust Company ("State Street") and Columbia pursuant to which State Street provides financial reporting services to the Funds. The Funds have also entered into an Accounting Services Agreement (collectively with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Funds.
The Funds have entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Fund expenses and the requirements of the Sarbanes-Oxley Act of 2002, and provides oversight of the accounting and financial reporting services provided by State Street.
The fees for financial reporting services, accounting services, and pricing and bookkeeping services under the State Street Agreements and Services Agreement for each Fund are payable by Columbia.
Transfer agent fee. Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Funds and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. The transfer agent fees for the Funds are payable by Columbia. The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Funds or Columbia.
The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds.
Fee waivers and expense reimbursements. Columbia has contractually agreed to waive fees and/or reimburse the Funds through March 1, 2009, for certain expenses so that the expenses incurred by the Funds, including investment advisory fees, will not exceed the following annual rates (exclusive of brokerage commissions, interest, taxes and
72
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
extraordinary expenses, but inclusive of custodial charges relating to overdrafts), after giving effect to any balance credits from the Funds' custodian based on each Fund's average daily net assets:
CMG Core Bond Fund | 0.25 | % | |||||
CMG Short Term Bond Fund | 0.25 | % | |||||
CMG Ultra Short Term Bond Fund | 0.25 | % | |||||
CMG High Yield Fund | 0.40 | % |
There is no guarantee that these arrangements will continue after March 1, 2009.
Fees paid to officers and trustees. All officers of the Funds are employees of Columbia or its affiliates and, with the exception of the Funds' Chief Compliance Officer, receive no compensation from the Funds. The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The Funds, along with other affiliated funds, are charged their pro-rata share of the expenses associated with the Chief Compliance Officer. The expenses of the Chief Compliance Officer charged to each Fund are payable by Columbia.
The Funds' eligible Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets.
Note 5. Portfolio information
For the six month period ended January 31, 2008, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were as follows:
U.S. Government Securities | Other Investment Securities | ||||||||||||||||||
Purchases | Sales | Purchases | Sales | ||||||||||||||||
CMG Core Bond Fund | $ | 42,811,225 | $ | 31,450,385 | $ | 14,668,030 | $ | 7,409,911 | |||||||||||
CMG Short Term Bond Fund | 25,147,875 | 22,810,852 | 39,977,303 | 18,698,634 | |||||||||||||||
CMG Ultra Short Term Bond Fund | 12,238,819 | 18,045,597 | 35,469,521 | 43,067,834 | |||||||||||||||
CMG High Yield Fund | - | - | 13,343,372 | 22,134,104 |
Note 6. Line of credit
The Funds and other affiliated funds participate in a $350,000,000 committed, unsecured revolving line of credit and a $150,000,000 uncommitted, unsecured line of credit, both provided by State Street. Borrowings are available for short-term liquidity or temporary or emergency purposes.
Interest on the committed line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is charged. Effective September 17, 2007, interest on the uncommitted line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.375%. Prior to September 17, 2007, interest on the uncommitted line of credit was charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. An annual operations agency fee of $40,000 is paid for the committed line of credit, while an annual administration fee of $15,000 may be charged for the uncommitted line of
73
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
credit. State Street waived the administration fee for the annual extension of the facility on September 17, 2007. The commitment fee, the operations agency fee and the administration fee are included in the unified fee.
For the six month period ended January 31, 2008, the average daily loan balance outstanding for CMG High Yield Fund on days where borrowing existed was $1,000,000 at a weighted average interest rate of 4.74%.
Note 7. Shares of beneficial interest
As of January 31, 2008, the Funds had shareholders whose shares were beneficially owned by participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The number of accounts and the percentage of shares of beneficial interest outstanding held therein are as follows:
Number of Shareholders | % of Shares Outstanding Held | ||||||||||
CMG Core Bond Fund | 1 | 87.8 | |||||||||
CMG Short Term Bond Fund | 1 | 93.8 | |||||||||
CMG Ultra Short Term Bond Fund | 1 | 100.0 | |||||||||
CMG High Yield Fund | 1 | 76.5 |
As of January 31, 2008, two of the Funds had shareholders that held greater than 5% of the shares outstanding of a Fund, over which BOA and/or any of its affiliates did not have investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The number of accounts and the percentages of shares of beneficial interest outstanding held therein are as follows:
Number of Shareholders | % of Shares Outstanding Held | ||||||||||
CMG Core Bond Fund | 1 | 10.3 | |||||||||
CMG High Yield Fund | 1 | 13.6 |
Note 8. Securities lending
The Funds may lend their securities to certain approved brokers, dealers and other financial institutions. Each loan is collateralized by cash, in an amount at least equal to the market value of the securities loaned plus accrued income from the investment of collateral. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The collateral received is invested and the income generated by the investment of the collateral, net of any fees remitted to State Street as the lending agent and borrower rebates, is paid to the Funds. Generally, in the event of borrower default, the Funds have the right to use the collateral to offset any losses incurred. In the event the Funds are delayed or prevented from exercising their right to dispose of the collateral, there may be a potential loss to the Funds. The Fund s bear the risk of loss with respect to the investment of collateral.
74
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Note 9. Disclosure of significant risks and contingencies
Foreign securities. There are certain additional risks involved when investing in foreign securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities.
Investments in emerging market countries are subject to additional risk. The risk of foreign investments is typically increased in less developed countries. These countries are also more likely to experience high levels of inflation, deflation or currency devaluation which could hurt their economies and securities markets.
High-yield securities. Investing in high-yield securities may involve greater credit risk and considerations not typically associated with investing in U.S. Government bonds and other higher quality fixed income securities. These securities are non-investment grade securities, often referred to as "junk" bonds. Economic downturns may disrupt the high yield market and impair the ability of issuers to repay principal and interest. Also, an increase in interest rates would likely have an adverse impact on the value of such obligations. Moreover, high-yield securities may be less liquid to the extent that there is no established secondary market.
Sector focus. The Funds may focus their investments in certain sectors, subjecting them to greater risk than a fund that is less focused.
Legal proceedings. CMG Funds are not named as parties to any regulatory proceedings or litigation.
On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC (now named Columbia Management Advisors, LLC)) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.) (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order") on matters relating to mutual fund trading.
Under the terms of the SEC Order, the Columbia Group agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce management fees for certain Columbia Funds (including the former Nations Funds) and other mutual funds collectively by $32 million per year f or five years, for a projected total of $160 million in management fee reductions.
Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above is being distributed in accordance with a distribution plan that was developed by an independent distribution consultant and approved by the SEC on April 6, 2007. Distributions under the distribution plan began in late June 2007.
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005.
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NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
In connection with the events described above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities.
On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Columbia, the Distributor, the Trustees of the Columbia Funds, Bank of America Corporation and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Columbia Funds that asserts claims under federal securities laws and state common law.
On February 25, 2005, Columbia and other defendants filed motions to dismiss the claims in the pending cases. On March 1, 2006, for reasons stated in the court's memoranda dated November 3, 2005, the U.S. District Court for the District of Maryland granted in part and denied in part the defendants' motions to dismiss. The court dismissed all of the class action claims pending against the Columbia Funds Trusts. As to Columbia and the Distributor, the claims under the Securities Act of 1933, the claims under Sections 34(b) and 36(a) of the Investment Company Act of 1940 ("ICA") and the state law claims were dismissed. The claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and claims under Section 36(b) of the ICA were not dismissed.
On March 21, 2005, a purported class action was filed in Massachusetts state court alleging that certain conduct, including market timing, entitled Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit was removed to federal court in Massachusetts and transferred to the MDL.
On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL described above, including the CDSC Lawsuit. The settlement is subject to court approval.
In 2004, the Columbia Funds' adviser and distributor and certain affiliated entities and individuals were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. Certain Columbia Funds were named as nominal defendants. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purposes. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims by plaintiffs and entered final judgment in favor of the defendants. The plaintiffs appealed to the United States Court of Appeals for the First Circuit on December 30, 2005. A stipulation and settlement agreement dated January 19, 2007 was filed in the First Circuit on February 14, 2007, with a joint stipulation of dismissal and motion for remand to obtain district court approval of the settlement. That joint motion was granted and the appeal was dismissed. On March 6, 2007, the case was remanded to the District Court. The settlement, approved by the District Court on September 18, 2007, became effective October 19, 2007. Pursuant to the settlement, the funds' adviser and/or its affiliates made certain payments, including plaintiffs' attorneys' fees and costs of notice to class members.
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BOARD CONSIDERATION AND APPROVAL OF
INVESTMENT ADVISORY AGREEMENTS
The Advisory Fees and Expenses Committee of the Board of Trustees meets several times annually to review the advisory agreements (collectively, the "Agreements") of the funds for which the Trustees serve as trustees (each a "fund") and determine whether to recommend that the full Board approve the continuation of the Agreements for an additional one-year period. After the Committee has made its recommendation, the full Board, including the Independent Trustees, determines whether to approve the continuation of the Agreements. In addition, the Board, including the Independent Trustees, considers matters bearing on the Agreements at most of its other meetings throughout the year and meets regularly with senior management of the funds and Columbia, including the senior manager of each investment area within Columbia. Through the Board's Investment Oversight Committees, Trustees also meet with selected fund portfolio managers at var ious times throughout the year.
The Trustees receive and review all materials that they, their legal counsel or Columbia, the funds' investment adviser, believe to be reasonably necessary for the Trustees to evaluate the Agreements and determine whether to approve the continuation of the Agreements. Those materials generally include, among other items, (i) information on the investment performance of each fund relative to the performance of peer groups of mutual funds and the fund's performance benchmarks, (ii) information on each fund's advisory fees and other expenses, including information comparing the fund's expenses to those of peer groups of mutual funds and information about any applicable expense caps and fee "breakpoints," (iii) information about the profitability of the Agreements to Columbia, including potential "fall-out" or ancillary benefits that Columbia and its affiliates may receive as a result of their relationships with the funds and (iv) i nformation obtained through Columbia's response to a questionnaire prepared at the request of the Trustees by counsel to the funds and independent legal counsel to the Independent Trustees. The Trustees also consider other information such as (v) Columbia's financial results and financial condition, (vi) each fund's investment objective and strategies and the size, education and experience of Columbia's investment staffs and their use of technology, external research and trading cost measurement tools, (vii) the allocation of the funds' brokerage and the use of "soft" commission dollars to pay for research products and services, (viii) Columbia's resources devoted to, and its record of compliance with, the funds' investment policies and restrictions, policies on personal securities transactions and other compliance policies, (ix) Columbia's response to various legal and regulatory proceedings since 2003 and (x) the economic outlook generally and for the mutual fund industry in particular. In addition, the Ad visory Fees and Expenses Committee confers with the funds' independent fee consultant and reviews materials relating to the funds' relationships with Columbia provided by the independent fee consultant. Throughout the process, the Trustees have the opportunity to ask questions of and request additional materials from Columbia and to consult with the independent fee consultant and independent legal counsel to the Independent Trustees and the independent fee consultant.
The Board of Trustees most recently approved the continuation of the Agreements at its October, 2007 meeting, following meetings of the Advisory Fees and Expenses Committee held In July, August, September and October, 2007. In considering whether to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, did not identify any single factor as determinative, and each weighed various factors as he or she deemed appropriate. The Trustees considered the following matters in connection with their approval of the continuation of the Agreements:
The nature, extent and quality of the services provided to the funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by Columbia and its affiliates to the funds and the resources dedicated to the funds by Columbia and its affiliates. Among other things, the Trustees considered (i) Columbia's ability (including its personnel and other resources, compensation programs for personnel involved in fund management, reputation and other attributes) to attract and retain highly qualified research, advisory and supervisory investment professionals; (ii) the portfolio management services provided by those investment professionals; and (iii) the trade execution services provided on behalf of the funds. For each fund, the Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds offering exposure to a variety of asset classes
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and investment disciplines and providing a variety of fund and shareholder services. After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the nature, extent and quality of services provided supported the continuation of the Agreements.
Investment performance of the funds and Columbia. The Trustees reviewed information about the performance of each fund over various time periods, including information prepared by an independent third-party data provider that compared the performance of each fund to the performance of peer groups of mutual funds and performance benchmarks. The Trustees also reviewed a description of the third party's methodology for identifying each fund's peer group for purposes of performance and expense comparisons. The Trustees also considered additional information that the Advisory Fees and Expenses Committee requested from Columbia relating to funds that presented relatively weaker performance and/or relatively higher expenses. In the case of each fund whose performance lagged that of a relevant peer group for certain (although not necessarily all) periods, the Truste es concluded that other factors relevant to performance were sufficient, in light of other considerations, to warrant continuation of the fund's Agreements. Those factors varied from fund to fund, but included one or more of the following: (i) that the fund's performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the fund's investment strategy and policies and that the fund was performing within a reasonable range of expectations, given these investment decisions, market conditions and the fund's investment strategy; (iii) that the fund's performance was competitive when compared to other relevant performance benchmarks or peer groups; (iv) that Columbia had taken or was taking steps designed to help improve the fund's investment performance, including, but not limited to, replacing portfolio managers or modifying investment strategies ; and (v) that Columbia proposed to waive advisory fees or cap the expenses of the fund.
The Trustees noted the performance of each fund through May 31, 2007, relative to that of a peer group selected by an independent third-party data provider for purposes of performance comparisons. Specifically, CMG Core Bond Fund's performance was in the second quintile (where the best performance would be in the first quintile) for the one- and three-year periods, and in the fourth quintile for the five-year period; CMG High Yield Fund's performance was in the fifth quintile for the one-, three- and five-year period, and in the first quintile for the ten-year period (the Trustees noted that the Fund's performance relative to other high yield funds was consistent with its greater emphasis on securities rated Ba or B by Moody's Investors Service, Inc. or BB or B by Standard & Poor's and unrated securities determined by Columbia to be of comparable quality); CMG Short Term Bond Fund's performance was in the first quintile for the one- and three-year periods, and in the second quintile for the five-year period; and CMG Ultra Short Term Bond Fund's performance was in the second quintile for the one- and three-year periods.
The Trustees also considered Columbia's performance and reputation generally, the funds' performance as a fund family generally, and Columbia's historical responsiveness to Trustee concerns about performance and Columbia's willingness to take steps intended to improve performance. After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of each fund and Columbia was sufficient, in light of other considerations, to warrant the continuation of the Agreement(s) pertaining to that fund.
The costs of the services provided and profits realized by Columbia and its affiliates from their relationships with the funds. The Trustees considered the fees charged to the funds for advisory services as well as the total expense levels of the funds. That information included comparisons (provided by management and by an independent third-party data provider) of each fund's advisory fees and total expense levels to those of the fund's peer groups and information about the advisory fees charged by Columbia to comparable institutional accounts. In considering the fees charged to those accounts, the Trustees took into account, among other things, management's representations about the
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differences between managing mutual funds as compared to other types of accounts, including differences in the services provided, differences in the risk profile of such business for Columbia, and the additional resources required to manage mutual funds effectively. In evaluating each fund's advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of the fund. The Trustees considered existing advisory fee breakpoints, and Columbia's use of advisory fee waivers and expense caps, which benefited a number of the funds. The Trustees also noted management's stated justification for the fees charged to the funds, which included information about the investment performance of the funds and the services provided to the funds.
The Trustees considered each fund's total expenses and actual management fees relative to those of a peer group selected by an independent third-party data provider for purposes of expense comparisons. Specifically, CMG Core Bond Fund's total expenses and actual management fees were in the first quintile (where the lowest fees and expenses would be in the first quintile); CMG High Yield Fund's total expenses and actual management fees were in the first quintile; CMG Short Term Bond Fund's total expenses and actual management fees were in the first quintile; and CMG Ultra Short Term Bond Fund's total expenses were in the first quintile and actual management fees were in the second quintile.
The Trustees also considered the compensation directly or indirectly received by Columbia and its affiliates from their relationships with the funds. The Trustees reviewed information provided by management as to the profitability to Columbia and its affiliates of their relationships with each fund, and information about the allocation of expenses used to calculate profitability. When reviewing profitability, the Trustees also considered court cases in which adviser profitability was an issue in whole or in part, the performance of the relevant funds, the expense level of each fund, and whether Columbia had implemented breakpoints and/or expense caps with respect to the fund.
After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fees charged to each fund, and the related profitability to Columbia and its affiliates of their relationships with the fund, supported the continuation of the Agreement(s) pertaining to that fund.
Economies of Scale. The Trustees considered the existence of any economies of scale in the provision by Columbia of services to each fund, to groups of related funds, and to Columbia's investment advisory clients as a whole and whether those economies were shared with the funds through breakpoints in the investment advisory fees or other means, such as expense waivers/reductions and additional investments by Columbia in investment, trading and compliance resources. The Trustees noted that many of the funds benefited from breakpoints, expense caps, or both. In considering those issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to Columbia and its affiliates of their relationships with the funds, as discussed above.
After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the extent to which economies of scale were shared with the funds supported the continuation of the Agreements.
Other Factors. The Trustees also considered other factors, which included but were not limited to the following:
n the extent to which each fund had operated in accordance with its investment objective and investment restrictions, the nature and scope of the compliance programs of the funds and Columbia and the compliance-related resources that Columbia and its affiliates were providing to the funds;
n the nature, quality, cost and extent of administrative and shareholder services overseen and performed by Columbia and its affiliates, both under the Agreements and under separate agreements for the provision of transfer agency and administrative services;
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n so-called "fall-out benefits" to Columbia and its affiliates, such as the engagement of its affiliates to provide distribution, brokerage and transfer agency services to the funds, and the benefits of research made available to Columbia by reason of brokerage commissions generated by the funds' securities transactions, as well as possible conflicts of interest associated with those fall-out and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor those possible conflicts of interest; and
n the draft report provided by the funds' independent fee consultant, which included information about and analysis of the funds' fees, expenses and performance.
Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel and the independent fee consultant, the Trustees, including the Independent Trustees, approved the continuance of each of the Agreements through October 31, 2008.
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SUMMARY OF MANAGEMENT FEE EVALUATION BY
INDEPENDENT FEE CONSULTANT
EXCERPTS FROM REPORT OF INDEPENDENT FEE CONSULTANT TO THE COLUMBIA ATLANTIC FUNDS
Prepared Pursuant to the February 9, 2005 Assurance of Discontinuance among the Office of Attorney General of New York State, Columbia Management Advisors, Inc., and Columbia Funds Distributor, Inc. October 15, 2007
I. Overview
Columbia Management Advisors, LLC ("CMA") and Columbia Funds Distributors, Inc.1 ("CMD") agreed on February 9, 2005 to the New York Attorney General's Assurance of Discontinuance ("AOD"). Among other things, the AOD stipulates that CMA may manage or advise a Columbia Fund ("Columbia Fund" and together with all such funds or a group of such funds as the "Columbia Funds") only if the Independent Members of the Columbia Fund's Board of Trustees appoint a Senior Officer or retain an Independent Fee Consultant ("IFC") who is to manage the process by which proposed management fees are negotiated. The AOD further stipulates that the Senior Officer or IFC is to prepare a written annual evaluation of the fee negotiation process.
With effect from January 1, 2007, the Independent Members of the Board of Trustees for certain Columbia Funds known collectively as the "Atlantic Funds" (together with the other members of that Board, the "Trustees") retained me as IFC for the Atlantic Funds.2 In this capacity, I have prepared the third annual written evaluation of the fee negotiation process. Last year's report (the "2006 Report") was completed by my immediate predecessor IFC, John Rea, who has provided invaluable assistance in the preparation of this year's report.
A. Role of the Independent Fee Consultant
The AOD charges the IFC with "managing the process by which proposed management fees...to be charged the Columbia Fund are negotiated so that they are negotiated in a manner which is at arms' length and reasonable and consistent with this Assurance of Discontinuance." The AOD also provides that CMA "may manage or advise a Columbia Fund only if the reasonableness of the proposed management fees is determined by the Board of Trustees...using...an annual independent written evaluation prepared by or under the direction of...the Independent Fee Consultant." Therefore, the AOD makes clear that the IFC does not supplant the Trustees in negotiating management fees with CMA, nor does the IFC substitute his or her judgment for that of the Trustees with respect to the reasonableness of proposed fees or any other matter that is committed to the business judgment of the Trustees.
B. Elements Involved in Managing the Fee Negotiation Process
In preparing the report required by the AOD, the IFC must consider at least the following six factors set forth in the AOD:
1. The nature and quality of CMA's services, including the Fund's performance;
2. Management fees (including any components thereof) charged by other mutual fund companies for like services;
3. Possible economies of scale as the Fund grows larger;
1 CMA and CMD are subsidiaries of Columbia Management Group, LLC ("CMG"), and are the successors to the entities named in the AOD.
2 I have no material relationship with Bank of America, CMG or any of its affiliates, aside from serving as IFC, and I am aware of no material relationship with any of their affiliates. I retained John Rea, an independent economic consultant, to assist me with this report.
Unless otherwise stated or required by the context, this report covers only the Atlantic Funds, which are also referred as the "Funds."
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4. Management fees (including any components thereof) charged to institutional and other clients of CMA for like services;
5. Costs to CMA and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit; and
6. Profit margins of CMA and its affiliates from supplying such services.
C. Organization of the Annual Evaluation
This report, like last year's, focuses on the six factors and contains a section for each factor except that that CMA's costs and profits from managing the Funds have been combined into a single section. In addition to a discussion of these factors, the report offers recommendations to improve the fee review process in future years and finally reviews the status of recommendations made in the 2006 Report.
II. Summary Of Findings
A. General
1. Based upon my examination of the information supplied by CMG in the light of the six factors set forth in the AOD, I conclude that the Trustees have the relevant information necessary to evaluate the reasonableness of the proposed management fees for each Atlantic Fund.
2. In my view, the process by which the proposed management fees of the Funds have been negotiated in 2007 thus far has been, to the extent practicable, at arms' length and reasonable and consistent with the AOD.
B. Nature and Quality of Services, Including Performance
3. The performance of the Funds has been relatively strong in recent years. Based upon 1-, 3-, 5-, and 10-year returns, at least half of all the Funds have been in the first and second performance quintiles in each of the four performance periods. Performance for the 3-year period is impressive, with 44 of the 63 Funds, or 70%, in the top two quintiles and only 11 Funds, or 17%, in the fourth and fifth quintiles. Both equity and fixed-income funds have strong performance records.
4. The services performed by CMG professionals beyond portfolio management, such as compliance, legal, information technology, risk management, finance and fund administration, are critical to the success of the Funds and appear to be of high quality.
5. Atlantic equity Funds' overall performance adjusted for risk also was strong. Based upon 3-year returns, 19 of the 24 equity Funds had a combination of risk-adjusted and unadjusted returns that placed them in the top half of their performance universes. Fixed-income Funds tended to take on more risk than comparable funds but many also have achieved relatively strong performance over the 3-year period. Nonetheless, 8 of the Funds have high relative risk and low relative returns.
6. The industry-standard procedure used by third parties such as Lipper to construct the performance universe in which each Fund's performance is ranked relative to comparable funds tends to bias a Fund's ranking upward within that universe. The bias occurs because either no-12b-1 fee or low-12b-1 fee share classes of the Atlantic Funds are compared with funds in performance universes that include all share classes of multi-class funds with 12b-1 fees of up to 100 basis points. Correcting this bias by limiting the performance universe to classes of comparable funds with low or no 12b-1 fees lowers the relative performance for the Funds examined but does not call into question the general finding that the Atlantic Funds' performance has been strong relative to comparable funds.
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C. Management Fees Charged by Other Mutual Fund Companies
7. The Funds' management fees and total expenses are generally low relative to those of their peers. Only 19% of the Funds ranked in the two most expensive quintiles for actual management fees, and only 21% in those quintiles for total expenses.
8. The Columbia Money Market Fund VS has a higher management fee structure than that of other Columbia money market funds of comparable asset size, but its total expenses are comparable to those funds.
D. Trustees' Fee and Performance Evaluation Process
9. The Trustees' evaluation process identified 11 Funds in 2007 for further review based upon their relative performance or expenses or both. CMG provided further information about those funds to assist the Trustees in their evaluation. The Trustees may choose to seek additional information about Atlantic Funds that do not meet the criteria for further review. CMG provided further information about those funds to assist the Trustees in their evaluation. The Trustees may choose to seek additional information about Atlantic Funds that do not meet the criteria for further review.
E. Potential Economies of Scale
10. CMG has prepared a memo for the Trustees containing its views on the sources and sharing of potential economies of scale. CMG views economies of scale as arising at the complex level and would regard estimates of scale economies for individual funds as unreliable. CMG has not, however, identified specific sources of economies of scale nor has it provided any estimates of the magnitude of any economies of scale. In the memo, CMG also describes measures taken by the Trustees and CMG that seek to share any potential economies of scale through breakpoints in management fee schedules, expense reimbursements, fee waivers, enhanced shareholder services, fund mergers, and operational consolidation.
F. Management Fees Charged to Institutional Clients
11. CMG has provided Trustees with comparisons of mutual fund management fees and institutional fees based upon standardized fee schedules and upon actual fees. The results show that, consistent with industry practice, institutional fees are generally lower than the Funds' management fees. However, because the services provided and risks borne by the manager are more extensive for mutual funds compared to institutional accounts, the differences are of limited value in assisting the Trustees in their review of the reasonableness of the Funds' management fees.
G. Revenues, Expenses, and Profits
12. The activity-based cost allocation methodology ("ABC") employed by CMG to allocate costs, both direct and indirect, for purposes of calculating Fund profitability is thoughtful and detailed. For comparison, CMG also has allocated costs by assets, demonstrating that the choice of allocation method can have a substantial effect on fund profitability. Notwithstanding the limitations of any effort to allocate costs to a particular fund, we believe that the ABC method represented a better approximation of CMG's costs incurred in providing services to the Funds than did asset-based allocation.
13. The materials provided on CMG's revenues and expenses with respect to the Funds and the methodology underlying their construction generally form a sufficient basis for Trustees to evaluate the expenses and profitability of the Funds.
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14. In 2006, CMG's complex-wide pre-tax margins on the Atlantic Funds were below industry medians, based on limited data available for publicly held mutual fund managers. However, as is to be expected in a complex comprising 70 funds in the past year, some Atlantic Funds have higher pre-tax profit margins, when calculated solely with respect to management revenues and expenses, while other Atlantic Funds operate at a loss. There appeared to be some relationship between fund size and profitability, with smaller funds generally operating at a loss.
15. CMG shares a fixed percentage of its management fee revenues with an affiliate, the Private Bank of Bank of America ("PB" or "Private Bank"), to compensate the PB for services it performs with respect to Atlantic Fund assets held for the benefit of PB customers. In 2006, these payments totaled $23.2 million. Based on our analysis of the services provided by the PB, we have concluded that all payments other than those for sub-transfer agent or sub-accounting services should be treated as a distribution expense.
III. Recommendations
1) Risk-adjusted performance. CMG should provide the Trustees with quantitative information about the risk of each equity and fixed-income Fund in a format that allows the risk and return of each Fund to be evaluated simultaneously. As part of that effort, CMG should develop reliable risk metrics for balanced and money market funds and should explain why the fixed-income portfolio team prefers using gross, rather than net, return for these purposes. The format we developed with CMG represents one possible presentation of such information.
2) Profitability data. CMG should present to the Trustees each year the profitability of each Fund, each investment style and each complex (of which Atlantic is one) calculated as follows:
a. Management-only profitability should be calculated without reference to any Private Bank expense.
b. Profitability excluding distribution (which essentially covers the management and transfer agency functions) should be adjusted by removing from the expense calculation any portion of the Private Bank payment not attributable to the performance by the Private Bank of sub-transfer agency or sub-accounting functions.
c. Total profitability, including distribution: No adjustment for Private Bank expenses should be made, because all such expenses represent legitimate fund expenses to be taken into account in calculating CMG's profit margin including distribution.
3) Potential economies of scale. CMG should provide the Trustees with an analysis of potential economies of scale that considers the sources and magnitude of any economies of scale as CMG's mutual fund assets under management increase. CMG may consider using the framework suggested for the analysis or any other suitable framework, including an analysis that focuses on complex-wide economies of scale, that addresses the relevant concerns.
4) Criteria for review. The Trustees may wish to consider modifying the criteria for classifying a fund as a "Review Fund" to include risk and profitability metrics and should feel free to request additional information and explanation from CMG with respect to any Atlantic Fund whether or not it qualifies as a "Review Fund."
5) Competitive breakpoint analysis. As part of the annual fee evaluation process, the breakpoints of a select group of Atlantic Funds (which would differ each year) should be compared to those of industry rivals to ensure that the Funds' breakpoint schedules remain within industry norms. As breakpoint schedules change relatively little each year, performing such a comparison for each Atlantic Fund each year would not be an efficient use of Trustee and CMG resources.
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6) Ensuring consistent methodology used by Lipper, Morningstar, and iMoneyNet to construct performance and expense universes and groups. CMG should work with Lipper, Morningstar, and iMoneyNet to make sure that the all three data vendors apply similar techniques and standards in constructing performance universes and collecting data, if possible. If not, CMG should clearly explain to the Trustees the differences in methodology and the effect such differences may have on rankings. In addition, CMG should ensure that it applies the same ranking methodology to all funds, including those for which Morningstar and iMoneyNet provide the underlying data.
7) Uniformity of universes across reporting periods. CMA, based on consultations with its CIO's, has substituted vendors for purposes of universe construction, e.g. Morningstar for Lipper for certain equity funds and iMoneynet for Lipper for money market funds. However, the new universes are not used for all performance periods and have not been used to recalculate last year's performance and expense figures. Therefore, it is difficult to draw useful conclusions from changes in rankings from last year to this year or from short-term to longer-term performance periods. CMA, when it changes data providers, should use both the current and former data sources in the changeover so that the Trustees can understand how the change in vendors may affect performance and expense r ankings.
8) Filtering all universes. The Lipper volumes presented to the Trustees, consistent with industry practice, compare the performance of a Fund to all other funds in its performance universe. Lipper regards for this purpose each class of shares of a fund as a separate fund. This means that the performance of a Columbia Fund A share (with a 25 basis point 12b-1 fee) or Z share (with no 12b-1 fee) is compared to many classes of competitive funds with higher distribution fees, such as deferred-sales-charge B shares and level-load C shares. Including share classes with higher fees than the Columbia Fund share class may make the Columbia Fund's performance look better compared to its peers. The difference can be meaningful. Therefore, we recommend that, in addition to the sta ndard Lipper universe presentation, Funds in the third and fourth quintiles should be ranked in a universe limited to the share class per competitive fund whose distribution pricing most closely matches the relevant Fund. Further, in all rankings, we suggest that use of an Atlantic Fund Z share be limited to performance periods prior to the issuance of that fund's A shares.
9) Management fee disparities. Several disparities have existed between the management fees of comparable Atlantic and Nations Funds. To eliminate the disparity between the expenses of the Atlantic state intermediate municipal bond funds and those of comparable funds overseen by the Nations Board, CMG has proposed expense caps for the Atlantic funds. Furthermore, CMG's proposed expense cap for the Core Bond Fund would produce a significant gap between its management fee and those of two comparable Atlantic Funds. To enable the Trustees to identify such disparities in the future, CMG should provide the Trustees with a table that shows management fees of Atlantic Funds and those of comparable Nations and Acorn Funds. CMG should also provide an explanation for any signific ant fee differences among comparable funds across fund families managed by CMA. Finally, whenever CMG proposes a management fee change or an expense cap for any mutual fund managed by CMA that is comparable to any Atlantic Fund, CMG should provide the Trustees with sufficient information about the proposal to allow the Trustees to assess the applicability of the proposed change to the relevant Atlantic Fund or Funds.
10) Reduction of volume of documents submitted. As the Trustees have noted, the tendency in the fee evaluation process is for the volume of material prepared for their consideration to increase each year as the participants in the process suggest additional data or presentations of data. However, some of the data may no longer be useful, or its usefulness may be outweighed by the burden of reviewing it. For example, we do not believe that offering two variations of cost allocation by assets is useful. We also question whether profitability data need to be divided by distribution channel, e.g. retail vs. variable annuity. We also note that some material, especially related to complex-wide profitability, appears multiple times in the 15(c) materials.
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IV. Status of 2006 Recommendations
The 2006 IFC evaluation contains recommendations aimed at enhancing the evaluation of proposed management fees by Trustees. The section summarizes those recommendations and their results.
1. Recommendation: Trustees may wish to consider incorporating risk-adjusted measures in their evaluation of performance. CMG has begun to prepare reports for the Trustees with risk adjustments, which could form the basis for formally including the measures in the 15(c) materials. To this end, Trustees may wish to have CMG prepare documents explaining risk adjustments and describing their advantages and disadvantages.
Status: Grids providing both performance and risk rankings for equity and fixed-income funds were prepared by CMG as part of the 2007 15(c) process.
2. Recommendation: Trustees may wish to consider having CMG evaluate the sensitivity of performance rankings to the design of the universe. The preliminary analysis contained in the evaluation suggests that the method employed by Lipper, the source of performance rankings used by the Trustees, may bias performance rankings upward.
Status: At our request, CMG prepared universes limited to one class of shares per competitive fund for selected funds.
3. Recommendation: Trustees may wish to consider having CMG extend its analysis of economies of scale by examining the sources of such economies, if any. Identification of the sources may enable the Trustees and CMG to gauge their magnitude. It also may enable the Trustees and CMG to build upon past work on standardized fee schedules so that the schedules themselves are consistent with any economies of scale and their sources. Finally, an extension of the analysis may enable the Trustees and CMG to develop a framework that coordinates the use of fee waivers and expense caps with the standard fee schedules and with any economies of scale and their sources.
Status: CMG questions the usefulness of such an exercise due to the many variables that can have an effect on costs and revenues as assets increase. We continue to believe that such an exercise would be helpful to the Trustees. .
4. Recommendation: Trustees may wish to consider encouraging CMG to build further upon its expanded analysis of institutional fees by refining the matching of institutional accounts with mutual funds, by dating the establishment of each institutional account, and by incorporating other accounts, such as subadvisory relationships, trusts, offshore funds, and separately managed accounts into the analysis.
Status: CMG dated many of the institutional accounts but was not able to determine the date of establishment for all accounts. CMG also provided data on other types of institutional accounts.
5. Recommendation: Trustees may wish to consider requesting that CMG expand the reporting of revenues and expenses to include more line-item detail for management and administration, transfer agency, fund accounting, and distribution.
Status: We continue to believe that such a statement would help the Trustees understand CMG's business better and place the fund-by-fund profitability reports in context.
6. Recommendation: Trustees may wish to consider requesting that CMG provide a statement of its operations in the 15(c) materials.
Status: CMG provided various summary statements of operations.
86
7. Recommendation: Trustees may wish to consider the treatment of the revenue sharing with PB in their review of CMG's profitability.
Status: CMG provided a substantial amount of information reflecting adjustment for Private Bank expenses. We believe that all Private Bank expenses should be backed out of management-only profitability analyses, no Private Bank expenses should be excluded from profitability analyses including distribution and only those PB revenue sharing payments in excess of 11 basis points should be excluded from profitability analyses that do not take distribution into account.
Respectfully submitted,
Steven E. Asher
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COLUMBIA FUNDS INSTITUTIONAL TRUST
ONE FINANCIAL CENTER, BOSTON, MASSACHUSETTS, 02111-2621
- INVESTMENT ADVISOR -
COLUMBIA MANAGEMENT ADVISORS, LLC
100 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110-2624
- LEGAL COUNSEL -
ROPES & GRAY LLP
ONE INTERNATIONAL PLACE
BOSTON, MASSACHUSETTS 02110-2624
- TRANSFER AGENT -
COLUMBIA MANAGEMENT SERVICES, INC.
P.O. BOX 8081
BOSTON, MASSACHUSETTS 02266-8081
SHC-44/148641-0108 (03/08) 08/53232
A description of the policies and procedures that the funds use to determine how to vote proxies and a copy of the funds' voting records are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the funds voted proxies relating to portfolio securities is also available from the funds' website, www.columbiamanagement.com.
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Investors should carefully consider the investment objectives, risks, charges and expenses for any Columbia fund before investing. Contact your Columbia Management representative for a prospectus, which contains this and other important information about the fund. Read it carefully before investing.
©2008 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621
CMG ENHANCED S&P 500® INDEX FUND
CMG LARGE CAP GROWTH FUND
CMG LARGE CAP VALUE FUND
CMG MID CAP GROWTH FUND
CMG MID CAP VALUE FUND
CMG SMALL CAP GROWTH FUND
CMG SMALL CAP VALUE FUND
CMG SMALL/MID CAP FUND
CMG INTERNATIONAL STOCK FUND
PORTFOLIOS OF COLUMBIA FUNDS INSTITUTIONAL TRUST
Semiannual Report
January 31, 2008
NOT FDIC INSURED
May Lose Value
NOT BANK ISSUED
No Bank Guarantee
Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. CMG Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.
Columbia Management Advisors, LLC ("CMA") is an SEC-registered investment advisor and an indirect, wholly-owned subsidiary of Bank of America Corporation and is part of Columbia Management.
Table of Contents
Fund Profile | |||||||
CMG Enhanced S&P 500® Index Fund | 1 | ||||||
CMG Large Cap Growth Fund | 5 | ||||||
CMG Large Cap Value Fund | 9 | ||||||
CMG Mid Cap Growth Fund | 13 | ||||||
CMG Mid Cap Value Fund | 17 | ||||||
CMG Small Cap Growth Fund | 21 | ||||||
CMG Small Cap Value Fund | 25 | ||||||
CMG Small/Mid Cap Fund | 29 | ||||||
CMG International Stock Fund | 33 | ||||||
Financial Statements | |||||||
Financial Highlights | 37 | ||||||
Schedules of Investments | 46 | ||||||
Statements of Assets and Liabilities | 116 | ||||||
Statements of Operations | 118 | ||||||
Statements of Changes in Net Assets | 120 | ||||||
Notes to Financial Statements | 125 | ||||||
Board Consideration and Approval of Advisory Agreements | 136 | ||||||
Summary of Management Fee Evaluation by Independent Fee Consultant | 140 | ||||||
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 CMG Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular CMG Fund. References to specific securities should not be construed as a recommendation or investment advice.
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period ended January 31, 2008, CMG Enhanced S&P 500® Index Fund returned negative 4.42%. The fund's return was slightly lower than the return of its benchmark, the S&P 500® Index,1 which was negative 4.32% for the same period. The fund held up better than the average return of its peer group, the Lipper Large-Cap Core Funds classification,2 which returned negative 4.70%.
• Technology, utilities, industrials and health care made the strongest positive contributions to performance in a period that was challenging for the stock market overall. Within technology, a decision to own more than the index of Microsoft, Oracle and MEMC Electronic Materials (3.1%, 1.2% and 0.7% of net assets, respectively), which outperformed during the period, boosted the portfolio's results. Microsoft benefited from double-digit growth in sales revenue and beat consensus estimates for net income and earnings per share. Oracle posted strong double-digit revenue and net income growth for the period, enhanced by solid sales in new software and application licenses. MEMC Electronic Materials has benefited significantly from increased capacity production (hence higher revenues) as well as from increased contract wins. The fund was also overweight in FirstEnergy (1.0% of net assets), which powered its performan ce in the utility sector. Overweight positions in Lockheed Martin (0.8% of net assets) and Raytheon (0.7% of net assets) helped lift the fund's industrials results, as they posted strong relative gains. Finally, in health care, stock selection aided performance. The fund had more exposure than the index to Humana (0.4% of net assets), a health plan provider, which outperformed during the period, and it had no exposure to a major drug and personal products manufacturer that was one of the sector's worst performers.
• The materials, financials and energy sectors were the weakest for the fund for the six-month period. The fund did not have as much exposure as the index to Monsanto (0.1% of net assets), which rose as global agriculture boomed from emerging market development and demand for higher protein-based diets. A decision to overweight Merrill Lynch & Co. (0.9% of net assets) and Countrywide Financial also detracted from return, as news from the subprime sector continued to weigh on both companies. Countrywide Financial was sold from the fund. In the energy sector, stock selection worked against the fund. Marathon Oil (1.0% of net assets), which aided performance for many months, declined as the company
1 The Standard & Poor's (S&P) 500® Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.
1
missed consensus earnings estimates. We failed to capture the full gain from Hess, which increased substantially during the period. We sold the fund's modest stake in the company before the end of the period.
• As capital exited the financial sector — the largest in the index — it found its way to a narrow selection of sectors and stocks that held up during a period of extreme volatility. However, we do not believe that the market can sustain this narrow structure, which should help the fund, and the broadly diversified core strategy it employs, going forward.
We appreciate your continued confidence in CMG Enhanced S&P 500® Index Fund.
Portfolio Management
Vikram J. Kuriyan has managed the CMG Enhanced S&P 500® Index Fund since August 2004 and has been with the advisor or its predecessors or affiliate organizations since 2000.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Exxon Mobil | 4.6 | ||||||
Microsoft | 3.1 | ||||||
Chevron | 1.9 | ||||||
Johnson & Johnson | 1.8 | ||||||
JPMorgan Chase | 1.8 | ||||||
Procter & Gamble | 1.8 | ||||||
General Electric | 1.7 | ||||||
Cisco Systems | 1.7 | ||||||
AT&T | 1.7 | ||||||
International Business Machines | 1.6 |
Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Investing in the fund also includes market risk and tracking error risk. Unlike the S&P 500® Index, the fund incurs administrative expenses and transaction costs in trading stocks. The composition of the S&P 500® Index and the stocks held by the fund will diverge.
2
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Enhanced S&P 500® Index Fund | 05/05/03 | -4.42 | -3.96 | 11.17 | |||||||||||||||
S&P 500® Index | -4.32 | -2.31 | 10.74 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Enhanced S&P 500® Index Fund | 05/05/03 | -2.68 | 3.26 | 12.77 | |||||||||||||||
S&P 500® Index | -1.37 | 5.49 | 12.43 |
Index performance is from May 5, 2003.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.30%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, May 5, 2003 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period.
The S&P 500® Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
3
UNDERSTANDING YOUR EXPENSES – CMG Enhanced S&P 500® Index Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 955.81 | 1,023.88 | 1.23 | 1.27 | 0.25 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
4
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG Large Cap Growth Fund returned negative 1.76%. The fund held up better than its benchmark, the Russell 1000 Growth Index,1 and the average return of its peer group, the Morningstar Large Growth Category,2 which was negative 3.15% and negative 2.98%, respectively, over the same period. The fund's focus on higher quality large companies with above-average earnings growth and attractive stock valuations helped contain losses in a challenging market environment.
• The fund's stock selection was strongest in the consumer discretionary, energy and industrials sectors. Within consumer discretionary, education stocks bolstered returns, led by Apollo Group (0.9% of net assets), a for-profit education company benefiting from increased enrollment and profitability. Specialty retailers further aided performance, with strong gains from GameStop (1.1% of net assets), a videogame retailer capitalizing on the new video console cycle. High oil prices helped boost energy stocks, including Hess (0.7% of net assets), an exploration and production company that climbed sharply after obtaining funding for a new project off the coast of Brazil. In the industrial sector, strong global demand for alternative energy sources drove sizable gains in solar stocks First Solar and Suntech Power Holdings (0.6% and 0.5% of net assets, respectively).
• Technology and telecommunications services detracted from returns. Within technology, software companies, such as SAP in Germany, suffered as investors anticipated cuts in corporate technology spending. Electronic Arts (1.0% of net assets), a video game software developer with a weak product pipeline, also hurt returns. In telecom services, NII Holdings, a Latin American wireless company, declined sharply as competition increased. We sold both SAP and NII Holdings.
• If the economy slows, we believe that companies that continue to produce consistent earnings growth should be valued by investors. We hope to add to the fund's performance
1 The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Morningstar Categories compare the performance of funds with similar investment objectives and strategies.
5
potential by taking advantage of buying opportunities among higher quality growth stocks that have been driven down in the recent market decline.
Thank you for investing in CMG Large Cap Growth Fund.
Portfolio Management
John T. Wilson, lead manager for CMG Large Cap Growth Fund, has managed or co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2005.
Edward P. Hickey has co-managed the fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 1998.
Roger R. Sullivan has co-managed the fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 2005.
Paul J. Berlinguet has co-managed the fund since October 2003 and has been with the advisor or its predecessors since 2003.
Mary-Ann Ward has co-managed the fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 1997.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Microsoft | 3.7 | ||||||
2.7 | |||||||
Cisco Systems | 2.5 | ||||||
Wal-Mart Stores | 2.2 | ||||||
Apple | 2.1 | ||||||
Hewlett-Packard | 2.0 | ||||||
Coca-Cola | 2.0 | ||||||
International Business Machines | 1.7 | ||||||
Monsanto | 1.7 | ||||||
United Technologies | 1.7 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.
6
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Large Cap Growth Fund | 09/10/03 | -1.76 | 1.91 | 8.04 | |||||||||||||||
Russell 1000 Growth Index | -3.15 | 0.51 | 7.01 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Large Cap Growth Fund | 09/10/03 | 6.48 | 15.35 | 10.72 | |||||||||||||||
Russell 1000 Growth Index | 3.41 | 11.81 | 9.19 |
Index performance is from September 10, 2003.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.50% and 0.66%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, September 10, 2003 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period.
The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
7
UNDERSTANDING YOUR EXPENSES – CMG Large Cap Growth Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 982.40 | 1,022.62 | 2.49 | 2.54 | 0.50 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.50%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
8
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period ended January 31, 2008, CMG Large Cap Value Fund returned negative 5.28%. The fund's benchmark, the Russell 1000 Value Index,1 returned negative 5.42%. The average return of its peer group, the Morningstar Large Value Category,2 was negative 6.07%. Stock selection in the energy and industrials sectors, combined with below-index weights in telecommunications, consumer discretionary and financials, helped the fund hold up better than its benchmark and peer group in a challenging environment for stocks. Stock selection in information technology and health care detracted from returns.
• Stock selection in the energy and industrials sectors aided the fund's return. Oil and gas companies Hess, Occidental Petroleum, XTO Energy and Newfield Exploration (1.8%, 2.5%, 1.0% and 0.9% of net assets, respectively) all made solid, positive contributions to performance. In the industrials sector, aerospace company L-3 Communications Holdings (1.1% of net assets) fared well after an announcement that it had won a large U.S. Air Force contract. We took profits later in the period and trimmed the position. United Technologies and ABB (2.2% and 0.6% of net assets, respectively) were also strong names in the sector. In the telecommunications sector, the fund did well to avoid one of the period's largest losers in the wireless industry. In consumer discretionary, an underweight in the sector relative to the benchmark was beneficial as the sector had many negative performers. However, positions in retail companie s J.C. Penney (0.8% of net assets), Macy's (1.0% of net assets) and Home Depot all detracted from the fund's return. We sold Home Depot on concerns over further declines in the housing market.
• The portfolio's underweight in the financials sector was positive as volatility continued on worries over the mortgage and subprime environment. However, the fund's position in bond insurer Ambac Financial Group resulted in a significant loss for the fund as concerns about defaults weighed on the company during the period. Fannie Mae (0.5% of net assets) and Barclays PLC also hampered returns. We sold Ambac on concerns over the company's exposure to subprime and other housing-related derivatives. (Derivatives are contracts whose values are based on the performance of an underlying financial asset, index or other investment.) We also sold Barclays, as we became concerned over the European bank's
1 The Russell 1000 Value Index measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Morningstar Categories compare the performance of funds with similar investment objectives and strategies.
9
balance sheet exposure to structured investment vehicles (SIVs) and other derivatives related to subprime lending.
• Stock selection within the technology and health care sectors also detracted from results. Intel, Intersil and EMC (0.8%, 0.6% and 0.8%, respectively), along with Schering-Plough and Merck & Co. (0.8% and 1.5%, respectively), were key disappointments.
• Because we focus on stock selection, the fund is positioned to reflect the best opportunities we have found on a company-by-company basis. We believe that this time-tested process will serve fund shareholders well over the near and long term.
Thank you for investing in CMG Large Cap Value Fund.
Portfolio Management
Lori J. Ensinger is the lead manager for CMG Large Cap Value Fund and has managed the fund since August 2005. She has been with the advisor or its predecessors or affiliate organizations since 2001.
Diane L. Sobin has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2001.
David I. Hoffman has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2001.
Noah J. Petrucci has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2002.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Exxon Mobil | 4.9 | ||||||
JPMorgan Chase | 4.5 | ||||||
AT&T | 4.0 | ||||||
General Electric | 3.5 | ||||||
Loews | 2.9 | ||||||
Wells Fargo | 2.8 | ||||||
Occidental Petroleum | 2.5 | ||||||
U.S. Bancorp | 2.4 | ||||||
Johnson & Johnson | 2.4 | ||||||
United Technologies | 2.2 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the advisor's opinion, undervalued. If the advisor's assessment of a company's prospects is wrong, the price of the company's stock may not approach the value the advisor has placed on it.
10
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Large Cap Value Fund | 09/10/03 | -5.28 | -3.95 | 9.95 | |||||||||||||||
Russell 1000 Value Index | -5.42 | -5.38 | 11.79 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Large Cap Value Fund | 09/10/03 | -3.68 | 3.07 | 11.66 | |||||||||||||||
Russell 1000 Value Index | -6.03 | -0.17 | 13.10 |
Index performance is from September 10, 2003.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.50% and 0.68%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, September 10, 2003 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period.
The Russell 1000 Value Index measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
11
UNDERSTANDING YOUR EXPENSES – CMG Large Cap Value Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 947.21 | 1,022.62 | 2.45 | 2.54 | 0.50 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.50%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
12
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG Mid Cap Growth Fund returned negative 2.45%. The fund outperformed both its benchmark, the Russell Midcap Growth Index,1 which returned negative 5.45%, and the negative 4.95% average return of its peer group, the Morningstar Mid Cap Growth Category,2 for the same period. Mounting concerns about an economic recession, financial market illiquidity, declining home prices and weakened consumer spending caused the markets to sell off broadly in January. We believe that stock selection in the energy, information technology and materials sectors helped the fund weather a challenging environment better than its benchmark and peer group.
• Energy names were among the top positive contributors during the period. Domestic oil exploration and production companies, Continental Resources and Denbury Resources (1.1% and 1.0% of net assets, respectively), benefited from good production growth, low exploration and development costs and high exposure to oil, which continued to climb in price. In the information technology sector, Blackberry-maker Research In Motion (0.3% of net assets) experienced broad demand for its new Pearl device, while graphics processor maker NVIDIA (0.7% of net assets) picked up desktop market share when its main competitor faltered. In the materials sector, agricultural companies led the way. Potash Corp. of Saskatchewan, a global fertilizer manufacturer, and Monsanto, which makes genetically modified seed, benefited as farmers sought to increase crop yields to take advantage of high commodity prices (1.2% and 1.1% of net assets, respectively).
• Poor performance in the telecommunications and utilities sectors hurt returns during the period. Several individual holdings also detracted. Footwear-maker CROCS (0.7% of net assets) suffered from disappointing earnings and concerns about inventory levels. We continue to own the stock on the belief that CROCS has the potential to continue to generate strong demand for its products globally. We subsequently sold two underperformers during the period: NII Holdings in the telecommunications industry and technology provider to the automotive retail industry, DealerTrack Holdings.
1 The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Morningstar Categories compare the performance of funds with similar investment objectives and strategies.
13
• We anticipate continued stock price volatility due to weakening economic indicators and heightened risk sensitivity in the market. With the goal of maximizing returns and minimizing risk, we intend to take advantage of opportunities arising from investors' fears by screening the investment universe for attractively valued growth companies with strong business models, improving profit margins and improving returns on capital. Our focus remains on U.S.-based companies that derive a significant portion of revenues from abroad because we believe such companies can capitalize on rising global demand for goods and services.
Thank you for investing in the CMG Mid Cap Growth Fund.
Portfolio Management
Wayne M. Collette has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2001.
George J. Myers has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.
Lawrence W. Lin has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2006.
Brian D. Neigut has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2007.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Diamond Offshore Drilling | 1.4 | ||||||
Allergan | 1.4 | ||||||
Equinix | 1.3 | ||||||
National-Oilwell Varco | 1.3 | ||||||
Urban Outfitters | 1.2 | ||||||
Potash Corp. of Saskatchewan | 1.2 | ||||||
American Tower | 1.1 | ||||||
McDermott International | 1.1 | ||||||
Monsanto | 1.1 | ||||||
Laboratory Corp. of America | 1.1 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.
Investing in mid-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.
14
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Mid Cap Growth Fund | 05/05/03 | -2.45 | 4.66 | 13.82 | |||||||||||||||
Russell Midcap Growth Index | -5.45 | -1.03 | 14.65 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Mid Cap Growth Fund | 05/05/03 | 7.18 | 20.16 | 16.69 | |||||||||||||||
Russell Midcap Growth Index | 0.41 | 11.43 | 16.99 |
Index performance is from May 5, 2003.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.70% and 0.95%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, May 5, 2003 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period.
