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 811-2214
Columbia Funds Trust I
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts 02111
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(Address of principal executive offices) (Zip code)
Vincent Pietropaolo, Esq.
Columbia Management Group, Inc.
One Financial Center
Boston, MA 02111
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-617-772-3698
Date of fiscal year end: May 31, 2006
Date of reporting period: November 30, 2005
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. Section 3507.
Item 1. Reports to Stockholders
[PHOTO]
COLUMBIA HIGH YIELD OPPORTUNITY FUND
Semiannual Report
November 30, 2005
PRESIDENT'S MESSAGE
----------------------------------
Columbia High Yield Opportunity Fund
[PHOTO]
Dear Shareholder:
Columbia Management, the asset management division of Bank of America, is in
the final stages of a significant business integration effort. Over the last
year, we have integrated various components of Nations Funds, Galaxy Funds and
Columbia Funds, resulting in a single fund family under the Columbia name that
covers a wide range of markets, sectors and asset classes. Our team of
talented, seasoned investment professionals will continue to strive to achieve
strong results within their investment categories. Our objective is not only to
provide our shareholders with the best products, but also to enhance the
breadth and availability of our services. In addition to expanding the level of
services available to the funds, portfolio managers and shareholders, we have
been able to achieve significant cost savings for the funds by aggregating our
business.
In September, we made major inroads in the initiative to streamline our product
offerings. This included merging several funds and renaming Nations Funds as
Columbia Funds, as well as consolidating the Nations and Columbia web sites.
Over the summer, we completed the service provider consolidation for
shareholder servicing. As we work to complete the remaining product and service
provider consolidations by the end of 2005, we remain committed to building a
mutual fund business that helps you meet, and hopefully exceed, your personal
financial goals. We value the confidence you have placed in us to assist you in
managing your funds during these changing times. As with all businesses within
Bank of America, we understand that your trust must be continually earned and
will remain focused on producing results for you. We will continue to strive
for the highest standards of performance and service excellence.
All of these efforts have been undertaken to enable you, as a shareholder, to
benefit from the execution of a consolidated business plan. We believe a more
streamlined fund family with consistent performance and lower fees will provide
the best opportunity for investment growth. We also believe that providing more
robust services to you through multiple channels (Web, phones, voice response)
will be beneficial to you.
In the pages that follow, you'll find a discussion of the economic environment
during the period followed by a detailed report from the fund manager on key
factors that influenced performance. We encourage you to read the manager
report carefully and discuss any questions you have with your financial
advisor. As always, we thank you for choosing Columbia Management. We look
forward to helping you keep your financial goals on target in the years to come.
Sincerely,
/s/
Christopher L. Wilson
President, Columbia Funds
Head of Mutual Funds, Columbia Management
Christopher L. Wilson is Head of Mutual Funds for Columbia Management and
responsible for the day-to-day delivery of mutual fund services to the firm's
investors. Working closely with the legal and compliance teams, Chris oversees
all
aspects of the mutual fund services operation, including treasury, investment
accounting and shareholder and broker services. As President and CEO of
Columbia Funds (formerly Nations, Galaxy and Columbia Funds), Chris serves as
the primary interface to the Fund Boards. Chris joined Bank of America in 2004.
Table of Contents
Performance Information.... 1
Fund Profile............... 2
Understanding Your Expenses 3
Economic Update............ 4
Portfolio Managers' Report. 5
Investment Portfolio....... 7
Statement of Assets and Liabilities. 31
Statement of Operations............. 32
Statement of Changes in Net Assets.. 33
Notes to Financial Statements....... 35
Financial Highlights................ 42
Board Consideration and Approval of
Investment Advisory Agreements...... 46
Summary of Management Fee Evaluation
by Independent Fee Consultant....... 49
Important Information
About This Report................... 52
The views expressed in the President's Message and Portfolio Managers' Report
reflect the current views of the respective parties. These views are not
guarantees of future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict so actual outcomes and results may
differ significantly from the views expressed. These views are subject to
change at any time based upon economic, market or other conditions and the
respective parties disclaim any responsibility to update such views. These
views may not be relied on as investment advice and, because investment
decisions for a Columbia Fund are based on numerous factors, may not be relied
on as an indication of trading intent on behalf of any particular Columbia
Fund. References to specific company securities should not be construed as a
recommendation or investment advice.