The Russell Midcap Growth Index measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
15
UNDERSTANDING YOUR EXPENSES – CMG Mid Cap Growth Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 976.22 | 1,021.62 | 3.48 | 3.56 | 0.70 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.70%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
16
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG Mid Cap Value returned negative 7.16%. The fund's benchmark, the Russell Midcap Value Index,1 returned negative 8.32% for the period. The average return of the fund's peer group, the Morningstar Mid-Cap Value Category,2 was negative 7.52%. Stock selection in the industrials and utilities sectors, combined with a below-index weight in the consumer discretionary sector, helped the fund hold up better than its benchmark and peer group in a challenging environment for stocks. Stock selection in the financials and materials sectors detracted from returns.
• In the industrials sector, McDermott International and Textron fared well as did defense company L-3 Communications Holdings (1.2%, 1.1% and 0.8% of net assets, respectively). These companies continued to benefit from increased spending on energy infrastructure, industrial equipment and defense. During the period, L-3 announced that it had won a significant U.S. Air Force contract. We took profits in the stock and trimmed our position. Jacobs Engineering Group (0.9% of net assets) also aided the fund's return as its shares rose on continued strength in the engineering and construction end-markets. In utilities, electric companies FPL Group, Entergy and PPL were solid contributors to performance (0.7%, 1.1% and 1.7% of net assets, respectively). All three companies benefited from better-than-expected results from a regional planning consortium, which could have a positive impact on gross margins and earnings for unregulated power generation assets in the region. During the period, we trimmed the fund's overweight relative to the benchmark and deployed the proceeds into stocks in a variety of sectors where we had higher conviction about future prospects because of attractive valuations and the potential for margin expansion. An underweight in consumer discretionary stocks, relative to the benchmark, was beneficial as the sector had many negative performers. However, solid returns from auto components provider BorgWarner (1.0% of net assets) helped cushion these losses.
• Financials and materials holdings detracted from the fund's returns. Although the fund was underweight in financials, this positive factor was more than offset by the fund's position in bond insurer Ambac Financial Group, which detracted from returns as concerns about defaults
1 The Russell Midcap Value Index measures the performance of those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value index. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in indices. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Morningstar Categories compare the performance of funds with similar investment objectives and strategies.
17
weighed on the company. PMI Group further eroded returns in the financials sector, and we sold both stocks.
• Slower economic and corporate earnings growth has provided us with the opportunity to uncover value in companies that we believe have the potential to maintain margins and stabilize or increase revenues. Because we focus on stock selection, the fund is positioned to reflect the best opportunities we have found on a company-by-company basis. We believe that this time-tested process will serve our shareholders well over the near and long term.
We appreciate your continued confidence in CMG Mid Cap Value Fund.
Portfolio Management
Diane L. Sobin, lead manager for the CMG Mid Cap Value Fund, has been co-manager since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2001.
Lori J. Ensinger has co-managed the fund since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2001.
David I. Hoffman has co-managed the fund since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2001.
Noah J. Petrucci has co-managed the fund since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2002.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Hess | 2.1 | ||||||
Air Products & Chemicals | 1.7 | ||||||
PPL | 1.7 | ||||||
PG&E | 1.5 | ||||||
Plum Creek Timber | 1.5 | ||||||
Edison International | 1.5 | ||||||
American Electrical Power | 1.5 | ||||||
Bank of Hawaii | 1.4 | ||||||
Parker Hannifin | 1.3 | ||||||
Sempra Energy | 1.3 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Investing in mid-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.
Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the advisor's opinion, undervalued. If the advisor's assessment of a company's prospects is wrong, the price of the company's stock may not approach the value the advisor has placed on it.
18
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Mid Cap Value Fund | 05/05/03 | -7.16 | -3.24 | 14.07 | |||||||||||||||
Russell Midcap Value Index | -8.32 | -8.73 | 16.66 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Mid Cap Value Fund | 05/05/03 | -4.27 | 8.07 | 16.32 | |||||||||||||||
Russell Midcap Value Index | -9.30 | -1.42 | 18.16 |
Index performance is from May 5, 2003.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.70% and 1.06%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, May 5, 2003 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period.
The Russell Midcap Value Index measures the performance of those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value Index. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
19
UNDERSTANDING YOUR EXPENSES – CMG Mid Cap Value Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 928.41 | 1,021.62 | 3.39 | 3.56 | 0.70 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.70%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
20
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG Small Cap Growth Fund returned negative 1.48%. For the same period, the fund's benchmarks, the Russell 2000 Growth Index and Russell 2000 Index1 returned negative 6.20% and negative 7.51%, respectively. The average return of the fund's peer group, the Morningstar Small Growth Category,2 was negative 8.49%. Mounting concerns about an economic recession, financial market illiquidity, declining home prices and weakened consumer spending caused the markets to sell off broadly in January. We believe positive stock selection in the health care, consumer discretionary and energy sectors helped the fund weather a challenging environment better than its benchmarks and peer group.
• In the health care sector, top contract research organization ICON (2.4% of net assets) benefited from increased outsourcing of pharmaceutical and biotechnology research. Onyx Pharmaceuticals (1.1% of net assets) experienced success from early trials of its Nexavar drug therapy, the only available treatment for liver cancer. Among consumer discretionary names, China-based New Oriental Education & Technology Group had better-than-anticipated enrollment in its English test preparation programs. We subsequently sold the stock on concerns that future enrollment could slow. Top energy holdings included oil exploration and production company, Concho Resources (1.3% of net assets), which benefited from rising oil prices, high production growth and a low cost structure. Foundation Coal Holdings (0.6% of net assets), with strong geographic exposure across the country, was a beneficiary of strong worldwide demand for coal.
• Detractors from returns included the financials and telecommunications sectors, along with selected individual holdings. Align Technology projected a decline in demand for its Invisalign orthodontic system due to the weakened macroeconomic climate. China-based Noah Education Holdings had losses due to labeling problems with some of its digital learning devices. We subsequently sold both stocks. Footwear maker CROCS (0.8% of net assets)
1 The Russell 2000 Growth Index measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of the 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Morningstar Categories compare the performance of funds with similar investment objectives and strategies.
21
suffered from excess inventory and disappointing earnings expectations. We continue to own the stock because we believe the firm has the potential to continue to generate strong global demand for its products.
• We anticipate continued stock price volatility due to weakening economic indicators and heightened risk sensitivity in the market. With the goal of maximizing returns and minimizing risk, we intend to take advantage of opportunities arising from investors' fears by screening the investment universe for attractively valued growth companies with strong business models, improving profit margins and improving returns on capital. We remain focused on U.S.-based companies that derive a significant portion of revenues from abroad because we believe that such companies can capitalize on rising global demand for goods and services.
Thank you for investing in CMG Small Cap Growth Fund.
Portfolio Management
Wayne M. Collette has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2001.
George J. Myers has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.
Lawrence W. Lin has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2006.
Brian D. Neigut has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2007.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
ICON | 2.4 | ||||||
Hologic | 2.2 | ||||||
CF Industries Holdings | 1.4 | ||||||
Equinix | 1.3 | ||||||
Bucyrus International | 1.3 | ||||||
Concho Resources | 1.3 | ||||||
BioMarin Pharmaceuticals | 1.2 | ||||||
BE Aerospace | 1.2 | ||||||
SBA Communications | 1.2 | ||||||
Terra Industries | 1.2 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.
Investments in small-cap stocks may be subject to greater volatility and price fluctuations because they may be thinly traded and less liquid than investments in larger companies.
22
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | 10-year | |||||||||||||||||||
CMG Small Cap Growth Fund | 08/30/89 | -1.48 | 5.56 | 18.97 | 9.88 | ||||||||||||||||||
Russell 2000 Index | -7.51 | -9.79 | 15.26 | 6.50 | |||||||||||||||||||
Russell 2000 Growth Index | -6.20 | -4.55 | 14.91 | 3.46 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | 10-year | |||||||||||||||||||
CMG Small Cap Growth Fund | 08/30/89 | 7.67 | 22.27 | 21.78 | 10.76 | ||||||||||||||||||
Russell 2000 Index | -7.53 | -1.57 | 16.25 | 7.08 | |||||||||||||||||||
Russell 2000 Growth Index | -2.09 | 7.05 | 16.50 | 4.32 |
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.80% and 1.07%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 11/30/09.
Growth of a $3,000,000 investment, February 1, 1998 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period.
The Russell 2000 Growth Index measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of the 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
23
UNDERSTANDING YOUR EXPENSES — CMG Small Cap Growth Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 985.22 | 1,021.11 | 3.99 | 4.06 | 0.80 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.80%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
24
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG Small Cap Value Fund returned negative 6.23%. While this return was disappointing, it was higher than the negative 8.89% and negative 7.51% return of its benchmarks, the Russell 2000 Value Index and the Russell 2000 Index,1 respectively. The fund's return also came out ahead of the average return of its peer group, the Morningstar Small Value Category,2 which was negative 10.32% over the same period. Stock selection, followed by sector weights, helped the fund hold up better than the index and peer group in a challenging environment. We believe that our focus on financially strong companies with attractive valuations helped reduce losses in the market downturn.
• Strong stock selection and underweights relative to the index in the two weakest sectors of the market—consumer discretionary and financials—helped the fund do better than its Russell benchmarks. In the consumer discretionary sector, the fund avoided builders and media stocks, which posted steep losses, yet owned top performing GameStop, an electronic games retailer (0.2% of net assets) which outperformed for the period. The fund's exposure to financials was significantly below the sector's weight in the Russell 2000 Value Index, which also aided its relative return. The fund avoided certain poorly-performing groups within the financials sector, including real estate investment trusts (REITs) and companies with exposure to the subprime mortgage market. Industrials, where stock selection was strong, and health care, which produced positive absolute gains, also aided the fund's return. Standouts include d Woodward Governor (0.5% of net assets), an aerospace and electric power supplier. The fund's technology stocks lagged the index. We tend to favor higher quality technology stocks over more speculative stocks with higher valuations. However, the latter held up better with investors during the period.
• We remain optimistic that our stock picking strategy has the potential to offer the fund downside protection in a declining market and upside potential once liquidity returns to the monetary system and refuels small-cap stocks. In the meantime, we plan to monitor our holdings closely for signs of deterioration.
1 The Russell 2000 Value Index measures the performance of those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of the 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in indices. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Morningstar Categories compare the performance of funds with similar investment objectives and strategies.
25
Thank you for investing in CMG Small Cap Value Fund.
Portfolio Management
Stephen Barbaro has managed or co-managed the fund since May 2003 and has been with the advisor or its predecessors or affiliate organizations since 1976.
Jeremy Javidi has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2000.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Pediatrix Medical Group | 1.3 | ||||||
PAREXEL International | 1.1 | ||||||
CH Energy Group | 0.9 | ||||||
AptarGroup | 0.9 | ||||||
Cash America International | 0.8 | ||||||
Anixter International | 0.8 | ||||||
Consolidated Graphics | 0.8 | ||||||
Werner Enterprises | 0.8 | ||||||
American Greetings | 0.7 | ||||||
Weis Markets | 0.7 |
Holdings are calculated as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Investments in small-cap stocks may be subject to greater volatility and price fluctuations because they may be thinly traded and less liquid than investments in larger companies.
Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the advisor's opinion, undervalued. If the advisor's assessment of a company's prospects is wrong, the price of the company's stock may not approach the value the advisor has placed on it.
26
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Small Cap Value Fund | 05/05/03 | -6.23 | -7.03 | 15.78 | |||||||||||||||
Russell 2000 Value Index | -8.89 | -14.76 | 14.20 | ||||||||||||||||
Russell 2000 Index | -7.51 | -9.79 | 13.72 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | Life | ||||||||||||||||
CMG Small Cap Value Fund | 05/05/03 | -8.50 | -2.23 | 17.00 | |||||||||||||||
Russell 2000 Value Index | -13.08 | -9.78 | 15.51 | ||||||||||||||||
Russell 2000 Index | -7.53 | -1.57 | 15.73 |
Index performance is from May 5, 2003.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.80% and 1.02%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, May 5, 2003 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period.
The Russell 2000 Value Index measures the performance of those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of the 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
27
UNDERSTANDING YOUR EXPENSES — CMG Small Cap Value Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 936.91 | 1,021.11 | 3.89 | 4.06 | 0.80 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.80%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
28
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG Small/Mid Cap Fund returned negative 4.00%. The fund's benchmarks, the Russell 2500 Growth Index and the Russell 2500 Index1, returned negative 5.52% and negative 7.07%, respectively. The average return of the fund's peer group, the Morningstar Mid Cap Growth Funds Category2, was negative 4.95%. Mounting concerns about an economic recession, financial market illiquidity, declining home prices and weakened consumer spending caused the markets to sell off broadly in January. We believe that stock selection helped the fund weather a challenging environment better than its benchmarks and peer group.
• Holdings in the energy, healthcare, and materials sectors helped buoy the fund's returns during the period. Among top contributors were domestic oil exploration and production companies, Continental Resources and Southwestern Energy (1.0% and 0.8% of net assets, respectively), which benefited from good production growth and low exploration and development costs. In the health care sector, Onyx Pharmaceuticals (0.6% of net assets) experienced success from early trials of its Nexavar drug therapy used to treat liver cancer. Masimo (0.7% of net assets), leading maker of noninvasive vital sign monitoring technologies, reaped rewards from a deep product development pipeline. Among materials holdings, global fertilizer producers Potash Corp. of Saskatchewan and Agrium (1.6% and 0.7% of net assets, respectively) benefited from strong pricing due to a capacity-constrained fertilizer market and strong demand from farmer s seeking to increase crop yields to take advantage of high commodity prices.
• Holdings in the telecommunications and industrials sectors and an overweight in telecommunications relative to the index hurt returns during the period. Among individual detractors, Align Technology projected a decline in demand for its Invisalign orthodontic system due to the weakened macroeconomic climate. China-based Noah Education Holdings saw losses due to labeling problems with digital learning devices. We subsequently sold both stocks. Footwear maker CROCS (0.7% of net assets) suffered from excess inventory and negative earnings surprises. We continue to own the stock because we believe the firm's products have the potential to continue to generate strong global demand.
1 The Russell 2500 Growth Index measures the performance of those Russell 2500 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500 Index measures the performance of the 2,500 smallest companies of the Russell 3000 Index. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933.
29
• We anticipate continued stock price volatility due to weakening economic indicators and heightened risk sensitivity in the market. With the goal of maximizing returns and minimizing risk, we intend to take advantage of opportunities arising from investors' fears by screening the investment universe for attractively valued growth companies with strong business models, improving profit margins and improving returns on capital. Our focus remains on U.S.-based companies that derive a significant portion of revenues from abroad because we believe such companies can capitalize on rising global demand for goods and services.
We appreciate your continued confidence in the CMG Small/Mid Cap Fund.
Portfolio Management
Wayne M. Collette has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2001.
George J. Myers has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.
Lawrence W. Lin has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2006.
Brian D. Neigut has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2007.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Potash Corp. of Saskatchewan | 1.6 | ||||||
Hologic | 1.5 | ||||||
Equinix | 1.4 | ||||||
Urban Outfitters | 1.2 | ||||||
ICON | 1.2 | ||||||
Intuitive Surgical | 1.1 | ||||||
Vocus | 1.1 | ||||||
McDermott International | 1.1 | ||||||
Cleveland-Cliffs | 1.0 | ||||||
Denbury Resources | 1.0 |
Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.
Investments in small- and mid-cap stocks may present special risks. They tend to be more volatile and may be less liquid than the stocks of larger companies. Small-cap stocks often have narrower markets, limited financial resources and tend to be more thinly traded than stocks of larger companies.
30
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Small/Mid Cap Fund | 12/01/00 | -4.00 | 2.28 | 16.28 | 5.47 | ||||||||||||||||||
Russell 2500 Growth Index | -5.52 | -2.35 | 15.96 | 4.57 | |||||||||||||||||||
Russell 2500 Index | -7.07 | -7.32 | 16.15 | 9.04 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Small/Mid Cap Fund | 12/01/00 | 6.00 | 19.79 | 19.35 | 7.45 | ||||||||||||||||||
Russell 2500 Growth Index | -1.45 | 9.69 | 17.43 | 5.89 | |||||||||||||||||||
Russell 2500 Index | -6.71 | 1.38 | 16.99 | 10.13 |
Index performance is from December 1, 2000.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.75% and 1.32%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, December 1, 2000 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period.
The Russell 2500 Growth Index measures the performance of those Russell 2500 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500 Index measures the performance of the 2,500 smallest companies of the Russell 3000 Index. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
31
UNDERSTANDING YOUR EXPENSES — CMG Small/Mid Cap Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 962.50 | 1,021.37 | 3.70 | 3.81 | 0.75 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.75%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
32
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG International Stock Fund returned negative 10.90%. The fund's benchmarks, the MSCI EAFE Index and the MSCI All Country World ex U.S. Index,1 returned negative 7.52% and negative 5.76%, respectively. The average return of the fund's peer group, the Morningstar Foreign Large Blend Category,2 was negative 5.57%. Stock selection accounted for the shortfall in return. As corporate earnings declined because of slower economic growth, some investors were willing to pay more for those earnings and bid up the prices of stocks to what we believed were unsustainable levels. Because our investment approach focuses on value and on choosing stocks whose prices are consistent with a company's long-term business prospects, we did not participate in this run-up in valuations or in the short-term gains that some stocks provided. However, we believe t he fund's approach will aid it in the long term.
• We maintained a large position in China, whose economy continued to be buoyed by robust exports and increasing domestic demand for goods and services. The portfolio was overweight in Hong Kong, which has benefited from ties to mainland China's economic growth and to its link to the relatively weak U.S. dollar and declining U.S. interest rates. By contrast, we were underweighted in Japan and Europe, where we believe slower economic growth could put a damper on stock prices going forward. In Japan, we believe the economy is being propped up by exports, offsetting a downturn in domestic activity. In Europe, we believe high interest rates and a strong euro are likely to be negative for economic growth. In the Middle East, huge oil revenues have sparked a wave of infrastructure development. To take advantage of this situation, we invested in Emaar Properties (0.5% of net assets), the largest property developer in th e United Arab Emirates. As economic growth slowed, we bought cyclical stocks that had become relatively cheap. We also began to focus on companies that we believe could benefit from long-term trends, such as the search for alternative energy. Vestas Wind Systems in Denmark is an example (0.6% of net assets).
1 The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index is a free float adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI All Country World ex U.S. Index is an index of global stock market performance that includes developed and emerging markets but excludes the U.S. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 ©2008 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an "expert" under the Securities Act of 1933. Morningstar Categories compare the performance of funds with similar investment objectives and strategies.
33
• We believe that the Federal Reserve Board's short-term interest-rate cuts could be positive for the economy—and also for stocks down the road. In the meantime, we plan to use market volatility to put our value investment approach to work by investing in what we believe to be solid companies at attractive share prices.
We appreciate your continued confidence in the CMG International Stock Fund.
Portfolio Management
Fred Copper has managed or co-managed the fund since October 2005 and has been with the advisor or its predecessors or affiliate organizations since 2005.
Jasmine (Weili) Huang has co-managed the fund since May 2006 and has been with the advisor or its predecessors or affiliate organizations since 2003.
Timothy R. Anderson has co-managed the fund since May 2006 and has been with the advisor or its predecessors or affiliate organizations since 2006.
Paul J. DiGiacomo has co-managed the fund since May 2006 and has been with the advisor or its predecessors or affiliate organizations since 2006.
Daisuke Nomoto has co-managed the fund since May 2006 and has been with the advisor or its predecessors or affiliate organizations since 2005.
The fund's top ten holdings and countries (as a percentage of net assets) as of January 31, 2008 were:
Holdings | (%) | Countries | (%) | ||||||||||||
iShares MSCI EAFE Index Fund | 2.6 | Japan | 18.2 | ||||||||||||
Novartis AG, Registered Shares | 2.0 | United Kingdom | 13.5 | ||||||||||||
E.ON AG | 1.9 | Germany | 9.4 | ||||||||||||
Banco Santander Central Hispano SA | 1.9 | Switzerland | 9.3 | ||||||||||||
Total SA | 1.7 | France | 7.1 | ||||||||||||
Banco Bilbao Vizcaya Argentaria SA | 1.6 | United States | 6.3 | ||||||||||||
BASF AG | 1.5 | Singapore | 3.7 | ||||||||||||
BNP Paribas | 1.5 | Spain | 3.4 | ||||||||||||
Roche Holdings AG | 1.5 | China | 2.8 | ||||||||||||
Unilever PLC | 1.5 | Sweden | 2.5 |
Holdings and country breakdowns are disclosed as a percentage of net assets, and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings and country breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
International investing involves special risks, including foreign taxation, currency fluctuation, risks associated with possible differences in financial standards and other monetary political risks.
A concentration of investments in a specific sector, such as the technology sector, may cause the fund to experience increased volatility.
34
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | 10-year | |||||||||||||||||||
CMG International Stock Fund | 02/01/94 | -10.90 | -3.36 | 17.25 | 7.11 | ||||||||||||||||||
MSCI EAFE Index | -7.52 | 0.22 | 20.28 | 7.13 | |||||||||||||||||||
MSCI All Country World ex U.S. Index | -5.76 | 5.39 | 22.88 | 8.66 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | 10-year | |||||||||||||||||||
CMG International Stock Fund | 02/01/94 | -4.22 | 7.51 | 18.33 | 8.13 | ||||||||||||||||||
MSCI EAFE Index | 0.39 | 11.17 | 21.59 | 8.66 | |||||||||||||||||||
MSCI All Country World ex U.S. Index | 4.04 | 17.12 | 24.52 | 10.09 |
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.75% and 0.82%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.
Growth of a $3,000,000 investment, February 1, 1998 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period.
The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI All Country World ex U.S. Index is an index of global stock market performance that includes developed and emerging markets but excludes the U.S. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
35
UNDERSTANDING YOUR EXPENSES — CMG International Stock Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 – January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 891.01 | 1,021.37 | 3.57 | 3.81 | 0.75 |
Expenses paid during the period are equal to the fund's annualized expense ratio of 0.75%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
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CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended, January 31, | Year Ended July 31, | Period Ended July 31, | |||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.53 | $ | 13.52 | $ | 13.49 | $ | 11.97 | $ | 10.73 | $ | 10.00 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income (b) | 0.13 | 0.25 | 0.23 | 0.24 | (c) | 0.17 | 0.04 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and futures contracts | (0.74 | ) | 1.88 | 0.76 | 1.58 | 1.13 | 0.69 | ||||||||||||||||||||
Total from investment operations | (0.61 | ) | 2.13 | 0.99 | 1.82 | 1.30 | 0.73 | ||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||
From net investment income | (0.22 | ) | (0.22 | ) | (0.25 | ) | (0.20 | ) | (0.05 | ) | - | ||||||||||||||||
From net realized gains | (0.43 | ) | (0.90 | ) | (0.71 | ) | (0.10 | ) | (0.01 | ) | - | ||||||||||||||||
Total distributions to shareholders | (0.65 | ) | (1.12 | ) | (0.96 | ) | (0.30 | ) | (0.06 | ) | - | ||||||||||||||||
Net asset value, end of period | $ | 13.27 | $ | 14.53 | $ | 13.52 | $ | 13.49 | $ | 11.97 | $ | 10.73 | |||||||||||||||
Total return (d)(e) | (4.42 | )%(f) | 15.87 | % | 7.56 | % | 15.32 | % | 12.08 | % | 7.30 | %(f) | |||||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||||||
Net expenses before interest expense | 0.25 | %(g) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | %(g) | |||||||||||||||
Interest expense | - | - | %(h) | - | %(h) | - | - | - | |||||||||||||||||||
Net expenses | 0.25 | %(g) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | %(g) | |||||||||||||||
Waiver/Reimbursement | 0.04 | %(g) | 0.05 | % | 0.06 | % | 0.04 | % | 0.05 | % | 1.37 | %(g) | |||||||||||||||
Net investment income | 1.77 | %(g) | 1.73 | % | 1.70 | % | 1.91 | % | 1.43 | % | 1.50 | %(g) | |||||||||||||||
Portfolio turnover rate | 24 | %(f) | 45 | % | 66 | % | 49 | % | 60 | % | 2 | %(f) | |||||||||||||||
Net assets, end of period (000's) | $ | 217,780 | $ | 222,698 | $ | 100,973 | $ | 91,633 | $ | 98,247 | $ | 9,134 |
(a) The Fund commenced investment operations on May 5, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.04 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) Annualized.
(h) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
37
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended, January 31, | Year Ended July 31, | Period Ended July 31, | |||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 (a) | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.51 | $ | 11.12 | $ | 11.65 | $ | 10.25 | $ | 10.00 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (b) | 0.03 | 0.08 | 0.07 | 0.12 | (c) | 0.03 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.17 | ) | 2.08 | 0.14 | 1.37 | 0.23 | |||||||||||||||||
Total from investment operations | (0.14 | ) | 2.16 | 0.21 | 1.49 | 0.26 | |||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||
From net investment income | (0.07 | ) | (0.08 | ) | (0.08 | ) | (0.09 | ) | (0.01 | ) | |||||||||||||
From net realized gains | (0.93 | ) | (0.69 | ) | (0.66 | ) | - | - | |||||||||||||||
Total distributions to shareholders | (1.00 | ) | (0.77 | ) | (0.74 | ) | (0.09 | ) | (0.01 | ) | |||||||||||||
Net asset value, end of period | $ | 11.37 | $ | 12.51 | $ | 11.12 | $ | 11.65 | $ | 10.25 | |||||||||||||
Total return (d)(e) | (1.76 | )%(f) | 19.77 | % | 1.63 | % | 14.55 | % | 2.57 | %(f) | |||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||
Net expenses before interest expense | 0.50 | %(g) | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | %(g) | |||||||||||||
Interest expense | - | %(g)(h) | - | - | %(h) | - | - | ||||||||||||||||
Net expenses | 0.50 | %(g) | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | %(g) | |||||||||||||
Waiver/Reimbursement | 0.14 | %(g) | 0.16 | % | 0.13 | % | 0.07 | % | 0.14 | %(g) | |||||||||||||
Net investment income | 0.51 | %(g) | 0.63 | % | 0.62 | % | 1.07 | % | 0.31 | %(g) | |||||||||||||
Portfolio turnover rate | 75 | %(f) | 179 | % | 180 | % | 120 | % | 114 | %(f) | |||||||||||||
Net assets, end of period (000's) | $ | 51,523 | $ | 58,978 | $ | 35,765 | $ | 40,312 | $ | 40,684 |
(a) The Fund commenced investment operations on September 10, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.
(b) Per share data was calculated using average shares outstanding during the period.
(c) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.05 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) Annualized.
(h) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
38
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended, January 31, | Year Ended July 31, | Period Ended July 31, | |||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 (a) | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.30 | $ | 11.89 | $ | 12.54 | $ | 11.09 | $ | 10.00 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (b) . | 0.13 | 0.22 | 0.22 | 0.24 | 0.18 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and written options | (0.72 | ) | 1.38 | 0.92 | 1.46 | 0.93 | |||||||||||||||||
Total from investment operations | (0.59 | ) | 1.60 | 1.14 | 1.70 | 1.11 | |||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||
From net investment income | (0.22 | ) | (0.22 | ) | (0.28 | ) | (0.22 | ) | (0.02 | ) | |||||||||||||
From net realized gains | (1.12 | ) | (0.97 | ) | (1.51 | ) | (0.03 | ) | - | ||||||||||||||
Total distributions to shareholders | (1.34 | ) | (1.19 | ) | (1.79 | ) | (0.25 | ) | (0.02 | ) | |||||||||||||
Net asset value, end of period | $ | 10.37 | $ | 12.30 | $ | 11.89 | $ | 12.54 | $ | 11.09 | |||||||||||||
Total return (c)(d) | (5.28 | )%(g) | 13.69 | % | 9.85 | %(e) | 15.41 | %(f) | 11.15 | %(g) | |||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||
Net expenses | 0.50 | %(h) | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | %(h) | |||||||||||||
Waiver/Reimbursement | 0.19 | %(h) | 0.18 | % | 0.13 | % | 0.07 | % | 0.14 | %(h) | |||||||||||||
Net investment income | 2.08 | %(h) | 1.78 | % | 1.78 | % | 1.99 | % | 1.86 | %(h) | |||||||||||||
Portfolio turnover rate | 28 | %(g) | 92 | % | 97 | % | 45 | % | 46 | %(g) | |||||||||||||
Net assets, end of period (000's) | $ | 40,379 | $ | 44,830 | $ | 37,280 | $ | 38,731 | $ | 47,855 |
(a) The Fund commenced investment operations on September 10, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(e) Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.
(f) Total return includes a reimbursement of loss experienced by the Fund due to a compliance violation. The reimbursement had an impact of less than 0.01% on the Fund's total return.
(g) Not annualized.
(h) Annualized.
See Accompanying Notes to Financial Statements.
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CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Instituional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | |||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.48 | $ | 14.98 | $ | 14.15 | $ | 11.04 | $ | 10.93 | $ | 10.00 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (b) | - | (c) | 0.09 | 0.01 | (0.03 | ) | (0.05 | ) | (0.01 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments, written options and foreign currency | (0.20 | ) | 3.21 | 1.20 | 3.14 | 0.17 | 0.94 | ||||||||||||||||||||
Total from investment operations | (0.20 | ) | 3.30 | 1.21 | 3.11 | 0.12 | 0.93 | ||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||
From net investment income | (0.06 | ) | (0.05 | ) | - | - | - | - | |||||||||||||||||||
From net realized gains | (2.59 | ) | (1.75 | ) | (0.38 | ) | - | (0.01 | ) | - | |||||||||||||||||
Total distributions to shareholders | (2.65 | ) | (1.80 | ) | (0.38 | ) | - | (0.01 | ) | - | |||||||||||||||||
Net asset value, end of period | $ | 13.63 | $ | 16.48 | $ | 14.98 | $ | 14.15 | $ | 11.04 | $ | 10.93 | |||||||||||||||
Total return (d)(e) | (2.45 | )%(f) | 23.22 | % | 8.56 | % | 28.17 | % | 1.06 | % | 9.30 | %(f) | |||||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||||||
Net expenses | 0.70 | %(g) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | %(g) | |||||||||||||||
Waiver/Reimbursement | 0.29 | %(g) | 0.25 | % | 0.20 | % | 0.21 | % | 0.22 | % | 3.85 | %(g) | |||||||||||||||
Net investment income (loss) | 0.02 | %(g) | 0.54 | % | 0.08 | % | (0.21 | )% | (0.38 | )% | (0.44 | )%(g) | |||||||||||||||
Portfolio turnover rate | 101 | %(f) | 152 | % | 65 | % | 141 | % | 169 | % | 23 | %(f) | |||||||||||||||
Net assets, end of period (000's) | $ | 24,995 | $ | 28,674 | $ | 23,636 | $ | 24,881 | $ | 19,284 | $ | 2,161 |
(a) The Fund commenced investment operations on May 5, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) Annualized.
See Accompanying Notes to Financial Statements.
40
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended, January 31, | Year Ended July 31, | Period Ended July 31, | |||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.09 | $ | 14.02 | $ | 15.17 | $ | 12.58 | $ | 10.69 | $ | 10.00 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income (b) | 0.06 | 0.22 | 0.15 | 0.11 | 0.07 | 0.01 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments, written options and foreign currency | (0.97 | ) | 2.34 | 1.14 | 2.66 | 1.84 | 0.68 | ||||||||||||||||||||
Total from investment operations | (0.91 | ) | 2.56 | 1.29 | 2.77 | 1.91 | 0.69 | ||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||
From net investment income | (0.22 | ) | (0.18 | ) | (0.16 | ) | (0.09 | ) | (0.02 | ) | - | ||||||||||||||||
From net realized gains | (1.28 | ) | (2.31 | ) | (2.28 | ) | (0.09 | ) | - | (c) | - | ||||||||||||||||
Total distributions to shareholders | (1.50 | ) | (2.49 | ) | (2.44 | ) | (0.18 | ) | (0.02 | ) | - | ||||||||||||||||
Net asset value, end of period | $ | 11.68 | $ | 14.09 | $ | 14.02 | $ | 15.17 | $ | 12.58 | $ | 10.69 | |||||||||||||||
Total return (d)(e) | (7.16 | )%(f) | 19.50 | % | 9.30 | % | 22.14 | % | 17.91 | % | 6.90 | %(f) | |||||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||||||
Net expenses | 0.70 | %(g) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | %(g) | |||||||||||||||
Waiver/Reimbursement | 0.44 | %(g) | 0.36 | % | 0.25 | % | 0.19 | % | 0.20 | % | 3.61 | %(g) | |||||||||||||||
Net investment income | 0.95 | %(g) | 1.49 | % | 1.02 | % | 0.78 | % | 0.54 | % | 0.49 | %(g) | |||||||||||||||
Portfolio turnover rate | 19 | %(f) | 63 | % | 59 | % | 59 | % | 9 | % | 2 | %(f) | |||||||||||||||
Net assets, end of period (000's) | $ | 16,974 | $ | 19,296 | $ | 17,762 | $ | 21,277 | $ | 21,994 | $ | 2,651 |
(a) The Fund commenced investment operations on May 5, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) Annualized.
See Accompanying Notes to Financial Statements.
41
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | Year Ended October 31, | ||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | 2002 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.95 | $ | 2.03 | $ | 6.57 | $ | 5.07 | $ | 4.62 | $ | 3.67 | $ | 4.41 | |||||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||||||
Net investment loss (b) | - | (c) | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.02 | ) | (0.02 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments, written options and foreign currency | - | (c) | 0.42 | 0.53 | (d) | 1.53 | 0.48 | 0.97 | (0.72 | ) | |||||||||||||||||||||
Total from investment operations | - | (c) | 0.41 | 0.51 | 1.50 | 0.45 | 0.95 | (0.74 | ) | ||||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||||||
From net realized gains | (0.29 | ) | (0.49 | ) | (5.05 | )(e) | - | - | - | - | (c) | ||||||||||||||||||||
Net asset value, end of period | $ | 1.66 | $ | 1.95 | $ | 2.03 | $ | 6.57 | $ | 5.07 | $ | 4.62 | $ | 3.67 | |||||||||||||||||
Total return (f) | (1.48 | )%(g)(h) | 22.69 | %(g) | 10.46 | %(g) | 29.59 | % | 9.74 | % | 25.89 | %(h) | (16.76 | )% | |||||||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||||||||||
Net expenses before interest expense (i) | 0.80 | %(j) | 0.80 | % | 1.09 | % | 0.85 | % | 0.79 | % | 0.81 | %(j) | 0.79 | % | |||||||||||||||||
Interest expense | - | %(j)(k) | - | %(k) | - | - | - | - | - | ||||||||||||||||||||||
Net expenses (i) | 0.80 | %(j) | 0.80 | % | 1.09 | % | 0.85 | % | 0.79 | % | 0.81 | %(j) | 0.79 | % | |||||||||||||||||
Waiver/Reimbursement | 0.25 | %(j) | 0.27 | % | 0.21 | % | - | - | - | - | |||||||||||||||||||||
Net investment loss (i) | (0.26 | )%(j) | (0.25 | )% | (0.88 | )% | (0.61 | )% | (0.62 | )% | (0.55 | )%(j) | (0.49 | )% | |||||||||||||||||
Portfolio turnover rate | 107 | %(h) | 158 | % | 112 | % | 119 | % | 123 | % | 89 | %(h) | 120 | % | |||||||||||||||||
Net assets, end of period (000's) | $ | 43,017 | $ | 39,899 | $ | 40,183 | $ | 30,317 | $ | 292,028 | $ | 293,924 | $ | 227,874 |
(a) The Fund changed its fiscal year end from October 31 to July 31.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Rounds to less than $0.01 per share.
(d) The amount shown for a share outstanding does not correspond with the aggregate gain (loss) on investments for the period due to timing of sales and repurchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
(e) Capital gain distributions were declared after significant shareholder redemptions reduced the size of the Fund.
(f) Total return at net asset value assuming all distributions reinvested.
(g) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(h) Not annualized.
(i) The benefits derived from custody credits had an impact of less than 0.01%.
(j) Annualized.
(k) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
42
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended, January 31, | Year Ended July 31, | Period Ended July 31, | |||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.94 | $ | 15.31 | $ | 16.06 | $ | 13.91 | $ | 11.29 | $ | 10.00 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income (b) | 0.06 | 0.11 | 0.09 | 0.11 | 0.11 | 0.02 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.88 | ) | 1.82 | 1.06 | 3.11 | 2.79 | 1.27 | ||||||||||||||||||||
Total from investment operations | (0.82 | ) | 1.93 | 1.15 | 3.22 | 2.90 | 1.29 | ||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.12 | ) | (0.13 | ) | (0.10 | ) | (0.06 | ) | - | ||||||||||||||||
From net realized gains | (1.75 | ) | (3.18 | ) | (1.77 | ) | (0.97 | ) | (0.22 | ) | - | ||||||||||||||||
Total distributions to shareholders | (1.88 | ) | (3.30 | ) | (1.90 | ) | (1.07 | ) | (0.28 | ) | - | ||||||||||||||||
Net asset value, end of period | $ | 11.24 | $ | 13.94 | $ | 15.31 | $ | 16.06 | $ | 13.91 | $ | 11.29 | |||||||||||||||
Total return (c)(d) | (6.23 | )%(e) | 12.82 | % | 7.90 | %(f) | 23.57 | % | 25.79 | % | 12.90 | %(e) | |||||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||||||
Net expenses before interest expense | 0.80 | %(g) | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | %(g) | |||||||||||||||
Interest expense | 0.01 | %(g) | 0.01 | % | - | %(h) | - | - | - | ||||||||||||||||||
Net expenses | 0.81 | %(g) | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | %(g) | |||||||||||||||
Waiver/Reimbursement | 0.28 | %(g) | 0.22 | % | 0.14 | % | 0.12 | % | 0.09 | % | 0.36 | %(g) | |||||||||||||||
Net investment income | 0.85 | %(g) | 0.75 | % | 0.60 | % | 0.77 | % | 0.82 | % | 0.66 | %(g) | |||||||||||||||
Portfolio turnover rate | 28 | %(e) | 50 | % | 37 | % | 41 | % | 53 | % | 5 | %(e) | |||||||||||||||
Net assets, end of period (000's) | $ | 27,434 | $ | 31,952 | $ | 33,439 | $ | 36,989 | $ | 40,356 | $ | 21,356 |
(a) The Fund commenced investment operations on May 5, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(e) Not annualized.
(f) Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.
(g) Annualized.
(h) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
43
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | Year Ended October 31, | ||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | 2002 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 4.56 | $ | 11.24 | $ | 11.49 | $ | 8.77 | $ | 8.30 | $ | 6.96 | $ | 8.00 | |||||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||||||
Net investment loss (b) | - | (c) | - | (c) | (0.05 | ) | (0.04 | ) | (0.05 | ) | (0.03 | ) | (0.04 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments and written options | (0.11 | ) | 1.01 | 1.07 | 2.76 | 0.52 | 1.37 | (1.00 | ) | ||||||||||||||||||||||
Total from investment operations | (0.11 | ) | 1.01 | 1.02 | 2.72 | 0.47 | 1.34 | (1.04 | ) | ||||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||||||
From net realized gains | (0.69 | ) | (7.69 | )(j) | (1.27 | ) | - | - | - | - | |||||||||||||||||||||
Net asset value, end of period | $ | 3.76 | $ | 4.56 | $ | 11.24 | $ | 11.49 | $ | 8.77 | $ | 8.30 | $ | 6.96 | |||||||||||||||||
Total return (d)(e) | (4.00 | )%(f) | 21.66 | % | 9.17 | %(g) | 31.01 | % | 5.66 | % | 19.25 | %(f) | (13.00 | )% | |||||||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||||||||||
Net expenses | 0.75 | %(h) | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.78 | %(h)(i) | 0.80 | %(i) | |||||||||||||||||
Waiver/Reimbursement | 0.49 | %(h) | 0.57 | % | 0.23 | % | 0.09 | % | 0.06 | % | 0.06 | %(h) | 0.06 | % | |||||||||||||||||
Net investment loss | (0.13 | )%(h) | (0.01 | ) | (0.45 | )% | (0.37 | )% | (0.49 | )% | (0.50 | )%(h)(i) | (0.45 | )%(i) | |||||||||||||||||
Portfolio turnover rate | 107 | %(f) | 158 | % | 109 | % | 170 | % | 91 | % | 84 | %(f) | 125 | % | |||||||||||||||||
Net assets, end of period (000's) | $ | 11,815 | $ | 12,516 | $ | 8,773 | $ | 38,755 | $ | 50,662 | $ | 73,926 | $ | 54,769 |
(a) The Fund changed its fiscal year end from October 31 to July 31.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Rounds to less than $0.01 per share.
(d) Total return at net asset value assuming all distributions reinvested.
(e) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(f) Not annualized.
(g) Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.
(h) Annualized.
(i) The benefits derived from custody credits had an impact of less than 0.01%.
(j) Capital gain distributions were declared in the current year after significant shareholder redemptions reduced the size of the Fund in the prior year.
See Accompanying Notes to Financial Statements.
44
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | Year Ended October 31, | ||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | 2002 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.60 | $ | 14.63 | $ | 13.76 | $ | 12.17 | $ | 10.33 | $ | 9.32 | $ | 10.42 | |||||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||||||
Net investment income (b) | 0.07 | 0.27 | 0.26 | 0.19 | 0.14 | 0.11 | 0.02 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments, written options, foreign currency and foreign capital gains tax | (1.54 | ) | 2.98 | 2.85 | 1.79 | 1.76 | 0.95 | (1.09 | ) | ||||||||||||||||||||||
Total from investment operations | (1.47 | ) | 3.25 | 3.11 | 1.98 | 1.90 | 1.06 | (1.07 | ) | ||||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||||||
From net investment income | (0.47 | ) | (0.36 | ) | (0.27 | ) | (0.10 | ) | (0.06 | ) | (0.05 | ) | (0.03 | ) | |||||||||||||||||
From net realized gains | (1.65 | ) | (2.92 | ) | (1.97 | ) | (0.29 | ) | - | - | - | ||||||||||||||||||||
Total distributions to shareholders | (2.12 | ) | (3.28 | ) | (2.24 | ) | (0.39 | ) | (0.06 | ) | (0.05 | ) | (0.03 | ) | |||||||||||||||||
Net asset value, end of period | $ | 11.01 | $ | 14.60 | $ | 14.63 | $ | 13.76 | $ | 12.17 | $ | 10.33 | $ | 9.32 | |||||||||||||||||
Total return (c) | (10.90 | )%(d)(e)(f) | 24.77 | %(d)(f) | 24.31 | %(d) | 16.31 | %(d) | 18.40 | %(d) | 11.39 | %(d)(e) | (10.28 | )% | |||||||||||||||||
Ratios to average net assets/Supplemental data: | |||||||||||||||||||||||||||||||
Net expenses before interest expense | 0.75 | %(g) | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.93 | %(g)(h) | 1.31 | %(h) | |||||||||||||||||
Interest expense | - | %(g)(i) | 0.01 | % | 0.01 | % | - | - | - | - | |||||||||||||||||||||
Net expenses | 0.75 | %(g) | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | 0.93 | %(g)(h) | 1.31 | %(h) | |||||||||||||||||
Waiver/Reimbursement | 0.06 | %(g) | 0.07 | % | 0.06 | % | 0.03 | % | 0.05 | % | 0.06 | %(g) | - | ||||||||||||||||||
Net investment income | 0.95 | %(g) | 1.87 | % | 1.84 | % | 1.47 | % | 1.16 | % | 1.50 | %(g)(h) | 0.21 | %(h) | |||||||||||||||||
Portfolio turnover rate | 28 | %(e) | 80 | % | 86 | % | 68 | % | 91 | % | 59 | %(e) | 111 | % | |||||||||||||||||
Net assets, end of period (000's) | $ | 104,300 | $ | 120,314 | $ | 105,738 | $ | 136,144 | $ | 152,251 | $ | 58,488 | $ | 20,616 |
(a) The Fund changed its fiscal year end from October 31 to July 31.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Total return at net asset value assuming all distributions reinvested.
(d) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(e) Not annualized.
(f) Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.
(g) Annualized.
(h) The benefits derived from custody credits had an impact of less than 0.01%.
(i) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
45
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (99.4%) | |||||||||||
Consumer Discretionary (8.7%) | |||||||||||
Automobiles (0.1%) | |||||||||||
Harley-Davidson, Inc. (a) | 5,800 | $ | 235,364 | ||||||||
Diversified Consumer Services (0.4%) | |||||||||||
Apollo Group, Inc., Class A (b) | 8,400 | 669,816 | |||||||||
H&R Block, Inc. (a) | 7,600 | 146,452 | |||||||||
816,268 | |||||||||||
Hotels, Restaurants & Leisure (2.3%) | |||||||||||
Darden Restaurants, Inc. | 48,000 | 1,359,360 | |||||||||
McDonald's Corp. | 43,200 | 2,313,360 | |||||||||
Starbucks Corp. (a)(b) | 2,900 | 54,839 | |||||||||
Wyndham Worldwide Corp. (a) | 20,900 | 492,404 | |||||||||
Yum! Brands, Inc. | 23,400 | 799,344 | |||||||||
5,019,307 | |||||||||||
Internet & Catalog Retail (0.5%) | |||||||||||
Amazon.com, Inc. (b) | 4,000 | 310,800 | |||||||||
Expedia, Inc. (a)(b) | 27,700 | 637,654 | |||||||||
IAC/InterActiveCorp (b) | 3,700 | 95,978 | |||||||||
1,044,432 | |||||||||||
Media (3.5%) | |||||||||||
CBS Corp., Class B | 31,400 | 790,966 | |||||||||
DIRECTV Group, Inc. (b) | 69,100 | 1,560,278 | |||||||||
Gannett Co., Inc. | 31,900 | 1,180,300 | |||||||||
McGraw-Hill Companies, Inc. | 11,200 | 478,912 | |||||||||
New York Times Co., Class A (a) | 11,200 | 187,488 | |||||||||
Omnicom Group, Inc. | 6,300 | 285,831 | |||||||||
Time Warner, Inc. | 53,100 | 835,794 | |||||||||
Viacom, Inc., Class B (b) | 27,400 | 1,062,024 | |||||||||
Walt Disney Co. | 43,000 | 1,286,990 | |||||||||
7,668,583 | |||||||||||
Specialty Retail (1.5%) | |||||||||||
Autozone, Inc. (b) | 3,200 | 386,816 | |||||||||
Best Buy Co., Inc. (a) | 9,400 | 458,814 | |||||||||
Gap, Inc. | 20,100 | 384,312 | |||||||||
Home Depot, Inc. | 26,800 | 821,956 | |||||||||
Lowe's Companies, Inc. | 100 | 2,644 | |||||||||
RadioShack Corp. (a) | 55,500 | 962,925 | |||||||||
Sherwin-Williams Co. (a) | 1,900 | 108,699 | |||||||||
TJX Companies, Inc. | 2,100 | 66,276 | |||||||||
3,192,442 | |||||||||||
Textiles, Apparel & Luxury Goods (0.4%) | |||||||||||
Coach, Inc. (b) | 28,300 | 907,015 | |||||||||
18,883,411 |
See Accompanying Notes to Financial Statements.
46
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Consumer Staples (10.4%) | |||||||||||
Beverages (2.1%) | |||||||||||
Anheuser-Busch Companies, Inc. | 13,300 | $ | 618,716 | ||||||||
Coca-Cola Co. | 32,100 | 1,899,357 | |||||||||
PepsiCo, Inc. | 28,300 | 1,929,777 | |||||||||
4,447,850 | |||||||||||
Food & Staples Retailing (2.9%) | |||||||||||
CVS Caremark Corp. | 67,100 | 2,621,597 | |||||||||
Kroger Co. | 33,800 | 860,210 | |||||||||
SUPERVALU, Inc. (a) | 31,400 | 943,884 | |||||||||
Sysco Corp. | 5,700 | 165,585 | |||||||||
Wal-Mart Stores, Inc. | 33,700 | 1,714,656 | |||||||||
6,305,932 | |||||||||||
Food Products (0.4%) | |||||||||||
Kellogg Co. | 6,500 | 311,350 | |||||||||
Sara Lee Corp. | 31,400 | 441,484 | |||||||||
Tyson Foods, Inc., Class A | 13,600 | 193,800 | |||||||||
946,634 | |||||||||||
Household Products (2.5%) | |||||||||||
Clorox Co. | 3,000 | 183,960 | |||||||||
Colgate-Palmolive Co. | 5,200 | 400,400 | |||||||||
Kimberly-Clark Corp. | 14,900 | 978,185 | |||||||||
Procter & Gamble Co. | 60,000 | 3,957,000 | |||||||||
5,519,545 | |||||||||||
Personal Products (0.2%) | |||||||||||
Estee Lauder Companies, Inc., Class A (a) | 9,800 | 413,560 | |||||||||
Tobacco (2.3%) | |||||||||||
Altria Group, Inc. | 43,100 | 3,267,842 | |||||||||
Reynolds American, Inc. | 26,900 | 1,703,577 | |||||||||
4,971,419 | |||||||||||
22,604,940 | |||||||||||
Energy (12.4%) | |||||||||||
Energy Equipment & Services (1.6%) | |||||||||||
BJ Services Co. (a) | 13,300 | 289,275 | |||||||||
Halliburton Co. | 15,100 | 500,867 | |||||||||
National-Oilwell Varco, Inc. (b) | 22,300 | 1,343,129 | |||||||||
Schlumberger Ltd. | 11,200 | 845,152 | |||||||||
Transocean, Inc. (b) | 3,300 | 404,580 | |||||||||
3,383,003 | |||||||||||
Oil, Gas & Consumable Fuels (10.8%) | |||||||||||
Chevron Corp. | 48,500 | 4,098,250 | |||||||||
ConocoPhillips | 30,300 | 2,433,696 | |||||||||
Exxon Mobil Corp. | 116,700 | 10,082,880 | |||||||||
Marathon Oil Corp. | 44,200 | 2,070,770 | |||||||||
Occidental Petroleum Corp. | 8,300 | 563,321 |
See Accompanying Notes to Financial Statements.
47
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Oil, Gas & Consumable Fuels (continued) | |||||||||||
Sunoco, Inc. | 22,100 | $ | 1,374,620 | ||||||||
Tesoro Corp. (a) | 7,700 | 300,685 | |||||||||
Valero Energy Corp. | 44,500 | 2,633,955 | |||||||||
23,558,177 | |||||||||||
26,941,180 | |||||||||||
Financials (18.0%) | |||||||||||
Capital Markets (4.9%) | |||||||||||
Bear Stearns Companies, Inc. (a) | 4,900 | 442,470 | |||||||||
Charles Schwab Corp. | 28,100 | 626,630 | |||||||||
Franklin Resources, Inc. | 2,200 | 229,306 | |||||||||
Goldman Sachs Group, Inc. | 15,000 | 3,011,550 | |||||||||
Janus Capital Group, Inc. | 25,500 | 688,755 | |||||||||
Lehman Brothers Holdings, Inc. | 22,700 | 1,456,659 | |||||||||
Merrill Lynch & Co., Inc. | 36,400 | 2,052,960 | |||||||||
Morgan Stanley | 42,300 | 2,090,889 | |||||||||
State Street Corp. | 1,300 | 106,756 | |||||||||
10,705,975 | |||||||||||
Commercial Banks (2.1%) | |||||||||||
BB&T Corp. (a) | 4,900 | 177,772 | |||||||||
Comerica, Inc. | 6,200 | 270,444 | |||||||||
Fifth Third Bancorp (a) | 10,100 | 273,710 | |||||||||
KeyCorp | 12,300 | 321,645 | |||||||||
National City Corp. (a) | 8,000 | 142,320 | |||||||||
Regions Financial Corp. | 2,500 | 63,100 | |||||||||
SunTrust Banks, Inc. (a) | 5,800 | 399,910 | |||||||||
U.S. Bancorp | 24,700 | 838,565 | |||||||||
Wachovia Corp. | 13,300 | 517,769 | |||||||||
Wells Fargo & Co. | 42,000 | 1,428,420 | |||||||||
Zions Bancorporation | 2,600 | 142,324 | |||||||||
4,575,979 | |||||||||||
Consumer Finance (0.5%) | |||||||||||
American Express Co. | 20,400 | 1,006,128 | |||||||||
Diversified Financial Services (3.3%) | |||||||||||
CIT Group, Inc. | 5,600 | 156,576 | |||||||||
Citigroup, Inc. | 110,600 | 3,121,132 | |||||||||
JPMorgan Chase & Co. | 83,500 | 3,970,425 | |||||||||
7,248,133 | |||||||||||
Insurance (6.0%) | |||||||||||
ACE Ltd. | 3,000 | 175,020 | |||||||||
Allstate Corp. | 45,100 | 2,222,077 | |||||||||
American International Group, Inc. | 53,400 | 2,945,544 | |||||||||
Chubb Corp. | 8,600 | 445,394 | |||||||||
Genworth Financial, Inc., Class A | 1,300 | 31,642 | |||||||||
Hartford Financial Services Group, Inc. | 8,400 | 678,468 | |||||||||
Lincoln National Corp. | 2,800 | 152,208 | |||||||||
Loews Corp. | 10,200 | 476,238 |
See Accompanying Notes to Financial Statements.
48
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Insurance (continued) | |||||||||||
MetLife, Inc. | 23,000 | $ | 1,356,310 | ||||||||
Principal Financial Group, Inc. | 2,500 | 149,025 | |||||||||
Prudential Financial, Inc. | 14,100 | 1,189,617 | |||||||||
SAFECO Corp. | 24,900 | 1,328,913 | |||||||||
Travelers Companies, Inc. | 30,900 | 1,486,290 | |||||||||
XL Capital Ltd., Class A (a) | 10,400 | 468,000 | |||||||||
13,104,746 | |||||||||||
Real Estate Investment Trusts (REITs) (0.4%) | |||||||||||
General Growth Properties, Inc. | 1,700 | 62,084 | |||||||||
Host Hotels & Resorts, Inc. | 12,000 | 200,880 | |||||||||
Plum Creek Timber Co., Inc. (a) | 3,600 | 150,300 | |||||||||
ProLogis | 3,500 | 207,725 | |||||||||
Simon Property Group, Inc. | 2,900 | 259,202 | |||||||||
880,191 | |||||||||||
Thrifts & Mortgage Finance (0.8%) | |||||||||||
Fannie Mae (a) | 7,000 | 237,020 | |||||||||
Freddie Mac (a) | 21,200 | 644,268 | |||||||||
Washington Mutual, Inc. (a) | 35,900 | 715,128 | |||||||||
1,596,416 | |||||||||||
39,117,568 | |||||||||||
Health Care (12.3%) | |||||||||||
Biotechnology (1.8%) | |||||||||||
Amgen, Inc. (b) | 27,100 | 1,262,589 | |||||||||
Biogen Idec, Inc. (a)(b) | 15,200 | 926,440 | |||||||||
Gilead Sciences, Inc. (b) | 36,000 | 1,644,840 | |||||||||
3,833,869 | |||||||||||
Health Care Equipment & Supplies (1.4%) | |||||||||||
Baxter International, Inc. | 11,500 | 698,510 | |||||||||
Covidien Ltd. | 6,700 | 299,021 | |||||||||
Medtronic, Inc. | 38,600 | 1,797,602 | |||||||||
St. Jude Medical, Inc. (b) | 800 | 32,408 | |||||||||
Zimmer Holdings, Inc. (b) | 4,500 | 352,215 | |||||||||
3,179,756 | |||||||||||
Health Care Providers & Services (3.6%) | |||||||||||
Aetna, Inc. | 17,800 | 948,028 | |||||||||
AmerisourceBergen Corp. | 27,600 | 1,287,540 | |||||||||
CIGNA Corp. | 13,000 | 639,080 | |||||||||
Coventry Health Care, Inc. (b) | 10,500 | 594,090 | |||||||||
Express Scripts, Inc. (b) | 3,900 | 263,211 | |||||||||
Humana, Inc. (b) | 11,600 | 931,480 | |||||||||
Medco Health Solutions, Inc. (b) | 1,600 | 80,128 | |||||||||
UnitedHealth Group, Inc. | 19,600 | 996,464 | |||||||||
WellPoint, Inc. (b) | 27,000 | 2,111,400 | |||||||||
7,851,421 | |||||||||||
Life Sciences Tools & Services (0.0%) | |||||||||||
PerkinElmer, Inc. | 100 | 2,489 |
See Accompanying Notes to Financial Statements.
49
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Pharmaceuticals (5.5%) | |||||||||||
Abbott Laboratories | 20,700 | $ | 1,165,410 | ||||||||
Eli Lilly & Co. | 5,900 | 303,968 | |||||||||
Forest Laboratories, Inc. (b) | 60,300 | 2,398,131 | |||||||||
Johnson & Johnson | 62,900 | 3,979,054 | |||||||||
King Pharmaceuticals, Inc. (a)(b) | 15,200 | 159,448 | |||||||||
Merck & Co., Inc. | 16,000 | 740,480 | |||||||||
Pfizer, Inc. | 140,700 | 3,290,973 | |||||||||
12,037,464 | |||||||||||
26,904,999 | |||||||||||
Industrials (11.7%) | |||||||||||
Aerospace & Defense (5.1%) | |||||||||||
Boeing Co. | 28,100 | 2,337,358 | |||||||||
Honeywell International, Inc. (b) | 30,600 | 1,807,542 | |||||||||
L-3 Communications Holdings, Inc. | 4,900 | 543,067 | |||||||||
Lockheed Martin Corp. | 16,300 | 1,759,096 | |||||||||
Northrop Grumman Corp. | 22,300 | 1,769,728 | |||||||||
Precision Castparts Corp. | 5,100 | 580,380 | |||||||||
Raytheon Co. | 22,100 | 1,439,594 | |||||||||
United Technologies Corp. | 12,700 | 932,307 | |||||||||
11,169,072 | |||||||||||
Air Freight & Logistics (1.0%) | |||||||||||
C.H. Robinson Worldwide, Inc. (a) | 100 | 5,554 | |||||||||
FedEx Corp. | 3,900 | 364,572 | |||||||||
United Parcel Service, Inc., Class B (a) | 23,000 | 1,682,680 | |||||||||
2,052,806 | |||||||||||
Commercial Services & Supplies (0.0%) | |||||||||||
Robert Half International, Inc. (a) | 700 | 19,446 | |||||||||
Construction & Engineering (0.1%) | |||||||||||
Fluor Corp. | 2,200 | 267,674 | |||||||||
Electrical Equipment (1.1%) | |||||||||||
Emerson Electric Co. | 9,200 | 467,728 | |||||||||
Rockwell Automation, Inc. | 35,200 | 2,007,104 | |||||||||
2,474,832 | |||||||||||
Industrial Conglomerates (3.2%) | |||||||||||
3M Co. | 28,300 | 2,254,095 | |||||||||
General Electric Co. | 106,300 | 3,764,083 | |||||||||
Tyco International Ltd. | 24,000 | 944,640 | |||||||||
6,962,818 | |||||||||||
Machinery (1.1%) | |||||||||||
Caterpillar, Inc. | 11,100 | 789,654 | |||||||||
Cummins, Inc. | 8,000 | 386,240 | |||||||||
Danaher Corp. | 600 | 44,670 | |||||||||
ITT Corp. (a) | 8,800 | 522,984 |
See Accompanying Notes to Financial Statements.
50
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Machinery (continued) | |||||||||||
Paccar, Inc. | 100 | $ | 4,692 | ||||||||
Parker Hannifin Corp. (a) | 2,800 | 189,308 | |||||||||
Terex Corp. (b) | 6,700 | 393,692 | |||||||||
2,331,240 | |||||||||||
Trading Companies & Distributors (0.1%) | |||||||||||
W.W. Grainger, Inc. (a) | 1,600 | 127,312 | |||||||||
25,405,200 | |||||||||||
Information Technology (15.8%) | |||||||||||
Communications Equipment (2.3%) | |||||||||||
Cisco Systems, Inc. (b) | 153,000 | 3,748,500 | |||||||||
Juniper Networks, Inc. (b) | 19,400 | 526,710 | |||||||||
QUALCOMM, Inc. | 16,900 | 716,898 | |||||||||
4,992,108 | |||||||||||
Computers & Peripherals (3.6%) | |||||||||||
Apple, Inc. (b) | 9,800 | 1,326,528 | |||||||||
Dell, Inc. (b) | 45,300 | 907,812 | |||||||||
Hewlett-Packard Co. | 45,800 | 2,003,750 | |||||||||
International Business Machines Corp. | 32,000 | 3,434,880 | |||||||||
Lexmark International, Inc., Class A (a)(b) | 3,500 | 126,735 | |||||||||
7,799,705 | |||||||||||
Electronic Equipment & Instruments (0.1%) | |||||||||||
Tyco Electronics Ltd. | 6,200 | 209,622 | |||||||||
Internet Software & Services (1.0%) | |||||||||||
eBay, Inc. (b) | 81,700 | 2,196,913 | |||||||||
IT Services (0.3%) | |||||||||||
Western Union Co. | 32,700 | 732,480 | |||||||||
Semiconductors & Semiconductor Equipment (3.2%) | |||||||||||
Applied Materials, Inc. | 91,400 | 1,637,888 | |||||||||
Intel Corp. | 61,100 | 1,295,320 | |||||||||
Linear Technology Corp. (a) | 2,300 | 63,641 | |||||||||
MEMC Electronic Materials, Inc. (b) | 22,400 | 1,600,704 | |||||||||
National Semiconductor Corp. (a) | 200 | 3,686 | |||||||||
NVIDIA Corp. (b) | 18,600 | 457,374 | |||||||||
Texas Instruments, Inc. | 65,300 | 2,019,729 | |||||||||
7,078,342 | |||||||||||
Software (5.3%) | |||||||||||
Autodesk, Inc. (b) | 25,700 | 1,057,555 | |||||||||
Compuware Corp. (b) | 67,500 | 573,750 | |||||||||
Microsoft Corp. (c) | 208,100 | 6,784,060 | |||||||||
Oracle Corp. (b) | 130,500 | 2,681,775 | |||||||||
Symantec Corp. (b) | 22,000 | 394,460 | |||||||||
11,491,600 | |||||||||||
34,500,770 |
See Accompanying Notes to Financial Statements.
51
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Materials (3.3%) | |||||||||||
Chemicals (1.0%) | |||||||||||
Dow Chemical Co. | 26,700 | $ | 1,032,222 | ||||||||
E.I. Du Pont de Nemours & Co. | 9,900 | 447,282 | |||||||||
Ecolab, Inc. | 7,900 | 381,175 | |||||||||
Monsanto Co. | 2,500 | 281,100 | |||||||||
2,141,779 | |||||||||||
Containers & Packaging (0.3%) | |||||||||||
Ball Corp. | 16,800 | 770,952 | |||||||||
Metals & Mining (1.2%) | |||||||||||
Alcoa, Inc. | 13,000 | 430,300 | |||||||||
Allegheny Technologies, Inc. | 6,900 | 485,760 | |||||||||
Freeport-McMoRan Copper & Gold, Inc. | 3,000 | 267,090 | |||||||||
Nucor Corp. | 24,500 | 1,416,100 | |||||||||
2,599,250 | |||||||||||
Paper & Forest Products (0.8%) | |||||||||||
International Paper Co. (a) | 53,500 | 1,725,375 | |||||||||
7,237,356 | |||||||||||
Telecommunication Services (3.3%) | |||||||||||
Diversified Telecommunication Services (3.0%) | |||||||||||
AT&T, Inc. | 96,500 | 3,714,285 | |||||||||
CenturyTel, Inc. | 1,500 | 55,365 | |||||||||
Embarq Corp. | 4,600 | 208,380 | |||||||||
Qwest Communications International, Inc. (a) | 11,300 | 66,444 | |||||||||
Verizon Communications, Inc. | 64,900 | 2,520,716 | |||||||||
6,565,190 | |||||||||||
Wireless Telecommunication Services (0.3%) | |||||||||||
Sprint Nextel Corp. | 62,600 | 659,178 | |||||||||
7,224,368 | |||||||||||
Utilities (3.5%) | |||||||||||
Electric Utilities (2.2%) | |||||||||||
Duke Energy Corp. | 1,600 | 29,856 | |||||||||
Edison International | 19,700 | 1,027,552 | |||||||||
Exelon Corp. | 3,200 | 243,808 | |||||||||
FirstEnergy Corp. | 31,400 | 2,236,308 | |||||||||
FPL Group, Inc. | 6,200 | 399,776 | |||||||||
Pepco Holdings, Inc. | 28,100 | 715,426 | |||||||||
Progress Energy, Inc. (a) | 200 | 9,034 | |||||||||
4,661,760 | |||||||||||
Gas Utilities (0.0%) | |||||||||||
Questar Corp. | 400 | 20,364 | |||||||||
Independent Power Producers & Energy Traders (0.6%) | |||||||||||
Constellation Energy Group, Inc. | 14,300 | 1,343,628 |
See Accompanying Notes to Financial Statements.
52
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Multi-Utilities (0.7%) | |||||||||||
CenterPoint Energy, Inc. | 22,100 | $ | 353,821 | ||||||||
NiSource, Inc. (a) | 100 | 1,899 | |||||||||
PG&E Corp. (a) | 1,200 | 49,248 | |||||||||
Public Service Enterprise Group, Inc. | 12,100 | 1,161,600 | |||||||||
1,566,568 | |||||||||||
7,592,320 | |||||||||||
Total Common Stocks (Cost of $212,902,103) | 216,412,112 | ||||||||||
Securities Lending Collateral (6.5%) | |||||||||||
State Street Navigator Securities Lending Prime Portfolio (d) (7 day yield of 4.147%) | 14,118,738 | 14,118,738 | |||||||||
Total Securities Lending Collateral (Cost of $14,118,738) | 14,118,738 | ||||||||||
Par | |||||||||||
Short-Term Obligation (0.5%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08, at 2.740%, collateralized by a U.S. Treasury Obligation maturing 10/05/22, market value $1,192,725 (repurchase proceeds $1,168,089) | $ | 1,168,000 | 1,168,000 | ||||||||
Total Short-Term Obligation (Cost of $1,168,000) | 1,168,000 | ||||||||||
Total Investments (106.4%) (Cost of $228,188,841) (e) | 231,698,850 | ||||||||||
Other Assets & Liabilities, Net (-6.4%) | (13,918,743 | ) | |||||||||
Net Assets (100.0%) | $ | 217,780,107 |
Notes to Schedule of Investments:
(a) All or a portion of this security was on loan at January 31, 2008. The total market value of securities on loan at January 31, 2008 is $14,135,911.
(b) Non-income producing security.
(c) A portion of this security is pledged as collateral for open futures contracts. At January 31, 2008, the total market value of the security pledged amounted to $1,108,400.
(d) Investment made with cash collateral received from securities lending activity.
(e) Cost for federal income tax purposes is $228,188,841.
See Accompanying Notes to Financial Statements.
53
CMG ENHANCED S&P 500® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the Fund held the following open long futures contracts:
Type | Number of Contracts | Value | Aggregate Face Value | Expiration Date | Unrealized Depreciation | ||||||||||||||||||
S&P 500 Index | 4 | $ | 1,379,600 | $ | 1,404,019 | Mar-2008 | $ | (24,419 | ) |
At January 31, 2008, the Fund held investments in the following sectors:
Sector | % of Net Assets | ||||||
Financials | 18.0 | ||||||
Information Technology | 15.8 | ||||||
Energy | 12.4 | ||||||
Health Care | 12.3 | ||||||
Industrials | 11.7 | ||||||
Consumer Staples | 10.4 | ||||||
Consumer Discretionary | 8.7 | ||||||
Utilities | 3.5 | ||||||
Materials | 3.3 | ||||||
Telecommunication Services | 3.3 | ||||||
99.4 | |||||||
Securities Lending Collateral | 6.5 | ||||||
Short-Term Obligation | 0.5 | ||||||
Other Assets & Liabilities, Net | (6.4 | ) | |||||
100.0 |
See Accompanying Notes to Financial Statements.
54
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (95.3%) | |||||||||||
Consumer Discretionary (11.1%) | |||||||||||
Diversified Consumer Services (1.6%) | |||||||||||
Apollo Group, Inc., Class A (a)(b) | 5,840 | $ | 465,682 | ||||||||
DeVry, Inc. (b) | 6,849 | 377,996 | |||||||||
843,678 | |||||||||||
Hotels, Restaurants & Leisure (0.8%) | |||||||||||
Las Vegas Sands Corp. (a)(b) | 4,718 | 413,627 | |||||||||
Household Durables (1.0%) | |||||||||||
Sony Corp., ADR | 10,680 | 507,193 | |||||||||
Internet & Catalog Retail (0.7%) | |||||||||||
Amazon.com, Inc. (a)(b) | 4,650 | 361,305 | |||||||||
Media (1.6%) | |||||||||||
Viacom, Inc., Class B (a) | 20,470 | 793,417 | |||||||||
Multiline Retail (0.5%) | |||||||||||
Nordstrom, Inc. (b) | 7,070 | 275,023 | |||||||||
Specialty Retail (4.1%) | |||||||||||
Abercrombie & Fitch Co., Class A | 4,650 | 370,559 | |||||||||
Best Buy Co., Inc. (b) | 9,860 | 481,267 | |||||||||
GameStop Corp., Class A (a)(b) | 10,750 | 556,097 | |||||||||
OfficeMax, Inc. (b) | 15,270 | 378,238 | |||||||||
Urban Outfitters, Inc. (a)(b) | 11,860 | 343,940 | |||||||||
2,130,101 | |||||||||||
Textiles, Apparel & Luxury Goods (0.8%) | |||||||||||
NIKE, Inc., Class B | 6,690 | 413,174 | |||||||||
5,737,518 | |||||||||||
Consumer Staples (10.2%) | |||||||||||
Beverages (3.8%) | |||||||||||
Coca-Cola Co. | 17,080 | 1,010,624 | |||||||||
Molson Coors Brewing Co., Class B (b) | 4,950 | 221,116 | |||||||||
PepsiCo, Inc. | 10,230 | 697,584 | |||||||||
1,929,324 | |||||||||||
Food & Staples Retailing (2.8%) | |||||||||||
Costco Wholesale Corp. (b) | 5,110 | 347,173 | |||||||||
Wal-Mart Stores, Inc. (b) | 21,930 | 1,115,799 | |||||||||
1,462,972 | |||||||||||
Household Products (0.8%) | |||||||||||
Colgate-Palmolive Co. | 5,540 | 426,580 |
See Accompanying Notes to Financial Statements.
55
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Personal Products (1.1%) | |||||||||||
Avon Products, Inc. (b) | 16,220 | $ | 568,024 | ||||||||
Tobacco (1.7%) | |||||||||||
Altria Group, Inc. | 11,210 | 849,942 | |||||||||
5,236,842 | |||||||||||
Energy (8.2%) | |||||||||||
Energy Equipment & Services (4.0%) | |||||||||||
Exterran Holdings, Inc. (a)(b) | 2,850 | 185,934 | |||||||||
Halliburton Co. (b) | 18,770 | 622,601 | |||||||||
Schlumberger Ltd. | 5,440 | 410,502 | |||||||||
Transocean, Inc. (a) | 4,715 | 578,059 | |||||||||
Weatherford International Ltd. (a) | 4,100 | 253,421 | |||||||||
2,050,517 | |||||||||||
Oil, Gas & Consumable Fuels (4.2%) | |||||||||||
CONSOL Energy, Inc. (b) | 4,550 | 332,150 | |||||||||
Devon Energy Corp. | 5,430 | 461,441 | |||||||||
Hess Corp. (b) | 3,980 | 361,503 | |||||||||
Southwestern Energy Co. (a)(b) | 8,350 | 466,849 | |||||||||
XTO Energy, Inc. (b) | 11,124 | 577,781 | |||||||||
2,199,724 | |||||||||||
4,250,241 | |||||||||||
Financials (6.3%) | |||||||||||
Capital Markets (3.6%) | |||||||||||
Goldman Sachs Group, Inc. (b) | 3,750 | 752,887 | |||||||||
Lazard Ltd., Class A (b) | 8,790 | 347,381 | |||||||||
Merrill Lynch & Co., Inc. | 8,480 | 478,272 | |||||||||
TD Ameritrade Holding Corp. (a)(b) | 14,480 | 271,645 | |||||||||
1,850,185 | |||||||||||
Diversified Financial Services (1.2%) | |||||||||||
CME Group, Inc. (b) | 1,020 | 631,278 | |||||||||
Insurance (1.5%) | |||||||||||
Aon Corp. (b) | 9,570 | 416,487 | |||||||||
Assurant, Inc. (b) | 5,070 | 328,992 | |||||||||
745,479 | |||||||||||
3,226,942 | |||||||||||
Health Care (17.1%) | |||||||||||
Biotechnology (3.3%) | |||||||||||
BioMarin Pharmaceuticals, Inc. (a)(b) | 9,230 | 342,064 | |||||||||
Genentech, Inc. (a)(b) | 5,230 | 367,094 | |||||||||
Genzyme Corp. (a) | 5,420 | 423,464 | |||||||||
Gilead Sciences, Inc. (a) | 12,850 | 587,116 | |||||||||
1,719,738 |
See Accompanying Notes to Financial Statements.
56
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Health Care Equipment & Supplies (4.1%) | |||||||||||
Baxter International, Inc. | 12,480 | $ | 758,035 | ||||||||
Covidien Ltd. | 6,580 | 293,666 | |||||||||
Hologic, Inc. (a)(b) | 6,952 | 447,431 | |||||||||
Zimmer Holdings, Inc. (a) | 7,890 | 617,550 | |||||||||
2,116,682 | |||||||||||
Health Care Providers & Services (4.3%) | |||||||||||
CIGNA Corp. | 12,030 | 591,395 | |||||||||
Coventry Health Care, Inc. (a) | 6,980 | 394,928 | |||||||||
Express Scripts, Inc. (a)(b) | 9,050 | 610,785 | |||||||||
McKesson Corp. | 10,270 | 644,853 | |||||||||
2,241,961 | |||||||||||
Life Sciences Tools & Services (1.6%) | |||||||||||
Thermo Fisher Scientific, Inc. (a)(b) | 9,430 | 485,551 | |||||||||
Waters Corp. (a)(b) | 5,600 | 321,720 | |||||||||
807,271 | |||||||||||
Pharmaceuticals (3.8%) | |||||||||||
Allergan, Inc. (b) | 6,110 | 410,531 | |||||||||
Bristol-Myers Squibb Co. | 19,990 | 463,568 | |||||||||
Johnson & Johnson | 7,290 | 461,165 | |||||||||
Merck & Co., Inc. | 13,180 | 609,971 | |||||||||
1,945,235 | |||||||||||
8,830,887 | |||||||||||
Industrials (11.2%) | |||||||||||
Aerospace & Defense (4.8%) | |||||||||||
Goodrich Corp. | 3,280 | 205,164 | |||||||||
Honeywell International, Inc. | 10,400 | 614,328 | |||||||||
Raytheon Co. (b) | 12,040 | 784,286 | |||||||||
United Technologies Corp. | 11,600 | 851,556 | |||||||||
2,455,334 | |||||||||||
Construction & Engineering (0.6%) | |||||||||||
Quanta Services, Inc. (a)(b) | 14,240 | 312,141 | |||||||||
Electrical Equipment (1.1%) | |||||||||||
First Solar, Inc. (a)(b) | 1,808 | 328,640 | |||||||||
Suntech Power Holdings Co., Ltd., ADR (a)(b) | 4,400 | 240,812 | |||||||||
569,452 | |||||||||||
Industrial Conglomerates (2.4%) | |||||||||||
General Electric Co. | 23,920 | 847,007 | |||||||||
McDermott International, Inc. (a) | 8,800 | 415,184 | |||||||||
1,262,191 | |||||||||||
Machinery (1.0%) | |||||||||||
Joy Global, Inc. (b) | 8,590 | 541,599 | |||||||||
Road & Rail (1.3%) | |||||||||||
Union Pacific Corp. (b) | 5,160 | 645,155 | |||||||||
5,785,872 |
See Accompanying Notes to Financial Statements.
57
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Information Technology (24.6%) | |||||||||||
Communications Equipment (5.5%) | |||||||||||
Cisco Systems, Inc. (a) | 52,710 | $ | 1,291,395 | ||||||||
Corning, Inc. | 28,960 | 697,067 | |||||||||
QUALCOMM, Inc. | 16,590 | 703,748 | |||||||||
Riverbed Technology, Inc. (a)(b) | 5,920 | 132,312 | |||||||||
2,824,522 | |||||||||||
Computers & Peripherals (7.0%) | |||||||||||
Apple, Inc. (a) | 8,080 | 1,093,709 | |||||||||
EMC Corp. (a)(b) | 38,360 | 608,773 | |||||||||
Hewlett-Packard Co. (b) | 23,560 | 1,030,750 | |||||||||
International Business Machines Corp. | 8,350 | 896,289 | |||||||||
3,629,521 | |||||||||||
Internet Software & Services (2.9%) | |||||||||||
DealerTrack Holdings, Inc. (a)(b) | 4,679 | 126,146 | |||||||||
Google, Inc., Class A (a) | 2,448 | 1,381,406 | |||||||||
1,507,552 | |||||||||||
IT Services (0.5%) | |||||||||||
DST Systems, Inc. (a)(b) | 3,350 | 239,525 | |||||||||
Semiconductors & Semiconductor Equipment (1.7%) | |||||||||||
Intel Corp. | 39,970 | 847,364 | |||||||||
Software (7.0%) | |||||||||||
Adobe Systems, Inc. (a) | 7,030 | 245,558 | |||||||||
Electronic Arts, Inc. (a)(b) | 10,360 | 490,753 | |||||||||
Microsoft Corp. | 58,500 | 1,907,100 | |||||||||
Oracle Corp. (a) | 36,080 | 741,444 | |||||||||
Salesforce.com, Inc. (a)(b) | 4,350 | 227,418 | |||||||||
3,612,273 | |||||||||||
12,660,757 | |||||||||||
Materials (3.9%) | |||||||||||
Chemicals (3.3%) | |||||||||||
Monsanto Co. (b) | 7,928 | 891,424 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 1,880 | 264,855 | |||||||||
Praxair, Inc. | 6,620 | 535,624 | |||||||||
1,691,903 | |||||||||||
Metals & Mining (0.6%) | |||||||||||
Freeport-McMoRan Copper & Gold, Inc. | 3,400 | 302,702 | |||||||||
1,994,605 | |||||||||||
Telecommunication Services (1.4%) | |||||||||||
Diversified Telecommunication Services (0.5%) | |||||||||||
Time Warner Telecom, Inc., Class A (a)(b) | 15,498 | 270,905 | |||||||||
Wireless Telecommunication Services (0.9%) | |||||||||||
American Tower Corp., Class A (a)(b) | 11,750 | 440,978 | |||||||||
711,883 |
See Accompanying Notes to Financial Statements.
58
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Utilities (1.3%) | |||||||||||
Electric Utilities (1.3%) | |||||||||||
Entergy Corp. (b) | 6,020 | $ | 651,244 | ||||||||
Total Common Stocks (Cost of $45,947,045) | 49,086,791 | ||||||||||
Securities Lending Collateral (25.6%) | |||||||||||
State Street Navigator Securities Lending Prime Portfolio (c) | |||||||||||
(7 day yield of 4.147%) | 13,166,178 | 13,166,178 | |||||||||
Total Securities Lending Collateral (Cost of $13,166,178) | 13,166,178 | ||||||||||
Par | |||||||||||
Short-Term Obligation (3.9%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08, at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/17, market value of $2,062,500 (repurchase proceeds $2,020,096) | $ | 2,020,000 | 2,020,000 | ||||||||
Total Short-Term Obligation (Cost of $2,020,000) | 2,020,000 | ||||||||||
Total Investments (124.8%) (Cost of $61,133,223) (d) | 64,272,969 | ||||||||||
Other Assets & Liabilities, Net (-24.8%) | (12,750,025 | ) | |||||||||
Net Assets (100.0%) | $ | 51,522,944 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was on loan at January 31, 2008. The total market value of securities on loan at January 31, 2008 is $12,996,052.
(c) Investment made with cash collateral received from securities lending activity.
(d) Cost for federal income tax purposes is $61,133,223.
See Accompanying Notes to Financial Statements.
59
CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the Fund held investments in the following sectors:
Sector | % of Net Assets | ||||||
Information Technology | 24.6 | ||||||
Health Care | 17.1 | ||||||
Industrials | 11.2 | ||||||
Consumer Discretionary | 11.1 | ||||||
Consumer Staples | 10.2 | ||||||
Energy | 8.2 | ||||||
Financials | 6.3 | ||||||
Materials | 3.9 | ||||||
Telecommunication Services | 1.4 | ||||||
Utilities | 1.3 | ||||||
95.3 | |||||||
Securities Lending Collateral | 25.6 | ||||||
Short-Term Obligation | 3.9 | ||||||
Other Assets & Liabilities, Net | (24.8 | ) | |||||
100.0 |
Acronym | Name | ||||||
ADR | American Depositary Receipt |
See Accompanying Notes to Financial Statements.
60
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (97.3%) | |||||||||||
Consumer Discretionary (5.4%) | |||||||||||
Automobiles (0.2%) | |||||||||||
General Motors Corp. (a)(b) | 3,100 | $ | 87,761 | ||||||||
Hotels, Restaurants & Leisure (0.9%) | |||||||||||
McDonald's Corp. (a) | 6,666 | 356,964 | |||||||||
Household Durables (1.6%) | |||||||||||
Newell Rubbermaid, Inc. | 10,566 | 254,852 | |||||||||
Sony Corp., ADR | 8,400 | 398,916 | |||||||||
653,768 | |||||||||||
Multiline Retail (1.8%) | |||||||||||
J.C. Penney Co., Inc. (a) | 6,800 | 322,388 | |||||||||
Macy's, Inc. (a) | 14,900 | 411,836 | |||||||||
734,224 | |||||||||||
Textiles, Apparel & Luxury Goods (0.9%) | |||||||||||
V.F. Corp. (a) | 4,500 | 348,165 | |||||||||
2,180,882 | |||||||||||
Consumer Staples (9.7%) | |||||||||||
Beverages (1.0%) | |||||||||||
Diageo PLC, ADR | 4,799 | 387,327 | |||||||||
Food & Staples Retailing (0.9%) | |||||||||||
Sysco Corp. (a) | 12,400 | 360,220 | |||||||||
Food Products (1.5%) | |||||||||||
ConAgra Foods, Inc. | 24,200 | 521,026 | |||||||||
Smithfield Foods, Inc. (b) | 3,800 | 105,830 | |||||||||
626,856 | |||||||||||
Household Products (0.6%) | |||||||||||
Colgate-Palmolive Co. | 3,200 | 246,400 | |||||||||
Personal Products (0.8%) | |||||||||||
Avon Products, Inc. (a) | 9,900 | 346,698 | |||||||||
Tobacco (4.9%) | |||||||||||
Altria Group, Inc. | 10,629 | 805,891 | |||||||||
Loews Corp. - Carolina Group (a) | 14,100 | 1,158,033 | |||||||||
1,963,924 | |||||||||||
3,931,425 | |||||||||||
Energy (15.4%) | |||||||||||
Energy Equipment & Services (1.5%) | |||||||||||
Halliburton Co. (a) | 8,554 | 283,736 | |||||||||
Weatherford International Ltd. (b) | 5,100 | 315,231 | |||||||||
598,967 |
See Accompanying Notes to Financial Statements.
61
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Oil, Gas & Consumable Fuels (13.9%) | |||||||||||
ConocoPhillips | 10,507 | $ | 843,922 | ||||||||
Exxon Mobil Corp. | 22,935 | 1,981,584 | |||||||||
Hess Corp. (a) | 8,100 | 735,723 | |||||||||
Newfield Exploration Co. (a)(b) | 7,000 | 349,160 | |||||||||
Occidental Petroleum Corp. | 14,700 | 997,689 | |||||||||
Valero Energy Corp. | 5,075 | 300,390 | |||||||||
XTO Energy, Inc. | 7,799 | 405,080 | |||||||||
5,613,548 | |||||||||||
6,212,515 | |||||||||||
Financials (29.0%) | |||||||||||
Capital Markets (3.4%) | |||||||||||
Goldman Sachs Group, Inc. | 2,000 | 401,540 | |||||||||
Merrill Lynch & Co., Inc. (a) | 6,800 | 383,520 | |||||||||
Morgan Stanley | 5,400 | 266,922 | |||||||||
State Street Corp. (a) | 3,700 | 303,844 | |||||||||
1,355,826 | |||||||||||
Commercial Banks (9.2%) | |||||||||||
Marshall & Ilsley Corp. (a) | 9,720 | 271,188 | |||||||||
PNC Financial Services Group, Inc. | 7,100 | 465,902 | |||||||||
U.S. Bancorp (a) | 28,646 | 972,532 | |||||||||
Wachovia Corp. | 22,822 | 888,460 | |||||||||
Wells Fargo & Co. (a) | 33,056 | 1,124,235 | |||||||||
3,722,317 | |||||||||||
Diversified Financial Services (6.2%) | |||||||||||
Citigroup, Inc. (a) | 24,585 | 693,789 | |||||||||
JPMorgan Chase & Co. | 38,400 | 1,825,920 | |||||||||
2,519,709 | |||||||||||
Insurance (6.9%) | |||||||||||
ACE Ltd. | 13,800 | 805,092 | |||||||||
American International Group, Inc. (a) | 10,751 | 593,025 | |||||||||
Hartford Financial Services Group, Inc. (a) | 5,055 | 408,292 | |||||||||
Loews Corp. | 12,800 | 597,632 | |||||||||
Prudential Financial, Inc. (a) | 4,600 | 388,102 | |||||||||
2,792,143 | |||||||||||
Real Estate Investment Trusts (REITs) (2.1%) | |||||||||||
General Growth Properties, Inc. (a) | 7,600 | 277,552 | |||||||||
Plum Creek Timber Co., Inc. (a) | 8,900 | 371,575 | |||||||||
Rayonier, Inc. (a) | 4,700 | 198,904 | |||||||||
848,031 | |||||||||||
Thrifts & Mortgage Finance (1.2%) | |||||||||||
Fannie Mae (a) | 6,200 | 209,932 | |||||||||
Freddie Mac | 8,400 | 255,276 | |||||||||
465,208 | |||||||||||
11,703,234 |
See Accompanying Notes to Financial Statements.
62
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Health Care (6.2%) | |||||||||||
Health Care Providers & Services (0.9%) | |||||||||||
CIGNA Corp. | 7,631 | $ | 375,140 | ||||||||
Life Sciences Tools & Services (0.9%) | |||||||||||
Thermo Fisher Scientific, Inc. (a)(b) | 7,200 | 370,728 | |||||||||
Pharmaceuticals (4.4%) | |||||||||||
Johnson & Johnson | 15,200 | 961,552 | |||||||||
Merck & Co., Inc. | 13,200 | 610,896 | |||||||||
Schering-Plough Corp. (a) | 9,100 | 178,087 | |||||||||
1,750,535 | |||||||||||
2,496,403 | |||||||||||
Industrials (9.6%) | |||||||||||
Aerospace & Defense (4.5%) | |||||||||||
Goodrich Corp. (a) | 8,200 | 512,910 | |||||||||
L-3 Communications Holdings, Inc. (a) | 3,900 | 432,237 | |||||||||
United Technologies Corp. | 12,196 | 895,308 | |||||||||
1,840,455 | |||||||||||
Electrical Equipment (0.6%) | |||||||||||
ABB Ltd., ADR | 9,197 | 229,925 | |||||||||
Industrial Conglomerates (3.8%) | |||||||||||
General Electric Co. | 40,092 | 1,419,658 | |||||||||
McDermott International, Inc. (b) | 2,200 | 103,796 | |||||||||
1,523,454 | |||||||||||
Machinery (0.7%) | |||||||||||
Eaton Corp. (a) | 3,600 | 297,936 | |||||||||
3,891,770 | |||||||||||
Information Technology (7.3%) | |||||||||||
Computers & Peripherals (2.6%) | |||||||||||
EMC Corp. (a)(b) | 19,400 | 307,878 | |||||||||
Hewlett-Packard Co. | 16,800 | 735,000 | |||||||||
1,042,878 | |||||||||||
Electronic Equipment & Instruments (0.9%) | |||||||||||
Agilent Technologies, Inc. (a)(b) | 10,800 | 366,228 | |||||||||
Semiconductors & Semiconductor Equipment (2.8%) | |||||||||||
Intel Corp. | 16,100 | 341,320 | |||||||||
Intersil Corp., Class A (a) | 9,700 | 223,391 | |||||||||
Microchip Technology, Inc. (a) | 3,800 | 121,258 | |||||||||
NVIDIA Corp. (a)(b) | 6,250 | 153,688 | |||||||||
Texas Instruments, Inc. | 9,300 | 287,649 | |||||||||
1,127,306 |
See Accompanying Notes to Financial Statements.
63
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Software (1.0%) | |||||||||||
BMC Software, Inc. (b) | 5,900 | $ | 189,036 | ||||||||
Electronic Arts, Inc. (a)(b) | 4,900 | 232,113 | |||||||||
421,149 | |||||||||||
2,957,561 | |||||||||||
Materials (3.7%) | |||||||||||
Chemicals (0.5%) | |||||||||||
E.I. Du Pont de Nemours & Co. (a) | 4,500 | 203,310 | |||||||||
Metals & Mining (2.1%) | |||||||||||
Alcoa, Inc. | 12,700 | 420,370 | |||||||||
Freeport-McMoRan Copper & Gold, Inc. (a) | 2,400 | 213,672 | |||||||||
Nucor Corp. (a) | 3,700 | 213,860 | |||||||||
847,902 | |||||||||||
Paper & Forest Products (1.1%) | |||||||||||
Weyerhaeuser Co. (a) | 6,400 | 433,408 | |||||||||
1,484,620 | |||||||||||
Telecommunication Services (5.0%) | |||||||||||
Diversified Telecommunication Services (5.0%) | |||||||||||
AT&T, Inc. | 42,057 | 1,618,774 | |||||||||
Verizon Communications, Inc. | 10,170 | 395,003 | |||||||||
2,013,777 | |||||||||||
Utilities (6.0%) | |||||||||||
Electric Utilities (3.4%) | |||||||||||
Entergy Corp. (a) | 2,273 | 245,893 | |||||||||
Exelon Corp. (a) | 5,300 | 403,807 | |||||||||
FPL Group, Inc. (a) | 8,300 | 535,184 | |||||||||
PPL Corp. | 4,300 | 210,356 | |||||||||
1,395,240 | |||||||||||
Independent Power Producers & Energy Traders (0.8%) | |||||||||||
Mirant Corp. (b) | 8,300 | 305,772 | |||||||||
Multi-Utilities (1.8%) | |||||||||||
PG&E Corp. (a) | 7,033 | 288,634 | |||||||||
Public Service Enterprise Group, Inc. | 4,493 | 431,328 | |||||||||
719,962 | |||||||||||
2,420,974 | |||||||||||
Total Common Stocks (Cost of $36,536,654) | 39,293,161 | ||||||||||
Convertible Preferred Stock (0.4%) | |||||||||||
Health Care (0.4%) | |||||||||||
Pharmaceuticals (0.4%) | |||||||||||
Schering-Plough Corp., 6.000% | 800 | 153,272 | |||||||||
Total Convertible Preferred Stock (Cost of $212,152) | 153,272 |
See Accompanying Notes to Financial Statements.
64
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Securities Lending Collateral (27.9%) | |||||||||||
State Street Navigator Securities Lending Prime Portfolio (c) | |||||||||||
(7 day yield of 4.147%) | 11,283,962 | $ | 11,283,962 | ||||||||
Total Securities Lending Collateral (Cost of $11,283,962) | 11,283,962 | ||||||||||
Par | |||||||||||
Short-Term Obligation (1.5%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/17, market value of $605,000 (repurchase proceeds $590,028) | $ | 590,000 | 590,000 | ||||||||
Total Short-Term Obligation (Cost of $590,000) | 590,000 | ||||||||||
Total Investments (127.1%) (Cost of $48,622,768) (d) | 51,320,395 | ||||||||||
Other Assets & Liabilities, Net (-27.1%) | (10,941,745 | ) | |||||||||
Net Assets (100.0%) | $ | 40,378,650 |
Notes to Schedule of Investments:
(a) All or a portion of this security was on loan at January 31, 2008. The total market value of securities on loan at January 31, 2008 is $11,230,263.
(b) Non-income producing security.
(c) Investment made with cash collateral received from securities lending activity.
(d) Cost for federal income tax purposes is $48,622,768.
For the six months ended January 31, 2008, transactions in written option contracts were as follows:
Number of contracts | Premium received | ||||||||||
Options outstanding at July 31, 2007 | - | $ | - | ||||||||
Options written | 102 | 28,108 | |||||||||
Options terminated in closing purchase transactions | - | - | |||||||||
Options exercised | (23 | ) | (5,159 | ) | |||||||
Options expired | (37 | ) | (6,075 | ) | |||||||
Options bought back | (42 | ) | (16,874 | ) | |||||||
Options outstanding at January 31, 2008 | - | $ | - |
See Accompanying Notes to Financial Statements.
65
CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the Fund held investments in the following sectors:
Sector | % of Net Assets | ||||||
Financials | 29.0 | ||||||
Energy | 15.4 | ||||||
Consumer Staples | 9.7 | ||||||
Industrials | 9.6 | ||||||
Information Technology | 7.3 | ||||||
Health Care | 6.6 | ||||||
Utilities | 6.0 | ||||||
Consumer Discretionary | 5.4 | ||||||
Telecommunication Services | 5.0 | ||||||
Materials | 3.7 | ||||||
97.7 | |||||||
Securities Lending Collateral | 27.9 | ||||||
Short-Term Obligation | 1.5 | ||||||
Other Assets & Liabilities, Net | (27.1 | ) | |||||
100.0 |
Acronym | Name | ||||||
ADR | American Depositary Receipt |
See Accompanying Notes to Financial Statements.
66
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (97.3%) | |||||||||||
Consumer Discretionary (13.5%) | |||||||||||
Automobiles (0.4%) | |||||||||||
Harley-Davidson, Inc. | 2,460 | $ | 99,827 | ||||||||
Diversified Consumer Services (0.9%) | |||||||||||
Apollo Group, Inc., Class A (a) | 1,630 | 129,976 | |||||||||
DeVry, Inc. | 1,810 | 99,894 | |||||||||
229,870 | |||||||||||
Hotels, Restaurants & Leisure (3.8%) | |||||||||||
Burger King Holdings, Inc. | 4,810 | 126,744 | |||||||||
Ctrip.com International Ltd., ADR | 2,861 | 130,633 | |||||||||
International Game Technology, Inc. | 3,720 | 158,733 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 2,340 | 105,885 | |||||||||
WMS Industries, Inc. (a) | 3,360 | 125,664 | |||||||||
Wynn Resorts Ltd. (a) | 1,180 | 135,676 | |||||||||
Yum! Brands, Inc. | 4,950 | 169,092 | |||||||||
952,427 | |||||||||||
Household Durables (0.3%) | |||||||||||
Garmin Ltd. | 1,130 | 81,530 | |||||||||
Media (1.5%) | |||||||||||
Central European Media Enterprises Ltd., Class A (a) | 1,020 | 96,686 | |||||||||
DISH Network Corp., Class A (a) | 2,510 | 70,882 | |||||||||
Lamar Advertising Co., Class A (a) | 2,350 | 101,332 | |||||||||
Liberty Global, Inc., Class A (a) | 2,630 | 106,278 | |||||||||
375,178 | |||||||||||
Multiline Retail (1.2%) | |||||||||||
J.C. Penney Co., Inc. | 2,150 | 101,932 | |||||||||
Nordstrom, Inc. | 4,670 | 181,663 | |||||||||
283,595 | |||||||||||
Specialty Retail (3.1%) | |||||||||||
Advance Auto Parts, Inc. | 3,560 | 127,021 | |||||||||
GameStop Corp., Class A (a) | 2,820 | 145,878 | |||||||||
TJX Companies, Inc. | 6,180 | 195,041 | |||||||||
Urban Outfitters, Inc. (a) | 10,450 | 303,050 | |||||||||
770,990 | |||||||||||
Textiles, Apparel & Luxury Goods (2.3%) | |||||||||||
Coach, Inc. (a) | 4,490 | 143,904 | |||||||||
CROCS, Inc. (a) | 4,890 | 170,123 | |||||||||
NIKE, Inc., Class B | 2,020 | 124,755 | |||||||||
Phillips-Van Heusen Corp. | 3,190 | 134,427 | |||||||||
573,209 | |||||||||||
3,366,626 |
See Accompanying Notes to Financial Statements.
67
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Consumer Staples (4.3%) | |||||||||||
Beverages (0.8%) | |||||||||||
Hansen Natural Corp. (a) | 2,380 | $ | 91,773 | ||||||||
Pepsi Bottling Group, Inc. | 3,170 | 110,474 | |||||||||
202,247 | |||||||||||
Food & Staples Retailing (0.7%) | |||||||||||
Kroger Co. | 6,360 | 161,862 | |||||||||
Food Products (1.6%) | |||||||||||
Bunge Ltd. | 1,090 | 129,132 | |||||||||
H.J. Heinz Co. | 3,060 | 130,234 | |||||||||
Wm. Wrigley Jr. Co. | 2,420 | 138,981 | |||||||||
398,347 | |||||||||||
Personal Products (0.6%) | |||||||||||
Avon Products, Inc. | 4,620 | 161,792 | |||||||||
Tobacco (0.6%) | |||||||||||
Loews Corp. - Carolina Group | 1,830 | 150,298 | |||||||||
1,074,546 | |||||||||||
Energy (12.3%) | |||||||||||
Energy Equipment & Services (5.8%) | |||||||||||
Cameron International Corp. (a) | 4,010 | 161,443 | |||||||||
Diamond Offshore Drilling, Inc. | 3,200 | 361,376 | |||||||||
FMC Technologies, Inc. (a) | 2,920 | 140,627 | |||||||||
National-Oilwell Varco, Inc. (a) | 5,230 | 315,003 | |||||||||
Noble Corp. | 2,760 | 120,805 | |||||||||
Oceaneering International, Inc. (a) | 2,040 | 117,463 | |||||||||
Weatherford International Ltd. (a) | 3,850 | 237,968 | |||||||||
1,454,685 | |||||||||||
Oil, Gas & Consumable Fuels (6.5%) | |||||||||||
Chesapeake Energy Corp. | 3,240 | 120,625 | |||||||||
Concho Resources, Inc. (a) | 5,965 | 121,090 | |||||||||
CONSOL Energy, Inc. | 2,490 | 181,770 | |||||||||
Continental Resources, Inc. (a) | 10,639 | 265,018 | |||||||||
Denbury Resources, Inc. (a) | 9,820 | 248,446 | |||||||||
Frontier Oil Corp. | 3,640 | 128,383 | |||||||||
Peabody Energy Corp. | 3,530 | 190,691 | |||||||||
Range Resources Corp. | 2,270 | 118,539 | |||||||||
Southwestern Energy Co. (a) | 2,739 | 153,137 | |||||||||
Williams Companies, Inc. | 3,120 | 99,746 | |||||||||
1,627,445 | |||||||||||
3,082,130 |
See Accompanying Notes to Financial Statements.
68
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Financials (7.6%) | |||||||||||
Capital Markets (3.3%) | |||||||||||
Affiliated Managers Group, Inc. (a) | 1,860 | $ | 182,857 | ||||||||
BlackRock, Inc., | 740 | 163,614 | |||||||||
Janus Capital Group, Inc. | 4,480 | 121,005 | |||||||||
T. Rowe Price Group, Inc. | 3,780 | 191,230 | |||||||||
Waddell & Reed Financial, Inc., Class A | 5,080 | 168,554 | |||||||||
827,260 | |||||||||||
Commercial Banks (0.5%) | |||||||||||
Zions Bancorporation | 2,530 | 138,492 | |||||||||
Diversified Financial Services (1.3%) | |||||||||||
CME Group, Inc. | 210 | 129,969 | |||||||||
IntercontinentalExchange, Inc. (a) | 780 | 109,169 | |||||||||
Nymex Holdings, Inc. | 680 | 78,200 | |||||||||
317,338 | |||||||||||
Real Estate Investment Trusts (REITs) (1.7%) | |||||||||||
Digital Realty Trust, Inc. | 2,925 | 104,510 | |||||||||
Macerich Co. | 1,470 | 100,504 | |||||||||
Plum Creek Timber Co., Inc. | 2,330 | 97,278 | |||||||||
ProLogis | 2,060 | 122,261 | |||||||||
424,553 | |||||||||||
Real Estate Management & Development (0.4%) | |||||||||||
Jones Lang LaSalle, Inc. | 1,320 | 102,696 | |||||||||
Thrifts & Mortgage Finance (0.4%) | |||||||||||
Hudson City Bancorp, Inc. | 6,240 | 102,211 | |||||||||
1,912,550 | |||||||||||
Health Care (15.7%) | |||||||||||
Biotechnology (1.7%) | |||||||||||
Alexion Pharmaceuticals, Inc. (a) | 1,450 | 94,714 | |||||||||
Celgene Corp. (a) | 1,770 | 99,315 | |||||||||
Cephalon, Inc. (a) | 2,070 | 135,854 | |||||||||
PDL BioPharma, Inc. (a) | 6,040 | 90,177 | |||||||||
420,060 | |||||||||||
Health Care Equipment & Supplies (3.8%) | |||||||||||
Beckman Coulter, Inc. | 1,497 | 99,551 | |||||||||
Gen-Probe, Inc. (a) | 1,740 | 99,441 | |||||||||
Hologic, Inc. (a) | 2,904 | 186,901 | |||||||||
Hospira, Inc. (a) | 3,420 | 140,596 | |||||||||
Intuitive Surgical, Inc. (a) | 657 | 166,878 | |||||||||
Mindray Medical International Ltd., ADR | 2,610 | 89,001 | |||||||||
Varian Medical Systems, Inc. (a) | 3,170 | 164,808 | |||||||||
947,176 |
See Accompanying Notes to Financial Statements.
69
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Health Care Providers & Services (5.2%) | |||||||||||
Brookdale Senior Living, Inc. | 3,270 | $ | 72,986 | ||||||||
CIGNA Corp. | 4,430 | 217,779 | |||||||||
Coventry Health Care, Inc. (a) | 2,800 | 158,424 | |||||||||
Express Scripts, Inc. (a) | 3,640 | 245,664 | |||||||||
Laboratory Corp. of America Holdings (a) | 3,590 | 265,229 | |||||||||
McKesson Corp. | 1,600 | 100,464 | |||||||||
Medco Health Solutions, Inc. (a) | 2,580 | 129,206 | |||||||||
Pediatrix Medical Group, Inc. (a) | 1,710 | 116,434 | |||||||||
1,306,186 | |||||||||||
Health Care Technology (0.5%) | |||||||||||
Cerner Corp. (a) | 2,350 | 123,140 | |||||||||
Life Sciences Tools & Services (2.1%) | |||||||||||
Covance, Inc. (a) | 1,370 | 113,929 | |||||||||
Pharmaceutical Product Development, Inc. | 4,260 | 184,714 | |||||||||
Thermo Fisher Scientific, Inc. (a) | 2,430 | 125,121 | |||||||||
Waters Corp. (a) | 1,710 | 98,239 | |||||||||
522,003 | |||||||||||
Pharmaceuticals (2.4%) | |||||||||||
Allergan, Inc. | 5,150 | 346,028 | |||||||||
Forest Laboratories, Inc. (a) | 3,810 | 151,524 | |||||||||
Shire PLC, ADR | 1,870 | 100,700 | |||||||||
598,252 | |||||||||||
3,916,817 | |||||||||||
Industrials (16.6%) | |||||||||||
Aerospace & Defense (3.1%) | |||||||||||
Goodrich Corp. | 2,810 | 175,766 | |||||||||
L-3 Communications Holdings, Inc. | 1,380 | 152,945 | |||||||||
Precision Castparts Corp. | 2,250 | 256,050 | |||||||||
Rockwell Collins, Inc. | 2,940 | 185,808 | |||||||||
770,569 | |||||||||||
Air Freight & Logistics (0.7%) | |||||||||||
C.H. Robinson Worldwide, Inc. | 3,270 | 181,616 | |||||||||
Commercial Services & Supplies (2.7%) | |||||||||||
Dun & Bradstreet Corp. | 1,150 | 105,777 | |||||||||
FTI Consulting, Inc. (a) | 2,976 | 164,602 | |||||||||
IHS, Inc., Class A (a) | 1,704 | 105,546 | |||||||||
Robert Half International, Inc. | 3,930 | 109,175 | |||||||||
Stericycle, Inc. (a) | 3,180 | 188,447 | |||||||||
673,547 | |||||||||||
Construction & Engineering (0.8%) | |||||||||||
Foster Wheeler Ltd. (a) | 2,840 | 194,455 |
See Accompanying Notes to Financial Statements.