--------------------------
Not FDIC May Lose Value
Insured -----------------
No Bank Guarantee
- -----------------
PERFORMANCE INFORMATION
----------------------------
Columbia High Yield Opportunity Fund
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY
BE LOWER OR HIGHTER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT
WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES.
Performance of a $10,000 investment 12/01/95 - 11/30/05 ($)
sales charge without with
---------------------------
Class A 16,695 15,902
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Class B 15,487 15,487
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Class C 15,686 15,686
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Class Z 16,985 n/a
Growth of a $10,000 investment 12/01/95 - 11/30/05
[CHART]
Class A shares Class A shares CSFB High JP Morgan Global
without sales with sales charge Yield Index High Yield Index
-------------- ----------------- ----------- ----------------
$10,000 $ 9,525 $10,000 $10,000
12/31/1995 10,195 9,711 10,127 10,162
1/31/1996 10,376 9,884 10,319 10,355
2/29/1996 10,468 9,971 10,374 10,417
3/31/1996 10,376 9,883 10,346 10,383
4/30/1996 10,438 9,942 10,402 10,447
5/31/1996 10,516 10,017 10,486 10,527
6/30/1996 10,516 10,017 10,509 10,572
7/31/1996 10,579 10,077 10,604 10,643
8/31/1996 10,770 10,258 10,719 10,800
9/30/1996 11,058 10,533 10,904 11,056
10/31/1996 11,058 10,533 10,995 11,158
11/30/1996 11,270 10,734 11,167 11,363
12/31/1996 11,442 10,899 11,385 11,485
1/31/1997 11,542 10,993 11,468 11,576
2/28/1997 11,791 11,231 11,683 11,775
3/31/1997 11,556 11,007 11,553 11,583
4/30/1997 11,674 11,120 11,655 11,692
5/31/1997 11,964 11,395 11,890 11,962
6/30/1997 12,153 11,575 12,051 12,120
7/31/1997 12,445 11,854 12,307 12,442
8/31/1997 12,480 11,888 12,373 12,449
9/30/1997 12,777 12,170 12,618 12,697
10/31/1997 12,777 12,170 12,617 12,679
11/30/1997 12,883 12,271 12,707 12,793
12/31/1997 13,029 12,410 12,822 12,909
1/31/1998 13,299 12,667 13,040 13,109
2/28/1998 13,372 12,737 13,142 13,210
3/31/1998 13,536 12,893 13,208 13,343
4/30/1998 13,573 12,928 13,307 13,410
5/31/1998 13,592 12,946 13,347 13,429
6/30/1998 13,648 12,999 13,375 13,457
7/31/1998 13,813 13,157 13,468 13,570
8/31/1998 12,902 12,290 12,554 12,690
9/30/1998 12,792 12,184 12,553 12,678
10/31/1998 12,569 11,972 12,303 12,405
11/30/1998 13,395 12,758 12,926 13,089
12/31/1998 13,310 12,678 12,897 13,035
1/31/1999 13,531 12,889 13,018 13,191
2/28/1999 13,548 12,904 12,991 13,124
3/31/1999 13,816 13,160 13,109 13,286
4/30/1999 14,056 13,388 13,399 13,623
5/31/1999 13,793 13,138 13,254 11,225
6/30/1999 13,873 13,214 13,260 13,429
7/31/1999 13,916 13,255 13,267 13,433
8/31/1999 13,854 13,196 13,149 13,299
9/30/1999 13,789 13,134 13,048 13,203
10/31/1999 13,812 13,156 12,984 13,130
11/30/1999 14,044 13,377 13,160 13,344
12/31/1999 14,133 13,461 13,320 13,475
1/31/2000 13,976 13,312 13,266 13,424
2/29/2000 14,188 13,514 13,349 13,478
3/31/2000 13,972 13,309 13,148 13,248
4/30/2000 13,882 13,222 13,129 13,246
5/31/2000 13,616 12,970 12,919 13,058
6/30/2000 13,727 13,075 13,208 13,315
7/31/2000 13,865 13,207 13,332 13,432
8/31/2000 14,003 13,338 13,421 13,536
9/30/2000 13,769 13,115 13,298 13,358
10/31/2000 13,167 12,542 12,884 12,967
11/30/2000 12,411 11,822 12,377 12,472
12/31/2000 12,676 12,074 12,626 12,691
1/31/2001 13,676 13,026 13,383 13,460
2/28/2001 13,715 13,064 13,518 13,616
3/31/2001 13,187 12,561 13,249 13,349
4/30/2001 12,879 12,267 13,111 13,209
5/31/2001 12,997 12,380 13,374 13,468
6/30/2001 12,436 11,845 13,166 13,235
7/31/2001 12,426 11,836 13,307 13,369
8/31/2001 12,518 11,923 13,494 13,543
9/30/2001 11,514 10,967 12,643 12,649
10/31/2001 11,930 11,363 12,932 12,964
11/30/2001 12,350 11,763 13,349 13,404
12/31/2001 12,324 11,738 13,357 13,387
1/31/2002 12,452 11,860 13,482 13,485
2/28/2002 12,231 11,650 13,386 13,384
3/31/2002 12,443 11,852 13,693 13,686
4/30/2002 12,547 11,951 13,910 13,894
5/31/2002 12,377 11,789 13,862 13,847
6/30/2002 11,759 11,201 13,379 13,348
7/31/2002 11,433 10,890 12,997 12,977
8/31/2002 11,473 10,929 13,165 13,097
9/30/2002 11,370 10,830 13,004 12,943
10/31/2002 11,252 10,718 12,924 12,850
11/30/2002 11,713 11,157 13,608 13,516
12/31/2002 11,798 11,237 13,774 13,673
1/31/2003 12,030 11,459 14,149 14,028
2/28/2003 12,176 11,597 14,358 14,233
3/31/2003 12,412 11,822 14,726 14,576
4/30/2003 13,040 12,420 15,478 15,299
5/31/2003 13,097 12,475 15,702 15,512
6/30/2003 13,460 12,821 16,161 15,965
7/31/2003 13,364 12,730 16,030 15,864
8/31/2003 13,485 12,844 16,210 16,021
9/30/2003 13,885 13,226 16,652 16,465
10/31/2003 14,163 13,490 16,992 16,771
11/30/2003 14,462 13,775 17,225 17,006
12/31/2003 14,826 14,122 17,622 17,436
1/31/2004 15,096 14,379 17,964 17,755
2/29/2004 15,016 14,303 17,973 17,769
3/31/2004 15,033 14,319 18,094 17,908
4/30/2004 15,049 14,334 18,068 17,842
5/31/2004 14,838 14,134 17,783 17,565
6/30/2004 15,064 14,348 18,059 17,832
7/31/2004 15,225 14,502 18,290 18,057
8/31/2004 15,461 14,727 18,588 18,360
9/30/2004 15,766 15,017 18,870 18,625
10/31/2004 16,042 15,280 19,195 18,938
11/30/2004 16,359 15,582 19,439 19,150
12/31/2004 16,577 15,789 19,730 19,448
1/31/2005 16,549 15,763 19,726 19,446
2/28/2005 16,790 15,993 19,987 19,711
3/31/2005 16,298 15,524 19,509 19,222
4/30/2005 16,055 15,293 19,316 19,055
5/31/2005 16,165 15,397 19,554 19,335
6/30/2005 16,493 15,709 19,880 19,664
7/31/2005 16,816 16,017 20,152 19,925
8/31/2005 16,892 16,089 20,257 20,047
9/30/2005 16,711 15,917 20,061 19,876
10/31/2005 16,539 15,753 19,872 19,723
11/30/2005 16,695 15,902 20,007 19,854
The chart above shows the growth in value of a hypothetical $10,000 investment
in Class A shares of Columbia High Yield Opportunity Fund during the stated
time period. The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
The Credit Suisse First Boston (CSFB) High Yield Index is a broad-based,
unmanaged index that tracks the performance of high-yield bonds. The JP Morgan
Global High Yield Index is designed to mirror the investable universe of the US
dollar global high-yield corporate debt market, including domestic and
international issues. Unlike the fund, 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.