70
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Electrical Equipment (2.8%) | |||||||||||
AMETEK, Inc. | 3,330 | $ | 146,653 | ||||||||
First Solar, Inc. (a) | 720 | 130,874 | |||||||||
General Cable Corp. (a) | 2,060 | 119,501 | |||||||||
Roper Industries, Inc. | 2,920 | 163,286 | |||||||||
SunPower Corp., Class A (a) | 2,140 | 147,853 | |||||||||
708,167 | |||||||||||
Industrial Conglomerates (1.1%) | |||||||||||
McDermott International, Inc. (a) | 5,730 | 270,341 | |||||||||
Machinery (4.3%) | |||||||||||
AGCO Corp. (a) | 1,660 | 99,965 | |||||||||
Bucyrus International, Inc., Class A | 1,630 | 151,117 | |||||||||
Cummins, Inc. | 5,090 | 245,745 | |||||||||
Flowserve Corp. | 1,440 | 118,253 | |||||||||
Joy Global, Inc. | 3,275 | 206,489 | |||||||||
Manitowoc Co., Inc. | 3,600 | 137,232 | |||||||||
Oshkosh Corp. | 2,690 | 123,095 | |||||||||
1,081,896 | |||||||||||
Marine (0.5%) | |||||||||||
DryShips, Inc. | 1,700 | 126,531 | |||||||||
Road & Rail (0.6%) | |||||||||||
Landstar System, Inc. | 2,720 | 136,082 | |||||||||
4,143,204 | |||||||||||
Information Technology (16.9%) | |||||||||||
Communications Equipment (1.7%) | |||||||||||
Harris Corp. | 4,580 | 250,480 | |||||||||
Juniper Networks, Inc. (a) | 3,750 | 101,812 | |||||||||
Research In Motion Ltd. (a) | 820 | 76,982 | |||||||||
429,274 | |||||||||||
Computers & Peripherals (0.4%) | |||||||||||
SanDisk Corp. (a) | 3,680 | 93,656 | |||||||||
Electronic Equipment & Instruments (0.8%) | |||||||||||
Agilent Technologies, Inc. (a) | 4,510 | 152,934 | |||||||||
Amphenol Corp., Class A | 1,377 | 54,998 | |||||||||
207,932 | |||||||||||
Internet Software & Services (2.2%) | |||||||||||
Equinix, Inc. (a) | 4,420 | 333,843 | |||||||||
Omniture, Inc. (a) | 4,490 | 110,993 | |||||||||
VeriSign, Inc. (a) | 3,420 | 116,006 | |||||||||
560,842 | |||||||||||
IT Services (3.0%) | |||||||||||
DST Systems, Inc. (a) | 1,320 | 94,380 | |||||||||
Fiserv, Inc. (a) | 1,970 | 101,199 |
See Accompanying Notes to Financial Statements.
71
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
IT Services (continued) | |||||||||||
Global Payments, Inc. | 4,130 | $ | 154,462 | ||||||||
Mastercard, Inc., Class A | 890 | 184,230 | |||||||||
Paychex, Inc. | 3,590 | 117,465 | |||||||||
Satyam Computer Services Ltd., ADR | 3,653 | 88,950 | |||||||||
740,686 | |||||||||||
Semiconductors & Semiconductor Equipment (3.7%) | |||||||||||
Analog Devices, Inc. | 6,840 | 193,982 | |||||||||
ASML Holding N.V., N.Y. Registered Shares (a) | 4,350 | 115,667 | |||||||||
Lam Research Corp. (a) | 2,950 | 113,251 | |||||||||
MEMC Electronic Materials, Inc. (a) | 2,923 | 208,878 | |||||||||
NVIDIA Corp. (a) | 7,370 | 181,228 | |||||||||
Tessera Technologies, Inc. (a) | 3,020 | 118,293 | |||||||||
931,299 | |||||||||||
Software (5.1%) | |||||||||||
Adobe Systems, Inc. (a) | 2,940 | 102,694 | |||||||||
Autodesk, Inc. (a) | 2,907 | 119,623 | |||||||||
Citrix Systems, Inc. (a) | 4,258 | 147,412 | |||||||||
Concur Technologies, Inc. (a) | 3,052 | 107,003 | |||||||||
Electronic Arts, Inc. (a) | 2,920 | 138,321 | |||||||||
FactSet Research Systems, Inc. | 2,400 | 134,232 | |||||||||
Intuit, Inc. (a) | 3,170 | 97,287 | |||||||||
McAfee, Inc. (a) | 6,100 | 205,326 | |||||||||
Micros Systems, Inc. (a) | 1,660 | 102,223 | |||||||||
Salesforce.com, Inc. (a) | 2,180 | 113,970 | |||||||||
1,268,091 | |||||||||||
4,231,780 | |||||||||||
Materials (5.6%) | |||||||||||
Chemicals (3.9%) | |||||||||||
Agrium, Inc. | 2,190 | 141,080 | |||||||||
Monsanto Co. | 2,360 | 265,358 | |||||||||
Mosaic Co. (a) | 1,400 | 127,414 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 2,130 | 300,074 | |||||||||
Syngenta AG, ADR | 2,500 | 131,850 | |||||||||
965,776 | |||||||||||
Metals & Mining (1.7%) | |||||||||||
Allegheny Technologies, Inc. | 1,949 | 137,210 | |||||||||
Cleveland-Cliffs, Inc. | 1,720 | 175,165 | |||||||||
Freeport-McMoRan Copper & Gold, Inc. | 1,417 | 126,155 | |||||||||
438,530 | |||||||||||
1,404,306 |
See Accompanying Notes to Financial Statements.
72
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Telecommunication Services (2.2%) | |||||||||||
Wireless Telecommunication Services (2.2%) | |||||||||||
American Tower Corp., Class A (a) | 7,336 | $ | 275,320 | ||||||||
Crown Castle International Corp. (a) | 3,950 | 142,951 | |||||||||
Millicom International Cellular SA (a) | 1,310 | 138,781 | |||||||||
557,052 | |||||||||||
Utilities (2.6%) | |||||||||||
Electric Utilities (1.5%) | |||||||||||
ITC Holdings Corp. | 2,389 | 126,235 | |||||||||
PPL Corp. | 4,970 | 243,132 | |||||||||
369,367 | |||||||||||
Gas Utilities (0.6%) | |||||||||||
Questar Corp. | 3,020 | 153,748 | |||||||||
Independent Power Producers & Energy Traders (0.5%) | |||||||||||
Constellation Energy Group, Inc. | 1,240 | 116,512 | |||||||||
639,627 | |||||||||||
Total Common Stocks (Cost of $20,902,566) | 24,328,638 | ||||||||||
Par | |||||||||||
Short-Term Obligation (3.0%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/17, market value $753,500 (repurchase proceeds $734,035) | $ | 734,000 | $ | 734,000 | |||||||
Total Short-Term Obligation (Cost of $734,000) | 734,000 | ||||||||||
Total Investments (100.3%) (Cost of $21,636,566) (b) | 25,062,638 | ||||||||||
Other Assets & Liabilities, Net (-0.3%) | (67,593 | ) | |||||||||
Net Assets (100.0%) | $ | 24,995,045 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $21,636,566.
See Accompanying Notes to Financial Statements.
73
CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the Fund held investments in the following sectors:
Sector | % of Net Assets | ||||||
Information Technology | 16.9 | ||||||
Industrials | 16.6 | ||||||
Health Care | 15.7 | ||||||
Consumer Discretionary | 13.5 | ||||||
Energy | 12.3 | ||||||
Financials | 7.6 | ||||||
Materials | 5.6 | ||||||
Consumer Staples | 4.3 | ||||||
Utilities | 2.6 | ||||||
Telecommunication Services | 2.2 | ||||||
97.3 | |||||||
Short-Term Obligation | 3.0 | ||||||
Other Assets & Liabilities, Net | (0.3 | ) | |||||
100.0 |
For the six months ended January 31, 2008, transactions in written option contracts were as follows:
Number of contracts | Premium received | ||||||||||
Options outstanding at July 31, 2007 | - | $ | - | ||||||||
Options written | 55 | 19,563 | |||||||||
Options terminated in closing purchase transactions | (55 | ) | (19,563 | ) | |||||||
Options exercised | - | - | |||||||||
Options expired | - | - | |||||||||
Options outstanding at January 31, 2008 | - | $ | - |
Acronym | Name | ||||
ADR | American Depositary Receipt |
See Accompanying Notes to Financial Statements.
74
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (98.2%) | |||||||||||
Consumer Discretionary (7.5%) | |||||||||||
Auto Components (2.1%) | |||||||||||
BorgWarner, Inc. | 3,400 | $ | 172,074 | ||||||||
Johnson Controls, Inc. | 5,050 | 178,619 | |||||||||
350,693 | |||||||||||
Automobiles (0.4%) | |||||||||||
Ford Motor Co. (a) | 11,500 | 76,360 | |||||||||
Hotels, Restaurants & Leisure (1.0%) | |||||||||||
Royal Caribbean Cruises Ltd. | 2,500 | 100,700 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 1,525 | 69,006 | |||||||||
169,706 | |||||||||||
Leisure Equipment & Products (0.4%) | |||||||||||
Hasbro, Inc. | 2,700 | 70,119 | |||||||||
Media (0.5%) | |||||||||||
Regal Entertainment Group, Class A | 5,000 | 92,700 | |||||||||
Multiline Retail (2.1%) | |||||||||||
Macy's, Inc. | 6,416 | 177,338 | |||||||||
Saks, Inc. (a) | 9,600 | 173,280 | |||||||||
350,618 | |||||||||||
Textiles, Apparel & Luxury Goods (1.0%) | |||||||||||
Polo Ralph Lauren Corp. | 2,700 | 163,593 | |||||||||
1,273,789 | |||||||||||
Consumer Staples (10.2%) | |||||||||||
Beverages (2.3%) | |||||||||||
Fomento Economico Mexicano SAB de CV, ADR | 5,175 | 187,180 | |||||||||
Pepsi Bottling Group, Inc. | 5,900 | 205,615 | |||||||||
392,795 | |||||||||||
Food & Staples Retailing (1.5%) | |||||||||||
BJ's Wholesale Club, Inc. (a) | 4,200 | 136,248 | |||||||||
Kroger Co. | 4,950 | 125,977 | |||||||||
262,225 | |||||||||||
Food Products (3.5%) | |||||||||||
ConAgra Foods, Inc. | 6,900 | 148,557 | |||||||||
Dean Foods Co. (a) | 7,300 | 204,400 | |||||||||
Hershey Co. | 5,200 | 188,240 | |||||||||
Smithfield Foods, Inc. (a) | 1,600 | 44,560 | |||||||||
585,757 | |||||||||||
Household Products (1.1%) | |||||||||||
Clorox Co. | 2,950 | 180,894 |
See Accompanying Notes to Financial Statements.
75
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Personal Products (1.8%) | |||||||||||
Avon Products, Inc. | 4,800 | $ | 168,096 | ||||||||
Estee Lauder Companies, Inc., Class A | 3,300 | 139,260 | |||||||||
307,356 | |||||||||||
1,729,027 | |||||||||||
Energy (8.4%) | |||||||||||
Energy Equipment & Services (1.8%) | |||||||||||
National-Oilwell Varco, Inc. (a) | 2,350 | 141,541 | |||||||||
Rowan Companies, Inc. | 2,625 | 89,355 | |||||||||
Tidewater, Inc. | 1,400 | 74,144 | |||||||||
305,040 | |||||||||||
Oil, Gas & Consumable Fuels (6.6%) | |||||||||||
Cabot Oil & Gas Corp. | 2,500 | 96,725 | |||||||||
Forest Oil Corp. (a) | 3,000 | 135,660 | |||||||||
Hess Corp. | 3,975 | 361,049 | |||||||||
Newfield Exploration Co. (a) | 2,800 | 139,664 | |||||||||
Peabody Energy Corp. | 2,200 | 118,844 | |||||||||
Tesoro Corp. | 3,000 | 117,150 | |||||||||
Williams Companies, Inc. | 4,600 | 147,062 | |||||||||
1,116,154 | |||||||||||
1,421,194 | |||||||||||
Financials (24.9%) | |||||||||||
Capital Markets (1.5%) | |||||||||||
Ameriprise Financial, Inc. | 3,300 | 182,523 | |||||||||
Lazard Ltd., Class A | 1,610 | 63,627 | |||||||||
246,150 | |||||||||||
Commercial Banks (9.4%) | |||||||||||
Bank of Hawaii Corp. | 4,600 | 231,702 | |||||||||
City National Corp. | 2,900 | 164,952 | |||||||||
Comerica, Inc. | 4,775 | 208,285 | |||||||||
Cullen/Frost Bankers, Inc. | 3,825 | 208,233 | |||||||||
KeyCorp | 6,300 | 164,745 | |||||||||
Marshall & Ilsley Corp. | 3,925 | 109,508 | |||||||||
SVB Financial Group (a) | 3,250 | 157,300 | |||||||||
TCF Financial Corp. | 9,000 | 191,250 | |||||||||
Zions Bancorporation | 2,975 | 162,852 | |||||||||
1,598,827 | |||||||||||
Diversified Financial Services (0.5%) | |||||||||||
CIT Group, Inc. | 3,075 | 85,977 | |||||||||
Insurance (5.9%) | |||||||||||
ACE Ltd. | 2,900 | 169,186 | |||||||||
Assurant, Inc. | 3,100 | 201,159 | |||||||||
Axis Capital Holdings Ltd. | 3,516 | 140,780 | |||||||||
Genworth Financial, Inc., Class A | 6,800 | 165,512 | |||||||||
Loews Corp. | 3,575 | 166,917 | |||||||||
Platinum Underwriters Holdings Ltd. | 4,700 | 158,625 | |||||||||
1,002,179 |
See Accompanying Notes to Financial Statements.
76
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Real Estate Investment Trusts (REITs) (7.6%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 1,500 | $ | 147,345 | ||||||||
Boston Properties, Inc. | 950 | 87,324 | |||||||||
Equity Residential Property Trust | 2,700 | 101,007 | |||||||||
General Growth Properties, Inc. | 4,775 | 174,383 | |||||||||
iStar Financial, Inc. | 7,020 | 187,294 | |||||||||
Plum Creek Timber Co., Inc. | 6,100 | 254,675 | |||||||||
ProLogis | 2,400 | 142,440 | |||||||||
Rayonier, Inc. | 4,700 | 198,904 | |||||||||
1,293,372 | |||||||||||
4,226,505 | |||||||||||
Health Care (5.9%) | |||||||||||
Health Care Equipment & Supplies (2.2%) | |||||||||||
Beckman Coulter, Inc. | 2,700 | 179,550 | |||||||||
Hospira, Inc. (a) | 4,675 | 192,189 | |||||||||
371,739 | |||||||||||
Health Care Providers & Services (2.3%) | |||||||||||
CIGNA Corp. | 3,550 | 174,518 | |||||||||
Community Health Systems, Inc. (a) | 4,275 | 137,227 | |||||||||
Universal Health Services, Inc., Class B | 1,700 | 80,121 | |||||||||
391,866 | |||||||||||
Life Sciences Tools & Services (1.4%) | |||||||||||
Millipore Corp. (a) | 1,150 | 80,673 | |||||||||
Varian, Inc. (a) | 3,100 | 168,175 | |||||||||
248,848 | |||||||||||
1,012,453 | |||||||||||
Industrials (12.8%) | |||||||||||
Aerospace & Defense (2.2%) | |||||||||||
AerCap Holdings NV (a) | 4,800 | 88,608 | |||||||||
L-3 Communications Holdings, Inc. | 1,200 | 132,996 | |||||||||
Spirit Aerosystems Holdings, Inc., Class A (a) | 5,307 | 146,579 | |||||||||
368,183 | |||||||||||
Commercial Services & Supplies (0.8%) | |||||||||||
Equifax, Inc. | 3,500 | 129,815 | |||||||||
Construction & Engineering (0.9%) | |||||||||||
Jacobs Engineering Group, Inc. (a) | 2,050 | 156,702 | |||||||||
Electrical Equipment (0.7%) | |||||||||||
Cooper Industries Ltd., Class A | 2,900 | 129,166 | |||||||||
Industrial Conglomerates (2.9%) | |||||||||||
McDermott International, Inc. (a) | 4,300 | 202,874 | |||||||||
Teleflex, Inc. | 1,800 | 106,416 | |||||||||
Textron, Inc. | 3,200 | 179,360 | |||||||||
488,650 |
See Accompanying Notes to Financial Statements.
77
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Machinery (3.6%) | |||||||||||
Barnes Group, Inc. | 4,418 | $ | 117,740 | ||||||||
Harsco Corp. | 2,150 | 122,378 | |||||||||
Kennametal, Inc. | 4,950 | 151,619 | |||||||||
Parker Hannifin Corp. | 3,250 | 219,732 | |||||||||
611,469 | |||||||||||
Marine (0.7%) | |||||||||||
Alexander & Baldwin, Inc. | 2,625 | 119,805 | |||||||||
Road & Rail (1.0%) | |||||||||||
Canadian Pacific Railway Ltd. | 2,500 | 166,425 | |||||||||
2,170,215 | |||||||||||
Information Technology (8.3%) | |||||||||||
Computers & Peripherals (1.7%) | |||||||||||
Diebold, Inc. | 2,100 | 54,348 | |||||||||
NCR Corp. (a) | 8,700 | 186,876 | |||||||||
Teradata Corp. (a) | 1,900 | 45,258 | |||||||||
286,482 | |||||||||||
Electronic Equipment & Instruments (2.6%) | |||||||||||
Agilent Technologies, Inc. (a) | 5,200 | 176,332 | |||||||||
Arrow Electronics, Inc. (a) | 4,825 | 165,112 | |||||||||
Mettler-Toledo International, Inc. (a) | 1,000 | 99,300 | |||||||||
440,744 | |||||||||||
IT Services (0.1%) | |||||||||||
Metavante Technologies, Inc. (a) | 586 | 12,980 | |||||||||
Semiconductors & Semiconductor Equipment (2.1%) | |||||||||||
Fairchild Semiconductor International, Inc. (a) | 4,675 | 57,269 | |||||||||
Intersil Corp., Class A | 3,000 | 69,090 | |||||||||
KLA-Tencor Corp. | 1,550 | 64,759 | |||||||||
NVIDIA Corp. (a) | 3,250 | 79,917 | |||||||||
Spansion, Inc., Class A (a) | 15,500 | 59,210 | |||||||||
Verigy Ltd. (a) | 1,683 | 35,141 | |||||||||
365,386 | |||||||||||
Software (1.8%) | |||||||||||
Activision, Inc. (a) | 5,333 | 137,965 | |||||||||
Electronic Arts, Inc. (a) | 2,625 | 124,346 | |||||||||
Synopsys, Inc. (a) | 1,650 | 36,333 | |||||||||
298,644 | |||||||||||
1,404,236 |
See Accompanying Notes to Financial Statements.
78
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Materials (6.3%) | |||||||||||
Chemicals (3.4%) | |||||||||||
Air Products & Chemicals, Inc. | 3,150 | $ | 283,563 | ||||||||
Albemarle Corp. | 2,525 | 91,556 | |||||||||
PPG Industries, Inc. | 2,900 | 191,661 | |||||||||
566,780 | |||||||||||
Containers & Packaging (1.6%) | |||||||||||
Crown Holdings, Inc. (a) | 4,800 | 117,696 | |||||||||
Packaging Corp. of America | 6,500 | 157,560 | |||||||||
275,256 | |||||||||||
Metals & Mining (0.3%) | |||||||||||
Allegheny Technologies, Inc. | 700 | 49,280 | |||||||||
Paper & Forest Products (1.0%) | |||||||||||
Weyerhaeuser Co. | 2,600 | 176,072 | |||||||||
1,067,388 | |||||||||||
Utilities (13.9%) | |||||||||||
Electric Utilities (7.1%) | |||||||||||
American Electric Power Co., Inc. | 5,900 | 252,697 | |||||||||
Edison International | 4,875 | 254,280 | |||||||||
Entergy Corp. | 1,700 | 183,906 | |||||||||
FPL Group, Inc. | 1,875 | 120,900 | |||||||||
PPL Corp. | 5,825 | 284,959 | |||||||||
Reliant Energy, Inc. (a) | 5,000 | 106,350 | |||||||||
1,203,092 | |||||||||||
Gas Utilities (1.0%) | |||||||||||
AGL Resources, Inc. | 4,675 | 176,949 | |||||||||
Independent Power Producers & Energy Traders (1.0%) | |||||||||||
Mirant Corp. (a) | 4,500 | 165,780 | |||||||||
Multi-Utilities (4.8%) | |||||||||||
PG&E Corp. | 6,225 | 255,474 | |||||||||
Public Service Enterprise Group, Inc. | 1,800 | 172,800 | |||||||||
Sempra Energy | 3,875 | 216,612 | |||||||||
Wisconsin Energy Corp. | 3,800 | 173,014 | |||||||||
817,900 | |||||||||||
2,363,721 | |||||||||||
Total Common Stocks (Cost of $14,802,818) | 16,668,528 |
See Accompanying Notes to Financial Statements.
79
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Convertible Bonds (0.2%) | |||||||||||
Consumer Discretionary (0.2%) | |||||||||||
Automobiles (0.2%) | |||||||||||
Ford Motor Co. 4.250% 12/15/36 | $ | 38,000 | $ | 37,953 | |||||||
Total Convertible Bond (Cost of $39,979) | 37,953 | ||||||||||
Short-Term Obligation (2.2%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/21, market value $375,969 (repurchase proceeds $367,017) | 367,000 | 367,000 | |||||||||
Total Short-Term Obligation (Cost of $367,000) | 367,000 | ||||||||||
Total Investments (100.6%) (Cost of $15,209,797) (b) | 17,073,481 | ||||||||||
Other Assets & Liabilities, Net (-0.6%) | (99,143 | ) | |||||||||
Net Assets (100.0%) | $ | 16,974,338 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $15,209,797.
See Accompanying Notes to Financial Statements.
80
CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the Fund held investments in the following sectors:
Sector | % of Net Assets | ||||||
Financials | 24.9 | ||||||
Utilities | 13.9 | ||||||
Industrials | 12.8 | ||||||
Consumer Staples | 10.2 | ||||||
Energy | 8.4 | ||||||
Information Technology | 8.3 | ||||||
Consumer Discretionary | 7.7 | ||||||
Materials | 6.3 | ||||||
Health Care | 5.9 | ||||||
98.4 | |||||||
Short-Term Obligation | 2.2 | ||||||
Other Assets & Liabilities, Net | (0.6 | ) | |||||
100.0 |
For the six months ended January 31, 2008, transactions in written option contracts were as follows:
Number of contracts | Premium received | ||||||||||
Options outstanding at July 31, 2007 | - | $ | - | ||||||||
Options written | 10 | 2,175 | |||||||||
Options terminated in closing purchase transactions | - | - | |||||||||
Options bought back | - | - | |||||||||
Options exercised | - | - | |||||||||
Options expired | (10 | ) | (2,175 | ) | |||||||
Options outstanding at January 31, 2008 | - | $ | - |
Acronym | Name | ||||
ADR | American Depositary Receipt |
See Accompanying Notes to Financial Statements.
81
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (96.9%) | |||||||||||
Consumer Discretionary (14.9%) | |||||||||||
Distributors (0.5%) | |||||||||||
LKQ Corp. (a) | 12,560 | $ | 224,698 | ||||||||
Diversified Consumer Services (2.2%) | |||||||||||
Capella Education Co. (a) | 3,390 | 213,841 | |||||||||
DeVry, Inc. | 6,610 | 364,806 | |||||||||
Sotheby's | 4,920 | 152,864 | |||||||||
Strayer Education, Inc. | 1,320 | 227,806 | |||||||||
959,317 | |||||||||||
Hotels, Restaurants & Leisure (4.1%) | |||||||||||
Bally Technologies, Inc. (a) | 4,990 | 237,724 | |||||||||
Burger King Holdings, Inc. | 8,390 | 221,076 | |||||||||
Ctrip.com International Ltd., ADR | 5,750 | 262,545 | |||||||||
Life Time Fitness, Inc. (a) | 4,950 | 219,483 | |||||||||
Red Robin Gourmet Burgers, Inc. (a) | 7,800 | 272,064 | |||||||||
Sonic Corp. (a) | 9,960 | 220,913 | |||||||||
WMS Industries, Inc. (a) | 9,070 | 339,218 | |||||||||
1,773,023 | |||||||||||
Household Durables (0.8%) | |||||||||||
Tempur-Pedic International, Inc. | 5,050 | 100,091 | |||||||||
Tupperware Brands Corp. | 6,110 | 226,070 | |||||||||
326,161 | |||||||||||
Internet & Catalog Retail (1.2%) | |||||||||||
Priceline.com, Inc. (a) | 2,270 | 246,341 | |||||||||
Shutterfly, Inc. (a) | 12,620 | 245,459 | |||||||||
491,800 | |||||||||||
Media (0.7%) | |||||||||||
Knology, Inc. (a) | 26,589 | 301,785 | |||||||||
Specialty Retail (1.6%) | |||||||||||
Aeropostale, Inc. (a) | 11,540 | 325,082 | |||||||||
Guess ?, Inc. | 4,910 | 183,192 | |||||||||
J Crew Group, Inc. (a) | 4,280 | 195,682 | |||||||||
703,956 | |||||||||||
Textiles, Apparel & Luxury Goods (3.8%) | |||||||||||
CROCS, Inc. (a) | 9,370 | 325,982 | |||||||||
Deckers Outdoor Corp. (a) | 2,490 | 301,888 | |||||||||
Iconix Brand Group, Inc. (a) | 9,706 | 201,788 | |||||||||
Lululemon Athletica, Inc. (a) | 6,720 | 227,741 | |||||||||
True Religion Apparel, Inc. (a) | 10,790 | 201,233 | |||||||||
Under Armour, Inc., Class A (a) | 4,430 | 178,307 | |||||||||
Warnaco Group, Inc. (a) | 5,530 | 198,472 | |||||||||
1,635,411 | |||||||||||
6,416,151 |
See Accompanying Notes to Financial Statements.
82
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Consumer Staples (1.1%) | |||||||||||
Beverages (0.6%) | |||||||||||
Central European Distribution Corp. (a) | 5,210 | $ | 273,890 | ||||||||
Personal Products (0.5%) | |||||||||||
Chattem, Inc. (a) | 2,780 | 213,281 | |||||||||
487,171 | |||||||||||
Energy (9.4%) | |||||||||||
Energy Equipment & Services (3.0%) | |||||||||||
Atwood Oceanics, Inc. (a) | 5,720 | 475,275 | |||||||||
Core Laboratories NV (a) | 3,740 | 421,498 | |||||||||
Dril-Quip, Inc. (a) | 4,300 | 208,722 | |||||||||
Hercules Offshore, Inc. (a) | 7,090 | 163,424 | |||||||||
1,268,919 | |||||||||||
Oil, Gas & Consumable Fuels (6.4%) | |||||||||||
Alpha Natural Resources, Inc. (a) | 5,200 | 173,992 | |||||||||
Arena Resources, Inc. (a) | 8,510 | 302,701 | |||||||||
Berry Petroleum Co., Class A | 4,600 | 172,362 | |||||||||
Concho Resources, Inc. (a) | 26,730 | 542,619 | |||||||||
Foundation Coal Holdings, Inc. | 4,990 | 260,977 | |||||||||
Holly Corp. | 3,960 | 191,743 | |||||||||
Parallel Petroleum Corp. (a) | 17,626 | 244,649 | |||||||||
PetroHawk Energy Corp. (a) | 25,120 | 395,640 | |||||||||
Petroleum Development Corp. (a) | 4,030 | 231,725 | |||||||||
Ship Finance International Ltd. | 9,450 | 246,834 | |||||||||
2,763,242 | |||||||||||
4,032,161 | |||||||||||
Financials (7.5%) | |||||||||||
Capital Markets (2.7%) | |||||||||||
Affiliated Managers Group, Inc. (a) | 2,770 | 272,319 | |||||||||
GFI Group, Inc. (a) | 3,120 | 275,215 | |||||||||
Greenhill & Co., Inc. | 2,860 | 193,136 | |||||||||
Waddell & Reed Financial, Inc., Class A | 12,850 | 426,363 | |||||||||
1,167,033 | |||||||||||
Consumer Finance (0.3%) | |||||||||||
First Cash Financial Services, Inc. (a) | 14,150 | 141,641 | |||||||||
Insurance (1.2%) | |||||||||||
National Financial Partners Corp. | 5,840 | 210,824 | |||||||||
ProAssurance Corp. (a) | 5,120 | 295,424 | |||||||||
506,248 | |||||||||||
Real Estate Investment Trusts (REITs) (3.3%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 2,720 | 267,185 | |||||||||
Digital Realty Trust, Inc. | 4,990 | 178,293 | |||||||||
FelCor Lodging Trust, Inc. | 10,980 | 148,340 | |||||||||
Home Properties, Inc. | 5,400 | 259,146 |
See Accompanying Notes to Financial Statements.
83
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Real Estate Investment Trusts (REITs) (continued) | |||||||||||
Nationwide Health Properties, Inc. | 5,510 | $ | 173,896 | ||||||||
Thornburg Mortgage, Inc. | 15,910 | 178,192 | |||||||||
Washington Real Estate Investment Trust | 6,870 | 216,130 | |||||||||
1,421,182 | |||||||||||
3,236,104 | |||||||||||
Health Care (21.9%) | |||||||||||
Biotechnology (7.6%) | |||||||||||
Alexion Pharmaceuticals, Inc. (a) | 5,190 | 339,011 | |||||||||
Allos Therapeutics, Inc. (a) | 29,110 | 209,592 | |||||||||
Applera Corp.-Celera Group (a) | 13,190 | 202,071 | |||||||||
Array Biopharma, Inc. (a) | 32,450 | 211,249 | |||||||||
BioMarin Pharmaceuticals, Inc. (a) | 13,730 | 508,834 | |||||||||
Cepheid, Inc. (a) | 7,000 | 213,780 | |||||||||
Onyx Pharmaceuticals, Inc. (a) | 10,330 | 490,985 | |||||||||
OSI Pharmaceuticals, Inc. (a) | 8,050 | 321,034 | |||||||||
PDL BioPharma, Inc. (a) | 10,420 | 155,571 | |||||||||
Savient Pharmaceuticals, Inc. (a) | 10,975 | 212,366 | |||||||||
United Therapeutics Corp. (a) | 4,580 | 384,628 | |||||||||
3,249,121 | |||||||||||
Health Care Equipment & Supplies (6.6%) | |||||||||||
Abiomed, Inc. (a) | 11,640 | 175,764 | |||||||||
Gen-Probe, Inc. (a) | 2,900 | 165,735 | |||||||||
Hologic, Inc. (a) | 14,813 | 953,365 | |||||||||
Insulet Corp. (a) | 7,998 | 158,440 | |||||||||
Masimo Corp. (a) | 8,208 | 292,944 | |||||||||
Micrus Endovascular Corp. (a) | 11,090 | 213,039 | |||||||||
Mindray Medical International Ltd., ADR | 6,140 | 209,374 | |||||||||
NuVasive, Inc. (a) | 12,070 | 475,679 | |||||||||
Spectranetics Corp. (a) | 16,130 | 201,302 | |||||||||
2,845,642 | |||||||||||
Health Care Providers & Services (3.6%) | |||||||||||
HealthExtras, Inc. (a) | 11,615 | 321,155 | |||||||||
IPC The Hospitalist Co., Inc. (a) | 8,124 | 170,766 | |||||||||
Pediatrix Medical Group, Inc. (a) | 5,460 | 371,771 | |||||||||
Psychiatric Solutions, Inc. (a) | 12,870 | 388,288 | |||||||||
VCA Antech, Inc. (a) | 7,907 | 305,685 | |||||||||
1,557,665 | |||||||||||
Health Care Technology (0.6%) | |||||||||||
Omnicell, Inc. (a) | 10,660 | 267,353 | |||||||||
Life Sciences Tools & Services (3.2%) | |||||||||||
ICON PLC, ADR (a) | 16,690 | 1,046,129 | |||||||||
Illumina, Inc. (a) | 5,350 | 340,795 | |||||||||
1,386,924 |
See Accompanying Notes to Financial Statements.
84
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Pharmaceuticals (0.3%) | |||||||||||
Cypress Bioscience, Inc. (a) | 15,910 | $ | 133,485 | ||||||||
9,440,190 | |||||||||||
Industrials (14.3%) | |||||||||||
Aerospace & Defense (1.6%) | |||||||||||
BE Aerospace, Inc. (a) | 13,147 | 507,605 | |||||||||
Hexcel Corp. (a) | 8,630 | 188,393 | |||||||||
695,998 | |||||||||||
Air Freight & Logistics (0.5%) | |||||||||||
HUB Group, Inc., Class A (a) | 7,565 | 220,368 | |||||||||
Commercial Services & Supplies (4.6%) | |||||||||||
Advisory Board Co. (a) | 5,880 | 374,673 | |||||||||
Corrections Corp. of America (a) | 6,570 | 174,368 | |||||||||
FTI Consulting, Inc. (a) | 6,642 | 367,369 | |||||||||
Geo Group, Inc. (a) | 7,640 | 182,749 | |||||||||
Huron Consulting Group, Inc. (a) | 4,460 | 320,317 | |||||||||
IHS, Inc., Class A (a) | 2,370 | 146,798 | |||||||||
Waste Connections, Inc. (a) | 13,750 | 400,950 | |||||||||
1,967,224 | |||||||||||
Construction & Engineering (0.6%) | |||||||||||
Quanta Services, Inc. (a) | 11,430 | 250,546 | |||||||||
Electrical Equipment (1.8%) | |||||||||||
General Cable Corp. (a) | 3,880 | 225,079 | |||||||||
SunPower Corp., Class A (a) | 2,450 | 169,271 | |||||||||
Woodward Governor Co. | 5,730 | 359,729 | |||||||||
754,079 | |||||||||||
Machinery (3.7%) | |||||||||||
Actuant Corp., Class A | 7,230 | 197,596 | |||||||||
Barnes Group, Inc. | 11,690 | 311,538 | |||||||||
Bucyrus International, Inc., Class A | 5,920 | 548,843 | |||||||||
Kaydon Corp. | 4,720 | 206,217 | |||||||||
RBC Bearings, Inc. (a) | 9,591 | 287,155 | |||||||||
Twin Disc, Inc. | 3,900 | 59,046 | |||||||||
1,610,395 | |||||||||||
Marine (0.5%) | |||||||||||
DryShips, Inc. | 2,920 | 217,336 | |||||||||
Road & Rail (1.0%) | |||||||||||
Genesee & Wyoming, Inc., Class A (a) | 7,130 | 194,720 | |||||||||
Landstar System, Inc. | 4,750 | 237,643 | |||||||||
432,363 | |||||||||||
6,148,309 |
See Accompanying Notes to Financial Statements.
85
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Information Technology (19.6%) | |||||||||||
Communications Equipment (0.9%) | |||||||||||
NETGEAR, Inc. (a) | 13,760 | $ | 366,842 | ||||||||
Electronic Equipment & Instruments (1.7%) | |||||||||||
Daktronics, Inc. | 10,560 | 216,375 | |||||||||
FLIR Systems, Inc. (a) | 10,590 | 320,665 | |||||||||
Itron, Inc. (a) | 2,430 | 200,232 | |||||||||
737,272 | |||||||||||
Internet Software & Services (4.8%) | |||||||||||
Ariba, Inc. (a) | 21,500 | 214,355 | |||||||||
Bankrate, Inc. (a) | 2,173 | 117,842 | |||||||||
Constant Contact, Inc. (a) | 7,064 | 150,604 | |||||||||
Equinix, Inc. (a) | 7,333 | 553,861 | |||||||||
Omniture, Inc. (a) | 13,398 | 331,199 | |||||||||
VistaPrint Ltd. (a) | 6,340 | 235,911 | |||||||||
Vocus, Inc. (a) | 15,683 | 461,394 | |||||||||
2,065,166 | |||||||||||
IT Services (0.4%) | |||||||||||
Virtusa Corp. (a) | 12,602 | 188,148 | |||||||||
Semiconductors & Semiconductor Equipment (4.5%) | |||||||||||
Atheros Communications, Inc. (a) | 11,883 | 324,525 | |||||||||
ATMI, Inc. (a) | 7,690 | 202,247 | |||||||||
Hittite Microwave Corp. (a) | 5,870 | 233,743 | |||||||||
Microsemi Corp. (a) | 11,840 | 269,005 | |||||||||
Monolithic Power Systems, Inc. (a) | 11,590 | 181,268 | |||||||||
Sigma Designs, Inc. (a) | 4,660 | 210,725 | |||||||||
Tessera Technologies, Inc. (a) | 6,879 | 269,450 | |||||||||
Verigy Ltd. (a) | 11,120 | 232,186 | |||||||||
1,923,149 | |||||||||||
Software (7.3%) | |||||||||||
Advent Software, Inc. (a) | 6,260 | 282,702 | |||||||||
ANSYS, Inc. (a) | 10,800 | 377,028 | |||||||||
BladeLogic, Inc. (a) | 7,200 | 118,296 | |||||||||
BluePhoenix Solutions Ltd. (a) | 11,510 | 171,614 | |||||||||
Concur Technologies, Inc. (a) | 10,441 | 366,061 | |||||||||
FactSet Research Systems, Inc. | 4,330 | 242,177 | |||||||||
Magma Design Automation, Inc. (a) | 19,855 | 226,347 | |||||||||
Micros Systems, Inc. (a) | 6,050 | 372,559 | |||||||||
Nuance Communications, Inc. (a) | 17,706 | 281,348 | |||||||||
PROS Holdings, Inc. (a) | 16,910 | 259,569 | |||||||||
SPSS, Inc. (a) | 6,480 | 214,164 | |||||||||
Taleo Corp., Class A (a) | 11,188 | 236,402 | |||||||||
3,148,267 | |||||||||||
8,428,844 |
See Accompanying Notes to Financial Statements.
86
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Materials (5.9%) | |||||||||||
Chemicals (2.9%) | |||||||||||
CF Industries Holdings, Inc. | 5,450 | $ | 582,768 | ||||||||
Terra Industries, Inc. (a) | 10,940 | 493,066 | |||||||||
Zoltek Companies, Inc. (a) | 4,590 | 167,535 | |||||||||
1,243,369 | |||||||||||
Containers & Packaging (0.7%) | |||||||||||
Silgan Holdings, Inc. | 6,580 | 311,629 | |||||||||
Metals & Mining (2.3%) | |||||||||||
Cleveland-Cliffs, Inc. | 4,410 | 449,114 | |||||||||
RTI International Metals, Inc. (a) | 3,230 | 178,458 | |||||||||
Steel Dynamics, Inc. | 6,460 | 336,889 | |||||||||
964,461 | |||||||||||
2,519,459 | |||||||||||
Telecommunication Services (1.8%) | |||||||||||
Diversified Telecommunication Services (0.4%) | |||||||||||
Cogent Communications Group, Inc. (a) | 8,260 | 169,082 | |||||||||
Wireless Telecommunication Services (1.4%) | |||||||||||
SBA Communications Corp., Class A (a) | 16,660 | 493,302 | |||||||||
Syniverse Holdings, Inc. (a) | 5,963 | 94,156 | |||||||||
587,458 | |||||||||||
756,540 | |||||||||||
Utilities (0.5%) | |||||||||||
Electric Utilities (0.5%) | |||||||||||
ITC Holdings Corp. | 4,170 | 220,343 | |||||||||
Total Common Stocks (Cost of $37,439,634) | 41,685,272 |
See Accompanying Notes to Financial Statements.
87
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Short-Term Obligation (3.6%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/17, market value $1,562,000 (repurchase proceeds $1,527,073) | $ | 1,527,000 | $ | 1,527,000 | |||||||
Total Short-Term Obligation (Cost of $1,527,000) | 1,527,000 | ||||||||||
Total Investments (100.5%) (Cost of $38,966,634) (b) | 43,212,272 | ||||||||||
Other Assets & Liabilities, Net (-0.5%) | (195,532 | ) | |||||||||
Net Assets (100.0%) | $ | 43,016,740 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $38,966,634.
See Accompanying Notes to Financial Statements.
88
CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
For the six months ended January 31, 2008, transactions in written option contracts were as follows:
Number of contracts | Premium received | ||||||||||
Options outstanding at July 31, 2007 | - | $ | - | ||||||||
Options written | 30 | 8,579 | |||||||||
Options expired | (30 | ) | (8,579 | ) | |||||||
Options outstanding at January 31, 2008 | - | $ | - | ||||||||
At January 31, 2008, the Fund held investments in the following sectors: |
Sector | % of Net Assets | ||||||
Health Care | 21.9 | ||||||
Information Technology | 19.6 | ||||||
Consumer Discretionary | 14.9 | ||||||
Industrials | 14.3 | ||||||
Energy | 9.4 | ||||||
Financials | 7.5 | ||||||
Materials | 5.9 | ||||||
Telecommunication Services | 1.8 | ||||||
Consumer Staples | 1.1 | ||||||
Utilities | 0.5 | ||||||
96.9 | |||||||
Short-Term Obligation | 3.6 | ||||||
Other Assets & Liabilities, Net | (0.5 | ) | |||||
100.0 |
Acronym | Name | ||||
ADR | American Depositary Receipt |
See Accompanying Notes to Financial Statements.
89
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (99.8%) | |||||||||||
Consumer Discretionary (9.0%) | |||||||||||
Auto Components (1.1%) | |||||||||||
American Axle & Manufacturing Holdings, Inc. | 2,340 | $ | 50,895 | ||||||||
BorgWarner, Inc. | 3,380 | 171,061 | |||||||||
Modine Manufacturing Co. | 4,420 | 68,245 | |||||||||
290,201 | |||||||||||
Distributors (0.2%) | |||||||||||
Building Materials Holding Corp. | 9,400 | 64,014 | |||||||||
Diversified Consumer Services (0.4%) | |||||||||||
Regis Corp. | 3,970 | 100,560 | |||||||||
Hotels, Restaurants & Leisure (1.3%) | |||||||||||
Bob Evans Farms, Inc. | 3,800 | 113,012 | |||||||||
California Pizza Kitchen, Inc. (a) | 675 | 9,065 | |||||||||
CEC Entertainment, Inc. (a) | 3,100 | 72,323 | |||||||||
Landry's Restaurants, Inc. | 5,170 | 106,037 | |||||||||
O'Charleys, Inc. | 4,010 | 55,619 | |||||||||
356,056 | |||||||||||
Household Durables (2.0%) | |||||||||||
American Greetings Corp., Class A | 9,720 | 199,454 | |||||||||
CSS Industries, Inc. | 2,820 | 82,288 | |||||||||
Ethan Allen Interiors, Inc. | 3,640 | 112,658 | |||||||||
Furniture Brands International, Inc. | 7,890 | 75,350 | |||||||||
Skyline Corp. | 2,501 | 72,854 | |||||||||
542,604 | |||||||||||
Leisure Equipment & Products (0.4%) | |||||||||||
MarineMax, Inc. (a) | 4,530 | 70,079 | |||||||||
Nautilus, Inc. | 8,200 | 38,130 | |||||||||
108,209 | |||||||||||
Specialty Retail (2.5%) | |||||||||||
America's Car-Mart, Inc. (a) | 11,757 | 134,265 | |||||||||
Coldwater Creek, Inc. (a) | 9,160 | 58,899 | |||||||||
Collective Brands, Inc. (a) | 4,250 | 74,885 | |||||||||
GameStop Corp., Class A (a) | 875 | 45,263 | |||||||||
Jo-Ann Stores, Inc. (a) | 4,100 | 51,947 | |||||||||
Monro Muffler Brake, Inc. | 7,200 | 133,200 | |||||||||
Rent-A-Center, Inc. (a) | 8,109 | 138,664 | |||||||||
Zale Corp. (a) | 3,880 | 63,632 | |||||||||
700,755 | |||||||||||
Textiles, Apparel & Luxury Goods (1.1%) | |||||||||||
Delta Apparel, Inc. | 3,470 | 30,883 | |||||||||
Hampshire Group Ltd. (a) | 6,362 | 73,163 | |||||||||
Hartmarx Corp. (a) | 11,959 | 32,289 | |||||||||
K-Swiss, Inc., Class A | 2,970 | 53,935 | |||||||||
Wolverine World Wide, Inc. | 4,340 | 109,846 | |||||||||
300,116 | |||||||||||
2,462,515 |
See Accompanying Notes to Financial Statements.
90
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Consumer Staples (5.1%) | |||||||||||
Beverages (0.4%) | |||||||||||
MGP Ingredients, Inc. | 11,737 | $ | 111,384 | ||||||||
Food & Staples Retailing (1.6%) | |||||||||||
BJ's Wholesale Club, Inc. (a) | 4,440 | 144,033 | |||||||||
Ruddick Corp. | 2,600 | 88,608 | |||||||||
Weis Markets, Inc. | 5,320 | 198,915 | |||||||||
431,556 | |||||||||||
Food Products (2.8%) | |||||||||||
American Italian Pasta Co., Class A (a) | 6,100 | 41,480 | |||||||||
Flowers Foods, Inc. | 7,058 | 169,392 | |||||||||
Fresh Del Monte Produce, Inc. (a) | 2,710 | 86,828 | |||||||||
J & J Snack Foods Corp. | 2,190 | 54,772 | |||||||||
Lancaster Colony Corp. | 3,370 | 117,478 | |||||||||
Lance, Inc. | 4,500 | 82,485 | |||||||||
Maui Land & Pineapple Co., Inc. (a) | 3,601 | 99,028 | |||||||||
Ralcorp Holdings, Inc. (a) | 2,360 | 128,408 | |||||||||
779,871 | |||||||||||
Personal Products (0.3%) | |||||||||||
NBTY, Inc. (a) | 3,510 | 85,012 | |||||||||
1,407,823 | |||||||||||
Energy (6.3%) | |||||||||||
Energy Equipment & Services (2.7%) | |||||||||||
Complete Production Services, Inc. (a) | 3,303 | 52,518 | |||||||||
Grey Wolf, Inc. (a) | 17,760 | 105,850 | |||||||||
Key Energy Services, Inc. (a) | 6,020 | 71,036 | |||||||||
Lufkin Industries, Inc. | 1,647 | 87,077 | |||||||||
Oil States International, Inc. (a) | 2,190 | 76,781 | |||||||||
Patterson-UTI Energy, Inc. | 4,150 | 81,257 | |||||||||
Tidewater, Inc. | 1,970 | 104,331 | |||||||||
TriCo Marine Services, Inc. (a) | 4,813 | 154,449 | |||||||||
733,299 | |||||||||||
Oil, Gas & Consumable Fuels (3.6%) | |||||||||||
Alpha Natural Resources, Inc. (a) | 3,760 | 125,810 | |||||||||
Bois d'Arc Energy, Inc. (a) | 4,178 | 80,009 | |||||||||
Comstock Resources, Inc. (a) | 2,540 | 80,518 | |||||||||
Harvest Natural Resources, Inc. (a) | 11,680 | 141,562 | |||||||||
Holly Corp. | 2,110 | 102,166 | |||||||||
Nordic American Tanker Shipping | 2,883 | 90,007 | |||||||||
Peabody Energy Corp. | 1,670 | 90,213 | |||||||||
Range Resources Corp. | 660 | 34,465 | |||||||||
Stone Energy Corp. (a) | 2,430 | 99,630 | |||||||||
Swift Energy Co. (a) | 1,610 | 69,471 | |||||||||
Western Refining, Inc. | 3,253 | 69,452 | |||||||||
983,303 | |||||||||||
1,716,602 |
See Accompanying Notes to Financial Statements.
91
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Financials (29.4%) | |||||||||||
Capital Markets (0.8%) | |||||||||||
Piper Jaffray Companies, Inc. (a) | 3,200 | $ | 151,616 | ||||||||
Thomas Weisel Partners Group, Inc. (a) | 6,179 | 79,091 | |||||||||
230,707 | |||||||||||
Commercial Banks (9.0%) | |||||||||||
BancFirst Corp. | 2,530 | 113,926 | |||||||||
BancTrust Financial Group, Inc. | 7,982 | 98,578 | |||||||||
Bank of Granite Corp. | 9,167 | 108,996 | |||||||||
Bryn Mawr Bank Corp. | 4,926 | 96,894 | |||||||||
Capital Corp. of the West | 4,439 | 88,203 | |||||||||
Capitol Bancorp Ltd. | 5,896 | 122,755 | |||||||||
Chemical Financial Corp. | 6,895 | 190,853 | |||||||||
Columbia Banking System, Inc. | 4,300 | 110,553 | |||||||||
Community Trust Bancorp, Inc. | 3,180 | 91,934 | |||||||||
First Citizens BancShares, Inc., Class A | 834 | 113,707 | |||||||||
First Financial Corp. | 4,600 | 136,988 | |||||||||
First National Bank of Alaska | 42 | 83,790 | |||||||||
Mass Financial Corp., Class A (a) | 13,010 | 59,846 | |||||||||
Merchants Bancshares, Inc. | 4,697 | 110,379 | |||||||||
Northrim BanCorp, Inc. | 5,204 | 108,191 | |||||||||
South Financial Group, Inc. | 8,420 | 145,498 | |||||||||
Sterling Bancorp NY | 7,560 | 108,184 | |||||||||
Taylor Capital Group, Inc. | 4,930 | 96,579 | |||||||||
UMB Financial Corp. | 4,580 | 192,955 | |||||||||
West Coast Bancorp | 6,120 | 93,024 | |||||||||
Whitney Holding Corp. | 7,330 | 196,737 | |||||||||
2,468,570 | |||||||||||
Consumer Finance (1.4%) | |||||||||||
Advance America Cash Advance Centers, Inc. | 17,770 | 159,042 | |||||||||
Cash America International, Inc. | 7,030 | 228,545 | |||||||||
387,587 | |||||||||||
Diversified Financial Services (0.4%) | |||||||||||
Medallion Financial Corp. | 11,833 | 117,857 | |||||||||
Insurance (8.0%) | |||||||||||
American Physicians Capital, Inc. | 2,365 | 97,722 | |||||||||
Baldwin & Lyons, Inc., Class B | 4,781 | 127,509 | |||||||||
CNA Surety Corp. (a) | 4,840 | 86,297 | |||||||||
Delphi Financial Group, Inc., Class A | 4,310 | 135,248 | |||||||||
EMC Insurance Group, Inc. | 5,080 | 120,091 | |||||||||
Harleysville Group, Inc. | 3,515 | 125,310 | |||||||||
Horace Mann Educators Corp. | 8,440 | 155,043 | |||||||||
IPC Holdings Ltd. | 4,090 | 105,236 | |||||||||
National Western Life Insurance Co., Class A | 524 | 98,402 | |||||||||
Navigators Group, Inc. (a) | 3,364 | 194,204 | |||||||||
Phoenix Companies, Inc. | 15,000 | �� | 162,450 | ||||||||
ProCentury Corp. | 10,384 | 152,333 |
See Accompanying Notes to Financial Statements.
92
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Insurance (continued) | |||||||||||
RAM Holdings Ltd. (a) | 21,008 | $ | 36,974 | ||||||||
RLI Corp. | 2,652 | 149,573 | |||||||||
Safety Insurance Group, Inc. | 3,100 | 120,962 | |||||||||
Stewart Information Services Corp. | 3,990 | 136,577 | |||||||||
United America Indemnity Ltd., Class A (a) | 9,627 | 197,450 | |||||||||
2,201,381 | |||||||||||
Real Estate Investment Trusts (REITs) (4.3%) | |||||||||||
DuPont Fabros Technology, Inc. | 4,976 | 85,736 | |||||||||
Franklin Street Properties Corp. | 10,496 | 150,618 | |||||||||
Getty Realty Corp. | 4,420 | 116,246 | |||||||||
LaSalle Hotel Properties | 4,550 | 124,716 | |||||||||
National Health Investors, Inc. | 2,862 | 84,601 | |||||||||
Potlatch Corp. | 4,330 | 185,887 | |||||||||
Sun Communities, Inc. | 7,270 | 140,529 | |||||||||
Swa Reit Ltd. | 8,872 | 16,502 | |||||||||
Universal Health Realty Income Trust | 3,820 | 137,711 | |||||||||
Urstadt Biddle Properties, Inc., Class A | 7,960 | 122,902 | |||||||||
1,165,448 | |||||||||||
Thrifts & Mortgage Finance (5.5%) | |||||||||||
Bank Mutual Corp. | 13,380 | 164,440 | |||||||||
BankFinancial Corp. | 8,250 | 133,072 | |||||||||
Beneficial Mutual Bancorp, Inc. (a) | 8,174 | 80,923 | |||||||||
Brookline Bancorp, Inc. | 15,600 | 163,020 | |||||||||
Clifton Savings Bancorp, Inc. | 4,329 | 43,723 | |||||||||
Corus Bankshares, Inc. | 15,312 | 194,769 | |||||||||
ESSA Bancorp, Inc. (a) | 2,653 | 31,571 | |||||||||
Flagstar BanCorp, Inc. | 20,440 | 168,630 | |||||||||
Home Federal Bancorp, Inc. | 10,590 | 112,783 | |||||||||
TrustCo Bank Corp. NY | 9,850 | 101,455 | |||||||||
United Financial Bancorp, Inc. | 7,013 | 78,195 | |||||||||
Washington Federal, Inc. | 4,800 | 117,216 | |||||||||
Westfield Financial, Inc. | 11,504 | 117,801 | |||||||||
1,507,598 | |||||||||||
8,079,148 | |||||||||||
Health Care (10.3%) | |||||||||||
Health Care Equipment & Supplies (1.9%) | |||||||||||
Analogic Corp. | 2,180 | 128,751 | |||||||||
Haemonetics Corp. (a) | 3,140 | 187,898 | |||||||||
STERIS Corp. | 7,980 | 197,744 | |||||||||
514,393 | |||||||||||
Health Care Providers & Services (5.5%) | |||||||||||
Amedisys, Inc. (a) | 2,060 | 87,818 | |||||||||
AmSurg Corp. (a) | 3,920 | 100,979 | |||||||||
Cross Country Healthcare, Inc. (a) | 7,320 | 92,452 | |||||||||
Gentiva Health Services, Inc. (a) | 8,750 | 161,700 | |||||||||
Kindred Healthcare, Inc. (a) | 6,800 | 187,272 | |||||||||
NovaMed, Inc. (a) | 16,034 | 63,334 |
See Accompanying Notes to Financial Statements.
93
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Health Care Providers & Services (continued) | |||||||||||
Owens & Minor, Inc. | 3,941 | $ | 162,842 | ||||||||
Pediatrix Medical Group, Inc. (a) | 5,190 | 353,387 | |||||||||
RehabCare Group, Inc. (a) | 4,026 | 84,506 | |||||||||
Res-Care, Inc. (a) | 7,530 | 168,446 | |||||||||
U.S. Physical Therapy, Inc. (a) | 4,400 | 58,960 | |||||||||
1,521,696 | |||||||||||
Life Sciences Tools & Services (2.2%) | |||||||||||
Bio-Rad Laboratories, Inc., Class A (a) | 2,040 | 194,228 | |||||||||
PAREXEL International Corp. (a) | 5,670 | 308,505 | |||||||||
Varian, Inc. (a) | 1,640 | 88,970 | |||||||||
591,703 | |||||||||||
Pharmaceuticals (0.7%) | |||||||||||
Alpharma, Inc., Class A (a) | 5,270 | 108,141 | |||||||||
Sciele Pharma, Inc. (a) | 3,670 | 87,786 | |||||||||
195,927 | |||||||||||
2,823,719 | |||||||||||
Industrials (14.2%) | |||||||||||
Aerospace & Defense (1.3%) | |||||||||||
AAR Corp. (a) | 3,738 | 110,122 | |||||||||
Esterline Technologies Corp. (a) | 3,100 | 144,429 | |||||||||
Moog, Inc., Class A (a) | 2,400 | 110,496 | |||||||||
365,047 | |||||||||||
Airlines (1.0%) | |||||||||||
AirTran Holdings, Inc. (a) | 7,870 | 67,918 | |||||||||
JetBlue Airways Corp. (a) | 10,525 | 72,728 | |||||||||
Skywest, Inc. | 4,820 | 125,416 | |||||||||
266,062 | |||||||||||
Building Products (1.2%) | |||||||||||
Lennox International, Inc. | 3,350 | 124,486 | |||||||||
NCI Building Systems, Inc. (a) | 4,440 | 127,694 | |||||||||
Universal Forest Products, Inc. | 2,180 | 78,916 | |||||||||
331,096 | |||||||||||
Commercial Services & Supplies (3.8%) | |||||||||||
ABM Industries, Inc. | 3,850 | 79,772 | |||||||||
Casella Waste Systems, Inc., Class A (a) | 7,360 | 89,277 | |||||||||
CBIZ, Inc. (a) | 10,032 | 94,401 | |||||||||
CDI Corp. | 2,900 | 56,405 | |||||||||
Consolidated Graphics, Inc. (a) | 4,290 | 215,830 | |||||||||
Healthcare Services Group, Inc. | 6,163 | 149,514 | |||||||||
Kimball International, Inc., Class B | 6,280 | 77,747 | |||||||||
Korn/Ferry International (a) | 6,000 | 96,540 | |||||||||
TeleTech Holdings, Inc. (a) | 2,960 | 58,401 | |||||||||
United Stationers, Inc. (a) | 2,420 | 133,729 | |||||||||
1,051,616 |
See Accompanying Notes to Financial Statements.
94
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Construction & Engineering (1.1%) | |||||||||||
EMCOR Group, Inc. (a) | 6,580 | $ | 144,299 | ||||||||
KHD Humboldt Wedag International Ltd. (a) | 5,802 | 159,497 | |||||||||
303,796 | |||||||||||
Electrical Equipment (1.0%) | |||||||||||
Belden CDT, Inc. | 3,240 | 137,052 | |||||||||
Woodward Governor Co. | 2,280 | 143,138 | |||||||||
280,190 | |||||||||||
Machinery (1.4%) | |||||||||||
EnPro Industries, Inc. (a) | 5,300 | 159,000 | |||||||||
Harsco Corp. | 2,580 | 146,854 | |||||||||
Kadant, Inc. (a) | 2,373 | 62,718 | |||||||||
368,572 | |||||||||||
Road & Rail (2.3%) | |||||||||||
Amerco, Inc. (a) | 1,650 | 114,642 | |||||||||
Dollar Thrifty Automotive Group, Inc. (a) | 2,530 | 61,758 | |||||||||
Genesee & Wyoming, Inc., Class A (a) | 3,020 | 82,476 | |||||||||
Heartland Express, Inc. | 5,800 | 94,250 | |||||||||
Ryder System, Inc. | 1,220 | 63,513 | |||||||||
Werner Enterprises, Inc. | 10,540 | 214,700 | |||||||||
631,339 | |||||||||||
Trading Companies & Distributors (1.1%) | |||||||||||
Kaman Corp. | 4,740 | 140,020 | |||||||||
Watsco, Inc. | 4,020 | 148,257 | |||||||||
288,277 | |||||||||||
3,885,995 | |||||||||||
Information Technology (12.3%) | |||||||||||
Communications Equipment (2.0%) | |||||||||||
Anaren, Inc. (a) | 8,133 | 111,097 | |||||||||
Bel Fuse, Inc., Class B | 1,970 | 53,348 | |||||||||
Black Box Corp. | 3,031 | 100,811 | |||||||||
Dycom Industries, Inc. (a) | 6,880 | 162,505 | |||||||||
Polycom, Inc. (a) | 3,270 | 82,567 | |||||||||
Tollgrade Communications, Inc. (a) | 5,280 | 32,050 | |||||||||
542,378 | |||||||||||
Computers & Peripherals (1.3%) | |||||||||||
Brocade Communications Systems, Inc. (a) | 10,130 | 69,796 | |||||||||
Electronics for Imaging, Inc. (a) | 6,080 | 89,741 | |||||||||
Emulex Corp. (a) | 5,840 | 91,104 | |||||||||
QLogic Corp. (a) | 6,330 | 90,519 | |||||||||
341,160 | |||||||||||
Electronic Equipment & Instruments (3.4%) | |||||||||||
Anixter International, Inc. (a) | 3,130 | 219,288 | |||||||||
Benchmark Electronics, Inc. (a) | 6,250 | 110,937 | |||||||||
Brightpoint, Inc. (a) | 11,256 | 143,176 | |||||||||
Coherent, Inc. (a) | 2,662 | 69,212 | |||||||||
MTS Systems Corp. | 3,221 | 108,258 |
See Accompanying Notes to Financial Statements.
95
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Electronic Equipment & Instruments (continued) | |||||||||||
NAM TAI Electronics, Inc. | 11,330 | $ | 95,399 | ||||||||
Plexus Corp. (a) | 2,900 | 65,511 | |||||||||
Vishay Intertechnology, Inc. (a) | 11,220 | 117,698 | |||||||||
929,479 | |||||||||||
IT Services (1.5%) | |||||||||||
CACI International, Inc., Class A (a) | 2,410 | 105,052 | |||||||||
CSG Systems International, Inc. (a) | 3,918 | 49,994 | |||||||||
MAXIMUS, Inc. | 2,250 | 79,380 | |||||||||
MPS Group, Inc. (a) | 18,360 | 184,518 | |||||||||
418,944 | |||||||||||
Semiconductors & Semiconductor Equipment (1.8%) | |||||||||||
Actel Corp. (a) | 7,078 | 84,299 | |||||||||
Advanced Energy Industries, Inc. (a) | 3,850 | 41,618 | |||||||||
Asyst Technologies, Inc. (a) | 8,103 | 23,904 | |||||||||
ATMI, Inc. (a) | 1,680 | 44,184 | |||||||||
Cabot Microelectronics Corp. (a) | 1,460 | 50,487 | |||||||||
Exar Corp. (a) | 6,410 | 52,626 | |||||||||
Fairchild Semiconductor International, Inc. (a) | 4,990 | 61,127 | |||||||||
MKS Instruments, Inc. (a) | 3,871 | 72,001 | |||||||||
RF Micro Devices, Inc. (a) | 12,550 | 40,536 | |||||||||
Varian Semiconductor Equipment Associates, Inc. (a) | 1,065 | 34,304 | |||||||||
505,086 | |||||||||||
Software (2.3%) | |||||||||||
ACI Worldwide, Inc. (a) | 4,410 | 65,709 | |||||||||
Captaris, Inc. (a) | 12,780 | 43,069 | |||||||||
InterVoice, Inc. (a) | 6,450 | 41,925 | |||||||||
Lawson Software, Inc. (a) | 5,240 | 45,536 | |||||||||
MSC.Software Corp. (a) | 10,120 | 131,357 | |||||||||
Progress Software Corp. (a) | 3,100 | 91,512 | |||||||||
SPSS, Inc. (a) | 2,100 | 69,405 | |||||||||
Sybase, Inc. (a) | 5,370 | 151,541 | |||||||||
640,054 | |||||||||||
3,377,101 | |||||||||||
Materials (6.5%) | |||||||||||
Chemicals (1.8%) | |||||||||||
H.B. Fuller Co. | 8,790 | 182,480 | |||||||||
Minerals Technologies, Inc. | 2,640 | 143,616 | |||||||||
Sensient Technologies Corp. | 6,080 | 161,485 | |||||||||
487,581 | |||||||||||
Construction Materials (0.6%) | |||||||||||
Eagle Materials, Inc. | 4,220 | 159,094 | |||||||||
Containers & Packaging (2.2%) | |||||||||||
AptarGroup, Inc. | 6,240 | 235,373 | |||||||||
Greif, Inc., Class A | 2,862 | 188,319 | |||||||||
Greif, Inc., Class B | 3,079 | 187,942 | |||||||||
611,634 |
See Accompanying Notes to Financial Statements.
96
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Metals & Mining (1.1%) | |||||||||||
Carpenter Technology Corp. | 1,700 | $ | 104,788 | ||||||||
Haynes International, Inc. (a) | 1,756 | 77,580 | |||||||||
Worthington Industries, Inc. | 7,520 | 123,253 | |||||||||
305,621 | |||||||||||
Paper & Forest Products (0.8%) | |||||||||||
Glatfelter Co. | 8,820 | 127,537 | |||||||||
Mercer International, Inc. (a) | 11,380 | 97,527 | |||||||||
225,064 | |||||||||||
1,788,994 | |||||||||||
Telecommunication Services (0.6%) | |||||||||||
Diversified Telecommunication Services (0.2%) | |||||||||||
Warwick Valley Telephone Co. | 5,750 | 67,103 | |||||||||
Wireless Telecommunication Services (0.4%) | |||||||||||
Syniverse Holdings, Inc. (a) | 7,128 | 112,551 | |||||||||
179,654 | |||||||||||
Utilities (6.1%) | |||||||||||
Electric Utilities (3.7%) | |||||||||||
ALLETE, Inc. | 3,810 | 146,647 | |||||||||
El Paso Electric Co. (a) | 7,100 | 166,353 | |||||||||
Hawaiian Electric Industries, Inc. | 5,880 | 132,182 | |||||||||
Maine & Maritimes Corp. (a) | 1,220 | 38,674 | |||||||||
MGE Energy, Inc. | 4,030 | 132,023 | |||||||||
Otter Tail Corp. | 3,201 | 104,257 | |||||||||
Portland General Electric Co. | 5,807 | 143,084 | |||||||||
UIL Holdings Corp. | 4,150 | 141,723 | |||||||||
1,004,943 | |||||||||||
Gas Utilities (0.5%) | |||||||||||
WGL Holdings, Inc. | 4,500 | 145,080 | |||||||||
Multi-Utilities (1.9%) | |||||||||||
Avista Corp. | 7,040 | 141,856 | |||||||||
CH Energy Group, Inc. | 6,390 | 246,590 | |||||||||
NorthWestern Corp. | 4,580 | 132,362 | |||||||||
520,808 | |||||||||||
Water Utilities (0.0%) | |||||||||||
American States Water Co. | 34 | 1,172 | |||||||||
1,672,003 | |||||||||||
Total Common Stocks (Cost of $23,638,808) | 27,393,554 |
See Accompanying Notes to Financial Statements.
97
CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Short-Term Obligation (0.9%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08, at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/21, market value $248,281 (repurchase proceeds $239,011) | $ | 239,000 | $ | 239,000 | |||||||
Total Short-Term Obligation (Cost of $239,000) | 239,000 | ||||||||||
Total Investments (100.7%) (Cost of $23,877,808) (b) | 27,632,554 | ||||||||||
Other Assets & Liabilities, Net (-0.7%) | (198,443 | ) | |||||||||
Net Assets (100.0%) | $ | 27,434,111 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $23,877,808.
At January 31, 2008, the Fund held investments in the following sectors:
% of Sector | Net Assets | ||||||
Financials | 29.4 | ||||||
Industrials | 14.2 | ||||||
Information Technology | 12.3 | ||||||
Health Care | 10.3 | ||||||
Consumer Discretionary | 9.0 | ||||||
Materials | 6.5 | ||||||
Energy | 6.3 | ||||||
Utilities | 6.1 | ||||||
Consumer Staples | 5.1 | ||||||
Telecommunication Services | 0.6 | ||||||
99.8 | |||||||
Short-Term Obligation | 0.9 | ||||||
Other Assets & Liabilities, Net | (0.7 | ) | |||||
100.0 |
See Accompanying Notes to Financial Statements.
98
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (99.1%) | |||||||||||
Consumer Discretionary (14.0%) | |||||||||||
Distributors (0.5%) | |||||||||||
LKQ Corp. (a) | 3,440 | $ | 61,542 | ||||||||
Diversified Consumer Services (1.8%) | |||||||||||
DeVry, Inc. | 1,600 | 88,304 | |||||||||
Sotheby's | 1,930 | 59,965 | |||||||||
Strayer Education, Inc. | 370 | 63,855 | |||||||||
212,124 | |||||||||||
Hotels, Restaurants & Leisure (3.4%) | |||||||||||
Burger King Holdings, Inc. | 2,290 | 60,342 | |||||||||
Ctrip.com International Ltd., ADR | 1,578 | 72,052 | |||||||||
Life Time Fitness, Inc. (a) | 1,360 | 60,302 | |||||||||
Red Robin Gourmet Burgers, Inc. (a) | 1,760 | 61,389 | |||||||||
Sonic Corp. (a) | 2,730 | 60,551 | |||||||||
WMS Industries, Inc. (a) | 2,440 | 91,256 | |||||||||
405,892 | |||||||||||
Internet & Catalog Retail (1.1%) | |||||||||||
Priceline.com, Inc. (a) | 570 | 61,856 | |||||||||
Shutterfly, Inc. (a) | 3,340 | 64,963 | |||||||||
126,819 | |||||||||||
Media (0.5%) | |||||||||||
Lamar Advertising Co., Class A (a) | 1,370 | 59,074 | |||||||||
Specialty Retail (3.8%) | |||||||||||
Advance Auto Parts, Inc. | 1,700 | 60,656 | |||||||||
Aeropostale, Inc. (a) | 2,850 | 80,284 | |||||||||
GameStop Corp., Class A (a) | 1,790 | 92,597 | |||||||||
Guess ?, Inc. | 1,920 | 71,635 | |||||||||
Urban Outfitters, Inc. (a) | 4,930 | 142,970 | |||||||||
448,142 | |||||||||||
Textiles, Apparel & Luxury Goods (2.9%) | |||||||||||
CROCS, Inc. (a) | 2,530 | 88,019 | |||||||||
Deckers Outdoor Corp. (a) | 590 | 71,531 | |||||||||
Iconix Brand Group, Inc. (a) | 2,961 | 61,559 | |||||||||
Under Armour, Inc., Class A (a) | 1,520 | 61,180 | |||||||||
Warnaco Group, Inc. (a) | 1,510 | 54,194 | |||||||||
336,483 | |||||||||||
1,650,076 | |||||||||||
Consumer Staples (2.5%) | |||||||||||
Beverages (1.3%) | |||||||||||
Central European Distribution Corp. (a) | 1,830 | 96,203 | |||||||||
Hansen Natural Corp. (a) | 1,500 | 57,840 | |||||||||
154,043 |
See Accompanying Notes to Financial Statements.
99
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Food Products (0.7%) | |||||||||||
Bunge Ltd. | 690 | $ | 81,745 | ||||||||
Personal Products (0.5%) | |||||||||||
Chattem, Inc. (a) | 760 | 58,307 | |||||||||
294,095 | |||||||||||
Energy (8.8%) | |||||||||||
Energy Equipment & Services (2.8%) | |||||||||||
Atwood Oceanics, Inc. (a) | 1,100 | 91,399 | |||||||||
Cameron International Corp. (a) | 1,300 | 52,338 | |||||||||
Dril-Quip, Inc. (a) | 1,060 | 51,452 | |||||||||
FMC Technologies, Inc. (a) | 1,590 | 76,575 | |||||||||
Oceaneering International, Inc. (a) | 980 | 56,428 | |||||||||
328,192 | |||||||||||
Oil, Gas & Consumable Fuels (6.0%) | |||||||||||
Alpha Natural Resources, Inc. (a) | 1,800 | 60,228 | |||||||||
Concho Resources, Inc. (a) | 5,630 | 114,289 | |||||||||
Continental Resources, Inc. (a) | 4,590 | 114,337 | |||||||||
Denbury Resources, Inc. (a) | 4,750 | 120,175 | |||||||||
Frontier Oil Corp. | 1,630 | 57,490 | |||||||||
Parallel Petroleum Corp. (a) | 4,350 | 60,378 | |||||||||
PetroHawk Energy Corp. (a) | 5,760 | 90,720 | |||||||||
Southwestern Energy Co. (a) | 1,780 | 99,520 | |||||||||
717,137 | |||||||||||
1,045,329 | |||||||||||
Financials (7.1%) | |||||||||||
Capital Markets (3.2%) | |||||||||||
Affiliated Managers Group, Inc. (a) | 880 | 86,513 | |||||||||
GFI Group, Inc. (a) | 740 | 65,275 | |||||||||
Greenhill & Co., Inc. | 990 | 66,855 | |||||||||
Janus Capital Group, Inc. | 2,150 | 58,071 | |||||||||
Waddell & Reed Financial, Inc., Class A | 3,210 | 106,508 | |||||||||
383,222 | |||||||||||
Insurance (0.5%) | |||||||||||
National Financial Partners Corp. | 1,590 | 57,399 | |||||||||
Real Estate Investment Trusts (REITs) (2.9%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 600 | 58,938 | |||||||||
Digital Realty Trust, Inc. | 1,310 | 46,806 | |||||||||
Nationwide Health Properties, Inc. | 1,920 | 60,595 | |||||||||
Plum Creek Timber Co., Inc. | 1,510 | 63,043 | |||||||||
Thornburg Mortgage, Inc. | 4,380 | 49,056 | |||||||||
Washington Real Estate Investment Trust | 1,890 | 59,460 | |||||||||
337,898 | |||||||||||
Real Estate Management & Development (0.5%) | |||||||||||
Jones Lang LaSalle, Inc. | 840 | 65,352 | |||||||||
843,871 |
See Accompanying Notes to Financial Statements.
100
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Health Care (20.9%) | |||||||||||
Biotechnology (5.1%) | |||||||||||
Alexion Pharmaceuticals, Inc. (a) | 870 | $ | 56,828 | ||||||||
Allos Therapeutics, Inc. (a) | 6,440 | 46,368 | |||||||||
BioMarin Pharmaceuticals, Inc. (a) | 2,250 | 83,385 | |||||||||
Cephalon, Inc. (a) | 990 | 64,974 | |||||||||
Cepheid, Inc. (a) | 1,950 | 59,553 | |||||||||
Onyx Pharmaceuticals, Inc. (a) | 1,460 | 69,394 | |||||||||
OSI Pharmaceuticals, Inc. (a) | 1,570 | 62,612 | |||||||||
PDL BioPharma, Inc. (a) | 2,860 | 42,700 | |||||||||
Savient Pharmaceuticals, Inc. (a) | 2,171 | 42,009 | |||||||||
United Therapeutics Corp. (a) | 870 | 73,062 | |||||||||
600,885 | |||||||||||
Health Care Equipment & Supplies (6.6%) | |||||||||||
Beckman Coulter, Inc. | 854 | 56,791 | |||||||||
Gen-Probe, Inc. (a) | 1,050 | 60,008 | |||||||||
Hologic, Inc. (a) | 2,830 | 182,139 | |||||||||
Hospira, Inc. (a) | 1,360 | 55,910 | |||||||||
Intuitive Surgical, Inc. (a) | 534 | 135,636 | |||||||||
Masimo Corp. (a) | 2,338 | 83,443 | |||||||||
Mindray Medical International Ltd., ADR | 1,640 | 55,924 | |||||||||
NuVasive, Inc. (a) | 2,101 | 82,800 | |||||||||
Varian Medical Systems, Inc. (a) | 1,250 | 64,987 | |||||||||
777,638 | |||||||||||
Health Care Providers & Services (3.1%) | |||||||||||
Brookdale Senior Living, Inc. | 1,690 | 37,721 | |||||||||
HealthExtras, Inc. (a) | 1,955 | 54,055 | |||||||||
IPC The Hospitalist Co., Inc. (a) | 2,239 | 47,064 | |||||||||
Laboratory Corp. of America Holdings (a) | 1,210 | 89,395 | |||||||||
Pediatrix Medical Group, Inc. (a) | 1,010 | 68,771 | |||||||||
Psychiatric Solutions, Inc. (a) | 2,190 | 66,072 | |||||||||
363,078 | |||||||||||
Health Care Technology (1.0%) | |||||||||||
Cerner Corp. (a) | 1,080 | 56,592 | |||||||||
Omnicell, Inc. (a) | 2,460 | 61,697 | |||||||||
118,289 | |||||||||||
Life Sciences Tools & Services (4.0%) | |||||||||||
Covance, Inc. (a) | 850 | 70,686 | |||||||||
ICON PLC, ADR (a) | 2,206 | 138,272 | |||||||||
Illumina, Inc. (a) | 920 | 58,604 | |||||||||
Pharmaceutical Product Development, Inc. | 2,080 | 90,189 | |||||||||
Thermo Fisher Scientific, Inc. (a) | 1,150 | 59,213 | |||||||||
Waters Corp. (a) | 1,010 | 58,025 | |||||||||
474,989 | |||||||||||
Pharmaceuticals (1.1%) | |||||||||||
Allergan, Inc. | 1,220 | 81,972 | |||||||||
Shire PLC, ADR | 930 | 50,080 | |||||||||
132,052 | |||||||||||
2,466,931 |
See Accompanying Notes to Financial Statements.
101
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Industrials (18.3%) | |||||||||||
Aerospace & Defense (2.5%) | |||||||||||
BE Aerospace, Inc. (a) | 2,760 | $ | 106,564 | ||||||||
Goodrich Corp. | 970 | 60,673 | |||||||||
L-3 Communications Holdings, Inc. | 540 | 59,848 | |||||||||
Rockwell Collins, Inc. | 1,000 | 63,200 | |||||||||
290,285 | |||||||||||
Air Freight & Logistics (0.5%) | |||||||||||
HUB Group, Inc., Class A (a) | 2,046 | 59,600 | |||||||||
Commercial Services & Supplies (4.1%) | |||||||||||
Advisory Board Co. (a) | 770 | 49,064 | |||||||||
Corrections Corp. of America (a) | 1,770 | 46,976 | |||||||||
Dun & Bradstreet Corp. | 610 | 56,108 | |||||||||
FTI Consulting, Inc. (a) | 1,624 | 89,823 | |||||||||
Geo Group, Inc. (a) | 2,080 | 49,754 | |||||||||
Huron Consulting Group, Inc. (a) | 1,244 | 89,344 | |||||||||
Stericycle, Inc. (a) | 1,700 | 100,742 | |||||||||
481,811 | |||||||||||
Construction & Engineering (1.4%) | |||||||||||
Foster Wheeler Ltd. (a) | 1,400 | 95,858 | |||||||||
Quanta Services, Inc. (a) | 3,130 | 68,610 | |||||||||
164,468 | |||||||||||
Electrical Equipment (3.6%) | |||||||||||
AMETEK, Inc. | 1,540 | 67,821 | |||||||||
First Solar, Inc. (a) | 410 | 74,526 | |||||||||
General Cable Corp. (a) | 980 | 56,850 | |||||||||
Roper Industries, Inc. | 1,350 | 75,492 | |||||||||
SunPower Corp., Class A (a) | 1,010 | 69,781 | |||||||||
Woodward Governor Co. | 1,370 | 86,008 | |||||||||
430,478 | |||||||||||
Industrial Conglomerates (1.1%) | |||||||||||
McDermott International, Inc. (a) | 2,660 | 125,499 | |||||||||
Machinery (4.1%) | |||||||||||
Actuant Corp., Class A | 1,570 | 42,908 | |||||||||
Barnes Group, Inc. | 2,010 | 53,567 | |||||||||
Bucyrus International, Inc., Class A | 1,100 | 101,981 | |||||||||
Flowserve Corp. | 680 | 55,842 | |||||||||
Kaydon Corp. | 1,390 | 60,729 | |||||||||
Manitowoc Co., Inc. | 1,510 | 57,561 | |||||||||
Oshkosh Corp. | 1,370 | 62,691 | |||||||||
RBC Bearings, Inc. (a) | 1,850 | 55,389 | |||||||||
490,668 | |||||||||||
Marine (0.5%) | |||||||||||
DryShips, Inc. | 800 | 59,544 |
See Accompanying Notes to Financial Statements.
102
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Road & Rail (0.5%) | |||||||||||
Genesee & Wyoming, Inc., Class A (a) | 2,110 | $ | 57,624 | ||||||||
2,159,977 | |||||||||||
Information Technology (17.7%) | |||||||||||
Communications Equipment (1.4%) | |||||||||||
Harris Corp. | 1,290 | 70,550 | |||||||||
NETGEAR, Inc. (a) | 3,540 | 94,377 | |||||||||
164,927 | |||||||||||
Electronic Equipment & Instruments (1.1%) | |||||||||||
Itron, Inc. (a) | 710 | 58,504 | |||||||||
Mettler-Toledo International, Inc. (a) | 650 | 64,545 | |||||||||
123,049 | |||||||||||
Internet Software & Services (4.1%) | |||||||||||
Ariba, Inc. (a) | 5,570 | 55,533 | |||||||||
Constant Contact, Inc. (a) | 2,914 | 62,126 | |||||||||
Equinix, Inc. (a) | 2,130 | 160,879 | |||||||||
Omniture, Inc. (a) | 3,326 | 82,219 | |||||||||
Vocus, Inc. (a) | 4,281 | 125,947 | |||||||||
486,704 | |||||||||||
IT Services (1.6%) | |||||||||||
DST Systems, Inc. (a) | 770 | 55,055 | |||||||||
Global Payments, Inc. | 1,950 | 72,930 | |||||||||
Virtusa Corp. (a) | 4,242 | 63,333 | |||||||||
191,318 | |||||||||||
Semiconductors & Semiconductor Equipment (3.2%) | |||||||||||
Atheros Communications, Inc. (a) | 2,095 | 57,214 | |||||||||
ATMI, Inc. (a) | 2,040 | 53,652 | |||||||||
Hittite Microwave Corp. (a) | 1,460 | 58,137 | |||||||||
MEMC Electronic Materials, Inc. (a) | 1,140 | 81,464 | |||||||||
Microsemi Corp. (a) | 2,990 | 67,933 | |||||||||
Sigma Designs, Inc. (a) | 1,280 | 57,882 | |||||||||
376,282 | |||||||||||
Software (6.3%) | |||||||||||
Advent Software, Inc. (a) | 1,430 | 64,579 | |||||||||
ANSYS, Inc. (a) | 3,290 | 114,854 | |||||||||
BluePhoenix Solutions Ltd. (a) | 3,950 | 58,895 | |||||||||
Concur Technologies, Inc. (a) | 2,670 | 93,610 | |||||||||
FactSet Research Systems, Inc. | 1,160 | 64,879 | |||||||||
McAfee, Inc. (a) | 2,300 | 77,418 | |||||||||
Micros Systems, Inc. (a) | 1,390 | 85,596 | |||||||||
Nuance Communications, Inc. (a) | 4,151 | 65,959 | |||||||||
SPSS, Inc. (a) | 1,770 | 58,499 | |||||||||
Taleo Corp., Class A (a) | 3,010 | 63,601 | |||||||||
747,890 | |||||||||||
2,090,170 |
See Accompanying Notes to Financial Statements.
103
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Materials (6.6%) | |||||||||||
Chemicals (3.8%) | |||||||||||
Agrium, Inc. | 1,360 | $ | 87,611 | ||||||||
CF Industries Holdings, Inc. | 1,040 | 111,207 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 1,335 | 188,075 | |||||||||
Zoltek Companies, Inc. (a) | 1,600 | 58,400 | |||||||||
445,293 | |||||||||||
Containers & Packaging (0.7%) | |||||||||||
Silgan Holdings, Inc. | 1,670 | 79,091 | |||||||||
Metals & Mining (2.1%) | |||||||||||
Cleveland-Cliffs, Inc. | 1,190 | 121,190 | |||||||||
Freeport-McMoRan Copper & Gold, Inc. | 677 | 60,273 | |||||||||
Steel Dynamics, Inc. | 1,410 | 73,532 | |||||||||
254,995 | |||||||||||
779,379 | |||||||||||
Telecommunication Services (2.7%) | |||||||||||
Wireless Telecommunication Services (2.7%) | |||||||||||
American Tower Corp., Class A (a) | 2,159 | 81,027 | |||||||||
Crown Castle International Corp. (a) | 1,540 | 55,733 | |||||||||
Millicom International Cellular SA (a) | 610 | 64,623 | |||||||||
SBA Communications Corp., Class A (a) | 3,780 | 111,926 | |||||||||
313,309 | |||||||||||
Utilities (0.5%) | |||||||||||
Electric Utilities (0.5%) | |||||||||||
ITC Holdings Corp. | 1,141 | 60,290 | |||||||||
Total Common Stocks (Cost of $10,496,322) | 11,703,427 | ||||||||||
Par | |||||||||||
Short-Term Obligation (1.1%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/17, market value of $137,500 (repurchase proceeds $131,006) | $ | 131,000 | 131,000 | ||||||||
Total Short-Term Obligation (Cost of $131,000) | 131,000 | ||||||||||
Total Investments (100.2%) (Cost of $10,627,322) (b) | 11,834,427 | ||||||||||
Other Assets & Liabilities, Net (-0.2%) | (19,369 | ) | |||||||||
Net Assets (100.0%) | $ | 11,815,058 |
See Accompanying Notes to Financial Statements.
104
CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $10,627,322.
For the six months ended January 31, 2008, transactions in written option contracts were as follows:
Number of contracts | Premium received | ||||||||||
Options outstanding at July 31, 2007 | - | $ | - | ||||||||
Options written | 16 | 4,725 | |||||||||
Options exercised | - | - | |||||||||
Options expired | - | - | |||||||||
Options bought back | (16 | ) | (4,725 | ) | |||||||
Options outstanding at January 31, 2008 | - | $ | - |
At January 31, 2008, the Fund held investments in the following sectors:
Sector | % of Net Assets | ||||||
Health Care | 20.9 | ||||||
Industrials | 18.3 | ||||||
Information Technology | 17.7 | ||||||
Consumer Discretionary | 14.0 | ||||||
Energy | 8.8 | ||||||
Financials | 7.1 | ||||||
Materials | 6.6 | ||||||
Telecommunication Services | 2.7 | ||||||
Consumer Staples | 2.5 | ||||||
Utilities | 0.5 | ||||||
99.1 | |||||||
Short-Term Obligation | 1.1 | ||||||
Other Assets & Liabilities, Net | (0.2 | ) | |||||
100.0 |
Acronym | Name | ||||||
ADR | American Depositary Receipt |
See Accompanying Notes to Financial Statements.
105
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (96.2%) | |||||||||||
Consumer Discretionary (10.1%) | |||||||||||
Auto Components (2.6%) | |||||||||||
Continental AG | 6,379 | $ | 662,408 | ||||||||
Denso Corp. | 26,100 | 943,739 | |||||||||
Stanley Electric Co., Ltd. | 34,100 | 688,756 | |||||||||
Toyota Boshoku Corp. | 13,600 | 412,597 | |||||||||
2,707,500 | |||||||||||
Automobiles (1.8%) | |||||||||||
Dongfeng Motor Group Co., Ltd., Class H | 1,292,000 | 851,758 | |||||||||
Toyota Motor Corp. | 18,800 | 1,022,964 | |||||||||
1,874,722 | |||||||||||
Hotels, Restaurants & Leisure (1.9%) | |||||||||||
Genting Berhad | 256,200 | 585,294 | |||||||||
Kangwon Land, Inc. (a) | 21,370 | 500,016 | |||||||||
Paddy Power PLC | 32,193 | 909,365 | |||||||||
1,994,675 | |||||||||||
Household Durables (0.7%) | |||||||||||
Matsushita Electric Industrial Co., Ltd. | 36,000 | 769,442 | |||||||||
Leisure Equipment & Products (0.6%) | |||||||||||
Nikon Corp. | 21,000 | 588,949 | |||||||||
Media (1.3%) | |||||||||||
Vivendi | 34,157 | 1,374,523 | |||||||||
Specialty Retail (0.7%) | |||||||||||
Esprit Holdings Ltd. | 52,100 | 675,550 | |||||||||
Textiles, Apparel & Luxury Goods (0.5%) | |||||||||||
Nisshinbo Industries, Inc. | 51,000 | 548,343 | |||||||||
10,533,704 | |||||||||||
Consumer Staples (8.5%) | |||||||||||
Beverages (2.2%) | |||||||||||
Fomento Economico Mexicano SAB de CV, ADR | 30,590 | 1,106,440 | |||||||||
Heineken NV | 21,374 | 1,200,896 | |||||||||
2,307,336 | |||||||||||
Food & Staples Retailing (0.4%) | |||||||||||
Massmart Holdings Ltd. | 43,799 | 401,650 | |||||||||
Food Products (3.4%) | |||||||||||
China Milk Products Group Ltd. | 592,000 | 381,984 | |||||||||
Nestle SA, Registered Shares | 2,230 | 996,660 | |||||||||
Toyo Suisan Kaisha Ltd. | 35,000 | 664,469 | |||||||||
Unilever PLC | 45,910 | 1,508,704 | |||||||||
3,551,817 |
See Accompanying Notes to Financial Statements.
106
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Personal Products (0.7%) | |||||||||||
Shiseido Co., Ltd. | 31,000 | $ | 729,891 | ||||||||
Tobacco (1.8%) | |||||||||||
Imperial Tobacco Group PLC | 10,617 | 517,254 | |||||||||
Japan Tobacco, Inc. | 260 | 1,384,793 | |||||||||
1,902,047 | |||||||||||
8,892,741 | |||||||||||
Energy (7.5%) | |||||||||||
Energy Equipment & Services (1.3%) | |||||||||||
Technip SA | 10,048 | 649,697 | |||||||||
TGS Nopec Geophysical Co. ASA (a) | 54,600 | 676,110 | |||||||||
1,325,807 | |||||||||||
Oil, Gas & Consumable Fuels (6.2%) | |||||||||||
BP PLC ADR | 23,105 | 1,472,944 | |||||||||
PetroChina Co., Ltd., Class H | 728,000 | 1,022,611 | |||||||||
Royal Dutch Shell PLC, Class B | 21,347 | 738,517 | |||||||||
StatoilHydro ASA | 29,150 | 762,142 | |||||||||
Total SA | 23,920 | 1,735,046 | |||||||||
Yanzhou Coal Mining Co., Ltd., Class H | 448,000 | 764,157 | |||||||||
6,495,417 | |||||||||||
7,821,224 | |||||||||||
Financials (24.9%) | |||||||||||
Capital Markets (3.0%) | |||||||||||
Credit Suisse Group, Registered Shares | 24,507 | 1,388,906 | |||||||||
Deutsche Bank AG, Registered Shares | 12,316 | 1,391,900 | |||||||||
UBS AG, Registered Shares | 8,100 | 335,202 | |||||||||
3,116,008 | |||||||||||
Commercial Banks (14.7%) | |||||||||||
Australia & New Zealand Banking Group Ltd. | 26,446 | 627,457 | |||||||||
Banco Bilbao Vizcaya Argentaria SA | 77,934 | 1,643,789 | |||||||||
Banco Santander SA | 111,245 | 1,951,324 | |||||||||
Bank of Ireland | 46,215 | 680,293 | |||||||||
Barclays PLC | 133,013 | 1,254,016 | |||||||||
BNP Paribas | 15,721 | 1,554,257 | |||||||||
Bumiputra-Commerce Holdings Berhad | 135,300 | 433,091 | |||||||||
DBS Group Holdings Ltd. | 52,000 | 651,291 | |||||||||
HBOS PLC | 33,887 | 467,996 | |||||||||
HSBC Holdings PLC | 80,674 | 1,209,601 | |||||||||
Industrial & Commercial Bank of China, Class H | 523,000 | 311,976 | |||||||||
Mizuho Financial Group, Inc. | 128 | 606,660 | |||||||||
Societe Generale | 9,077 | 1,126,212 | |||||||||
Swedbank AB, Class A | 20,300 | 523,355 | |||||||||
United Overseas Bank Ltd. | 94,000 | 1,163,895 | |||||||||
Westpac Banking Corp. | 46,542 | 1,087,406 | |||||||||
15,292,619 |
See Accompanying Notes to Financial Statements.
107
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Consumer Finance (0.4%) | |||||||||||
ORIX Corp. | 2,480 | $ | 422,018 | ||||||||
Diversified Financial Services (0.5%) | |||||||||||
Fortis | 23,629 | 531,860 | |||||||||
Insurance (4.1%) | |||||||||||
Aviva PLC | 53,661 | 672,106 | |||||||||
Axis Capital Holdings Ltd. | 24,386 | 976,416 | |||||||||
Baloise Holding AG, Registered Shares | 9,536 | 846,523 | |||||||||
Brit Insurance Holdings PLC | 168,150 | 763,343 | |||||||||
Swiss Reinsurance, Registered Shares | 13,661 | 1,023,417 | |||||||||
4,281,805 | |||||||||||
Real Estate Management & Development (2.2%) | |||||||||||
Emaar Properties PJSC | 153,154 | 500,626 | |||||||||
Hongkong Land Holdings Ltd. | 187,000 | 892,467 | |||||||||
Swire Pacific Ltd., Class A | 68,000 | 929,037 | |||||||||
2,322,130 | |||||||||||
25,966,440 | |||||||||||
Health Care (7.5%) | |||||||||||
Pharmaceuticals (7.5%) | |||||||||||
AstraZeneca PLC | 31,069 | 1,295,990 | |||||||||
Biovail Corp. | 59,025 | 808,642 | |||||||||
Novartis AG, Registered Shares | 40,902 | 2,069,824 | |||||||||
Novo-Nordisk A/S, Class B | 8,275 | 519,847 | |||||||||
Roche Holding AG, Genusschein Shares | 8,377 | 1,517,735 | |||||||||
Takeda Pharmaceutical Co., Ltd. | 15,300 | 929,178 | |||||||||
Teva Pharmaceutical Industries Ltd., ADR | 15,281 | 703,537 | |||||||||
7,844,753 | |||||||||||
Industrials (10.3%) | |||||||||||
Aerospace & Defense (0.8%) | |||||||||||
MTU Aero Engines Holding AG | 15,555 | 833,743 | |||||||||
Airlines (0.4%) | |||||||||||
British Airways PLC (a) | 62,798 | 416,925 | |||||||||
Building Products (0.9%) | |||||||||||
Geberit AG, Registered Shares | 7,176 | 996,113 | |||||||||
Commercial Services & Supplies (0.7%) | |||||||||||
Randstad Holding NV | 19,588 | 752,956 | |||||||||
Construction & Engineering (1.0%) | |||||||||||
Outotec Oyj | 11,384 | 551,847 | |||||||||
Peab AB | 47,900 | 444,864 | |||||||||
996,711 |
See Accompanying Notes to Financial Statements.
108
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Electrical Equipment (1.2%) | |||||||||||
Mitsubishi Electric Corp. | 66,000 | $ | 615,161 | ||||||||
Vestas Wind Systems A/S (a) | 6,643 | 644,184 | |||||||||
1,259,345 | |||||||||||
Industrial Conglomerates (1.0%) | |||||||||||
Keppel Corp., Ltd. | 128,000 | 1,046,477 | |||||||||
Machinery (3.0%) | |||||||||||
Georg Fischer AG, Registered Shares (a) | 1,228 | 531,789 | |||||||||
Gildemeister AG | 9,800 | 203,588 | |||||||||
Glory Ltd. | 20,200 | 413,092 | |||||||||
Komatsu Ltd. | 30,200 | 729,003 | |||||||||
SKF AB, Class B | 32,000 | 573,908 | |||||||||
Volvo AB, Class B | 47,400 | 633,237 | |||||||||
3,084,617 | |||||||||||
Marine (0.4%) | |||||||||||
U-Ming Marine Transport Corp. | 162,000 | 391,397 | |||||||||
Trading Companies & Distributors (0.9%) | |||||||||||
Itochu Corp. | 108,000 | 990,720 | |||||||||
10,769,004 | |||||||||||
Information Technology (6.8%) | |||||||||||
Communications Equipment (1.2%) | |||||||||||
Nokia Oyj | 33,769 | 1,241,943 | |||||||||
Electronic Equipment & Instruments (1.1%) | |||||||||||
FUJIFILM Holdings Corp. | 29,600 | 1,160,520 | |||||||||
Internet Software & Services (1.1%) | |||||||||||
United Internet AG, Registered Shares | 57,239 | 1,095,001 | |||||||||
IT Services (1.2%) | |||||||||||
CGI Group, Inc., Class A (a) | 63,300 | 633,599 | |||||||||
Computershare Ltd. | 78,745 | 567,585 | |||||||||
1,201,184 | |||||||||||
Office Electronics (0.9%) | |||||||||||
Canon, Inc. | 22,300 | 962,497 | |||||||||
Semiconductors & Semiconductor Equipment (0.6%) | |||||||||||
Verigy Ltd. (a) | 30,298 | 632,622 | |||||||||
Software (0.7%) | |||||||||||
Nintendo Co., Ltd. | 1,500 | 749,852 | |||||||||
7,043,619 |
See Accompanying Notes to Financial Statements.
109
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Materials (9.6%) | |||||||||||
Chemicals (3.5%) | |||||||||||
BASF SE | 12,125 | $ | 1,587,532 | ||||||||
Linde AG | 8,398 | 1,098,705 | |||||||||
Shin-Etsu Chemical Co., Ltd. | 19,300 | 1,016,502 | |||||||||
3,702,739 | |||||||||||
Construction Materials (0.9%) | |||||||||||
Ciments Francais SA | 6,220 | 943,559 | |||||||||
Metals & Mining (5.2%) | |||||||||||
BHP Biliton PLC | 29,894 | 886,051 | |||||||||
JFE Holdings, Inc. | 12,200 | 564,588 | |||||||||
Norsk Hydro ASA | 53,000 | 635,019 | |||||||||
Rio Tinto PLC | 10,181 | 1,016,137 | |||||||||
Salzgitter AG | 5,857 | 923,470 | |||||||||
SSAB Svenskt Stal AB, Series A | 16,100 | 423,955 | |||||||||
Yamato Kogyo Co., Ltd. | 25,300 | 947,080 | |||||||||
5,396,300 | |||||||||||
10,042,598 | |||||||||||
Telecommunication Services (5.8%) | |||||||||||
Diversified Telecommunication Services (3.4%) | |||||||||||
Bezeq Israeli Telecommunication Corp., Ltd. | 509,076 | 938,052 | |||||||||
Chunghwa Telecom Co., Ltd., ADR | 35,458 | 745,682 | |||||||||
Telefonica O2 Czech Republic AS | 40,399 | 1,140,616 | |||||||||
Telekomunikacja Polska SA | 79,020 | 757,456 | |||||||||
3,581,806 | |||||||||||
Wireless Telecommunication Services (2.4%) | |||||||||||
China Mobile Ltd. | 65,500 | 969,786 | |||||||||
KDDI Corp. | 94 | 635,614 | |||||||||
Mobile TeleSystems OJSC, ADR | 4,775 | 397,137 | |||||||||
Philippine Long Distance Telephone Co., ADR | 6,008 | 452,102 | |||||||||
2,454,639 | |||||||||||
6,036,445 | |||||||||||
Utilities (5.2%) | |||||||||||
Electric Utilities (4.2%) | |||||||||||
British Energy Group PLC | 125,518 | 1,293,763 | |||||||||
E.ON AG | 11,032 | 2,028,194 | |||||||||
Tenaga Nasional Berhad | 350,600 | 991,810 | |||||||||
4,313,767 | |||||||||||
Gas Utilities (0.5%) | |||||||||||
Tokyo Gas Co., Ltd. | 111,000 | 517,235 | |||||||||
Multi-Utilities (0.5%) | |||||||||||
United Utilities PLC (a) | 38,288 | 545,902 | |||||||||
5,376,904 | |||||||||||
Total Common Stocks (Cost of $89,968,007) | 100,327,432 |
See Accompanying Notes to Financial Statements.
110
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Investment Companies (3.1%) | |||||||||||
iShares MSCI Brazil Index Fund | 6,579 | $ | 499,544 | ||||||||
iShares MSCI EAFE Index Fund | 38,042 | 2,750,056 | |||||||||
Total Investment Companies (Cost of $3,512,391) | 3,249,600 | ||||||||||
Preferred Stock (0.5%) | |||||||||||
Telecommunication Services (0.5%) | |||||||||||
Diversified Telecommunication (0.5%) | |||||||||||
Brasil Telecom Participacoes SA | 37,300 | 522,285 | |||||||||
Total Preferred Stock (Cost of $568,802) | 522,285 | ||||||||||
Contract Value | |||||||||||
Purchased Call Option (0.1%) | |||||||||||
VIX (CBOE SPX Volatility Index) | |||||||||||
Strike Price: $19 | |||||||||||
Expiring: March 2008 | $ | 12,500 | 81,250 | ||||||||
Total Purchased Call Option (Cost of $61,625) | 81,250 | ||||||||||
Par | |||||||||||
Short-Term Obligation (0.6%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp., dated 01/31/08, due 02/01/08 at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/17, market value $704,000 (repurchase proceeds $687,033) | $ | 687,000 | 687,000 | ||||||||
Total Short-Term Obligation (Cost of $687,000) | 687,000 | ||||||||||
Total Investments (100.5%) (Cost of $94,797,825) (b) | 104,867,567 | ||||||||||
Other Assets & Liabilities, Net (-0.5%) | (567,300 | ) | |||||||||
Net Assets (100.0%) | $ | 104,300,267 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $94,797,825.
See Accompanying Notes to Financial Statements.
111
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
The Fund is invested in the following countries at January 31, 2008:
Country | Value | % of Total Investments | |||||||||
Japan | $ | 19,013,662 | 18.1 | ||||||||
United Kingdom | 14,059,250 | 13.4 | |||||||||
Germany | 9,824,541 | 9.4 | |||||||||
Switzerland | 9,706,168 | 9.3 | |||||||||
France | 7,383,294 | 7.0 | |||||||||
United States* | 6,562,282 | 6.2 | |||||||||
Singapore | 3,876,271 | 3.7 | |||||||||
Spain | 3,595,113 | 3.4 | |||||||||
China | 2,950,502 | 2.8 | |||||||||
Sweden | 2,599,320 | 2.5 | |||||||||
Australia | 2,282,448 | 2.2 | |||||||||
Norway | 2,073,270 | 2.0 | |||||||||
Malaysia | 2,010,195 | 1.9 | |||||||||
Netherlands | 1,953,852 | 1.9 | |||||||||
Hong Kong | 1,898,824 | 1.8 | |||||||||
Finland | 1,793,789 | 1.7 | |||||||||
Israel | 1,641,589 | 1.6 | |||||||||
Ireland | 1,589,658 | 1.5 | |||||||||
Canada | 1,442,241 | 1.4 | |||||||||
Denmark | 1,164,030 | 1.1 | |||||||||
Czech Republic | 1,140,616 | 1.1 | |||||||||
Taiwan | 1,137,079 | 1.1 | |||||||||
Mexico | 1,106,440 | 1.0 | |||||||||
Poland | 757,456 | 0.7 | |||||||||
Belgium | 531,861 | 0.5 | |||||||||
Brazil | 522,285 | 0.5 | |||||||||
United Arab Emirates | 500,626 | 0.5 | |||||||||
South Korea | 500,016 | 0.5 | |||||||||
Philippines | 452,102 | 0.4 | |||||||||
South Africa | 401,650 | 0.4 | |||||||||
Russia | 397,137 | 0.4 | |||||||||
$ | 104,867,567 | 100.0 |
*Includes short-term obligation and investment companies.
Certain securities are listed by country of underlying exposure but may trade predominantly on other exchanges.
For the six months ended January 31, 2008, transactions in written option contracts were as follows:
Number of contracts | Premium received | ||||||||||
Options outstanding at July 31, 2007 | 112 | $ | 5,297 | ||||||||
Options written | 224 | 21,883 | |||||||||
Options expired | (336 | ) | (27,180 | ) | |||||||
Options outstanding at January 31, 2008 | - | $ | - |
See Accompanying Notes to Financial Statements.
112
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
At January 31, 2008, the Fund had entered into the following forward foreign currency exchange contracts:
Forward Currency Contracts to Buy | Value | Aggregate Face Value | Settlement Date | Unrealized Appreciation (Depreciation) | |||||||||||||||
AUD | $ | 5,759,893 | $ | 5,638,611 | 03/18/08 | $ | 121,282 | ||||||||||||
CAD | 748,159 | 734,231 | 03/18/08 | 13,928 | |||||||||||||||
CHF | 613,098 | 576,274 | 03/18/08 | 36,824 | |||||||||||||||
DKK | 373,051 | 367,915 | 03/18/08 | 5,136 | |||||||||||||||
DKK | 11,353 | 10,994 | 03/18/08 | 359 | |||||||||||||||
EUR | 9,320,887 | 9,191,055 | 03/18/08 | 129,832 | |||||||||||||||
EUR | 111,352 | 110,487 | 03/18/08 | 865 | |||||||||||||||
EUR | 1,094,217 | 1,080,781 | 03/18/08 | 13,436 | |||||||||||||||
EUR | 608,723 | 608,924 | 03/18/08 | (201 | ) | ||||||||||||||
GBP | 10,404,072 | 10,673,185 | 03/18/08 | (269,113 | ) | ||||||||||||||
JPY | 349,038 | 326,910 | 03/18/08 | 22,128 | |||||||||||||||
JPY | 226,032 | 220,762 | 03/18/08 | 5,270 | |||||||||||||||
JPY | 317,011 | 314,100 | 03/18/08 | 2,911 | |||||||||||||||
JPY | 282,757 | 282,466 | 03/18/08 | 291 | |||||||||||||||
JPY | 610,834 | 613,814 | 03/18/08 | (2,980 | ) | ||||||||||||||
NZD | 247,497 | 245,453 | 03/18/08 | 2,044 | |||||||||||||||
PLN | 212,824 | 210,137 | 03/18/08 | 2,687 | |||||||||||||||
SEK | 405,027 | 393,277 | 03/18/08 | 11,750 | |||||||||||||||
SEK | 529,783 | 525,423 | 03/18/08 | 4,360 | |||||||||||||||
SEK | 303,339 | 303,130 | 03/18/08 | 209 | |||||||||||||||
SGD | 278,557 | 272,551 | 03/18/08 | 6,006 | |||||||||||||||
TWD | 295,213 | 293,507 | 03/18/08 | 1,706 | |||||||||||||||
$ | 108,730 | ||||||||||||||||||
Forward Currency Contracts to Sell | Value | Aggregate Face Value | Settlement Date | Unrealized Appreciation (Depreciation) | |||||||||||||||
AUD | $ | 771,255 | $ | 745,872 | 03/18/08 | $ | (25,383 | ) | |||||||||||
AUD | 592,039 | 576,020 | 03/18/08 | (16,019 | ) | ||||||||||||||
CAD | 2,113,152 | 2,091,169 | 03/18/08 | (21,983 | ) | ||||||||||||||
CAD | 42,780 | 43,135 | 03/18/08 | 355 | |||||||||||||||
CHF | 3,342,402 | 3,178,251 | 03/18/08 | (164,151 | ) | ||||||||||||||
CZK | 1,367,499 | 1,337,855 | 03/18/08 | (29,644 | ) | ||||||||||||||
CZK | 22,768 | 21,667 | 03/18/08 | (1,101 | ) | ||||||||||||||
DKK | 335,009 | 326,926 | 03/18/08 | (8,083 | ) | ||||||||||||||
DKK | 49,395 | 48,978 | 03/18/08 | (417 | ) | ||||||||||||||
DKK | 197,580 | 195,910 | 03/18/08 | (1,670 | ) | ||||||||||||||
DKK | 212,318 | 209,624 | 03/18/08 | (2,694 | ) | ||||||||||||||
EUR | 371,173 | 359,673 | 03/18/08 | (11,500 | ) | ||||||||||||||
EUR | 743,830 | 733,659 | 03/18/08 | (10,171 | ) | ||||||||||||||
EUR | 777,978 | 765,391 | 03/18/08 | (12,587 | ) | ||||||||||||||
GBP | 870,476 | 869,510 | 03/18/08 | (966 | ) | ||||||||||||||
GBP | 329,155 | 324,201 | 03/18/08 | (4,954 | ) | ||||||||||||||
GBP | 636,498 | 628,678 | 03/18/08 | (7,820 | ) | ||||||||||||||
GBP | 606,755 | 606,651 | 03/18/08 | (104 | ) | ||||||||||||||
ILS | 1,866,023 | 1,717,254 | 03/18/08 | (148,769 | ) |
See Accompanying Notes to Financial Statements.