Average annual total return as of 11/30/05 (%)
Share class A B C Z
----------------------------------------------------------------------
Inception 10/21/71 06/08/92 01/15/96 01/08/99
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Sales charge without with without with without with without
----------------------------------------------------------------------
6-month (cumulative) 3.32 -1.59 2.94 -2.02 3.01 2.02 3.45
----------------------------------------------------------------------
1-year 2.09 -2.76 1.33 -3.37 1.48 0.54 2.34
----------------------------------------------------------------------
5-year 6.11 5.08 5.33 5.05 5.49 5.49 6.37
----------------------------------------------------------------------
10-year 5.26 4.75 4.47 4.47 4.60 4.60 5.44
----------------------------------------------------------------------
Average annual total return as of 09/30/05 (%)
Share class A B C Z
---------------------------------------------------------------------
Sales charge without with without with without with without
---------------------------------------------------------------------
6-month (cumulative) 2.53 -2.34 2.15 -2.77 2.23 1.24 2.66
---------------------------------------------------------------------
1-year 5.99 0.96 5.20 0.32 5.36 4.38 6.26
---------------------------------------------------------------------
5-year 3.95 2.94 3.18 2.90 3.34 3.34 4.20
---------------------------------------------------------------------
10-year 5.46 4.95 4.67 4.67 4.80 4.80 5.63
---------------------------------------------------------------------
THE "WITH SALES CHARGE" RETURNS INCLUDE THE MAXIMUM INITIAL SALES CHARGE OF
4.75% FOR CLASS A SHARES, MAXIMUM CONTINGENT DEFERRED SALES CHARGE OF 5.00% FOR
CLASS B SHARES AND 1.00% FOR CLASS C SHARES FOR THE FIRST YEAR ONLY. THE
"WITHOUT SALES CHARGE" RETURNS DO NOT INCLUDE THE EFFECT OF SALES CHARGES. IF
THEY HAD, RETURNS WOULD BE LOWER.
PERFORMANCE RESULTS REFLECT ANY VOLUNTARY WAIVERS OR REIMBURSEMENT OF FUND
EXPENSES BY THE ADVISOR OR ITS AFFILIATES. ABSENT THESE WAIVERS OR
REIMBURSEMENT ARRANGEMENTS, PERFORMANCE RESULTS WOULD HAVE BEEN LOWER.
All results shown assume reinvestment of distributions. Class Z shares are sold
at net asset value with no 12b-1 fees. Class Z shares have limited eligibility
and the investment minimum requirement may vary. Please see the fund's
prospectus for details. Performance for different share classes will vary based
on differences in sales charges and fees associated with each class.
Class C is a newer class of shares. Its performance information includes
returns of the fund's class B shares for periods prior to the inception of
class C shares. Class B shares would have substantially similar annual returns
because class B and class C shares generally have similar expense structures.
Class A shares were initially offered on October 21, 1971, class B shares were
initially offered on June 8, 1992, and class C shares were initially offered on
January 15, 1996.
Class Z is a newer class of shares. Its performance information includes
returns of the fund's class A shares (the oldest existing fund class) for
periods prior to its inception. The returns have not been restated to reflect
any differences in expenses (such as Rule 12b-1 fees) between class A shares
and the newer class of shares. If differences in expenses had been reflected,
the returns shown for periods prior to the inception of the newer class of
shares would have been higher. Class Z shares were initially offered on
January 8, 1999.
1
FUND PROFILE
------------------------------------
Columbia High Yield Opportunity Fund
The information below gives you a snapshot of your fund at the end of the
reporting period. Your fund is actively managed and the composition of its
portfolio will change over time.