113
CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Forward Currency Contracts to Sell | Value | Aggregate Face Value | Settlement Date | Unrealized Appreciation (Depreciation) | |||||||||||||||
ILS | $ | 35,417 | $ | 32,701 | 03/18/08 | $ | (2,716 | ) | |||||||||||
JPY | 333,001 | 324,246 | 03/18/08 | (8,755 | ) | ||||||||||||||
KRW | 479,846 | 490,055 | 03/18/08 | 10,209 | |||||||||||||||
KRW | 10,663 | 10,762 | 03/18/08 | 99 | |||||||||||||||
MXN | 1,109,583 | 1,106,083 | 03/18/08 | (3,500 | ) | ||||||||||||||
MXN | 21,780 | 21,763 | 03/18/08 | (17 | ) | ||||||||||||||
MYR | 1,875,241 | 1,844,448 | 03/18/08 | (30,793 | ) | ||||||||||||||
MYR | 33,360 | 32,428 | 03/18/08 | (932 | ) | ||||||||||||||
NOK | 492,327 | 491,755 | 03/18/08 | (572 | ) | ||||||||||||||
NOK | 223,869 | 216,906 | 03/18/08 | (6,963 | ) | ||||||||||||||
PLN | 370,487 | 367,377 | 03/18/08 | (3,110 | ) | ||||||||||||||
SEK | 1,856,596 | 1,834,036 | 03/18/08 | (22,560 | ) | ||||||||||||||
SGD | 2,241,894 | 2,212,223 | 03/18/08 | (29,671 | ) | ||||||||||||||
TWD | 1,476,065 | 1,458,002 | 03/18/08 | (18,063 | ) | ||||||||||||||
$ | (585,005 | ) |
Acronym | Name | ||||||
ADR | American Depositary Receipt | ||||||
AUD | Australian Dollar | ||||||
CAD | Canadian Dollar | ||||||
CHF | Swiss Franc | ||||||
CZK | Czech Koruna | ||||||
DKK | Danish Krone | ||||||
EUR | Euro Currency | ||||||
GBP | Pound Sterling | ||||||
ILS | Israeli Shekel | ||||||
JPY | Japanese Yen | ||||||
KRW | South Korean Won | ||||||
MXN | Mexican Peso | ||||||
MYR | Malaysian Ringgit | ||||||
NOK | Norwegian Krone | ||||||
NZD | New Zealand Dollar | ||||||
PLN | Polish Zloty | ||||||
SEK | Swedish Krona | ||||||
SGD | Singapore Dollar | ||||||
TWD | Taiwan Dollar |
See Accompanying Notes to Financial Statements.
114
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STATEMENTS OF ASSETS AND LIABILITIES
January 31, 2008 (Unaudited)
CMG Enhanced S&P 500® Index Fund | CMG Large Cap Growth Fund | CMG Large Cap Value Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments, at identified cost | $ | 228,188,841 | $ | 61,133,223 | $ | 48,622,768 | |||||||||
Investments, at value (including securities on loan of $14,135,911, $12,996,052, $11,230,263, $-, $-, $-, $-, $- and $-, respectively) | $231,698,850 | $64,272,969 | $51,320,395 | ||||||||||||
Cash | 674 | 2,655 | 779 | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | - | - | - | ||||||||||||
Receivable for: | |||||||||||||||
Investments sold | - | 1,576,002 | 675,933 | ||||||||||||
Interest | 89 | 96 | 28 | ||||||||||||
Dividends | 210,104 | 19,198 | 51,204 | ||||||||||||
Securities lending | 7,311 | 7,454 | 4,935 | ||||||||||||
Foreign tax reclaims | - | - | 725 | ||||||||||||
Futures variation margin | 29,000 | - | - | ||||||||||||
Expense reimbursement due from investment advisor | 19,733 | 15,997 | 15,840 | ||||||||||||
Trustees' deferred compensation plan | 12,743 | 10,108 | 10,142 | ||||||||||||
Total Assets | 231,978,504 | 65,904,479 | 52,079,981 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payable to custodian bank | - | - | - | ||||||||||||
Collateral on securities loaned | 14,118,738 | 13,166,178 | 11,283,962 | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | - | - | - | ||||||||||||
Payable for: | |||||||||||||||
Investments purchased | - | 1,159,783 | 366,632 | ||||||||||||
Investment advisory fee | 46,263 | 22,182 | 16,996 | ||||||||||||
Trustees' fees | 454 | 418 | 484 | ||||||||||||
Transfer agent fees | - | - | - | ||||||||||||
Custody fee | - | - | - | ||||||||||||
Audit fee | 19,062 | 21,703 | 21,702 | ||||||||||||
Chief compliance officer expenses | - | - | - | ||||||||||||
Interest expense | - | - | - | ||||||||||||
Trustees' deferred compensation plan | 12,743 | 10,108 | 10,142 | ||||||||||||
Other liabilities | 1,137 | 1,163 | 1,413 | ||||||||||||
Total Liabilities | 14,198,397 | 14,381,535 | 11,701,331 | ||||||||||||
NET ASSETS | $ | 217,780,107 | $ | 51,522,944 | $ | 40,378,650 | |||||||||
NET ASSETS CONSIST OF: | |||||||||||||||
Paid-in capital | $ | 217,818,059 | $ | 48,414,559 | $ | 39,363,082 | |||||||||
Undistributed (overdistributed) net investment income | 173,387 | (191 | ) | 36,945 | |||||||||||
Accumulated net investment loss | - | - | - | ||||||||||||
Accumulated net realized gain (loss) | (3,696,929 | ) | (31,170 | ) | (1,719,004 | ) | |||||||||
Net unrealized appreciation (depreciation) on: | |||||||||||||||
Investments | 3,510,009 | 3,139,746 | 2,697,627 | ||||||||||||
Foreign currency translations | - | - | - | ||||||||||||
Futures contracts | (24,419 | ) | - | - | |||||||||||
NET ASSETS | $ | 217,780,107 | $ | 51,522,944 | $ | 40,378,650 | |||||||||
Shares of capital stock outstanding | 16,414,688 | 4,532,008 | 3,892,281 | ||||||||||||
Net asset value, offering and redemption price per share | $ | 13.27 | $ | 11.37 | $ | 10.37 |
CMG Mid Cap Growth Fund | CMG Mid Cap Value Fund | ||||||||||
ASSETS: | |||||||||||
Investments, at identified cost | $ | 21,636,566 | $ | 15,209,797 | |||||||
Investments, at value (including securities on loan of $14,135,911, $12,996,052, $11,230,263, $-, $-, $-, $-, $- and $-, respectively) | $25,062,638 | $17,073,481 | |||||||||
Cash | 115 | 429 | |||||||||
Unrealized appreciation on forward foreign currency contracts | - | - | |||||||||
Receivable for: | |||||||||||
Investments sold | 1,011,127 | 13,211 | |||||||||
Interest | 35 | 224 | |||||||||
Dividends | 5,561 | 10,284 | |||||||||
Securities lending | - | - | |||||||||
Foreign tax reclaims | - | - | |||||||||
Futures variation margin | - | - | |||||||||
Expense reimbursement due from investment advisor | 14,633 | 15,398 | |||||||||
Trustees' deferred compensation plan | 10,746 | 9,345 | |||||||||
Total Assets | 26,104,855 | 17,122,372 | |||||||||
LIABILITIES: | |||||||||||
Payable to custodian bank | - | - | |||||||||
Collateral on securities loaned | - | - | |||||||||
Unrealized depreciation on forward foreign currency contracts | - | - | |||||||||
Payable for: | |||||||||||
Investments purchased | 1,060,393 | 105,258 | |||||||||
Investment advisory fee | 15,195 | 10,032 | |||||||||
Trustees' fees | 462 | 383 | |||||||||
Transfer agent fees | - | - | |||||||||
Custody fee | - | - | |||||||||
Audit fee | 21,702 | 21,700 | |||||||||
Chief compliance officer expenses | - | - | |||||||||
Interest expense | - | - | |||||||||
Trustees' deferred compensation plan | 10,746 | 9,345 | |||||||||
Other liabilities | 1,312 | 1,316 | |||||||||
Total Liabilities | 1,109,810 | 148,034 | |||||||||
NET ASSETS | $ | 24,995,045 | $ | 16,974,338 | |||||||
NET ASSETS CONSIST OF: | |||||||||||
Paid-in capital | $ | 21,383,963 | $ | 15,357,309 | |||||||
Undistributed (overdistributed) net investment income | (20,743 | ) | (44,746 | ) | |||||||
Accumulated net investment loss | - | - | |||||||||
Accumulated net realized gain (loss) | 205,753 | (201,909 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | |||||||||||
Investments | 3,426,072 | 1,863,684 | |||||||||
Foreign currency translations | - | - | |||||||||
Futures contracts | - | - | |||||||||
NET ASSETS | $ | 24,995,045 | $ | 16,974,338 | |||||||
Shares of capital stock outstanding | 1,833,381 | 1,453,379 | |||||||||
Net asset value, offering and redemption price per share | $ | 13.63 | $ | 11.68 |
See Accompanying Notes to Financial Statements.
116
CMG Small Cap Growth Fund | CMG Small Cap Value Fund | CMG Small/Mid Cap Fund | CMG International Stock Fund | ||||||||||||||||
ASSETS: | |||||||||||||||||||
Investments, at identified cost | $ | 38,966,634 | $ | 23,877,808 | $ | 10,627,322 | $ | 94,797,825 | |||||||||||
Investments, at value (including securities on loan of $14,135,911, $12,996,052, $11,230,263, $-, $-, $-, $-, $- and $-, respectively) | $43,212,272 | $27,632,554 | $11,834,427 | $104,867,567 | |||||||||||||||
Cash | 22 | 499 | 232 | 127,042 | |||||||||||||||
Unrealized appreciation on forward foreign currency contracts | - | - | - | 391,687 | |||||||||||||||
Receivable for: | |||||||||||||||||||
Investments sold | 1,706,547 | 33,331 | 516,235 | 126,992 | |||||||||||||||
Interest | 72 | 11 | 6 | 33 | |||||||||||||||
Dividends | 2,411 | 20,770 | 1,175 | 25,513 | |||||||||||||||
Securities lending | - | - | - | - | |||||||||||||||
Foreign tax reclaims | - | - | - | 72,749 | |||||||||||||||
Futures variation margin | - | - | - | - | |||||||||||||||
Expense reimbursement due from investment advisor | 9,930 | 14,218 | 7,825 | - | |||||||||||||||
Trustees' deferred compensation plan | 19,102 | 11,740 | 9,818 | 14,244 | |||||||||||||||
Total Assets | 44,950,356 | 27,713,123 | 12,369,718 | 105,625,827 | |||||||||||||||
LIABILITIES: | |||||||||||||||||||
Payable to custodian bank | - | - | - | 89,433 | |||||||||||||||
Collateral on securities loaned | - | - | - | - | |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | - | - | - | 867,962 | |||||||||||||||
Payable for: | |||||||||||||||||||
Investments purchased | 1,836,351 | 224,635 | 516,977 | 270,876 | |||||||||||||||
Investment advisory fee | 27,702 | 17,604 | 7,597 | 66,972 | |||||||||||||||
Trustees' fees | 158 | 443 | 239 | 202 | |||||||||||||||
Transfer agent fees | 3 | - | - | - | |||||||||||||||
Custody fee | 268 | - | - | - | |||||||||||||||
Audit fee | 13,371 | 21,701 | 19,925 | 13,184 | |||||||||||||||
Chief compliance officer expenses | 16 | - | - | - | |||||||||||||||
Interest expense | - | 1,427 | - | - | |||||||||||||||
Trustees' deferred compensation plan | 19,102 | 11,740 | 9,818 | 14,244 | |||||||||||||||
Other liabilities | 36,645 | 1,462 | 104 | 2,687 | |||||||||||||||
Total Liabilities | 1,933,616 | 279,012 | 554,660 | 1,325,560 | |||||||||||||||
NET ASSETS | $ | 43,016,740 | $ | 27,434,111 | $ | 11,815,058 | $ | 104,300,267 | |||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||
Paid-in capital | $ | 39,621,563 | $ | 22,374,812 | $ | 11,083,749 | $ | 95,330,228 | |||||||||||
Undistributed (overdistributed) net investment income | - | (9,729 | ) | - | (1,446,353 | ) | |||||||||||||
Accumulated net investment loss | (78,758 | ) | - | (14,367 | ) | - | |||||||||||||
Accumulated net realized gain (loss) | (771,703 | ) | 1,314,282 | (461,429 | ) | 813,521 | |||||||||||||
Net unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments | 4,245,638 | 3,754,746 | 1,207,105 | 10,069,742 | |||||||||||||||
Foreign currency translations | - | - | - | (466,871 | ) | ||||||||||||||
Futures contracts | - | - | - | - | |||||||||||||||
NET ASSETS | $ | 43,016,740 | $ | 27,434,111 | $ | 11,815,058 | $ | 104,300,267 | |||||||||||
Shares of capital stock outstanding | 25,928,521 | 2,441,729 | 3,138,292 | 9,473,821 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 1.66 | $ | 11.24 | $ | 3.76 | $ | 11.01 |
See Accompanying Notes to Financial Statements.
117
STATEMENTS OF OPERATIONS
For the Six Months Ended January 31, 2008 (Unaudited)
CMG Enhanced S&P 500® Index Fund | CMG Large Cap Growth Fund | CMG Large Cap Value Fund | CMG Mid Cap Growth Fund | CMG Mid Cap Value Fund | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Income: | |||||||||||||||||||||||
Dividends | $ | 2,201,282 | $ | 254,588 | $ | 537,469 | $ | 87,077 | $ | 145,682 | |||||||||||||
Interest | 109,366 | 34,944 | 24,708 | 17,755 | 8,902 | ||||||||||||||||||
Securities lending | 27,789 | 16,844 | 10,341 | - | - | ||||||||||||||||||
Foreign withholding tax | - | (71 | ) | (199 | ) | (187 | ) | (169 | ) | ||||||||||||||
Total investment income | 2,338,437 | 306,305 | 572,319 | 104,645 | 154,415 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Investment advisory fee | 289,289 | 151,464 | 111,801 | 102,351 | 66,621 | ||||||||||||||||||
Transfer agent fee | - | - | - | - | - | ||||||||||||||||||
Trustees' fees | 12,768 | 8,759 | 8,568 | 8,223 | 7,907 | ||||||||||||||||||
Pricing and bookkeeping fees | - | - | - | - | - | ||||||||||||||||||
Custody fee | - | - | - | - | - | ||||||||||||||||||
Audit fee | 18,903 | 21,543 | 21,543 | 21,543 | 21,543 | ||||||||||||||||||
Reports to shareholders | - | - | - | - | - | ||||||||||||||||||
Chief compliance officer expenses | - | - | - | - | - | ||||||||||||||||||
Other expenses | 17,730 | 12,837 | 12,622 | 12,248 | 12,020 | ||||||||||||||||||
Expenses before interest expense | 338,690 | 194,603 | 154,534 | 144,365 | 108,091 | ||||||||||||||||||
Interest expense | - | 130 | - | - | - | ||||||||||||||||||
Total expenses | 338,690 | 194,733 | 154,534 | 144,365 | 108,091 | ||||||||||||||||||
Fees and expenses waived or reimbursed from investment advisor | (49,401 | ) | (43,139 | ) | (42,733 | ) | (42,014 | ) | (41,470 | ) | |||||||||||||
Custody earnings credit | - | - | - | - | - | ||||||||||||||||||
Net expenses | 289,289 | 151,594 | 111,801 | 102,351 | 66,621 | ||||||||||||||||||
Net investment income (loss) | 2,049,148 | 154,711 | 460,518 | 2,294 | 87,794 | ||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, WRITTEN OPTIONS, FOREIGN CURRENCY AND FUTURES CONTRACTS: | |||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||
Investments | (2,877,266 | ) | 271,734 | (1,680,981 | ) | 1,126,925 | (31,190 | ) | |||||||||||||||
Written options | - | - | 9,099 | (24,073 | ) | 2,175 | |||||||||||||||||
Foreign currency transactions | - | - | - | (4,634 | ) | 17 | |||||||||||||||||
Futures contracts | (553,655 | ) | - | - | - | - | |||||||||||||||||
Realized loss due to a trading error | - | - | - | - | - | ||||||||||||||||||
Reimbursement of a trading loss by investment advisor (See Note 9) | - | - | - | - | - | ||||||||||||||||||
Net realized gain (loss) | (3,430,921 | ) | 271,734 | (1,671,882 | ) | 1,098,218 | (28,998 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||||||
Investments | (9,534,415 | ) | (673,460 | ) | (1,047,160 | ) | (1,527,624 | ) | (1,333,152 | ) | |||||||||||||
Written options | - | - | - | - | - | ||||||||||||||||||
Foreign currency translations | - | - | - | (3 | ) | - | |||||||||||||||||
Futures contracts | 122,313 | - | - | - | - | ||||||||||||||||||
Net change in unrealized depreciation | (9,412,102 | ) | (673,460 | ) | (1,047,160 | ) | (1,527,627 | ) | (1,333,152 | ) | |||||||||||||
Net loss | (12,843,023 | ) | (401,726 | ) | (2,719,042 | ) | (429,409 | ) | (1,362,150 | ) | |||||||||||||
NET DECREASE RESULTING FROM OPERATIONS | $ | (10,793,875 | ) | $ | (247,015 | ) | $ | (2,258,524 | ) | $ | (427,115 | ) | $ | (1,274,356 | ) |
See Accompanying Notes to Financial Statements.
118
CMG Small Cap Growth Fund | CMG Small Cap Value Fund | CMG Small/Mid Cap Fund | CMG International Stock Fund | ||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||
Income: | |||||||||||||||||||
Dividends | $ | 83,196 | $ | 247,275 | $ | 34,067 | $ | 1,069,216 | |||||||||||
Interest | 41,701 | 2,528 | 6,517 | 19,702 | |||||||||||||||
Securities lending | - | - | - | - | |||||||||||||||
Foreign withholding tax | - | - | (60 | ) | (73,481 | ) | |||||||||||||
Total investment income | 124,897 | 249,803 | 40,524 | 1,015,437 | |||||||||||||||
Expenses: | |||||||||||||||||||
Investment advisory fee | 172,044 | 120,263 | 49,123 | 447,364 | |||||||||||||||
Transfer agent fee | 6 | - | - | - | |||||||||||||||
Trustees' fees | 5,784 | 8,302 | 8,198 | 7,226 | |||||||||||||||
Pricing and bookkeeping fees | 1,147 | - | - | - | |||||||||||||||
Custody fee | 9,053 | - | - | - | |||||||||||||||
Audit fee | 20,572 | 21,543 | 20,598 | 21,718 | |||||||||||||||
Reports to shareholders | 13,656 | - | - | - | |||||||||||||||
Chief compliance officer expenses | 162 | - | - | - | |||||||||||||||
Other expenses | 19,880 | 12,389 | 3,524 | 6,242 | |||||||||||||||
Expenses before interest expense | 242,304 | 162,497 | 81,443 | 482,550 | |||||||||||||||
Interest expense | 144 | 1,427 | - | 259 | |||||||||||||||
Total expenses | 242,448 | 163,924 | 81,443 | 482,809 | |||||||||||||||
Fees and expenses waived or reimbursed from investment advisor | (58,142 | ) | (42,234 | ) | (32,320 | ) | (35,186 | ) | |||||||||||
Custody earnings credit | (248 | ) | - | - | - | ||||||||||||||
Net expenses | 184,058 | 121,690 | 49,123 | 447,623 | |||||||||||||||
Net investment income (loss) | (59,161 | ) | 128,113 | (8,599 | ) | 567,814 | |||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, WRITTEN OPTIONS, FOREIGN CURRENCY AND FUTURES CONTRACTS: | |||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||
Investments | 980,233 | 1,594,169 | 31,032 | 3,077,466 | |||||||||||||||
Written options | 8,580 | - | (410 | ) | 27,181 | ||||||||||||||
Foreign currency transactions | (2,040 | ) | - | (1,022 | ) | (40,914 | ) | ||||||||||||
Futures contracts | - | - | - | - | |||||||||||||||
Realized loss due to a trading error | - | - | - | (371 | ) | ||||||||||||||
Reimbursement of a trading loss by investment advisor (See Note 9) | - | - | - | 371 | |||||||||||||||
Net realized gain (loss) | 986,773 | 1,594,169 | 29,600 | 3,063,733 | |||||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments | (1,835,096 | ) | (3,337,076 | ) | (484,334 | ) | (15,864,268 | ) | |||||||||||
Written options | - | - | - | (1,937 | ) | ||||||||||||||
Foreign currency translations | - | - | - | (625,446 | ) | ||||||||||||||
Futures contracts | - | - | - | - | |||||||||||||||
Net change in unrealized depreciation | (1,835,096 | ) | (3,337,076 | ) | (484,334 | ) | (16,491,651 | ) | |||||||||||
Net loss | (848,323 | ) | (1,742,907 | ) | (454,734 | ) | (13,427,918 | ) | |||||||||||
NET DECREASE RESULTING FROM OPERATIONS | $ | (907,484 | ) | $ | (1,614,794 | ) | $ | (463,333 | ) | $ | (12,860,104 | ) |
See Accompanying Notes to Financial Statements.
119
STATEMENTS OF CHANGES IN NET ASSETS
CMG Enhanced S&P 500® Index Fund | |||||||||||
(Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | ||||||||||
Operations: | |||||||||||
Net investment income | $ | 2,049,148 | $ | 2,521,206 | |||||||
Net realized gain (loss) on investments and futures contracts | (3,430,921 | ) | 7,728,176 | ||||||||
Net change in unrealized appreciation (depreciation) on investments and futures contracts | (9,412,102 | ) | 3,819,643 | ||||||||
Net increase (decrease) from operations | (10,793,875 | ) | 14,069,025 | ||||||||
Distributions to shareholders: | |||||||||||
From net investment income | (3,477,461 | ) | (1,720,935 | ) | |||||||
From net realized gains | (7,014,878 | ) | (7,095,404 | ) | |||||||
Total distributions to shareholders | (10,492,339 | ) | (8,816,339 | ) | |||||||
Share transactions: | |||||||||||
Subscriptions | 23,673,098 | 124,166,877 | |||||||||
Distributions reinvested | 3,895,305 | 3,163,765 | |||||||||
Redemptions | (11,200,161 | ) | (10,858,416 | ) | |||||||
Net increase in share transactions | 16,368,242 | 116,472,226 | |||||||||
Net increase (decrease) in net assets | (4,917,972 | ) | 121,724,912 | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 222,698,079 | 100,973,167 | |||||||||
End of period | $ | 217,780,107 | $ | 222,698,079 | |||||||
Undistributed net investment income, at end of period | $ | 173,387 | $ | 1,601,700 | |||||||
Change in shares: | |||||||||||
Subscriptions | 1,600,227 | 8,393,109 | |||||||||
Distributions reinvested | 280,036 | 221,397 | |||||||||
Redemptions | (796,690 | ) | (749,508 | ) | |||||||
Net increase | 1,083,573 | 7,864,998 |
See Accompanying Notes to Financial Statements.
120
STATEMENTS OF CHANGES IN NET ASSETS
CMG Large Cap Growth Fund | CMG Large Cap Value Fund | ||||||||||||||||||
(Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | (Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 154,711 | $ | 263,995 | $ | 460,518 | $ | 681,690 | |||||||||||
Net realized gain (loss) on investments and written options | 271,734 | 4,510,122 | (1,671,882 | ) | 4,545,392 | ||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (673,460 | ) | 1,786,112 | (1,047,160 | ) | (715,525 | ) | ||||||||||||
Net increase (decrease) resulting from operations | (247,015 | ) | 6,560,229 | (2,258,524 | ) | 4,511,557 | |||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From net investment income | (307,640 | ) | (240,113 | ) | (813,201 | ) | (638,584 | ) | |||||||||||
From net realized gains | (3,957,565 | ) | (2,140,830 | ) | (4,036,007 | ) | (2,775,916 | ) | |||||||||||
Total distributions to shareholders | (4,265,205 | ) | (2,380,943 | ) | (4,849,208 | ) | (3,414,500 | ) | |||||||||||
Share transactions: | |||||||||||||||||||
Subscriptions | 2,048,966 | 21,201,017 | 1,235,848 | 13,098,066 | |||||||||||||||
Distributions reinvested | 2,330,690 | 1,159,364 | 2,336,648 | 1,648,088 | |||||||||||||||
Redemptions | (7,322,945 | ) | (3,326,396 | ) | (916,442 | ) | (8,293,069 | ) | |||||||||||
Net increase (decrease) in share transactions | (2,943,289 | ) | 19,033,985 | 2,656,054 | 6,453,085 | ||||||||||||||
Net increase (decrease) in net assets | (7,455,509 | ) | 23,213,271 | (4,451,678 | ) | 7,550,142 | |||||||||||||
NET ASSETS | |||||||||||||||||||
Beginning of period | 58,978,453 | 35,765,182 | 44,830,328 | 37,280,186 | |||||||||||||||
End of period | $ | 51,522,944 | $ | 58,978,453 | $ | 40,378,650 | $ | 44,830,328 | |||||||||||
Undistributed (Overdistributed) net investment income, at end of period | $ | (191 | ) | $ | 152,738 | $ | 36,945 | $ | 389,628 | ||||||||||
Change in shares: | |||||||||||||||||||
Subscriptions | 164,597 | 1,682,234 | 106,296 | 1,042,361 | |||||||||||||||
Distributions reinvested | 188,415 | 97,754 | 215,161 | 137,341 | |||||||||||||||
Redemptions | (535,442 | ) | (281,641 | ) | (73,730 | ) | (671,337 | ) | |||||||||||
Net increase (decrease) | (182,430 | ) | 1,498,347 | 247,727 | 508,365 |
See Accompanying Notes to Financial Statements.
121
STATEMENTS OF CHANGES IN NET ASSETS
CMG Mid Cap Growth Fund | CMG Mid Cap Value Fund | ||||||||||||||||||
(Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | (Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 2,294 | $ | 146,419 | $ | 87,794 | $ | 270,962 | |||||||||||
Net realized gain (loss) on investments, written options and foreign currency transactions | 1,098,218 | 4,221,220 | (28,998 | ) | 2,120,276 | ||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (1,527,627 | ) | 1,281,485 | (1,333,152 | ) | 648,236 | |||||||||||||
Net increase (decrease) from operations | (427,115 | ) | 5,649,124 | (1,274,356 | ) | 3,039,474 | |||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From net investment income | (89,956 | ) | (93,030 | ) | (287,840 | ) | (196,538 | ) | |||||||||||
From net realized gains | (4,351,636 | ) | (2,823,900 | ) | (1,695,513 | ) | (2,606,305 | ) | |||||||||||
Total distributions to shareholders | (4,441,592 | ) | (2,916,930 | ) | (1,983,353 | ) | (2,802,843 | ) | |||||||||||
Share transactions: | |||||||||||||||||||
Subscriptions | 971,687 | 5,926,804 | 1,549,016 | 5,217,552 | |||||||||||||||
Distributions reinvested | 2,336,715 | 1,214,957 | 980,570 | 1,292,451 | |||||||||||||||
Redemptions | (2,118,248 | ) | (4,836,047 | ) | (1,593,989 | ) | (5,211,798 | ) | |||||||||||
Net increase in share transactions | 1,190,154 | 2,305,714 | 935,597 | 1,298,205 | |||||||||||||||
Net increase (decrease) in net assets | (3,678,553 | ) | 5,037,908 | (2,322,112 | ) | 1,534,836 | |||||||||||||
NET ASSETS | |||||||||||||||||||
Beginning of period | 28,673,598 | 23,635,690 | 19,296,450 | 17,761,614 | |||||||||||||||
End of period | $ | 24,995,045 | $ | 28,673,598 | $ | 16,974,338 | $ | 19,296,450 | |||||||||||
Undistributed (Overdistributed) net investment income, at end of period | $ | (20,743 | ) | $ | 66,919 | $ | (44,746 | ) | $ | 155,300 | |||||||||
Change in shares: | |||||||||||||||||||
Subscriptions | 61,367 | 389,503 | 118,065 | 365,557 | |||||||||||||||
Distributions reinvested | 158,421 | 80,889 | 78,572 | 98,285 | |||||||||||||||
Redemptions | (126,637 | ) | (308,106 | ) | (112,771 | ) | (361,340 | ) | |||||||||||
Net increase | 93,151 | 162,286 | 83,866 | 102,502 |
See Accompanying Notes to Financial Statements.
122
STATEMENTS OF CHANGES IN NET ASSETS
CMG Small Cap Growth Fund | CMG Small Cap Value Fund | ||||||||||||||||||
(Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | (Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income (loss) | $ | (59,161 | ) | $ | (101,978 | ) | $ | 128,113 | $ | 240,354 | |||||||||
Net realized gain on investments, written options and foreign currency transactions | 986,773 | 6,024,819 | 1,594,169 | 5,783,692 | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (1,835,096 | ) | 2,429,355 | (3,337,076 | ) | (2,143,372 | ) | ||||||||||||
Net increase (decrease) from operations | (907,484 | ) | 8,352,196 | (1,614,794 | ) | 3,880,674 | |||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From net investment income | - | - | (274,060 | ) | (208,296 | ) | |||||||||||||
From net realized gains | (6,439,359 | ) | (8,560,579 | ) | (3,718,779 | ) | (5,551,832 | ) | |||||||||||
Total distributions to shareholders | (6,439,359 | ) | (8,560,579 | ) | (3,992,839 | ) | (5,760,128 | ) | |||||||||||
Share transactions: | |||||||||||||||||||
Subscriptions | 9,328,558 | 4,449,121 | 3,063,041 | 5,437,309 | |||||||||||||||
Distributions reinvested | 5,412,920 | 6,665,647 | 3,292,541 | 4,751,572 | |||||||||||||||
Redemptions | (4,277,145 | ) | (11,190,327 | ) | (5,265,651 | ) | (9,796,788 | ) | |||||||||||
Net increase (decrease) in share transactions | 10,464,333 | (75,559 | ) | 1,089,931 | 392,093 | ||||||||||||||
Net increase (decrease) in net assets | 3,117,490 | (283,942 | ) | (4,517,702 | ) | (1,487,361 | ) | ||||||||||||
NET ASSETS | |||||||||||||||||||
Beginning of period | 39,899,250 | 40,183,192 | 31,951,813 | 33,439,174 | |||||||||||||||
End of period | $ | 43,016,740 | $ | 39,899,250 | $ | 27,434,111 | $ | 31,951,813 | |||||||||||
Undistributed (overdistributed) net investment income, at end of period | $ | - | $ | - | $ | (9,729 | ) | $ | 136,218 | ||||||||||
Accumulated net investment loss, at end of period | $ | (78,758 | ) | $ | (19,597 | ) | - | $ | - | ||||||||||
Changes in shares: | |||||||||||||||||||
Subscriptions | 4,581,680 | 2,240,488 | 248,676 | 370,997 | |||||||||||||||
Distributions reinvested | 2,957,880 | 3,765,902 | 284,822 | 344,567 | |||||||||||||||
Redemptions | (2,025,298 | ) | (5,394,303 | ) | (384,373 | ) | (607,276 | ) | |||||||||||
Net increase | 5,514,262 | 612,087 | 149,125 | 108,288 |
See Accompanying Notes to Financial Statements.
123
STATEMENTS OF CHANGES IN NET ASSETS
CMG Small/Mid Cap Fund | CMG International Stock Fund | ||||||||||||||||||
(Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | (Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income (loss) | $ | (8,599 | ) | $ | (1,211 | ) | $ | 567,814 | $ | 2,129,982 | |||||||||
Net realized gain on investments, written options and foreign currency transactions | 29,600 | 1,727,847 | 3,063,733 | 15,093,417 | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments, written options, and foreign currency translations | (484,334 | ) | 343,875 | (16,491,651 | ) | 8,013,343 | |||||||||||||
Net increase (decrease) from operations | (463,333 | ) | 2,070,511 | (12,860,104 | ) | 25,236,742 | |||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From net investment income | - | - | (3,839,262 | ) | (2,513,869 | ) | |||||||||||||
From net realized gains | (1,883,825 | ) | (6,782,938 | ) | (13,751,675 | ) | (20,428,853 | ) | |||||||||||
Total distributions to shareholders | (1,883,825 | ) | (6,782,938 | ) | (17,590,937 | ) | (22,942,722 | ) | |||||||||||
Share transactions: | |||||||||||||||||||
Subscriptions | - | 11,500,000 | 8,412,696 | 20,493,154 | |||||||||||||||
Distributions reinvested | 1,646,043 | 6,782,938 | 11,751,665 | 14,502,772 | |||||||||||||||
Redemptions | - | (9,827,294 | ) | (5,727,458 | ) | (22,713,180 | ) | ||||||||||||
Net increase in share transactions | 1,646,043 | 8,455,644 | 14,436,903 | 12,282,746 | |||||||||||||||
Net increase (decrease) in net assets | (701,115 | ) | 3,743,217 | (16,014,138 | ) | 14,576,766 | |||||||||||||
NET ASSETS | |||||||||||||||||||
Beginning of period | 12,516,173 | 8,772,956 | 120,314,405 | 105,737,639 | |||||||||||||||
End of period | $ | 11,815,058 | $ | 12,516,173 | $ | 104,300,267 | $ | 120,314,405 | |||||||||||
Undistributed (overdistributed) net investment income, at end of period | $ | - | $ | - | $ | (1,446,353 | ) | $ | 1,825,095 | ||||||||||
Accumulated net investment loss, at end of period | $ | (14,367 | ) | $ | (5,768 | ) | $ | - | $ | - | |||||||||
Changes in shares: | |||||||||||||||||||
Subscriptions | - | 2,744,502 | 627,067 | 1,450,019 | |||||||||||||||
Distributions reinvested | 393,790 | 1,559,556 | 1,007,862 | 1,105,394 | |||||||||||||||
Redemptions | - | (2,339,832 | ) | (400,020 | ) | (1,545,947 | ) | ||||||||||||
Net increase | 393,790 | 1,964,226 | 1,234,909 | 1,009,466 |
See Accompanying Notes to Financial Statements.
124
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
Note 1. Organization:
Columbia Funds Institutional Trust (the "Trust") is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Information presented in these financial statements pertains to the following diversified funds (individually referred to as a "Fund", collectively referred to as the "Funds"):
CMG Enhanced S&P 500® Index Fund
CMG Large Cap Growth Fund
CMG Large Cap Value Fund
CMG Mid Cap Growth Fund
CMG Mid Cap Value Fund
CMG Small Cap Growth Fund
CMG Small Cap Value Fund
CMG Small/Mid Cap Fund
CMG International Stock Fund
Shares in the Funds are available for purchase by institutional buyers and certain advisory clients of Columbia Management Advisors, LLC ("Columbia"), the Funds' investment adviser, or its affiliates. Each Fund's minimum initial investment requirement for investors purchasing shares directly from Columbia is $3 million. The minimum initial investment requirement is $25,000 for advisory clients of Columbia or one of its affiliates with $1 million invested with Columbia and its affiliates. Please see the Funds' prospectuses for further details.
Investment objectives. CMG Enhanced S&P 500® Index Fund seeks to outperform the total return, over the long term, of the Standard & Poor's 500® Composite Stock Price Index that measures the investment returns of stocks of large U.S. companies, while maintaining overall portfolio characteristics similar to those of the benchmark. CMG Large Cap Growth Fund and CMG Large Cap Value Fund seek long-term growth by investing primarily in large capitalization equities. CMG Mid Cap Growth Fund and CMG Mid Cap Value Fund seek long-term growth by investing in middle capitalization equities. CMG Small Cap Growth Fund seeks to provide investors long-term capital appreciation. CMG Small Cap Value Fund seeks long-term growth by investing in small capitalization equities. CMG Small/Mid Cap Fund seeks long-term capital appreciation by inv esting in small capitalization and middle capitalization equities. CMG International Stock Fund seeks long-term capital appreciation.
Fund shares. The Trust may issue an unlimited number of shares of beneficial interest which are offered continuously at net asset value.
Note 2. Significant accounting policies:
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.
Security valuation. Equity securities, exchange-traded funds and securities of certain investment companies are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets.
125
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value.
Investments in other open-end investment companies are valued at net asset value.
Options are valued at the last reported sale price, or in the absence of a sale, the mean between the last quoted bid and ask price.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Forward foreign currency exchange contracts are valued at the prevailing forward exchange rate of the underlying currencies.
Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded.
Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Funds' shares are determined as of such times. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Funds' net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees. The CMG International Stock Fund may use a sys tematic fair valuation model provided by an independent third party to value securities principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation.
Investments for which market quotations are not readily available, or that have quotations which Columbia believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. If a security is valued at fair value, such value is likely to be different from the last quoted market price for the security.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued. SFAS 157 is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is evaluating the impact the application of SFAS 157 will have on the Funds' financial statement disclosures.
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.
Futures contracts. The Funds may invest in futures contracts to hedge against the effects of changes in the value of portfolio securities due to anticipated changes in interest rates and/or market conditions, for duration management, or when the transactions are economically appropriate to the reduction of risk inherent in the management of the Funds and for nonhedging purposes. Futures contracts are financial instruments whose values depend on, or are derived from, the value of the underlying security, index or currency.
The use of futures contracts involves certain risks, which include: (1) imperfect correlation between the price movement of the instruments and the underlying securities, (2) inability to close out positions due to differing trading hours, or the temporary absence of a liquid market, for either the instruments or the underlying securities, and (3) an
126
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
inaccurate prediction by Columbia of the future direction of interest rates. Any of these risks may involve amounts exceeding the variation margin recorded in each Fund's Statements of Assets and Liabilities at any given time.
Upon entering into a futures contract, the Funds deposit cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Funds equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. The Funds recognize a realized gain or loss when the contract is closed or expires.
Options. Each Fund may write call and put options on a security it owns or in which it may invest. Writing put options tends to increase the Fund's exposure to the underlying instrument. Writing call options tends to decrease the Fund's exposure to the underlying instrument. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked-to-market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying security transaction to determine the realized gain or loss. Each Fund, as a writer of an option has no control over whether the underlying security may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. There is the risk that the Funds may not be able to enter into a closing transaction because of an illiquid market. The Fund's custodian will set aside cash or liquid portfolio securities equal to the amount of the written options contract commitment in a separate account.
Each Fund may also purchase put and call options. Purchasing call options tends to increase the Funds' exposure to the underlying instrument. Purchasing put options tends to decrease the Funds' exposure to the underlying instrument. Each Fund may pay a premium, which is included in the Funds' Statements of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying future transaction to determine the realized gain or loss.
Forward foreign currency exchange contracts. Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contract. Certain Funds may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. Certain Funds may also enter into these contracts to hedge certain other foreign currency denominated assets. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are used to hedge the Funds' investments against currency fluctuations. Forward foreign currency exchange contracts are valued daily at the current exchange rate of the underlyin g currency, resulting in unrealized gains (losses) which become realized at the time the forward foreign currency exchange contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Funds' portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Funds are also exposed to risk that counterparties of the contracts may be unable to fulfill the terms of the contracts.
Repurchase agreements. Each Fund may engage in repurchase agreement transactions with institutions that Columbia has determined are creditworthy. Each Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Columbia is responsible for determining that collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays in or restrictions on
127
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
each Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights.
Foreign currency transactions. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes, the Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statements of Operations.
Income recognition. Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date, except for certain foreign securities which are recorded as soon after the ex-date as the Funds become aware of such, net of non-reclaimable tax withholdings. Distributions received from real estate investment trusts (REITs) in excess of their income are recorded as a reduction of the cost of the related investments and/or realized gains as applicable. If the Funds no longer own the applicable securities, any distributions received in excess of income are recorded as realized gains.
Expenses. General expenses of the Trust are allocated to the Funds and the other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Fund are charged to such Fund.
Federal income tax status. Each Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders. Distributions to shareholders are recorded on ex-date. Dividends from net investment income, if any, are distributed at least annually. Net realized capital gains, if any, are distributed at least annually.
Indemnification. In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund's maximum exposure under these arrangements is unknown because this would involve future claims against the Fund. Also, under the Trust's organizational documents and by contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these representations, warranties and indemnities to be minimal.
128
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Note 3. Federal tax information:
The tax character of distributions paid during the year ended July 31, 2007 was as follows:
July 31, 2007 | |||||||||||
Ordinary Income* | Long-Term Capital Gains | ||||||||||
CMG Enhanced S&P 500® Index Fund | $ | 3,598,247 | $ | 5,218,092 | |||||||
CMG Large Cap Growth Fund | 625,288 | 1,755,655 | |||||||||
CMG Large Cap Value Fund | 1,060,188 | 2,354,312 | |||||||||
CMG Mid Cap Growth Fund | 759,124 | 2,157,806 | |||||||||
CMG Mid Cap Value Fund | 750,522 | 2,052,321 | |||||||||
CMG Small Cap Growth Fund | 4,265,461 | 4,295,118 | |||||||||
CMG Small Cap Value Fund | 722,222 | 5,037,906 | |||||||||
CMG Small/Mid Cap Fund | 2,808,947 | 3,973,991 | |||||||||
CMG International Stock Fund | 8,584,045 | 14,358,677 |
* For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions.
Unrealized appreciation and depreciation at January 31, 2008, based on cost of investments for federal income tax purposes, excluding any unrealized appreciation and depreciation from changes in the value of other assets and liabilities resulting from changes in exchange rates, were:
Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation | |||||||||||||
CMG Enhanced S&P 500® Index Fund | $ | 22,609,642 | $ | (19,099,633 | ) | $ | 3,510,009 | ||||||||
CMG Large Cap Growth Fund | 5,455,658 | (2,315,912 | ) | 3,139,746 | |||||||||||
CMG Large Cap Value Fund | 5,335,165 | (2,637,538 | ) | 2,697,627 | |||||||||||
CMG Mid Cap Growth Fund | 4,237,389 | (811,317 | ) | 3,426,072 | |||||||||||
CMG Mid Cap Value Fund | 3,037,446 | (1,173,762 | ) | 1,863,684 | |||||||||||
CMG Small Cap Growth Fund | 6,939,734 | (2,694,096 | ) | 4,245,638 | |||||||||||
CMG Small Cap Value Fund | 5,975,625 | (2,220,879 | ) | 3,754,746 | |||||||||||
CMG Small/Mid Cap Fund | 1,760,948 | (553,843 | ) | 1,207,105 | |||||||||||
CMG International Stock Fund | 17,355,468 | (7,285,726 | ) | 10,069,742 |
The following capital loss carryforwards, determined as of July 31, 2007, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:
Year of Expiration | |||||||||||||||
2010 | 2011 | Total | |||||||||||||
CMG International Stock Fund | $ | 1,072,288 | $ | 420,427 | $ | 1,492,715 |
The Funds adopted Financial Accounting Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes- an Interpretation of FASB Statement No. 109 ("FIN 48") effective January 31, 2008. FIN 48 requires management to determine whether a tax position of a Fund is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN 48 must be applied to all existing tax positions upon initial adoption and the cumulative effect, if any, is to be reported as an adjustment to net assets. Management has evaluated the known implications of FIN 48 on its computation of net assets for each Fund. As a
129
NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
result of this evaluation, management believes that FIN 48 will not have any effect on the Funds' financial statements. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions). The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Note 4. Fees and compensation paid to affiliates:
Investment advisory fee. Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides the Funds with investment advisory, administrative and other services. With the exception of CMG Small Cap Growth Fund, each Fund's investment advisory fee is a unified fee. Columbia, out of the unified fee it receives from the Funds, pays all accounting fees, legal fees, transfer agent fees, custody fees, expenses of the Chief Compliance Officer, the commitment fee for the line of credit and miscellaneous expenses of the Funds. The unified fee does not include brokerage fees, taxes, Trustees' fees, Trustee legal counsel fees, audit fees, interest expense associated with any borrowings by the Funds or extraordinary expenses, if any. The unified fees are paid monthly to Columbia based on each Fund's average daily net assets at the following annual rates:
CMG Enhanced S&P 500® Index Fund | 0.25 | % | |||||
CMG Large Cap Growth Fund | 0.50 | % | |||||
CMG Large Cap Value Fund | 0.50 | % | |||||
CMG Mid Cap Growth Fund | 0.70 | % | |||||
CMG Mid Cap Value Fund | 0.70 | % | |||||
CMG Small Cap Value Fund | 0.80 | % | |||||
CMG Small/Mid Cap Fund | 0.75 | % | |||||
CMG International Stock Fund | 0.75 | % |
Columbia receives a monthly investment advisory fee from CMG Small Cap Growth Fund at the annual rate of 0.75% of the Fund's average daily net assets.
Pricing & bookkeeping fees. The Funds have entered into a Financial Reporting Services Agreement (the "Financial Reporting Services Agreement") with State Street Bank & Trust Company ("State Street") and Columbia pursuant to which State Street provides financial reporting services to the Funds. The Funds have also entered into an Accounting Services Agreement (collectively with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Funds.
The Funds have entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Fund expenses and the requirements of the Sarbanes-Oxley Act of 2002, and provides oversight of the accounting and financial reporting services provided by State Street.
The pricing and bookkeeping fees for each Fund are payable by Columbia. Prior to January 1, 2008, the CMG Small Cap Growth Fund reimbursed Columbia for the services related to the requirements of the Sarbanes-Oxley Act of 2002.
Transfer agent fee. Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Funds and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. The transfer agent fees for each Fund, with the exception of CMG Small Cap Growth Fund, are payable by Columbia.
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NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
The Transfer Agent is entitled to receive a fee from CMG Small Cap Growth Fund, paid monthly, at the annual rate of $17.34 per open account sub-transfer agent fees (exclusive of BFDS fees), calculated based on assets held in omnibus accounts subject to certain limitations and intended to recover the cost of payments to other parties (including affiliates of BOA) for services to those accounts. Prior to November 1, 2007, the annual rate was $17.00 per open account. The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Funds or Columbia.
The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds.
Fee waivers and expense reimbursements. Columbia has contractually agreed to reimburse each Fund, with the exception of CMG Small Cap Growth Fund, through March 1, 2009, for certain expenses so that the expenses incurred by the Funds, including the investment advisory fees, will not exceed the following annual rates (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts, if any), after giving effect to any balance credits from the Funds' custodian, based on each Fund's average daily net assets:
CMG Enhanced S&P 500® Index Fund | 0.25 | % | |||||
CMG Large Cap Growth Fund | 0.50 | % | |||||
CMG Large Cap Value Fund | 0.50 | % | |||||
CMG Mid Cap Growth Fund | 0.70 | % | |||||
CMG Mid Cap Value Fund | 0.70 | % | |||||
CMG Small Cap Value Fund | 0.80 | % | |||||
CMG Small/Mid Cap Fund | 0.75 | % | |||||
CMG International Stock Fund | 0.75 | % |
There is no guarantee that these arrangements will continue after March 1, 2009.
Columbia and its affiliates have contractually agreed to waive fees and reimburse the CMG Small Cap Growth Fund until November 30, 2009, for certain expenses so that total expenses (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, will not exceed 0.80% annually of the Fund's average daily net assets. There is no guarantee that this arrangement will continue after November 30, 2009.
Fees paid to officers and trustees. All officers of the Funds are employees of Columbia or its affiliates and, with the exception of the Funds' Chief Compliance Officer, receive no compensation from the Funds. The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The expenses of the Chief Compliance Officer for each Fund, with the exception of CMG Small Cap Growth Fund, are payable by Columbia. CMG Small Cap Growth Fund, along with other affiliated funds, pays its pro-rata share of the expenses associated with the Chief Compliance Officer.
The Funds' Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets.
Note 5. Custody credits:
With the exception of CMG Small Cap Growth Fund, any custody credits are applied to offset fund expenses prior to determining the expenses Columbia is required to bear. CMG Small Cap Growth Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statement of Operations. The Fund could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement.
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NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
For the six months ended January 31, 2008, these custody credits reduced total expenses by $248 for the CMG Small Cap Growth Fund.
Note 6. Portfolio information:
For the six months ended January 31, 2008, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were as follows:
Purchases | Sales | ||||||||||
CMG Enhanced S&P 500® Index Fund | $ | 64,998,649 | $ | 54,165,325 | |||||||
CMG Large Cap Growth Fund | 43,799,836 | 51,144,792 | |||||||||
CMG Large Cap Value Fund | 12,261,773 | 14,177,563 | |||||||||
CMG Mid Cap Growth Fund | 28,743,392 | 31,572,299 | |||||||||
CMG Mid Cap Value Fund | 3,531,784 | 4,195,307 | |||||||||
CMG Small Cap Growth Fund | 52,188,429 | 47,313,299 | |||||||||
CMG Small Cap Value Fund | 8,483,151 | 11,244,266 | |||||||||
CMG Small/Mid Cap Fund | 13,829,803 | 13,832,992 | |||||||||
CMG International Stock Fund | 33,347,429 | 35,005,167 |
Note 7. Line of credit:
The Funds and other affiliated funds participate in a $350,000,000 committed, unsecured revolving line of credit and a $150,000,000 uncommitted, unsecured line of credit, both provided by State Street. Borrowings are available for short-term liquidity or temporary or emergency purposes.
Interest on the committed line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is charged. Effective September 17, 2007, interest on the uncommitted line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.375%. Prior to September 17, 2007, interest on the uncommitted line of credit was charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. An annual operations agency fee of $40,000 is paid for the committed line of credit, while an annual administration fee of $15,000 may be charged for the uncommitted line of credit. State Street waived the administration fee for the annual extension of the facility on September 17, 2007. The c ommitment fee, the operations agency fee and the administration fee are included in the unified fee with the exception of those fees owed by CMG Small Cap Growth Fund.
For the six months ended January 31, 2008, the average daily loan balance outstanding on days where borrowing existed, and the weighted average interest rate of each Fund were as follows:
Average Borrowings | Weighted Average Interest Rates | ||||||||||
CMG Large Cap Growth Fund | $ | 1,000,000 | 4.69 | % | |||||||
CMG Small Cap Growth Fund | 1,000,000 | 5.19 | |||||||||
CMG Small Cap Value Fund | 2,000,000 | 5.14 | |||||||||
CMG International Stock Fund | 1,000,000 | 4.66 |
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NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Note 8. Securities lending:
CMG Enhanced S&P 500® Index Fund, CMG Large Cap Growth Fund and CMG Large Cap Value Fund may lend their securities to certain approved brokers, dealers and other financial institutions. Each loan is collateralized by cash, in an amount at least equal to the market value of the securities loaned plus accrued income from the investment of collateral. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The collateral received is invested and the income generated by the investment of the collateral, net of any fees remitted to State Street as the lending agent and borrower rebates, is paid to the Funds. Generally, in the event of borrower default, the Funds have the right to use the collateral to offset any losses incurred. In the event the Funds are delayed or prevented from exercis ing their right to dispose of the collateral, there may be a potential loss to the Funds. The Funds bear the risk of loss with respect to the investment of collateral.
Note 9. Other:
During the six months ended January 31, 2008, Columbia voluntarily reimbursed CMG International Stock Fund $371 for a realized investment loss due to a trading error.
Note 10. Shares of beneficial interest:
As of January 31, 2008, the Funds had shareholders whose shares were beneficially owned by participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The percentage of shares of beneficial interest outstanding held therein are as follows:
% of Shares Outstanding Held | |||||||
CMG Enhanced S&P 500® Index Fund | 89.8 | ||||||
CMG Large Cap Growth Fund | 100.0 | ||||||
CMG Large Cap Value Fund | 100.0 | ||||||
CMG Mid Cap Growth Fund | 100.0 | ||||||
CMG Mid Cap Value Fund | 100.0 | ||||||
CMG Small Cap Growth Fund | 90.6 | ||||||
CMG Small Cap Value Fund | 98.2 | ||||||
CMG Small/Mid Cap Fund | 90.0 | ||||||
CMG International Stock Fund | 100.0 |
In addition, as of January 31, 2008, CMG Enhanced S&P 500® Index Fund and CMG Small Cap Growth Fund each had one shareholder that held 10.2% and 9.4%, respectively, of the shares outstanding. Subscription and redemption activity of these accounts may have a significant effect on the operations of these Funds.