Top 10 issuers as of 11/30/05 (%)
Spanish Broadcasting System, Inc. 1.2
---------------------------------------
Qwest Corp. 1.2
---------------------------------------
Eldorado Casino Shreveport/
Shreveport Capital Corp. 1.1
---------------------------------------
General Motors Acceptance Corp. 1.0
---------------------------------------
Sonat, Inc. 1.0
---------------------------------------
Allied Waste North America, Inc. 0.9
---------------------------------------
Williams Companies, Inc. 0.9
---------------------------------------
Dex Media West LLC 0.8
---------------------------------------
CSC Holdings, Inc. 0.8
---------------------------------------
Charter Communications Holdings LLC 0.8
---------------------------------------
Maturity Breakdown as of 11/30/05 (%)
0 - 3 years 3.8
------------------
3 - 5 years 12.3
------------------
5 - 7 years 33.3
------------------
7 - 10 years 40.3
------------------
10 - 15 years 1.1
------------------
15 - 20 years 1.6
------------------
20 - 30 years 2.9
------------------
Other 4.7
------------------
Quality breakdown as of 11/30/05 (%)
BBB 0.2
---------------------
BB 19.8
---------------------
B 49.7
---------------------
CCC 19.8
---------------------
CC 1.4
---------------------
Non-rated 3.6
---------------------
Cash equivalents 5.5
---------------------
Portfolio structure as of 11/30/05 (%)
Corporate fixed-income
bonds & notes 84.7
--------------------------------
Preferred stocks 2.2
--------------------------------
Common stocks and warrants 1.5
--------------------------------
Convertible bonds 1.3
--------------------------------
Municipal bond (taxable) 0.7
--------------------------------
Cash equivalents, net other
assets & liabilities 9.6
--------------------------------
Maturity and quality breakdowns are calculated as a percentage of investments.
Ratings shown in the quality breakdowns represent the rating assigned to a
particular bond by one of the following nationally recognized rating agencies:
Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's
Investors Service, Inc. or Fitch Ratings Ltd. Ratings are relative and
subjective and are not absolute standards of quality. The fund's credit quality
does not remove market risk.
Portfolio structure and top 10 issuers are calculated as a percentage of net
assets.
Management Style is determined by Columbia Management, and is based on the
investment strategy and process as outlined in the fund's prospectus.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY
BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT
WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES.
Summary
.. For the six-month period ended November 30, 2005, the fund's class A shares
returned 3.32% without sales charge.
.. The fund outperformed both its peer group and its benchmark indexes.
.. The fund's investments in the wireless telecom, energy and utility
industries all contributed positively to overall performance.
[GRAPHIC]
CSFB
Class A shares High Yield Index
-------------- ----------------
3.32% 2.32%
The Credit Suisse First Boston (CSFB) High Yield Index is a broad-based,
unmanaged index that tracks the performance of high-yield bonds. It is
unmanaged and unavailable for investment. The JP Morgan Global High Yield Index
is designed to mirror the investable universe of the US dollar global
high-yield corporate debt market, including domestic and international issues.
It is unmanaged and unavailable for investment.
Objective
Seeks high current income and total return
Total Net Assets
$478.1 million
Management Style
[GRAPHIC]
2
UNDERSTANDING YOUR EXPENSES
--------------------------
Columbia High Yield Opportunity Fund
Estimating your actual expenses
To estimate the expenses that you paid over the period, first you will need
your account balance at the end of the period:
.. For shareholders who receive their account statements from Columbia
Management Services, Inc., your account balance is available online at
www.columbiafunds.com or by calling Shareholder Services at 800.345.6611
.. For shareholders who receive their account statements from their brokerage
firm, contact your brokerage firm to obtain your account balance
1.Divide your ending account balance by $1,000. For example, if an account
balance was $8,600 at the end of the period, the result would be 8.6
2.In the section of the table below titled "Expenses paid during the period,"
locate the amount for your share class. You will find this number is in the
column labeled "actual." Multiply this number by the result from step 1. Your
answer is an estimate of the expenses you paid on your account during the
period
As a fund shareholder, you incur two types of costs. There are transaction
costs, which generally include sales charges on purchases and may include
redemption or exchange fees. There are also ongoing costs, which generally
include investment advisory fees, Rule 12b-1 fees and other fund expenses. The
information on this page is intended to help you understand your ongoing costs
of investing in the fund and to compare this cost with the continuing costs of
investing in other mutual funds.
Analyzing your fund's expenses by share class
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class during the reporting period.
The information in the following table is based on an initial investment of
$1,000, which is invested at the beginning of the reporting period and held for
the entire period. Expense information is calculated two ways and each method
provides you with different information. The amount listed in the "actual"
column is calculated using the fund's actual operating expenses and total
return for the period. The amount listed in the "hypothetical" column for each
share class assumes that the return each year is 5% before expenses and
includes the fund's actual expense ratio. You should not use the hypothetical
account values and expenses to estimate either your actual account balance at
the end of the period or the expenses you paid during this reporting period.