Note 11. Significant risks and contingencies:
Foreign securities. There are certain additional risks involved when investing in foreign securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities.
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NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
Investments in emerging market countries are subject to additional risk. The risk of foreign investments is typically increased in less developed countries. These countries are also more likely to experience high levels of inflation, deflation or currency devaluation which could hurt their economies and securities markets.
Sector focus. The Funds may focus their investments in certain sectors, subjecting them to greater risk than a fund that is less focused.
Legal proceedings. CMG Funds are not named as parties to any regulatory proceedings or litigation.
On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC (now named Columbia Management Advisors, LLC)) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.) (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order") on matters relating to mutual fund trading.
Under the terms of the SEC Order, the Columbia Group agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce management fees for certain Columbia Funds (including the former Nations Funds) and other mutual funds collectively by $32 million per year f or five years, for a projected total of $160 million in management fee reductions.
Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above is being distributed in accordance with a distribution plan that was developed by an independent distribution consultant and approved by the SEC on April 6, 2007. Distributions under the distribution plan began in late June 2007.
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005.
In connection with the events described above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities.
On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Columbia, the Distributor, the Trustees of the Columbia Funds, Bank of America Corporation and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Columbia Funds that asserts claims under federal securities laws and state common law.
On February 25, 2005, Columbia and other defendants filed motions to dismiss the claims in the pending cases. On March 1, 2006, for reasons stated in the court's memoranda dated November 3, 2005, the U.S. District Court for the District of Maryland granted in part and denied in part the defendants' motions to dismiss. The court dismissed all of
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NOTES TO FINANCIAL STATEMENTS (continued)
January 31, 2008 (Unaudited)
the class action claims pending against the Columbia Funds Trusts. As to Columbia and the Distributor, the claims under the Securities Act of 1933, the claims under Sections 34(b) and 36(a) of the Investment Company Act of 1940 ("ICA") and the state law claims were dismissed. The claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and claims under Section 36(b) of the ICA were not dismissed.
On March 21, 2005, a purported class action was filed in Massachusetts state court alleging that certain conduct, including market timing, entitled Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit was removed to federal court in Massachusetts and transferred to the MDL.
On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL described above, including the CDSC Lawsuit. The settlement is subject to court approval.
In 2004, the Columbia Funds' adviser and distributor and certain affiliated entities and individuals were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. Certain Columbia Funds were named as nominal defendants. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purposes. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims by plaintiffs and entered final judgment in favor of the defendants. The plaintiffs appealed to the United States Court of Appeals for the First Circuit on December 30, 2005. A stipulation and settlement agreement dated January 19, 2007 was filed in the First Circuit on February 14, 2007, with a joint stipulation of dismissal and motion for remand to obtain district court approval of the settlement. That joint motion was granted and the appeal was dismissed. On March 6, 2007, the case was remanded to the District Court. The settlement, approved by the District Court on September 18, 2007, became effective October 19, 2007. Pursuant to the settlement, the funds' adviser and/or its affiliates made certain payments, including plaintiffs' attorneys' fees and costs of notice to class members.
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BOARD CONSIDERATION AND APPROVAL OF
ADVISORY AGREEMENTS
The Advisory Fees and Expenses Committee of the Board of Trustees meets several times annually to review the advisory agreements (collectively, the "Agreements") of the funds for which the Trustees serve as trustees (each a "fund") and determine whether to recommend that the full Board approve the continuation of the Agreements for an additional one-year period. After the Committee has made its recommendation, the full Board, including the Independent Trustees, determines whether to approve the continuation of the Agreements. In addition, the Board, including the Independent Trustees, considers matters bearing on the Agreements at most of its other meetings throughout the year and meets regularly with senior management of the funds and Columbia, including the senior manager of each investment area within Columbia. Through the Board's Investment Oversight Committees, Trustees also meet with selected fund portfolio managers at var ious times throughout the year.
The Trustees receive and review all materials that they, their legal counsel or Columbia, the funds' investment adviser, believe to be reasonably necessary for the Trustees to evaluate the Agreements and determine whether to approve the continuation of the Agreements. Those materials generally include, among other items, (i) information on the investment performance of each fund relative to the performance of peer groups of mutual funds and the fund's performance benchmarks, (ii) information on each fund's advisory fees and other expenses, including information comparing the fund's expenses to those of peer groups of mutual funds and information about any applicable expense caps and fee "breakpoints," (iii) information about the profitability of the Agreements to Columbia, including potential "fall-out" or ancillary benefits that Columbia and its affiliates may receive as a result of their relationships with the funds and (iv) i nformation obtained through Columbia's response to a questionnaire prepared at the request of the Trustees by counsel to the funds and independent legal counsel to the Independent Trustees. The Trustees also consider other information such as (v) Columbia's financial results and financial condition, (vi) each fund's investment objective and strategies and the size, education and experience of Columbia's investment staffs and their use of technology, external research and trading cost measurement tools, (vii) the allocation of the funds' brokerage and the use of "soft" commission dollars to pay for research products and services, (viii) Columbia's resources devoted to, and its record of compliance with, the funds' investment policies and restrictions, policies on personal securities transactions and other compliance policies, (ix) Columbia's response to various legal and regulatory proceedings since 2003 and (x) the economic outlook generally and for the mutual fund industry in particular. In addition, the Ad visory Fees and Expenses Committee confers with the funds' independent fee consultant and reviews materials relating to the funds' relationships with Columbia provided by the independent fee consultant. Throughout the process, the Trustees have the opportunity to ask questions of and request additional materials from Columbia and to consult with the independent fee consultant and independent legal counsel to the Independent Trustees and the independent fee consultant.
The Board of Trustees most recently approved the continuation of the Agreements at its October, 2007 meeting, following meetings of the Advisory Fees and Expenses Committee held in July, August, September and October, 2007. In considering whether to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, did not identify any single factor as determinative, and each weighed various factors as he or she deemed appropriate. The Trustees considered the following matters in connection with their approval of the continuation of the Agreements:
The nature, extent and quality of the services provided to the funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by Columbia and its affiliates to the funds and the resources dedicated to the funds by Columbia and its affiliates. Among other things, the Trustees considered (i) Columbia's ability (including its personnel and other resources, compensation programs for personnel involved in fund management, reputation and other attributes) to attract and retain highly qualified research, advisory and supervisory investment professionals; (ii) the portfolio management services provided by those investment professionals; and (iii) the trade execution services provided on behalf of the funds. For each fund, the Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds offering exposure to a variety of asset classes and investment disciplines and providing a variety of fund and shareholder services. After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the nature, extent and quality of services provided supported the continuation of the Agreements.
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Investment performance of the funds and Columbia. The Trustees reviewed information about the performance of each fund over various time periods, including information prepared by an independent third-party data provider that compared the performance of each fund to the performance of peer groups of mutual funds and performance benchmarks. The Trustees also reviewed a description of the third party's methodology for identifying each fund's peer group for purposes of performance and expense comparisons. The Trustees also considered additional information that the Advisory Fees and Expenses Committee requested from Columbia relating to funds that presented relatively weaker performance and/or relatively higher expenses. In the case of each fund whose performance lagged that of a relevant peer group for certain (although not necessarily all) periods, the Truste es concluded that other factors relevant to performance were sufficient, in light of other considerations, to warrant continuation of the fund's Agreement. Those factors varied from fund to fund, but included one or more of the following: (i) that the fund's performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the fund's investment strategy and policies and that the fund was performing within a reasonable range of expectations, given these investment decisions, market conditions and the fund's investment strategy; (iii) that the fund's performance was competitive when compared to other relevant performance benchmarks or peer groups; (iv) that Columbia had taken or was taking steps designed to help improve the fund's investment performance, including, but not limited to, replacing portfolio managers or modifying investment strategies; and (v) that Columbia proposed to waive advisory fees or cap the expenses of the fund.
The Trustees noted the performance of each fund through May 31, 2007 relative to that of a peer group selected by an independent third-party data provider for purposes of performance comparisons. Specifically, CMG Enhanced S&P 500®Index Fund's performance was in the first quintile (where the best performance would be in the first quintile) for the one- and three- year periods; CMG Large Cap Growth Fund's performance was in the first quintile for the one- year period, and in the second quintile for the three-year period; CMG Large Cap Value Fund's performance was in the third quintile for the one- year period, and in the second quintile for the three-year period; CMG Mid Cap Growth Fund's performance was in the third quintile for the one-year period, and in the first quintile for the three-year period; CMG Mid Cap Value Fund's performance was in the first quintile for the one-year period, and in the second quin tile for the three-year period; CMG Small Cap Growth Fund's performance was in the first quintile for the one-, three-, five- and ten-year periods; CMG Small Cap Value Fund's performance was in the second quintile for the one- and three-year periods; CMG Small/Mid Cap Fund's performance was in the fourth quintile for the one-year period, and in the first quintile for the three- and five-year periods; and CMG International Stock Fund's performance was in the second quintile for the one- and ten-year periods, and in the third quintile for the three- and five-year periods.
The Trustees also considered Columbia's performance and reputation generally, the funds' performance as a fund family generally, and Columbia's historical responsiveness to Trustee concerns about performance and Columbia's willingness to take steps intended to improve performance. After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of each fund and Columbia was sufficient, in light of other considerations, to warrant the continuation of the Agreement(s) pertaining to that fund.
The costs of the services provided and profits realized by Columbia and its affiliates from their relationships with the funds. The Trustees considered the fees charged to the funds for advisory services as well as the total expense levels of the funds. That information included comparisons (provided by management and by an independent third-party data provider) of each fund's advisory fees and total expense levels to those of the fund's peer groups and information about the advisory fees charged by Columbia to comparable institutional accounts. In considering the fees charged to those accounts, the Trustees took into account, among other things, management's representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided, differences in the risk profile of such busine ss for Columbia, and the additional resources required to manage mutual funds effectively. In evaluating each fund's advisory fees, the Trustees also took into account the
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demands, complexity and quality of the investment management of the fund. The Trustees considered existing advisory fee breakpoints, and Columbia's use of advisory fee waivers and expense caps, which benefited a number of the funds. The Trustees also noted management's stated justification for the fees charged to the funds, which included information about the investment performance of the funds and the services provided to the funds.
The Trustees considered each fund's total expenses and actual management fees relative to those of a peer group selected by an independent third-party data provider for purposes of expense comparisons. Specifically, CMG Enhanced S&P 500® Index Fund's total expenses and actual management fees were in the first quintile(where the lowest fees and expenses would be in the first quintile); CMG Large Cap Growth Fund's total expenses were in the first quintile and actual management fees were in the third quintile; CMG Large Cap Value Fund's total expenses and actual management fees were in the first quintile; CMG Mid Cap Growth Fund's total expenses were in the first quintile and actual management fees were in the second quintile; CMG Mid Cap Value Fund's total expenses were in the first quintile and actual management fees were in the second quintile; CMG Small Cap Growth Fund's total expenses and actual management f ees were in the second quintile; CMG Small Cap Value Fund's total expenses and actual management fees were in the first quintile; CMG Small/Mid Cap Fund's total expenses were in the first quintile and actual management fees were in the second quintile; and CMG International Stock Fund's total expenses and actual management fees were in the first quintile.
The Trustees also considered the compensation directly or indirectly received by Columbia and its affiliates from their relationships with the funds. The Trustees reviewed information provided by management as to the profitability to Columbia and its affiliates of their relationships with each fund, and information about the allocation of expenses used to calculate profitability. When reviewing profitability, the Trustees also considered court cases in which adviser profitability was an issue in whole or in part, the performance of the relevant funds, the expense level of each fund, and whether Columbia had implemented breakpoints and/or expense caps with respect to the fund.
After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fees charged to each fund, and the related profitability to Columbia and its affiliates of their relationships with the fund, supported the continuation of the Agreement(s) pertaining to that fund.
Economies of Scale. The Trustees considered the existence of any economies of scale in the provision by Columbia of services to each fund, to groups of related funds, and to Columbia's investment advisory clients as a whole and whether those economies were shared with the funds through breakpoints in the investment advisory fees or other means, such as expense waivers/reductions and additional investments by Columbia in investment, trading and compliance resources. The Trustees noted that many of the funds benefited from breakpoints, expense caps, or both. In considering those issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to Columbia and its affiliates of their relationships with the funds, as discussed above.
After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the extent to which economies of scale were shared with the funds supported the continuation of the Agreements.
Other Factors. The Trustees also considered other factors, which included but were not limited to the following:
n the extent to which each fund had operated in accordance with its investment objective and investment restrictions, the nature and scope of the compliance programs of the funds and Columbia and the compliance-related resources that Columbia and its affiliates were providing to the funds;
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n the nature, quality, cost and extent of administrative and shareholder services overseen and performed by Columbia and its affiliates, both under the Agreements and under separate agreements for the provision of transfer agency and administrative services;
n so-called "fall-out benefits" to Columbia and its affiliates, such as the engagement of its affiliates to provide distribution, brokerage and transfer agency services to the funds, and the benefits of research made available to Columbia by reason of brokerage commissions generated by the funds' securities transactions, as well as possible conflicts of interest associated with those fall-out and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor those possible conflicts of interest; and
n the draft report provided by the funds' independent fee consultant, which included information about and analysis of the funds' fees, expenses and performance.
Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel and the independent fee consultant, the Trustees, including the Independent Trustees, approved the continuance of each of the Agreements through October 31, 2008.
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SUMMARY OF MANAGEMENT FEE EVALUATION BY
INDEPENDENT FEE CONSULTANT
EXCERPTS FROM REPORT OF INDEPENDENT FEE CONSULTANT TO THE COLUMBIA ATLANTIC FUNDS
Prepared Pursuant to the February 9, 2005 Assurance of Discontinuance among the Office of Attorney General of New York State, Columbia Management Advisors, Inc., and Columbia Funds Distributor, Inc. October 15, 2007
I. Overview
Columbia Management Advisors, LLC ("CMA") and Columbia Funds Distributors, Inc.1 ("CMD") agreed on February 9, 2005 to the New York Attorney General's Assurance of Discontinuance ("AOD"). Among other things, the AOD stipulates that CMA may manage or advise a Columbia Fund ("Columbia Fund" and together with all such funds or a group of such funds as the "Columbia Funds") only if the Independent Members of the Columbia Fund's Board of Trustees appoint a Senior Officer or retain an Independent Fee Consultant ("IFC") who is to manage the process by which proposed management fees are negotiated. The AOD further stipulates that the Senior Officer or IFC is to prepare a written annual evaluation of the fee negotiation process.
With effect from January 1, 2007, the Independent Members of the Board of Trustees for certain Columbia Funds known collectively as the "Atlantic Funds" (together with the other members of that Board, the "Trustees") retained me as IFC for the Atlantic Funds.2 In this capacity, I have prepared the third annual written evaluation of the fee negotiation process. Last year's report (the "2006 Report") was completed by my immediate predecessor IFC, John Rea, who has provided invaluable assistance in the preparation of this year's report.
A. Role of the Independent Fee Consultant
The AOD charges the IFC with "managing the process by which proposed management fees...to be charged the Columbia Fund are negotiated so that they are negotiated in a manner which is at arms' length and reasonable and consistent with this Assurance of Discontinuance." The AOD also provides that CMA "may manage or advise a Columbia Fund only if the reasonableness of the proposed management fees is determined by the Board of Trustees...using...an annual independent written evaluation prepared by or under the direction of...the Independent Fee Consultant." Therefore, the AOD makes clear that the IFC does not supplant the Trustees in negotiating management fees with CMA, nor does the IFC substitute his or her judgment for that of the Trustees with respect to the reasonableness of proposed fees or any other matter that is committed to the business judgment of the Trustees.
B. Elements Involved in Managing the Fee Negotiation Process
In preparing the report required by the AOD, the IFC must consider at least the following six factors set forth in the AOD:
1. The nature and quality of CMA's services, including the Fund's performance;
2. Management fees (including any components thereof) charged by other mutual fund companies for like services;
1 CMA and CMD are subsidiaries of Columbia Management Group, LLC ("CMG"), and are the successors to the entities named in the AOD.
2 I have no material relationship with Bank of America, CMG or any of its affiliates, aside from serving as IFC, and I am aware of no material relationship with any of their affiliates. I retained John Rea, an independent economic consultant, to assist me with this report.
Unless otherwise stated or required by the context, this report covers only the Atlantic Funds, which are also referred as the "Funds."
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3. Possible economies of scale as the Fund grows larger;
4. Management fees (including any components thereof) charged to institutional and other clients of CMA for like services;
5. Costs to CMA and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit; and
6. Profit margins of CMA and its affiliates from supplying such services.
C. Organization of the Annual Evaluation
This report, like last year's, focuses on the six factors and contains a section for each factor except that that CMA's costs and profits from managing the Funds have been combined into a single section. In addition to a discussion of these factors, the report offers recommendations to improve the fee review process in future years and finally reviews the status of recommendations made in the 2006 Report.
II. Summary of Findings
A. General
1. Based upon my examination of the information supplied by CMG in the light of the six factors set forth in the AOD, I conclude that the Trustees have the relevant information necessary to evaluate the reasonableness of the proposed management fees for each Atlantic Fund.
2. In my view, the process by which the proposed management fees of the Funds have been negotiated in 2007 thus far has been, to the extent practicable, at arms' length and reasonable and consistent with the AOD.
B. Nature and Quality of Services, Including Performance
3. The performance of the Funds has been relatively strong in recent years. Based upon 1-, 3-, 5-, and 10-year returns, at least half of all the Funds have been in the first and second performance quintiles in each of the four performance periods. Performance for the 3-year period is impressive, with 44 of the 63 Funds, or 70%, in the top two quintiles and only 11 Funds, or 17%, in the fourth and fifth quintiles. Both equity and fixed-income funds have strong performance records.
4. The services performed by CMG professionals beyond portfolio management, such as compliance, legal, information technology, risk management, finance and fund administration, are critical to the success of the Funds and appear to be of high quality.
5. Atlantic equity Funds' overall performance adjusted for risk also was strong. Based upon 3-year returns, 19 of the 24 equity Funds had a combination of risk-adjusted and unadjusted returns that placed them in the top half of their performance universes. Fixed-income Funds tended to take on more risk than comparable funds but many also have achieved relatively strong performance over the 3-year period. Nonetheless, 8 of the Funds have high relative risk and low relative returns.
6. The industry-standard procedure used by third parties such as Lipper to construct the performance universe in which each Fund's performance is ranked relative to comparable funds tends to bias a Fund's ranking upward within that universe. The bias occurs because either no-12b-1 fee or low-12b-1 fee share classes of the Atlantic Funds are compared with funds in performance universes that include all share classes of multi-class funds with
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12b-1 fees of up to 100 basis points. Correcting this bias by limiting the performance universe to classes of comparable funds with low or no 12b-1 fees lowers the relative performance for the Funds examined but does not call into question the general finding that the Atlantic Funds' performance has been strong relative to comparable funds.
C. Management Fees Charged by Other Mutual Fund Companies
7. The Funds' management fees and total expenses are generally low relative to those of their peers. Only 19% of the Funds ranked in the two most expensive quintiles for actual management fees, and only 21% in those quintiles for total expenses.
8. The Columbia Money Market Fund VS has a higher management fee structure than that of other Columbia money market funds of comparable asset size, but its total expenses are comparable to those funds.
D. Trustees' Fee and Performance Evaluation Process
9. The Trustees' evaluation process identified 11 Funds in 2007 for further review based upon their relative performance or expenses or both. CMG provided further information about those funds to assist the Trustees in their evaluation. The Trustees may choose to seek additional information about Atlantic Funds that do not meet the criteria for further review. CMG provided further information about those funds to assist the Trustees in their evaluation. The Trustees may choose to seek additional information about Atlantic Funds that do not meet the criteria for further review.
E. Potential Economies of Scale
10. CMG has prepared a memo for the Trustees containing its views on the sources and sharing of potential economies of scale. CMG views economies of scale as arising at the complex level and would regard estimates of scale economies for individual funds as unreliable. CMG has not, however, identified specific sources of economies of scale nor has it provided any estimates of the magnitude of any economies of scale. In the memo, CMG also describes measures taken by the Trustees and CMG that seek to share any potential economies of scale through breakpoints in management fee schedules, expense reimbursements, fee waivers, enhanced shareholder services, fund mergers, and operational consolidation.
F. Management Fees Charged to Institutional Clients
11. CMG has provided Trustees with comparisons of mutual fund management fees and institutional fees based upon standardized fee schedules and upon actual fees. The results show that, consistent with industry practice, institutional fees are generally lower than the Funds' management fees. However, because the services provided and risks borne by the manager are more extensive for mutual funds compared to institutional accounts, the differences are of limited value in assisting the Trustees in their review of the reasonableness of the Funds' management fees.
G. Revenues, Expenses, and Profits
12. The activity-based cost allocation methodology ("ABC") employed by CMG to allocate costs, both direct and indirect, for purposes of calculating Fund profitability is thoughtful and detailed. For comparison, CMG also has allocated costs by assets, demonstrating that the choice of allocation method can have a substantial effect on fund profitability. Notwithstanding the limitations of any effort to allocate costs to a particular fund, we believe that the ABC method represented a better approximation of CMG's costs incurred in providing services to the Funds than did asset-based allocation.
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13. The materials provided on CMG's revenues and expenses with respect to the Funds and the methodology underlying their construction generally form a sufficient basis for Trustees to evaluate the expenses and profitability of the Funds.
14. In 2006, CMG's complex-wide pre-tax margins on the Atlantic Funds were below industry medians, based on limited data available for publicly held mutual fund managers. However, as is to be expected in a complex comprising 70 funds in the past year, some Atlantic Funds have higher pre-tax profit margins, when calculated solely with respect to management revenues and expenses, while other Atlantic Funds operate at a loss. There appeared to be some relationship between fund size and profitability, with smaller funds generally operating at a loss.
15. CMG shares a fixed percentage of its management fee revenues with an affiliate, the Private Bank of Bank of America ("PB" or "Private Bank"), to compensate the PB for services it performs with respect to Atlantic Fund assets held for the benefit of PB customers. In 2006, these payments totaled $23.2 million. Based on our analysis of the services provided by the PB, we have concluded that all payments other than those for sub-transfer agent or sub-accounting services should be treated as a distribution expense.
III. Recommendations
1) Risk-adjusted performance. CMG should provide the Trustees with quantitative information about the risk of each equity and fixed-income Fund in a format that allows the risk and return of each Fund to be evaluated simultaneously. As part of that effort, CMG should develop reliable risk metrics for balanced and money market funds and should explain why the fixed-income portfolio team prefers using gross, rather than net, return for these purposes. The format we developed with CMG represents one possible presentation of such information.
2) Profitability data. CMG should present to the Trustees each year the profitability of each Fund, each investment style and each complex (of which Atlantic is one) calculated as follows:
a. Management-only profitability should be calculated without reference to any Private Bank expense.
b. Profitability excluding distribution (which essentially covers the management and transfer agency functions) should be adjusted by removing from the expense calculation any portion of the Private Bank payment not attributable to the performance by the Private Bank of sub-transfer agency or sub-accounting functions.
c. Total profitability, including distribution: No adjustment for Private Bank expenses should be made, because all such expenses represent legitimate fund expenses to be taken into account in calculating CMG's profit margin including distribution.
3) Potential economies of scale. CMG should provide the Trustees with an analysis of potential economies of scale that considers the sources and magnitude of any economies of scale as CMG's mutual fund assets under management increase. CMG may consider using the framework suggested for the analysis or any other suitable framework, including an analysis that focuses on complex-wide economies of scale, that addresses the relevant concerns.
4) Criteria for review. The Trustees may wish to consider modifying the criteria for classifying a fund as a "Review Fund" to include risk and profitability metrics and should feel free to request additional information and explanation from CMG with respect to any Atlantic Fund whether or not it qualifies as a "Review Fund."
5) Competitive breakpoint analysis. As part of the annual fee evaluation process, the breakpoints of a select group of Atlantic Funds (which would differ each year) should be compared to those of industry rivals to ensure that the Funds' breakpoint schedules remain within industry norms. As breakpoint schedules change relatively little each
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year, performing such a comparison for each Atlantic Fund each year would not be an efficient use of Trustee and CMG resources.
6) Ensuring consistent methodology used by Lipper, Morningstar, and iMoneyNet to construct performance and expense universes and groups. CMG should work with Lipper, Morningstar, and iMoneyNet to make sure that the all three data vendors apply similar techniques and standards in constructing performance universes and collecting data, if possible. If not, CMG should clearly explain to the Trustees the differences in methodology and the effect such differences may have on rankings. In addition, CMG should ensure that it applies the same ranking methodology to all funds, including those for which Morningstar and iMoneyNet pr ovide the underlying data.
7) Uniformity of universes across reporting periods. CMA, based on consultations with its CIO's, has substituted vendors for purposes of universe construction, e.g. Morningstar for Lipper for certain equity funds and iMoneynet for Lipper for money market funds. However, the new universes are not used for all performance periods and have not been used to recalculate last year's performance and expense figures. Therefore, it is difficult to draw useful conclusions from changes in rankings from last year to this year or from short-term to longer-term performance periods. CMA, when it changes data providers, should use both the current and former data sources in the changeover so that the Trustees can understand how the change in vendors may affect performance and expense r ankings.
8) Filtering all universes. The Lipper volumes presented to the Trustees, consistent with industry practice, compare the performance of a Fund to all other funds in its performance universe. Lipper regards for this purpose each class of shares of a fund as a separate fund. This means that the performance of a Columbia Fund A share (with a 25 basis point 12b-1 fee) or Z share (with no 12b-1 fee) is compared to many classes of competitive funds with higher distribution fees, such as deferred-sales-charge B shares and level-load C shares. Including share classes with higher fees than the Columbia Fund share class may make the Columbia Fund's performance look better compared to its peers. The difference can be meaningful. Therefore, we recommend that, in addition to the sta ndard Lipper universe presentation, Funds in the third and fourth quintiles should be ranked in a universe limited to the share class per competitive fund whose distribution pricing most closely matches the relevant Fund. Further, in all rankings, we suggest that use of an Atlantic Fund Z share be limited to performance periods prior to the issuance of that fund's A shares.
9) Management fee disparities. Several disparities have existed between the management fees of comparable Atlantic and Nations Funds. To eliminate the disparity between the expenses of the Atlantic state intermediate municipal bond funds and those of comparable funds overseen by the Nations Board, CMG has proposed expense caps for the Atlantic funds. Furthermore, CMG's proposed expense cap for the Core Bond Fund would produce a significant gap between its management fee and those of two comparable Atlantic Funds. To enable the Trustees to identify such disparities in the future, CMG should provide the Trustees with a table that shows management fees of Atlantic Funds and those of comparable Nations and Acorn Funds. CMG should also provide an explanation for any signific ant fee differences among comparable funds across fund families managed by CMA. Finally, whenever CMG proposes a management fee change or an expense cap for any mutual fund managed by CMA that is comparable to any Atlantic Fund, CMG should provide the Trustees with sufficient information about the proposal to allow the Trustees to assess the applicability of the proposed change to the relevant Atlantic Fund or Funds.
10) Reduction of volume of documents submitted. As the Trustees have noted, the tendency in the fee evaluation process is for the volume of material prepared for their consideration to increase each year as the participants in the process suggest additional data or presentations of data. However, some of the data may no longer be useful, or its usefulness may be outweighed by the burden of reviewing it. For example, we do not believe that offering two variations of cost allocation by assets is useful. We also question whether profitability data need to be divided by
144
distribution channel, e.g. retail vs. variable annuity. We also note that some material, especially related to complex-wide profitability, appears multiple times in the 15(c) materials.
IV. Status of 2006 Recommendations
The 2006 IFC evaluation contains recommendations aimed at enhancing the evaluation of proposed management fees by Trustees. The section summarizes those recommendations and their results.
1. Recommendation: Trustees may wish to consider incorporating risk-adjusted measures in their evaluation of performance. CMG has begun to prepare reports for the Trustees with risk adjustments, which could form the basis for formally including the measures in the 15(c) materials. To this end, Trustees may wish to have CMG prepare documents explaining risk adjustments and describing their advantages and disadvantages.
Status: Grids providing both performance and risk rankings for equity and fixed-income funds were prepared by CMG as part of the 2007 15(c) process.
2. Recommendation: Trustees may wish to consider having CMG evaluate the sensitivity of performance rankings to the design of the universe. The preliminary analysis contained in the evaluation suggests that the method employed by Lipper, the source of performance rankings used by the Trustees, may bias performance rankings upward.
Status: At our request, CMG prepared universes limited to one class of shares per competitive fund for selected funds.
3. Recommendation: Trustees may wish to consider having CMG extend its analysis of economies of scale by examining the sources of such economies, if any. Identification of the sources may enable the Trustees and CMG to gauge their magnitude. It also may enable the Trustees and CMG to build upon past work on standardized fee schedules so that the schedules themselves are consistent with any economies of scale and their sources. Finally, an extension of the analysis may enable the Trustees and CMG to develop a framework that coordinates the use of fee waivers and expense caps with the standard fee schedules and with any economies of scale and their sources.
Status: CMG questions the usefulness of such an exercise due to the many variables that can have an effect on costs and revenues as assets increase. We continue to believe that such an exercise would be helpful to the Trustees.
4. Recommendation: Trustees may wish to consider encouraging CMG to build further upon its expanded analysis of institutional fees by refining the matching of institutional accounts with mutual funds, by dating the establishment of each institutional account, and by incorporating other accounts, such as subadvisory relationships, trusts, offshore funds, and separately managed accounts into the analysis.
Status: CMG dated many of the institutional accounts but was not able to determine the date of establishment for all accounts. CMG also provided data on other types of institutional accounts.
5. Recommendation: Trustees may wish to consider requesting that CMG expand the reporting of revenues and expenses to include more line-item detail for management and administration, transfer agency, fund accounting, and distribution.
Status: We continue to believe that such a statement would help the Trustees understand CMG's business better and place the fund-by-fund profitability reports in context.
6. Recommendation: Trustees may wish to consider requesting that CMG provide a statement of its operations in the 15(c) materials.
Status: CMG provided various summary statements of operations.
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7. Recommendation: Trustees may wish to consider the treatment of the revenue sharing with PB in their review of CMG's profitability.
Status: CMG provided a substantial amount of information reflecting adjustment for Private Bank expenses. We believe that all Private Bank expenses should be backed out of management-only profitability analyses, no Private Bank expenses should be excluded from profitability analyses including distribution and only those PB revenue sharing payments in excess of 11 basis points should be excluded from profitability analyses that do not take distribution into account.
* * *
Respectfully submitted,
Steven E. Asher
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COLUMBIA FUNDS INSTITUTIONAL TRUST
ONE FINANCIAL CENTER BOSTON, MA 02111-2621
- INVESTMENT ADVISOR -
COLUMBIA MANAGEMENT ADVISORS, LLC
100 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110-2624
- LEGAL COUNSEL -
ROPES & GRAY LLP
ONE INTERNATIONAL PLACE
BOSTON, MA 02110-2624
- TRANSFER AGENT -
COLUMBIA MANAGEMENT SERVICES, INC.
P.O. BOX 8081
BOSTON, MASSACHUSETTS 02266-8081
SHC-44/148747-0108 (03/08) 08/53230
A description of the funds' proxy voting policies and procedures is available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the funds voted proxies relating to portfolio securities is also available from the funds' website, www.columbiamanagement.com.
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
The funds are offered by prospectus through Columbia Management Distributors, Inc. Investors should carefully consider the investment objectives, risks, charges and expenses for the funds before investing. Contact your Columbia Management representative or visit www.columbiamanagement.com for a prospectus, which contains this and other important information about the funds. Read it carefully before investing.
Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. CMG Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.
©2008 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621
CMG STRATEGIC EQUITY FUND
A PORTFOLIO OF COLUMBIA FUNDS INSTITUTIONAL TRUST
Semiannual Report
January 31, 2008
NOT FDIC INSURED
May Lose Value
No Bank Guarantee
NOT BANK ISSUED
Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. The fund is distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.
Columbia Management Advisors, LLC ("CMA") is an SEC-registered investment advisor and an indirect, wholly owned subsidiary of Bank of America Corporation and is part of Columbia Management.
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 the Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of the Fund. References to specific securities should not be construed as a recommendation or investment advice.
Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
FUND PROFILE
Summary
• For the six-month period that ended January 31, 2008, CMG Strategic Equity Fund returned negative 0.07%. Both of the fund's benchmarks, the Russell 1000 Index and the S&P 500 Index, returned negative 4.27% and negative 4.32%,1 respectively. The average return of its peer group, the Lipper Multi-Cap Core Funds Classification, was negative 5.02%.2 In a period that was challenging for stocks, in general, the fund held up better than its benchmarks or peer group because of strong stock selection and, to a lesser extent, from favorable sector weights. Beginning on February 23, 2007, the fund's benchmark was changed to the Russell 1000 Index.
• Stock selection in the energy, health care and materials sectors benefited the fund's return. In the energy sector, Wellstream Holdings (0.9% of net assets) and Continental Resources (0.7% of net assets) were strong performers. In the health care sector, positive contributors included Masimo and Express Scripts (0.5% and 0.8% of net assets, respectively), while Monsanto (1.0% of net assets) was an important holding among materials companies.
• We remained concerned about credit issues and the maturity of the U.S. economic cycle. As a result, the fund maintained its underweight in the financials sector, which benefited relative performance. However, fund holdings Ambac Financial Group and Freddie Mac faced a challenging environment and were eliminated from the portfolio. The fund also experienced disappointments from Spirit Aerosystems Holdings, Equifax and Genco Shipping & Trading in the industrials sector. All three were sold.
• Because we continue to believe that the credit market issues that weighed on the U.S. financial system and the broader economy in late 2007 are still present in 2008, we remain cautious about the prospects for the financials sector in the near term. However, recent interest-rate reductions by the Federal Reserve Board, coupled with the potential benefits of a proposed economic stimulus package, could provide some support to the U.S. economy. As a result, we have begun to find selected opportunities in the consumer discretionary sector, which historically has been attractive in the early stage of an economic recovery. We also continue to view the energy sector favorably. Finally, we will continue to evaluate compelling growth trends and valuations in overseas markets.
1 The Russell 1000 Index measures the performance of 1,000 of the largest U.S. companies, based on market capitalization. The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
2 Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with similar investment objectives as those of the fund. Lipper makes no adjustments for the effect of sales loads.
1
We appreciate your continued confidence in CMG Strategic Equity Fund.
Portfolio Management
Emil A. Gjester has managed or co-managed the fund since January 2004 and has been with the advisor or its predecessors or affiliate organizations since 1996.
Jonas Patrikson has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.
Michael T. Welter has co-managed the fund since July 2006 and has been with the advisor or its predecessors or affiliate organizations since 2006.
Dara White has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2006.
The fund's top ten holdings (as a percentage of net assets) as of January 31, 2008 were:
(%) | |||||||
Exxon Mobil | 2.0 | ||||||
JPMorgan Chase | 1.7 | ||||||
Hewlett-Packard | 1.5 | ||||||
Cisco Systems | 1.5 | ||||||
1.4 | |||||||
General Electric | 1.4 | ||||||
Coca-Cola | 1.3 | ||||||
ConocoPhillips | 1.1 | ||||||
Exelon | 1.1 | ||||||
Goldman Sachs Group | 1.1 |
Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.
Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.
International investing may involve certain risks, including foreign taxation, currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks.
2
Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.
Average annual total return as of January 31, 2008 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Strategic Equity Fund | 10/09/01 | -0.07 | 4.08 | 15.55 | 12.32 | ||||||||||||||||||
Russell 1000 Index | -4.27 | -2.45 | 12.59 | 6.78 | |||||||||||||||||||
S&P 500 Index | -4.32 | -2.31 | 12.04 | 6.17 |
Average annual total return as of December 31, 2007 (%)
Inception | 6-month (cumulative) | 1-year | 5-year | Life | |||||||||||||||||||
CMG Strategic Equity Fund | 10/09/01 | 6.50 | 15.87 | 17.07 | 14.13 | ||||||||||||||||||
Russell 1000 Index | -1.31 | 5.77 | 13.43 | 7.95 | |||||||||||||||||||
S&P 500 Index | -1.37 | 5.49 | 12.83 | 7.32 |
Index performance is from October 9, 2001.
Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on distributions or the redemption of fund shares.
The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.40% and 0.62%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 11/30/2008.
Growth of a $5,000,000 investment, October 9, 2001 to January 31, 2008
The chart above shows the growth in value of a hypothetical minimum initial $5,000,000 investment in the fund compared to the indices during the stated time period.
The Russell 1000 Index measures the performance of 1,000 of the largest U.S. companies, based on market capitalization. The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.
3
UNDERSTANDING YOUR EXPENSES – CMG Strategic Equity Fund
As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund's expenses
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:
1. Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.
2. In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.
August 1, 2007 — January 31, 2008
Account value at the beginning of the period ($) | 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 | |||||||||||||||||||||
1,000.00 | 1,000.00 | 999.30 | 1,023.13 | 2.01 | 2.03 | 0.40 |
Expenses paid during the period are equal to the annualized expense ratio of 0.40%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.
Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.
It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.
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CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout Each Period)
(Unaudited) Six Months Ended January 31, | Year Ended July 31, | Period Ended July 31, | Year Ended October 31, | ||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 (a) | 2002 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 3.01 | $ | 3.13 | $ | 15.22 | $ | 13.80 | $ | 12.06 | $ | 10.14 | $ | 10.10 | |||||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||||||
Net investment income (b) | 0.02 | 0.04 | 0.14 | 0.19 | (c) | 0.12 | 0.10 | 0.11 | |||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.05 | 0.46 | 0.82 | 2.09 | 1.87 | 1.88 | (0.05 | ) | |||||||||||||||||||||||
Total from investment operations | 0.07 | 0.50 | 0.96 | 2.28 | 1.99 | 1.98 | 0.06 | ||||||||||||||||||||||||
Less distributions to shareholders: | |||||||||||||||||||||||||||||||
From net investment income | (0.05 | ) | (0.03 | ) | (0.57 | ) | (0.14 | ) | (0.09 | ) | (0.06 | ) | (0.02 | ) | |||||||||||||||||
From net realized gains | (1.01 | ) | (0.59 | ) | (12.48 | )(d) | (0.72 | ) | (0.16 | ) | - | - | |||||||||||||||||||
Total distributions to shareholders | (1.06 | ) | (0.62 | ) | (13.05 | ) | (0.86 | ) | (0.25 | ) | (0.06 | ) | (0.02 | ) | |||||||||||||||||
Net asset value, end of period | $ | 2.02 | $ | 3.01 | $ | 3.13 | $ | 15.22 | $ | 13.80 | $ | 12.06 | $ | 10.14 | |||||||||||||||||
Total return (e)(f) | (0.07 | )%(g) | 17.08 | %(h) | 7.58 | %(i) | 16.77 | % | 16.58 | % | 19.66 | %(g) | 0.53 | % | |||||||||||||||||
Ratios to average net assets/ Supplemental data: | |||||||||||||||||||||||||||||||
Net expenses before interest expense (j) | 0.40 | %(k) | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | %(k) | 0.40 | % | |||||||||||||||||
Interest expense | - | %(k)(l) | - | %(l) | - | - | - | - | - | ||||||||||||||||||||||
Net expenses (j) | 0.40 | %(k) | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | %(k) | 0.40 | % | |||||||||||||||||
Waiver/Reimbursement | 0.36 | %(k) | 0.22 | % | 0.07 | % | 0.03 | % | 0.05 | % | 0.05 | %(k) | 0.07 | % | |||||||||||||||||
Net investment income (j) | 1.12 | %(k) | 1.31 | % | 1.09 | % | 1.31 | % | 0.88 | % | 1.22 | %(k) | 1.01 | % | |||||||||||||||||
Portfolio turnover rate | 51 | %(g) | 127 | % | 47 | % | 64 | % | 81 | % | 78 | %(g) | 172 | % | |||||||||||||||||
Net assets, end of period (000's) | $ | 46,065 | $ | 46,106 | $ | 120,541 | $ | 755,860 | $ | 618,714 | $ | 370,620 | $ | 188,179 |
(a) The Fund changed its fiscal year end from October 31 to July 31.
(b) Per share data was calculated using the average shares outstanding during the period.
(c) Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.02 per share.
(d) Capital gain distributions were declared after significant shareholder redemptions reduced the size of the Fund.
(e) Total return at net asset value assuming all distributions reinvested.
(f) Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.
(g) Not annualized.
(h) Includes a reimbursement by the investment advisor due to a compliance violation. This reimbursement increased total return and net asset value per share less than 0.01% and $0.01, respectively.
(i) Includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.
(j) The benefits derived from custody credits had an impact of less than 0.01%.
(k) Annualized.
(l) Rounds to less than 0.01%.
See Accompanying Notes to Financial Statements.
5
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
January 31, 2008 (Unaudited)
Shares | Value | ||||||||||
Common Stocks (98.6%) | |||||||||||
Consumer Discretionary (9.2%) | |||||||||||
Auto Components (0.5%) | |||||||||||
Nokian Renkaat Oyj | 7,260 | $ | 246,700 | ||||||||
Hotels, Restaurants & Leisure (1.5%) | |||||||||||
Carnival Corp. | 3,660 | 162,833 | |||||||||
Home Inns & Hotels Management, Inc., ADR (a) | 2,520 | 70,535 | |||||||||
Las Vegas Sands Corp. (a) | 2,840 | 248,983 | |||||||||
Royal Caribbean Cruises Ltd. | 3,060 | 123,257 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 2,190 | 99,097 | |||||||||
704,705 | |||||||||||
Household Durables (0.8%) | |||||||||||
Cyrela Brazil Realty SA | 12,430 | 161,823 | |||||||||
Gafisa SA, ADR (a) | 5,350 | 186,341 | |||||||||
348,164 | |||||||||||
Media (1.2%) | |||||||||||
DIRECTV Group, Inc. (a) | 6,860 | 154,899 | |||||||||
Grupo Televisa SA, ADR | 4,260 | 94,955 | |||||||||
NET Servicos de Comunicacao SA, ADR | 26,430 | 310,817 | |||||||||
560,671 | |||||||||||
Multiline Retail (1.8%) | |||||||||||
Macy's, Inc. | 7,800 | 215,592 | |||||||||
Nordstrom, Inc. | 3,570 | 138,873 | |||||||||
Stockmann Oyj Abp, Class B | 3,940 | 158,700 | |||||||||
Target Corp. | 5,850 | 325,143 | |||||||||
838,308 | |||||||||||
Specialty Retail (1.7%) | |||||||||||
Best Buy Co., Inc. | 2,930 | 143,013 | |||||||||
GameStop Corp., Class A (a) | 7,380 | 381,768 | |||||||||
Home Depot, Inc. | 3,840 | 117,773 | |||||||||
Urban Outfitters, Inc. (a) | 4,010 | 116,290 | |||||||||
758,844 | |||||||||||
Textiles, Apparel & Luxury Goods (1.7%) | |||||||||||
Coach, Inc. (a) | 2,880 | 92,304 | |||||||||
Hanesbrands, Inc. (a) | 6,360 | 162,879 | |||||||||
LVMH Moet Hennessy Louis Vuitton SA | 1,530 | 157,426 | |||||||||
NIKE, Inc., Class B | 6,330 | 390,941 | |||||||||
803,550 | |||||||||||
4,260,942 | |||||||||||
Consumer Staples (9.4%) | |||||||||||
Beverages (2.4%) | |||||||||||
Coca-Cola Co. | 10,190 | 602,942 | |||||||||
Diageo PLC, ADR | 2,260 | 182,405 | |||||||||
Fomento Economico Mexicano SAB de CV, ADR | 8,410 | 304,190 | |||||||||
1,089,537 |
See Accompanying Notes to Financial Statements.
6
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Food & Staples Retailing (0.8%) | |||||||||||
Kroger Co. | 8,030 | $ | 204,363 | ||||||||
Sysco Corp. | 5,560 | 161,518 | |||||||||
365,881 | |||||||||||
Food Products (0.9%) | |||||||||||
Nestle SA, Registered Shares | 430 | 192,181 | |||||||||
Unilever N.V., N.Y. Registered Shares | 6,570 | 213,656 | |||||||||
405,837 | |||||||||||
Household Products (2.2%) | |||||||||||
Colgate-Palmolive Co. | 5,000 | 385,000 | |||||||||
Kimberly-Clark Corp. | 2,970 | 194,981 | |||||||||
Procter & Gamble Co. | 6,890 | 454,395 | |||||||||
1,034,376 | |||||||||||
Personal Products (1.2%) | |||||||||||
Avon Products, Inc. | 7,380 | 258,448 | |||||||||
Bare Escentuals, Inc. (a) | 8,300 | 197,872 | |||||||||
Estee Lauder Companies, Inc., Class A | 2,430 | 102,546 | |||||||||
558,866 | |||||||||||
Tobacco (1.9%) | |||||||||||
Altria Group, Inc. | 3,860 | 292,665 | |||||||||
Universal Corp. | 3,710 | 184,795 | |||||||||
UST, Inc. | 7,500 | 389,700 | |||||||||
867,160 | |||||||||||
4,321,657 | |||||||||||
Energy (13.1%) | |||||||||||
Energy Equipment & Services (5.2%) | |||||||||||
Cameron International Corp. (a) | 8,000 | 322,080 | |||||||||
Core Laboratories N.V. (a) | 1,820 | 205,114 | |||||||||
National-Oilwell Varco, Inc. (a) | 3,500 | 210,805 | |||||||||
Noble Corp. | 3,440 | 150,569 | |||||||||
Oceaneering International, Inc. (a) | 2,740 | 157,769 | |||||||||
Schlumberger Ltd. | 4,280 | 322,968 | |||||||||
Tenaris SA, ADR | 2,210 | 88,378 | |||||||||
Transocean, Inc. (a) | 2,548 | 312,385 | |||||||||
Weatherford International Ltd. (a) | 4,180 | 258,366 | |||||||||
Wellstream Holdings PLC (a) | 16,910 | 391,653 | |||||||||
2,420,087 | |||||||||||
Oil, Gas & Consumable Fuels (7.9%) | |||||||||||
ConocoPhillips | 6,430 | 516,458 | |||||||||
Continental Resources, Inc. (a) | 12,248 | 305,098 | |||||||||
Devon Energy Corp. | 3,050 | 259,189 | |||||||||
Exxon Mobil Corp. | 10,660 | 921,024 | |||||||||
Frontier Oil Corp. | 2,090 | 73,714 | |||||||||
Hess Corp. | 2,030 | 184,385 | |||||||||
Occidental Petroleum Corp. | 3,620 | 245,689 | |||||||||
Peabody Energy Corp. | 1,920 | 103,718 | |||||||||
Petroleo Brasileiro SA, ADR | 1,880 | 208,943 |
See Accompanying Notes to Financial Statements.
7
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Oil, Gas & Consumable Fuels (continued) | |||||||||||
Petroplus Holdings AG (a) | 1,949 | $ | 119,242 | ||||||||
SandRidge Energy, Inc. (a) | 3,106 | 94,516 | |||||||||
Southwestern Energy Co. (a) | 4,850 | 271,164 | |||||||||
Valero Energy Corp. | 1,880 | 111,277 | |||||||||
XTO Energy, Inc. | 4,277 | 222,147 | |||||||||
3,636,564 | |||||||||||
6,056,651 | |||||||||||
Financials (16.8%) | |||||||||||
Capital Markets (4.4%) | |||||||||||
Aberdeen Asset Management PLC | 79,970 | 228,462 | |||||||||
Bank of New York Mellon Corp. | 8,600 | 401,018 | |||||||||
Goldman Sachs Group, Inc. | 2,450 | 491,887 | |||||||||
Lazard Ltd., Class A | 3,710 | 146,619 | |||||||||
Merrill Lynch & Co., Inc. | 2,350 | 132,540 | |||||||||
State Street Corp. | 5,280 | 433,594 | |||||||||
Waddell & Reed Financial, Inc., Class A | 6,080 | 201,734 | |||||||||
2,035,854 | |||||||||||
Commercial Banks (2.0%) | |||||||||||
National Bank of Greece SA, ADR | 17,750 | 219,213 | |||||||||
Raiffeisen International Bank Holding AG | 1,240 | 158,282 | |||||||||
TCF Financial Corp. | 8,520 | 181,050 | |||||||||
U.S. Bancorp | 10,610 | 360,209 | |||||||||
918,754 | |||||||||||
Consumer Finance (0.4%) | |||||||||||
American Express Co. | 3,220 | 158,810 | |||||||||
Diversified Financial Services (4.0%) | |||||||||||
Bovespa Holding SA | 13,760 | 201,042 | |||||||||
Citigroup, Inc. | 17,353 | 489,702 | |||||||||
CME Group, Inc. | 580 | 358,962 | |||||||||
JPMorgan Chase & Co. | 16,866 | 801,978 | |||||||||
1,851,684 | |||||||||||
Insurance (4.4%) | |||||||||||
ACE Ltd. | 5,220 | 304,535 | |||||||||
American International Group, Inc. | 1,514 | 83,512 | |||||||||
Aon Corp. | 6,970 | 303,334 | |||||||||
Assurant, Inc. | 4,580 | 297,196 | |||||||||
Lincoln National Corp. | 5,260 | 285,934 | |||||||||
National Financial Partners Corp. | 9,000 | 324,900 | |||||||||
Prudential Financial, Inc. | 5,260 | 443,786 | |||||||||
2,043,197 | |||||||||||
Real Estate Investment Trusts (REITs) (1.5%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 1,300 | 127,699 | |||||||||
CapitalSource, Inc. | 11,170 | 183,300 | |||||||||
Digital Realty Trust, Inc. | 10,670 | 381,239 | |||||||||
692,238 |
See Accompanying Notes to Financial Statements.
8
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Real Estate Management & Development (0.1%) | |||||||||||
Cyrela Commercial Properties SA Empreendimentos e Participacoes (a) | 3,136 | $ | 19,611 | ||||||||
7,720,148 | |||||||||||
Health Care (12.7%) | |||||||||||
Biotechnology (2.2%) | |||||||||||
Applera Corp. - Celera Group (a) | 6,130 | 93,911 | |||||||||
BioMarin Pharmaceuticals, Inc. (a) | 2,660 | 98,579 | |||||||||
Celgene Corp. (a) | 3,415 | 191,616 | |||||||||
Genentech, Inc. (a) | 2,120 | 148,803 | |||||||||
Gilead Sciences, Inc. (a) | 6,030 | 275,511 | |||||||||
Onyx Pharmaceuticals, Inc. (a) | 3,890 | 184,892 | |||||||||
993,312 | |||||||||||
Health Care Equipment & Supplies (2.1%) | |||||||||||
Baxter International, Inc. | 5,970 | 362,618 | |||||||||
Hologic, Inc. (a) | 1,830 | 117,779 | |||||||||
Masimo Corp. (a) | 6,493 | 231,735 | |||||||||
Mindray Medical International Ltd., ADR | 5,145 | 175,445 | |||||||||
Varian Medical Systems, Inc. (a) | 1,870 | 97,221 | |||||||||
984,798 | |||||||||||
Health Care Providers & Services (3.3%) | |||||||||||
CIGNA Corp. | 2,690 | 132,240 | |||||||||
Express Scripts, Inc. (a) | 5,260 | 354,998 | |||||||||
Laboratory Corp. of America Holdings (a) | 2,730 | 201,692 | |||||||||
McKesson Corp. | 2,890 | 181,463 | |||||||||
Medco Health Solutions, Inc. (a) | 7,240 | 362,579 | |||||||||
PSS World Medical, Inc. (a) | 7,910 | 136,764 | |||||||||
VCA Antech, Inc. (a) | 3,800 | 146,908 | |||||||||
1,516,644 | |||||||||||
Life Sciences Tools & Services (2.2%) | |||||||||||
Covance, Inc. (a) | 1,770 | 147,193 | |||||||||
Illumina, Inc. (a) | 1,416 | 90,199 | |||||||||
Pharmaceutical Product Development, Inc. | 5,290 | 229,374 | |||||||||
Qiagen N.V. (a) | 9,410 | 191,964 | |||||||||
Thermo Fisher Scientific, Inc. (a) | 3,440 | 177,126 | |||||||||
Waters Corp. (a) | 3,380 | 194,181 | |||||||||
1,030,037 | |||||||||||
Pharmaceuticals (2.9%) | |||||||||||
Abbott Laboratories | 7,060 | 397,478 | |||||||||
Johnson & Johnson | 3,330 | 210,656 | |||||||||
Merck & Co., Inc. | 10,020 | 463,726 | |||||||||
Schering-Plough Corp. | 6,280 | 122,900 | |||||||||
Shire PLC, ADR | 2,110 | 113,623 | |||||||||
1,308,383 | |||||||||||
5,833,174 |
See Accompanying Notes to Financial Statements.
9
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Industrials (11.4%) | |||||||||||
Aerospace & Defense (3.4%) | |||||||||||
AerCap Holdings N.V. (a) | 6,730 | $ | 124,236 | ||||||||
Boeing Co. | 2,180 | 181,332 | |||||||||
General Dynamics Corp. | 2,780 | 234,799 | |||||||||
Goodrich Corp. | 4,900 | 306,495 | |||||||||
Honeywell International, Inc. | 2,580 | 152,400 | |||||||||
Rockwell Collins, Inc. | 4,250 | 268,600 | |||||||||
United Technologies Corp. | 4,190 | 307,588 | |||||||||
1,575,450 | |||||||||||
Air Freight & Logistics (0.5%) | |||||||||||
United Parcel Service, Inc., Class B | 3,460 | 253,134 | |||||||||
Building Products (0.2%) | |||||||||||
Assa Abloy AB, Class B | 4,710 | 82,215 | |||||||||
Commercial Services & Supplies (1.6%) | |||||||||||
Dun & Bradstreet Corp. | 2,450 | 225,351 | |||||||||
Huron Consulting Group, Inc. (a) | 1,630 | 117,067 | |||||||||
Republic Services, Inc. | 7,550 | 226,500 | |||||||||
Waste Management, Inc. | 5,800 | 188,152 | |||||||||
757,070 | |||||||||||
Electrical Equipment (0.6%) | |||||||||||
Suntech Power Holdings Co., Ltd., ADR (a) | 4,710 | 257,778 | |||||||||
Industrial Conglomerates (2.7%) | |||||||||||
3M Co. | 3,420 | 272,403 | |||||||||
General Electric Co. | 17,590 | 622,862 | |||||||||
McDermott International, Inc. (a) | 7,720 | 364,230 | |||||||||
1,259,495 | |||||||||||
Machinery (1.5%) | |||||||||||
Illinois Tool Works, Inc. | 3,060 | 154,224 | |||||||||
Joy Global, Inc. | 4,740 | 298,857 | |||||||||
Paccar, Inc. | 4,625 | 217,005 | |||||||||
670,086 | |||||||||||
Road & Rail (0.7%) | |||||||||||
Landstar System, Inc. | 3,410 | 170,602 | |||||||||
Union Pacific Corp. | 1,080 | 135,033 | |||||||||
305,635 | |||||||||||
Trading Companies & Distributors (0.2%) | |||||||||||
W.W. Grainger, Inc. | 1,120 | 89,118 | |||||||||
5,249,981 |
See Accompanying Notes to Financial Statements.
10
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Information Technology (15.0%) | |||||||||||
Communications Equipment (3.2%) | |||||||||||
Cisco Systems, Inc. (a) | 27,190 | $ | 666,155 | ||||||||
Corning, Inc. | 12,240 | 294,617 | |||||||||
Nokia Oyj, ADR | 10,900 | 402,755 | |||||||||
Research In Motion Ltd. (a) | 1,410 | 132,371 | |||||||||
1,495,898 | |||||||||||
Computers & Peripherals (3.9%) | |||||||||||
Apple, Inc. (a) | 2,890 | 391,190 | |||||||||
EMC Corp. (a) | 15,200 | 241,224 | |||||||||
Hewlett-Packard Co. | 15,690 | 686,438 | |||||||||
International Business Machines Corp. | 4,420 | 474,443 | |||||||||
1,793,295 | |||||||||||
Internet Software & Services (1.7%) | |||||||||||
Equinix, Inc. (a) | 2,060 | 155,592 | |||||||||
Google, Inc., Class A (a) | 1,110 | 626,373 | |||||||||
781,965 | |||||||||||
IT Services (0.8%) | |||||||||||
DST Systems, Inc. (a) | 2,370 | 169,455 | |||||||||
Redecard SA | 14,160 | 205,276 | |||||||||
374,731 | |||||||||||
Semiconductors & Semiconductor Equipment (2.1%) | |||||||||||
ASML Holding N.V., N.Y. Registered Shares (a) | 2,437 | 64,800 | |||||||||
Intel Corp. | 5,850 | 124,020 | |||||||||
MEMC Electronic Materials, Inc. (a) | 1,446 | 103,331 | |||||||||
NVIDIA Corp. (a) | 3,800 | 93,442 | |||||||||
RF Micro Devices, Inc. (a) | 16,770 | 54,167 | |||||||||
Semtech Corp. (a) | 5,410 | 69,085 | |||||||||
Texas Instruments, Inc. | 11,060 | 342,086 | |||||||||
Trina Solar Ltd., ADR (a) | 3,250 | 110,240 | |||||||||
961,171 | |||||||||||
Software (3.3%) | |||||||||||
Amdocs Ltd. (a) | 2,780 | 91,990 | |||||||||
ANSYS, Inc. (a) | 3,550 | 123,931 | |||||||||
McAfee, Inc. (a) | 4,420 | 148,777 | |||||||||
Microsoft Corp. | 13,290 | 433,254 | |||||||||
Nintendo Co., Ltd. | 470 | 234,953 | |||||||||
Oracle Corp. (a) | 18,470 | 379,558 | |||||||||
UBISOFT Entertainment (a) | 950 | 86,305 | |||||||||
1,498,768 | |||||||||||
6,905,828 |
See Accompanying Notes to Financial Statements.
11
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Shares | Value | ||||||||||
Common Stocks (continued) | |||||||||||
Materials (4.0%) | |||||||||||
Chemicals (2.2%) | |||||||||||
Agrium, Inc. | 1,760 | $ | 113,379 | ||||||||
Celanese Corp., Series A | 4,070 | 151,323 | |||||||||
CF Industries Holdings, Inc. | 1,230 | 131,524 | |||||||||
Monsanto Co. | 4,000 | 449,760 | |||||||||
Syngenta AG, ADR | 3,000 | 158,220 | |||||||||
1,004,206 | |||||||||||
Metals & Mining (1.5%) | |||||||||||
ArcelorMittal, N.Y. Registered Shares | 3,250 | 215,767 | |||||||||
Companhia Vale do Rio Doce, ADR | 5,560 | 166,689 | |||||||||
Freeport-McMoRan Copper & Gold, Inc. | 3,300 | 293,799 | |||||||||
676,255 | |||||||||||
Paper & Forest Products (0.3%) | |||||||||||
Weyerhaeuser Co. | 2,440 | 165,237 | |||||||||
1,845,698 | |||||||||||
Telecommunication Services (2.2%) | |||||||||||
Diversified Telecommunication Services (1.0%) | |||||||||||
AT&T, Inc. | 6,164 | 237,252 | |||||||||
Telekomunikasi Indonesia, ADR | 5,730 | 231,263 | |||||||||
468,515 | |||||||||||
Wireless Telecommunication Services (1.2%) | |||||||||||
American Tower Corp., Class A (a) | 3,330 | 124,975 | |||||||||
China Mobile Ltd., ADR | 1,060 | 80,136 | |||||||||
Millicom International Cellular SA (a) | 1,810 | 191,752 | |||||||||
Philippine Long Distance Telephone Co., ADR | 1,980 | 148,995 | |||||||||
545,858 | |||||||||||
1,014,373 | |||||||||||
Utilities (4.8%) | |||||||||||
Electric Utilities (3.8%) | |||||||||||
Entergy Corp. | 3,690 | 399,184 | |||||||||
Exelon Corp. | 6,690 | 509,711 | |||||||||
FPL Group, Inc. | 6,700 | 432,016 | |||||||||
PPL Corp. | 8,630 | 422,180 | |||||||||
1,763,091 | |||||||||||
Multi-Utilities (1.0%) | |||||||||||
Public Service Enterprise Group, Inc. | 4,810 | 461,760 | |||||||||
2,224,851 | |||||||||||
Total Common Stocks (Cost of $38,042,435) | 45,433,303 |
See Accompanying Notes to Financial Statements.
12
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS
Par | Value | ||||||||||
Short-Term Obligation (1.3%) | |||||||||||
Repurchase agreement with Fixed Income Clearing Corp, dated 01/31/08, due 02/01/08 at 1.710%, collateralized by a U.S. Treasury Obligation maturing 02/15/17, market value $610,500 (repurchase proceeds $594,028) | $ | 594,000 | $ | 594,000 | |||||||
Total Short-Term Obligation (Cost of $594,000) | 594,000 | ||||||||||
Total Investments (99.9%) (Cost of $38,636,435) (b) | 46,027,303 | ||||||||||
Other Assets & Liabilities, Net (0.1%) | 38,097 | ||||||||||
Net Assets (100.0%) | $ | 46,065,400 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Cost for federal income tax purposes is $38,636,435.
At January 31, 2008, the Fund held investments in the following sectors:
Sector | % of Net Assets | ||||||
Financials | 16.8 | ||||||
Information Technology | 15.0 | ||||||
Energy | 13.1 | ||||||
Health Care | 12.7 | ||||||
Industrials | 11.4 | ||||||
Consumer Staples | 9.4 | ||||||
Consumer Discretionary | 9.2 | ||||||
Utilities | 4.8 | ||||||
Materials | 4.0 | ||||||
Telecommunication Services | 2.2 | ||||||
98.6 | |||||||
Short-Term Obligation | 1.3 | ||||||
Other Assets & Liabilities, Net | 0.1 | ||||||
100.0 |
Acronym | Name | ||||||
ADR | American Depositary Receipt |
See Accompanying Notes to Financial Statements.
13
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
STATEMENT OF ASSETS AND LIABILITIES
January 31, 2008 (Unaudited)
ASSETS: | |||||||
Investments, at identified cost | $ | 38,636,435 | |||||
Investments, at value | $ | 46,027,303 | |||||
Cash | 11,358 | ||||||
Foreign currency (cost of $128) | 128 | ||||||
Receivable for: | |||||||
Investments sold | 699,407 | ||||||
Interest | 28 | ||||||
Dividends | 35,820 | ||||||
Foreign tax reclaims | 1,212 | ||||||
Expense reimbursement due from investment advisor | 17,047 | ||||||
Trustees' deferred compensation plan | 22,410 | ||||||
Total Assets | 46,814,713 | ||||||
LIABILITIES: | |||||||
Payable for: | |||||||
Investments purchased | 667,335 | ||||||
Investment advisory fee | 16,101 | ||||||
Transfer agent fee | 45 | ||||||
Trustees' fees | 117 | ||||||
Audit fee | 19,473 | ||||||
Custody fee | 11,463 | ||||||
Chief compliance officer expenses | 5 | ||||||
Trustees' deferred compensation plan | 22,410 | ||||||
Other liabilities | 12,364 | ||||||
Total Liabilities | 749,313 | ||||||
NET ASSETS | $ | 46,065,400 | |||||
NET ASSETS CONSIST OF: | |||||||
Paid-in capital | $ | 39,644,138 | |||||
Overdistributed net investment income | (36,785 | ) | |||||
Accumulated net realized loss | (932,325 | ) | |||||
Net unrealized appreciation (depreciation) on: | |||||||
Investments | 7,390,868 | ||||||
Foreign currency translations | (496 | ) | |||||
NET ASSETS | $ | 46,065,400 | |||||
Shares of capital stock outstanding | 22,824,230 | ||||||
Net asset value, offering and redemption price per share | $ | 2.02 |
See Accompanying Notes to Financial Statements.
14
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
STATEMENT OF OPERATIONS
For the Six Months Ended January 31, 2008 (Unaudited)
INVESTMENT INCOME: | |||||||
Income: | |||||||
Dividends | $ | 343,849 | |||||
Interest | 18,712 | ||||||
Foreign withholding tax | (1,954 | ) | |||||
Total Investment Income | 360,607 | ||||||
Expenses: | |||||||
Investment advisory fee | 94,814 | ||||||
Transfer agent fee | 88 | ||||||
Trustees' fees | 7,521 | ||||||
Custody fee | 16,241 | ||||||
Audit fee | 20,982 | ||||||
Pricing and bookkeeping fees | 1,147 | ||||||
Registration fee | 9,610 | ||||||
Reports to shareholders | 14,306 | ||||||
Chief compliance officer expenses | 164 | ||||||
Other expenses | 15,379 | ||||||
Expenses before interest expense | 180,252 | ||||||
Interest expense | 142 | ||||||
Total Expenses | 180,394 | ||||||
Fees and expenses waived or reimbursed by investment advisor | (85,416 | ) | |||||
Custody earnings credit | (20 | ) | |||||
Net Expenses | 94,958 | ||||||
Net Investment Income | 265,649 | ||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | |||||||
Net realized gain (loss) on: | |||||||
Investments | 185,298 | ||||||
Foreign currency transactions | (6,845 | ) | |||||
Net realized gain | 178,453 | ||||||
Net change in unrealized depreciation on: | |||||||
Investments | (385,091 | ) | |||||
Foreign currency translations | (436 | ) | |||||
Net change in unrealized depreciation | (385,527 | ) | |||||
Net Loss | (207,074 | ) | |||||
NET INCREASE RESULTING FROM OPERATIONS | $ | 58,575 |
See Accompanying Notes to Financial Statements.
15
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
STATEMENT OF CHANGES IN NET ASSETS
Increase (Decrease) in Net Assets | (Unaudited) Six Months Ended January 31, 2008 | Year Ended July 31, 2007 | |||||||||
Operations: | |||||||||||
Net investment income | $ | 265,649 | $ | 1,025,687 | |||||||
Net realized gain on investments and foreign currency transactions | 178,453 | 27,291,836 | |||||||||
Net change in unrealized depreciation on investments and foreign currency translations | (385,527 | ) | (15,030,448 | ) | |||||||
Net increase resulting from operations | 58,575 | 13,287,075 | |||||||||
Distributions to shareholders: | |||||||||||
From net investment income | (680,722 | ) | (611,244 | ) | |||||||
From net realized gains | (14,916,823 | ) | (14,482,350 | ) | |||||||
Total distributions to shareholders | (15,597,545 | ) | (15,093,594 | ) | |||||||
Share transactions: | |||||||||||
Subscriptions | 3,965,439 | 4,636,132 | |||||||||
Distributions reinvested | 14,891,743 | 14,633,613 | |||||||||
Redemptions | (3,358,604 | ) | (91,898,054 | ) | |||||||
Net increase (decrease) in share transactions | 15,498,578 | (72,628,309 | ) | ||||||||
Net decrease in net assets | (40,392 | ) | (74,434,828 | ) | |||||||
NET ASSETS: | |||||||||||
Beginning of period | 46,105,792 | 120,540,620 | |||||||||
End of period | $ | 46,065,400 | $ | 46,105,792 | |||||||
Undistributed (overdistributed) net investment income | $ | (36,785 | ) | $ | 378,288 | ||||||
Changes in shares: | |||||||||||
Subscriptions | 1,768,607 | 1,499,855 | |||||||||
Distributions reinvested | 6,894,326 | 5,134,601 | |||||||||
Redemptions | (1,134,063 | ) | (29,820,686 | ) | |||||||
Net increase (decrease) | 7,528,870 | (23,186,230 | ) |
See Accompanying Notes to Financial Statements.
16
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
Note 1. Organization
CMG Strategic Equity Fund (the "Fund"), a series of Columbia Funds Institutional Trust (the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
Shares of the Fund are available for purchase by institutional buyers and certain individual and institutional advisory clients of Columbia Management Advisors, LLC ("Columbia"), the Fund's investment advisor, or its affiliates. The Fund's minimum initial investment requirement is $5 million for institutional investors purchasing shares directly from the Fund. Please see the Fund's prospectus for further details.
Investment objective. The Fund seeks to provide investors with long-term growth of capital and total returns greater than those of the market over time.
Fund shares. The Fund may issue an unlimited number of shares of beneficial interest which are offered continuously at net asset value.
Note 2. Significant accounting policies
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.
Security valuation. Equity securities, exchange-traded funds and securities of certain investment companies are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets.
Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value.
Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded.
Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Fund's shares are determined as of such times. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Occasionally, events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Fund's net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees. The Fund may use a systematic fa ir valuation model provided by an independent third party to value securities principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation.
17
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. If a security is valued at fair value, such value is likely to be different from the last quoted market price for the security.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued. SFAS 157 is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is evaluating the impact the application of SFAS 157 will have on the Fund's financial statement disclosures.
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.
Repurchase agreements. The Fund may engage in repurchase agreement transactions with institutions that Columbia has determined are creditworthy. The Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Columbia is responsible for determining that collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays in or restrictions on the Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights.
Income recognition. Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date, except for certain foreign securities which are recorded as soon after the ex-date as the Fund becomes aware of such, net of any non-reclaimable tax withholdings. Distributions received from real estate investment trusts (REITs) in excess of their income are recorded as a reduction of the cost of the related investments and/or realized gains as applicable. If the Fund no longer owns the applicable securities, any distributions received in excess of income are recorded as realized gains.
Expenses. General expenses of the Trust are allocated to the Fund and the other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund.
Foreign currency transactions. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes, the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Federal income tax status. The Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such
18
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
that the Fund should not be subject to federal excise tax. Therefore, no provision is made for federal income or excise taxes.
Distributions to shareholders. Distributions to shareholders are recorded on the ex-date. Net realized capital gains, if any, are distributed at least annually.
Indemnification. In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund's maximum exposure under these arrangements is unknown because this would involve future claims against the Fund. Also, under the Trust's organizational documents and by contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Fund expects the risk of loss due to these representations, warranties and indemnities to be minimal.
Note 3. Federal tax information
The tax character of distributions paid during the year ended July 31, 2007 was as follows:
Distributions paid from: | |||||||
Ordinary income* | $ | 1,412,437 | |||||
Long-term capital gains | 13,681,157 |
*For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions.
Unrealized appreciation and depreciation at January 31, 2008, based on cost of investments for federal income tax purposes were:
Unrealized appreciation | $ | 8,860,642 | |||||
Unrealized depreciation | (1,469,774 | ) | |||||
Net unrealized appreciation | $ | 7,390,868 |
The Fund adopted Financial Accounting Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes- an Interpretation of FASB Statement No. 109 ("FIN 48") effective January 31, 2008. FIN 48 requires management to determine whether a tax position of the Fund is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN 48 must be applied to all existing tax positions upon initial adoption and the cumulative effect, if any, is to be reported as an adjustment to net assets. Management has evaluated the known implications of FIN 48 on its computation of net assets for the Fund. As a result of this evaluation, management believes that FIN 48 does not have any effect on the Fund's financial statements. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions).
The Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
19
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
Note 4. Fees and compensation paid to affiliates
Investment advisory fee. Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides the Fund with investment advisory, administrative and other services. Columbia receives a monthly investment advisory fee at the annual rate of 0.40% of the Fund's average daily net assets.
In addition to the annual Fund operating expenses, each shareholder enters into a written administrative services agreement with Columbia or its affiliate. Pursuant to this Agreement, Columbia or its affiliate will provide the shareholder specialized reports regarding the Fund, performance of the shareholder's investments and market conditions and economic indicators. For such services, each shareholder (and not the Fund) will pay an annual fee calculated as a percentage of the shareholder's net assets in the Fund. The annual fee is 0.20% on the first $25 million of the shareholder's net assets in the Fund, and no fee payable on net assets in excess of $25 million.
Pricing & bookkeeping fees. The Fund has entered into a Financial Reporting Services Agreement (the "Financial Reporting Services Agreement") with State Street Bank & Trust Company ("State Street") and Columbia pursuant to which State Street provides financial reporting services to the Fund. The Fund has also entered into an Accounting Services Agreement (collectively with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Fund.
The Fund has entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Fund expenses and the requirements of the Sarbanes-Oxley Act of 2002, and provides oversight of the accounting and financial reporting services provided by State Street.
The pricing and bookkeeping fees for the Fund are payable by Columbia. Prior to January 1, 2008, the Fund reimbursed Columbia for the services related to the requirements of the Sarbanes-Oxley Act of 2002.
Transfer agent fee. Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Fund and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent.
The Transfer Agent is entitled to receive a fee for its services, paid monthly, at the annual rate of $17.34 per open account plus reimbursement of certain sub-transfer agent fees paid by the Transfer Agent (exclusive of BFDS fees), calculated based on assets held in omnibus accounts and intended to recover the cost of payments to other parties (including affiliates of BOA) for services to those accounts. Prior to November 1, 2007, the annual rate was $17.00 per open account. The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Fund.
The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due the Transfer Agent from shareholders of the Fund and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Fund. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.
Fee waivers and expense reimbursements. Columbia has contractually agreed to reimburse the Fund through November 30, 2008, for certain expenses so that the expenses incurred by the Fund (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts, if any), after giving
20
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
effect to any balance credits from the Fund's custodian, will not exceed 0.40% of the Fund's average daily net assets. There is no guarantee that this arrangement will continue after November 30, 2008.
Fees paid to officers and trustees. All officers of the Fund are employees of Columbia or its affiliates and, with the exception of the Fund's Chief Compliance Officer, receive no compensation from the Fund. The Board of Trustees has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund, along with other affiliated funds, pays its pro-rata share of the expenses associated with the Chief Compliance Officer.
The Fund's Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Fund's assets.
Note 5. Custody credits.
The Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statement of Operations. The Fund could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement.
Note 6. Portfolio information
For the six months ended January 31, 2008, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $23,905,846 and $23,720,906, respectively.
Note 7. Line of credit
The Fund and other affiliated funds participate in a $350,000,000 committed, unsecured revolving line of credit and a $150,000,000 uncommitted, unsecured line of credit, both provided by State Street. Borrowings are available for short-term liquidity or temporary or emergency purposes.
Interest on the committed line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is charged. Effective September 17, 2007, interest on the uncommitted line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.375%. Prior to September 17, 2007, interest on the uncommitted line of credit was charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. An annual operations agency fee of $40,000 is paid for the committed line of credit while an annual administration fee of $15,000 may be charged for the uncommitted line of credit. State Street waived the administration fee for the annual extension of the facility on September 17, 2007. The co mmitment fee, the operations agency fee and the administration fee are based on their relative net assets and are included in "Other expenses" in the Statement of Operations.
For the six months ended January 31, 2008, the average daily loan balance outstanding on days where borrowing existed was $1,000,000 at a weighted average interest rate of 5.125%.
21
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
Note 8. Shares of beneficial interest
As of January 31, 2008, one shareholder held 97.1% of the Fund's shares outstanding. Subscription and redemption activity of this account may have a significant effect on the operations of the Fund.
Note 9. Significant risks and contingencies
Sector Focus. Companies that are in different but closely related industries are sometimes described as being in the same sector. Although the Fund does not intend to focus on any particular sector, at times the Fund may have a large portion of its assets invested in a particular sector. During such times, the Fund will have a greater exposure to economic and market events affecting such sector than if it were broadly invested across multiple sectors.
Foreign securities. There are certain additional risks involved when investing in foreign securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities.
Legal proceedings. CMG Funds are not named as parties to any regulatory proceedings or litigation.
On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC (now named Columbia Management Advisors, LLC)) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.) (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order") on matters relating to mutual fund trading.
Under the terms of the SEC Order, the Columbia Group agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce management fees for certain Columbia Funds (including the former Nations Funds) and other mutual funds collectively by $32 million per year f or five years, for a projected total of $160 million in management fee reductions.
Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above is being distributed in accordance with a distribution plan that was developed by an independent distribution consultant and approved by the SEC on April 6, 2007. Distributions under the distribution plan began in late June 2007.
A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005.
In connection with the events described above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities.
22
CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS
January 31, 2008 (Unaudited)
On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Columbia, the Distributor, the Trustees of the Columbia Funds, Bank of America Corporation and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Columbia Funds that asserts claims under federal securities laws and state common law.
On February 25, 2005, Columbia and other defendants filed motions to dismiss the claims in the pending cases. On March 1, 2006, for reasons stated in the court's memoranda dated November 3, 2005, the U.S. District Court for the District of Maryland granted in part and denied in part the defendants' motions to dismiss. The court dismissed all of the class action claims pending against the Columbia Funds Trusts. As to Columbia and the Distributor, the claims under the Securities Act of 1933, the claims under Sections 34(b) and 36(a) of the Investment Company Act of 1940 ("ICA") and the state law claims were dismissed. The claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and claims under Section 36(b) of the ICA were not dismissed.
On March 21, 2005, a purported class action was filed in Massachusetts state court alleging that certain conduct, including market timing, entitled Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit was removed to federal court in Massachusetts and transferred to the MDL.
On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL described above, including the CDSC Lawsuit. The settlement is subject to court approval.
In 2004, the Columbia Funds' adviser and distributor and certain affiliated entities and individuals were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. Certain Columbia Funds were named as nominal defendants. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purposes. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims by plaintiffs and entered final judgment in favor of the defendants. The plaintiffs appealed to the United States Court of Appeals for the First Circuit on December 30, 2005. A stipulation and settlement agreement dated January 19, 2007 was filed in the First Circuit on February 14, 2007, with a joint stipulation of dismissal and motion for remand to obtain district court approval of the settlement. That joint motion was granted and the appeal was dismissed. On March 6, 2007, the case was remanded to the District Court. The settlement, approved by the District Court on September 18, 2007, became effective October 19, 2007. Pursuant to the settlement, the funds' adviser and/or its affiliates made certain payments, including plaintiffs' attorneys' fees and costs of notice to class members.
23
BOARD CONSIDERATION AND APPROVAL OF
ADVISORY AGREEMENTS
The Advisory Fees and Expenses Committee of the Board of Trustees meets several times annually to review the advisory agreements (collectively, the "Agreements") of the funds for which the Trustees serve as trustees (each a "fund") and determine whether to recommend that the full Board approve the continuation of the Agreements for an additional one-year period. After the Committee has made its recommendation, the full Board, including the Independent Trustees, determines whether to approve the continuation of the Agreements. In addition, the Board, including the Independent Trustees, considers matters bearing on the Agreements at most of its other meetings throughout the year and meets regularly with senior management of the funds and Columbia, including the senior manager of each investment area within Columbia. Through the Board's Investment Oversight Committees, Trustees also meet with selected fund portfolio managers at var ious times throughout the year.
The Trustees receive and review all materials that they, their legal counsel or Columbia, the funds' investment adviser, believe to be reasonably necessary for the Trustees to evaluate the Agreements and determine whether to approve the continuation of the Agreements. Those materials generally include, among other items, (i) information on the investment performance of each fund relative to the performance of peer groups of mutual funds and the fund's performance benchmarks, (ii) information on each fund's advisory fees and other expenses, including information comparing the fund's expenses to those of peer groups of mutual funds and information about any applicable expense caps and fee "breakpoints," (iii) information about the profitability of the Agreements to Columbia, including potential "fall-out" or ancillary benefits that Columbia and its affiliates may receive as a result of their relationships with the funds and (iv) i nformation obtained through Columbia's response to a questionnaire prepared at the request of the Trustees by counsel to the funds and independent legal counsel to the Independent Trustees. The Trustees also consider other information such as (v) Columbia's financial results and financial condition, (vi) each fund's investment objective and strategies and the size, education and experience of Columbia's investment staffs and their use of technology, external research and trading cost measurement tools, (vii) the allocation of the funds' brokerage and the use of "soft" commission dollars to pay for research products and services, (viii) Columbia's resources devoted to, and its record of compliance with, the funds' investment policies and restrictions, policies on personal securities transactions and other compliance policies, (ix) Columbia's response to various legal and regulatory proceedings since 2003 and (x) the economic outlook generally and for the mutual fund industry in particular. In addition, the Ad visory Fees and Expenses Committee confers with the funds' independent fee consultant and reviews materials relating to the funds' relationships with Columbia provided by the independent fee consultant. Throughout the process, the Trustees have the opportunity to ask questions of and request additional materials from Columbia and to consult with the independent fee consultant and independent legal counsel to the Independent Trustees and the independent fee consultant.
The Board of Trustees most recently approved the continuation of the Agreements at its October, 2007 meeting, following meetings of the Advisory Fees and Expenses Committee held in July, August, September and October, 2007. In considering whether to approve the continuation of the Agreements, the Trustees, including the Independent Trustees, did not identify any single factor as determinative, and each weighed various factors as he or she deemed appropriate. The Trustees considered the following matters in connection with their approval of the continuation of the Agreements:
The nature, extent and quality of the services provided to the funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by Columbia and its affiliates to the funds and the resources dedicated to the funds by Columbia and its affiliates. Among other things, the Trustees considered (i) Columbia's ability (including its personnel and other resources, compensation programs for personnel involved in fund management, reputation and other attributes) to attract and retain highly qualified research, advisory and supervisory investment professionals; (ii) the portfolio management services provided by those investment professionals; and (iii) the trade execution services provided on behalf of the funds. For each fund, the Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds offering exposure to a variety of asset classes and investment disciplines and providing a variety of fund and shareholder services. After reviewing those
24
and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the nature, extent and quality of services provided supported the continuation of the Agreements.
Investment performance of the funds and Columbia. The Trustees reviewed information about the performance of each fund over various time periods, including information prepared by an independent third-party data provider that compared the performance of each fund to the performance of peer groups of mutual funds and performance benchmarks. The Trustees also reviewed a description of the third party's methodology for identifying each fund's peer group for purposes of performance and expense comparisons. The Trustees also considered additional information that the Advisory Fees and Expenses Committee requested from Columbia relating to funds that presented relatively weaker performance and/or relatively higher expenses. In the case of each fund whose performance lagged that of a relevant peer group for certain (although not necessarily all) periods, the Truste es concluded that other factors relevant to performance were sufficient, in light of other considerations, to warrant continuation of the fund's Agreement. Those factors varied from fund to fund, but included one or more of the following: (i) that the fund's performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the fund's investment strategy and policies and that the fund was performing within a reasonable range of expectations, given these investment decisions, market conditions and the fund's investment strategy; (iii) that the fund's performance was competitive when compared to other relevant performance benchmarks or peer groups; (iv) that Columbia had taken or was taking steps designed to help improve the fund's investment performance, including, but not limited to, replacing portfolio managers or modifying investment strategies; and (v) that Columbia proposed to waive advisory fees or cap the expenses of the fund.
The Trustees noted that, through May 31, 2007, CMG Strategic Equity Fund's performance was in the second quintile (where the best performance would be in the first quintile) for the one- and three-year periods, and in the first quintile for the five-year period, of the peer group selected by an independent third-party data provider for purposes of performance comparisons.
The Trustees also considered Columbia's performance and reputation generally, the funds' performance as a fund family generally, and Columbia's historical responsiveness to Trustee concerns about performance and Columbia's willingness to take steps intended to improve performance. After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of each fund and Columbia was sufficient, in light of other considerations, to warrant the continuation of the Agreement(s) pertaining to that fund.
The costs of the services provided and profits realized by Columbia and its affiliates from their relationships with the funds. The Trustees considered the fees charged to the funds for advisory services as well as the total expense levels of the funds. That information included comparisons (provided by management and by an independent third-party data provider) of each fund's advisory fees and total expense levels to those of the fund's peer groups and information about the advisory fees charged by Columbia to comparable institutional accounts. In considering the fees charged to those accounts, the Trustees took into account, among other things, management's representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided, differences in the risk profile of such busine ss for Columbia, and the additional resources required to manage mutual funds effectively. In evaluating each fund's advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of the fund. The Trustees considered existing advisory fee breakpoints, and Columbia's use of advisory fee waivers and expense caps, which benefited a number of the funds. The Trustees also noted management's stated justification for the fees charged to the funds, which included information about the investment performance of the funds and the services provided to the funds.
The Trustees considered that CMG Strategic Equity Fund's total expenses and actual management fees were in the first quintile (where the lowest fees and expenses would be in the first quintile) of the peer group selected by an independent third-party data provider for purposes of expense comparisons.
The Trustees also considered the compensation directly or indirectly received by Columbia and its affiliates from their relationships with the funds. The Trustees reviewed information provided by management as to the profitability to Columbia and its affiliates of their relationships with each fund, and information about the allocation of expenses used
25
to calculate profitability. When reviewing profitability, the Trustees also considered court cases in which adviser profitability was an issue in whole or in part, the performance of the relevant funds, the expense level of each fund, and whether Columbia had implemented breakpoints and/or expense caps with respect to the fund.
After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fees charged to each fund, and the related profitability to Columbia and its affiliates of their relationships with the fund, supported the continuation of the Agreement(s) pertaining to that fund.
Economies of Scale. The Trustees considered the existence of any economies of scale in the provision by Columbia of services to each fund, to groups of related funds, and to Columbia's investment advisory clients as a whole and whether those economies were shared with the funds through breakpoints in the investment advisory fees or other means, such as expense waivers/reductions and additional investments by Columbia in investment, trading and compliance resources. The Trustees noted that many of the funds benefited from breakpoints, expense caps, or both. In considering those issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to Columbia and its affiliates of their relationships with the funds, as discussed above.
After reviewing those and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the extent to which economies of scale were shared with the funds supported the continuation of the Agreements.
Other Factors. The Trustees also considered other factors, which included but were not limited to the following:
n the extent to which each fund had operated in accordance with its investment objective and investment restrictions, the nature and scope of the compliance programs of the funds and Columbia and the compliance-related resources that Columbia and its affiliates were providing to the funds;
n the nature, quality, cost and extent of administrative and shareholder services overseen and performed by Columbia and its affiliates, both under the Agreements and under separate agreements for the provision of transfer agency and administrative services;
n so-called "fall-out benefits" to Columbia and its affiliates, such as the engagement of its affiliates to provide distribution, brokerage and transfer agency services to the funds, and the benefits of research made available to Columbia by reason of brokerage commissions generated by the funds' securities transactions, as well as possible conflicts of interest associated with those fall-out and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor those possible conflicts of interest; and
n the draft report provided by the funds' independent fee consultant, which included information about and analysis of the funds' fees, expenses and performance.
Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel and the independent fee consultant, the Trustees, including the Independent Trustees, approved the continuance of each of the Agreements through October 31, 2008.
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SUMMARY OF MANAGEMENT FEE EVALUATION BY
INDEPENDENT FEE CONSULTANT
EXCERPTS FROM REPORT OF INDEPENDENT FEE CONSULTANT TO THE COLUMBIA ATLANTIC FUNDS
Prepared Pursuant to the February 9, 2005 Assurance of Discontinuance among the Office of Attorney General of New York State, Columbia Management Advisors, Inc., and Columbia Funds Distributor, Inc. October 15, 2007
I. Overview
Columbia Management Advisors, LLC ("CMA") and Columbia Funds Distributors, Inc.1 ("CMD") agreed on February 9, 2005 to the New York Attorney General's Assurance of Discontinuance ("AOD"). Among other things, the AOD stipulates that CMA may manage or advise a Columbia Fund ("Columbia Fund" and together with all such funds or a group of such funds as the "Columbia Funds") only if the Independent Members of the Columbia Fund's Board of Trustees appoint a Senior Officer or retain an Independent Fee Consultant ("IFC") who is to manage the process by which proposed management fees are negotiated. The AOD further stipulates that the Senior Officer or IFC is to prepare a written annual evaluation of the fee negotiation process.
With effect from January 1, 2007, the Independent Members of the Board of Trustees for certain Columbia Funds known collectively as the "Atlantic Funds" (together with the other members of that Board, the "Trustees") retained me as IFC for the Atlantic Funds.2 In this capacity, I have prepared the third annual written evaluation of the fee negotiation process. Last year's report (the "2006 Report") was completed by my immediate predecessor IFC, John Rea, who has provided invaluable assistance in the preparation of this year's report.
A. Role of the Independent Fee Consultant
The AOD charges the IFC with "managing the process by which proposed management fees...to be charged the Columbia Fund are negotiated so that they are negotiated in a manner which is at arms' length and reasonable and consistent with this Assurance of Discontinuance." The AOD also provides that CMA "may manage or advise a Columbia Fund only if the reasonableness of the proposed management fees is determined by the Board of Trustees...using...an annual independent written evaluation prepared by or under the direction of...the Independent Fee Consultant." Therefore, the AOD makes clear that the IFC does not supplant the Trustees in negotiating management fees with CMA, nor does the IFC substitute his or her judgment for that of the Trustees with respect to the reasonableness of proposed fees or any other matter that is committed to the business judgment of the Trustees.
B. Elements Involved in Managing the Fee Negotiation Process
In preparing the report required by the AOD, the IFC must consider at least the following six factors set forth in the AOD:
1. The nature and quality of CMA's services, including the Fund's performance;
2. Management fees (including any components thereof) charged by other mutual fund companies for like services;
1 CMA and CMD are subsidiaries of Columbia Management Group, LLC ("CMG"), and are the successors to the entities named in the AOD.
2 I have no material relationship with Bank of America, CMG or any of its affiliates, aside from serving as IFC, and I am aware of no material relationship with any of their affiliates. I retained John Rea, an independent economic consultant, to assist me with this report.
Unless otherwise stated or required by the context, this report covers only the Atlantic Funds, which are also referred as the "Funds."
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3. Possible economies of scale as the Fund grows larger;
4. Management fees (including any components thereof) charged to institutional and other clients of CMA for like services;
5. Costs to CMA and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit; and
6. Profit margins of CMA and its affiliates from supplying such services.
C. Organization of the Annual Evaluation
This report, like last year's, focuses on the six factors and contains a section for each factor except that that CMA's costs and profits from managing the Funds have been combined into a single section. In addition to a discussion of these factors, the report offers recommendations to improve the fee review process in future years and finally reviews the status of recommendations made in the 2006 Report.
II. Summary of Findings
A. General
1. Based upon my examination of the information supplied by CMG in the light of the six factors set forth in the AOD, I conclude that the Trustees have the relevant information necessary to evaluate the reasonableness of the proposed management fees for each Atlantic Fund.
2. In my view, the process by which the proposed management fees of the Funds have been negotiated in 2007 thus far has been, to the extent practicable, at arms' length and reasonable and consistent with the AOD.
B. Nature and Quality of Services, Including Performance
3. The performance of the Funds has been relatively strong in recent years. Based upon 1-, 3-, 5-, and 10-year returns, at least half of all the Funds have been in the first and second performance quintiles in each of the four performance periods. Performance for the 3-year period is impressive, with 44 of the 63 Funds, or 70%, in the top two quintiles and only 11 Funds, or 17%, in the fourth and fifth quintiles. Both equity and fixed-income funds have strong performance records.
4. The services performed by CMG professionals beyond portfolio management, such as compliance, legal, information technology, risk management, finance and fund administration, are critical to the success of the Funds and appear to be of high quality.
5. Atlantic equity Funds' overall performance adjusted for risk also was strong. Based upon 3-year returns, 19 of the 24 equity Funds had a combination of risk-adjusted and unadjusted returns that placed them in the top half of their performance universes. Fixed-income Funds tended to take on more risk than comparable funds but many also have achieved relatively strong performance over the 3-year period. Nonetheless, 8 of the Funds have high relative risk and low relative returns.
6. The industry-standard procedure used by third parties such as Lipper to construct the performance universe in which each Fund's performance is ranked relative to comparable funds tends to bias a Fund's ranking upward within that universe. The bias occurs because either no-12b-1 fee or low-12b-1 fee share classes of the Atlantic Funds are compared with funds in performance universes that include all share classes of multi-class funds with 12b-1 fees of up to 100 basis points. Correcting this bias by limiting the performance universe to classes of comparable funds with low or no 12b-1 fees lowers the relative performance for the Funds examined but does not call into question the general finding that the Atlantic Funds' performance has been strong relative to comparable funds.
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C. Management Fees Charged by Other Mutual Fund Companies
7. The Funds' management fees and total expenses are generally low relative to those of their peers. Only 19% of the Funds ranked in the two most expensive quintiles for actual management fees, and only 21% in those quintiles for total expenses.
8. The Columbia Money Market Fund VS has a higher management fee structure than that of other Columbia money market funds of comparable asset size, but its total expenses are comparable to those funds.
D. Trustees' Fee and Performance Evaluation Process
9. The Trustees' evaluation process identified 11 Funds in 2007 for further review based upon their relative performance or expenses or both. CMG provided further information about those funds to assist the Trustees in their evaluation. The Trustees may choose to seek additional information about Atlantic Funds that do not meet the criteria for further review. CMG provided further information about those funds to assist the Trustees in their evaluation. The Trustees may choose to seek additional information about Atlantic Funds that do not meet the criteria for further review.
E. Potential Economies of Scale
10. CMG has prepared a memo for the Trustees containing its views on the sources and sharing of potential economies of scale. CMG views economies of scale as arising at the complex level and would regard estimates of scale economies for individual funds as unreliable. CMG has not, however, identified specific sources of economies of scale nor has it provided any estimates of the magnitude of any economies of scale. In the memo, CMG also describes measures taken by the Trustees and CMG that seek to share any potential economies of scale through breakpoints in management fee schedules, expense reimbursements, fee waivers, enhanced shareholder services, fund mergers, and operational consolidation.
F. Management Fees Charged to Institutional Clients
11. CMG has provided Trustees with comparisons of mutual fund management fees and institutional fees based upon standardized fee schedules and upon actual fees. The results show that, consistent with industry practice, institutional fees are generally lower than the Funds' management fees. However, because the services provided and risks borne by the manager are more extensive for mutual funds compared to institutional accounts, the differences are of limited value in assisting the Trustees in their review of the reasonableness of the Funds' management fees.
G. Revenues, Expenses, and Profits
12. The activity-based cost allocation methodology ("ABC") employed by CMG to allocate costs, both direct and indirect, for purposes of calculating Fund profitability is thoughtful and detailed. For comparison, CMG also has allocated costs by assets, demonstrating that the choice of allocation method can have a substantial effect on fund profitability. Notwithstanding the limitations of any effort to allocate costs to a particular fund, we believe that the ABC method represented a better approximation of CMG's costs incurred in providing services to the Funds than did asset-based allocation.
13. The materials provided on CMG's revenues and expenses with respect to the Funds and the methodology underlying their construction generally form a sufficient basis for Trustees to evaluate the expenses and profitability of the Funds.
14. In 2006, CMG's complex-wide pre-tax margins on the Atlantic Funds were below industry medians, based on limited data available for publicly held mutual fund managers. However, as is to be expected in a complex comprising 70 funds in the past year, some Atlantic Funds have higher pre-tax profit margins, when calculated solely with respect to management revenues and expenses, while other Atlantic Funds operate at a loss. There appeared to be some relationship between fund size and profitability, with smaller funds generally operating at a loss.
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15. CMG shares a fixed percentage of its management fee revenues with an affiliate, the Private Bank of Bank of America ("PB" or "Private Bank"), to compensate the PB for services it performs with respect to Atlantic Fund assets held for the benefit of PB customers. In 2006, these payments totaled $23.2 million. Based on our analysis of the services provided by the PB, we have concluded that all payments other than those for sub-transfer agent or sub-accounting services should be treated as a distribution expense.
III. Recommendations
1) Risk-adjusted performance. CMG should provide the Trustees with quantitative information about the risk of each equity and fixed-income Fund in a format that allows the risk and return of each Fund to be evaluated simultaneously. As part of that effort, CMG should develop reliable risk metrics for balanced and money market funds and should explain why the fixed-income portfolio team prefers using gross, rather than net, return for these purposes. The format we developed with CMG represents one possible presentation of such information.
2) Profitability data. CMG should present to the Trustees each year the profitability of each Fund, each investment style and each complex (of which Atlantic is one) calculated as follows:
a. Management-only profitability should be calculated without reference to any Private Bank expense.
b. Profitability excluding distribution (which essentially covers the management and transfer agency functions) should be adjusted by removing from the expense calculation any portion of the Private Bank payment not attributable to the performance by the Private Bank of sub-transfer agency or sub-accounting functions.
c. Total profitability, including distribution: No adjustment for Private Bank expenses should be made, because all such expenses represent legitimate fund expenses to be taken into account in calculating CMG's profit margin including distribution.
3) Potential economies of scale. CMG should provide the Trustees with an analysis of potential economies of scale that considers the sources and magnitude of any economies of scale as CMG's mutual fund assets under management increase. CMG may consider using the framework suggested for the analysis or any other suitable framework, including an analysis that focuses on complex-wide economies of scale, that addresses the relevant concerns.
4) Criteria for review. The Trustees may wish to consider modifying the criteria for classifying a fund as a "Review Fund" to include risk and profitability metrics and should feel free to request additional information and explanation from CMG with respect to any Atlantic Fund whether or not it qualifies as a "Review Fund."
5) Competitive breakpoint analysis. As part of the annual fee evaluation process, the breakpoints of a select group of Atlantic Funds (which would differ each year) should be compared to those of industry rivals to ensure that the Funds' breakpoint schedules remain within industry norms. As breakpoint schedules change relatively little each year, performing such a comparison for each Atlantic Fund each year would not be an efficient use of Trustee and CMG resources.
6) Ensuring consistent methodology used by Lipper, Morningstar, and iMoneyNet to construct performance and expense universes and groups. CMG should work with Lipper, Morningstar, and iMoneyNet to make sure that the all three data vendors apply similar techniques and standards in constructing performance universes and collecting data, if possible. If not, CMG should clearly explain to the Trustees the differences in methodology and the effect such differences may have on rankings. In addition, CMG should ensure that it applies the same ranking methodology to all funds, including those for which Morningstar and iMoneyNet provide the underlying data.
7) Uniformity of universes across reporting periods. CMA, based on consultations with its CIO's, has substituted vendors for purposes of universe construction, e.g. Morningstar for Lipper for certain equity funds and iMoneynet for Lipper for money market funds. However, the new universes are not used for all performance periods and have not been used to recalculate last year's performance and expense figures. Therefore, it is difficult to draw useful conclusions from changes in rankings from last year to this year or from short-term to longer-term performance periods. CMA, when it changes data providers, should use both the current and former data sources in the changeover so that the Trustees can understand how the change in vendors may affect performance and expense r ankings.
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8) Filtering all universes. The Lipper volumes presented to the Trustees, consistent with industry practice, compare the performance of a Fund to all other funds in its performance universe. Lipper regards for this purpose each class of shares of a fund as a separate fund. This means that the performance of a Columbia Fund A share (with a 25 basis point 12b-1 fee) or Z share (with no 12b-1 fee) is compared to many classes of competitive funds with higher distribution fees, such as deferred-sales-charge B shares and level-load C shares. Including share classes with higher fees than the Columbia Fund share class may make the Columbia Fund's performance look better compared to its peers. The difference can be meaningful. Therefore, we recommend that, in addition to the sta ndard Lipper universe presentation, Funds in the third and fourth quintiles should be ranked in a universe limited to the share class per competitive fund whose distribution pricing most closely matches the relevant Fund. Further, in all rankings, we suggest that use of an Atlantic Fund Z share be limited to performance periods prior to the issuance of that fund's A shares.
9) Management fee disparities. Several disparities have existed between the management fees of comparable Atlantic and Nations Funds. To eliminate the disparity between the expenses of the Atlantic state intermediate municipal bond funds and those of comparable funds overseen by the Nations Board, CMG has proposed expense caps for the Atlantic funds. Furthermore, CMG's proposed expense cap for the Core Bond Fund would produce a significant gap between its management fee and those of two comparable Atlantic Funds. To enable the Trustees to identify such disparities in the future, CMG should provide the Trustees with a table that shows management fees of Atlantic Funds and those of comparable Nations and Acorn Funds. CMG should also provide an explanation for any signific ant fee differences among comparable funds across fund families managed by CMA. Finally, whenever CMG proposes a management fee change or an expense cap for any mutual fund managed by CMA that is comparable to any Atlantic Fund, CMG should provide the Trustees with sufficient information about the proposal to allow the Trustees to assess the applicability of the proposed change to the relevant Atlantic Fund or Funds.
10) Reduction of volume of documents submitted. As the Trustees have noted, the tendency in the fee evaluation process is for the volume of material prepared for their consideration to increase each year as the participants in the process suggest additional data or presentations of data. However, some of the data may no longer be useful, or its usefulness may be outweighed by the burden of reviewing it. For example, we do not believe that offering two variations of cost allocation by assets is useful. We also question whether profitability data need to be divided by distribution channel, e.g. retail vs. variable annuity. We also note that some material, especially related to complex-wide profitability, appears multiple times in the 15(c) materials.
IV. Status of 2006 Recommendations
The 2006 IFC evaluation contains recommendations aimed at enhancing the evaluation of proposed management fees by Trustees. The section summarizes those recommendations and their results.
1. Recommendation: Trustees may wish to consider incorporating risk-adjusted measures in their evaluation of performance. CMG has begun to prepare reports for the Trustees with risk adjustments, which could form the basis for formally including the measures in the 15(c) materials. To this end, Trustees may wish to have CMG prepare documents explaining risk adjustments and describing their advantages and disadvantages.
Status: Grids providing both performance and risk rankings for equity and fixed-income funds were prepared by CMG as part of the 2007 15(c) process.
2. Recommendation: Trustees may wish to consider having CMG evaluate the sensitivity of performance rankings to the design of the universe. The preliminary analysis contained in the evaluation suggests that the method employed by Lipper, the source of performance rankings used by the Trustees, may bias performance rankings upward.
Status: At our request, CMG prepared universes limited to one class of shares per competitive fund for selected funds.
3. Recommendation: Trustees may wish to consider having CMG extend its analysis of economies of scale by examining the sources of such economies, if any. Identification of the sources may enable the Trustees and CMG to gauge their magnitude. It also may enable the Trustees and CMG to build upon past work on standardized fee schedules so that the schedules themselves are consistent with any economies of scale and their sources. Finally, an
31
extension of the analysis may enable the Trustees and CMG to develop a framework that coordinates the use of fee waivers and expense caps with the standard fee schedules and with any economies of scale and their sources.
Status: CMG questions the usefulness of such an exercise due to the many variables that can have an effect on costs and revenues as assets increase. We continue to believe that such an exercise would be helpful to the Trustees.
4. Recommendation: Trustees may wish to consider encouraging CMG to build further upon its expanded analysis of institutional fees by refining the matching of institutional accounts with mutual funds, by dating the establishment of each institutional account, and by incorporating other accounts, such as subadvisory relationships, trusts, offshore funds, and separately managed accounts into the analysis.
Status: CMG dated many of the institutional accounts but was not able to determine the date of establishment for all accounts. CMG also provided data on other types of institutional accounts.
5. Recommendation: Trustees may wish to consider requesting that CMG expand the reporting of revenues and expenses to include more line-item detail for management and administration, transfer agency, fund accounting, and distribution.
Status: We continue to believe that such a statement would help the Trustees understand CMG's business better and place the fund-by-fund profitability reports in context.
6. Recommendation: Trustees may wish to consider requesting that CMG provide a statement of its operations in the 15(c) materials.
Status: CMG provided various summary statements of operations.
7. Recommendation: Trustees may wish to consider the treatment of the revenue sharing with PB in their review of CMG's profitability.
Status: CMG provided a substantial amount of information reflecting adjustment for Private Bank expenses. We believe that all Private Bank expenses should be backed out of management-only profitability analyses, no Private Bank expenses should be excluded from profitability analyses including distribution and only those PB revenue sharing payments in excess of 11 basis points should be excluded from profitability analyses that do not take distribution into account.
* * *
Respectfully submitted,
Steven E. Asher
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COLUMBIA FUNDS INSTITUTIONAL TRUST
ONE FINANCIAL CENTER, BOSTON, MASSACHUSETTS 02111-2621
- INVESTMENT ADVISOR -
COLUMBIA MANAGEMENT ADVISORS, LLC
100 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110-2624
- LEGAL COUNSEL -
ROPES & GRAY LLP
ONE INTERNATIONAL PLACE
BOSTON, MASSACHUSETTS 02110-2624
- TRANSFER AGENT -
COLUMBIA MANAGEMENT SERVICES, INC.
P.O. BOX 8081
BOSTON, MASSACHUSETTS 02266-8081
SHC-44/148748-0108 (03/08) 08-52418
A description of the fund's proxy voting policies and procedures is available (i) on the fund's website, www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the fund voted proxies relating to portfolio securities is also available from the fund's website, www.columbiamanagement.com.
The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
The fund is offered by prospectus through Columbia Management Distributors, Inc. Investors should consider the investment objectives, risks, charges and expenses for the fund carefully before investing. Contact your Columbia Management representative or visit www.columbiamanagement.com for a prospectus, which contains this and other important information about the fund. Read it carefully before investing.
Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. The Fund is distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.
© 2008 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments
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 have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, since those procedures were last disclosed in response to requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A) or this Item.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officers, 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 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. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable at this time.
(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 Institutional Trust | ||
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By (Signature and Title) |
| /s/ Christopher L. Wilson | ||
| Christopher L. Wilson, President | |||
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Date |
| March 26, 2008 | ||
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 L. Wilson | |
| Christopher L. Wilson, President | ||
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Date |
| March 26, 2008 | |
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By (Signature and Title) |
| /s/ J. Kevin Connaughton | |
| J. Kevin Connaughton, Treasurer | ||
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Date |
| March 26, 2008 | |