06/01/05 - 11/30/05
Account value at the Account value at the Expenses paid Fund's annualized
beginning of the period ($) end of the period ($) during the period ($) expense ratio (%)
- -------------------------------------------------------------------------------------------------
Actual Hypothetical Actual Hypothetical Actual Hypothetical
- -------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 1,033.24 1,019.30 5.86 5.82 1.15
- -------------------------------------------------------------------------------------------------
Class B 1,000.00 1,000.00 1,029.33 1,015.54 9.67 9.60 1.90
- -------------------------------------------------------------------------------------------------
Class C 1,000.00 1,000.00 1,030.13 1,016.29 8.91 8.85 1.75
- -------------------------------------------------------------------------------------------------
Class Z 1,000.00 1,000.00 1,034.49 1,020.56 4.59 4.56 0.90
- -------------------------------------------------------------------------------------------------
Expenses paid during the period are equal to the fund's respective class
annualized expense ratio, multiplied by the average account value over the
period, then multiplied by the number of days in the fund's most recent fiscal
half-year and divided by 365.
Had the distributor and transfer agent not waived a portion of expenses, total
return would have been reduced.
It is important to note that the expense amounts shown in the table are meant
to highlight only continuing costs of investing in the fund and do not reflect
any transactional costs, such as sales charges or redemption or exchange fees.
Therefore, the hypothetical examples provided will not help you determine the
relative total costs of owning different funds. If these transactional costs
were included, your costs would have been higher.
Compare with other funds
Since all mutual funds are required to include the same hypothetical
calculations about expenses in shareholder reports, you can use this
information to compare the ongoing cost of investing in the fund with other
funds. To do so, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other funds. As you compare
hypothetical examples of other fund companies, it is important to note that
hypothetical examples are meant to highlight the continuing cost of investing
in a fund and do not reflect any transactional costs, such as sales charges or
redemption or exchange fees.
3
ECONOMIC UPDATE
--------------------------------
Columbia High Yield Opportunity Fund
The US economy moved ahead at a healthy pace during the six-month period that
began June 1, 2005 and ended November 30, 2005. Gross domestic product expanded
at an annualized rate of 3.8% as job growth helped buoy consumer spending and
rising profits helped business spending. Employment data was solid, even in
light of Hurricanes Katrina and Rita, which disrupted the labor market near the
end of the summer. During the six-month period, the economy added an average of
146,000 new jobs each month, even with a weak September, when only 17,000 net
new jobs were added. In fact, September's job figures, though low compared to
other months, came as good news after original estimates had been for net job
losses of as high as 35,000.
Energy prices hit a record price of approximately $70 per barrel mid way
through the period and sent consumer confidence into a tailspin that continued
in the wake of the twin storms. Yet the economy picked up strength as the
period wore on -- and so did consumer confidence, which moved sharply higher in
November as the price of oil retreated and the job market stabilized. The
latest data on the economy suggest that it has retained considerable momentum.
A mini-wave of home refinancing activity put additional cash into consumer
pockets early in the summer. Manufacturing activity remained strong, and
business activity in non-manufacturing industries continued to expand.
Bonds slumped as interest rates moved higher
The US bond market came to a standstill as intermediate and long-term interest
rates moved higher near the end of the six-month reporting period. The yield on
the 10-year US Treasury note, a bellwether for the bond market, ended the
period at 4.50%, 50 basis points higher than where it started the period. (A
basis point is one hundredth of a percent.) In this environment, the Lehman
Brothers Aggregate Bond Index returned negative 0.48% for the six-month period.
High-yield bonds led the fixed income markets despite a setback as investors
appeared to grow more cautious about risk near the end of the period. The
Merrill Lynch US High Yield, Cash Pay Index returned 2.57%.
The Fed's short-term rate hikes continued
The Federal Reserve Board (the Fed) raised the federal funds rate, a key
short-term rate, from 3.0% to 4.0% in four consecutive one-quarter point
increases./1/ In the wake of Hurricanes Katrina and Rita, some market observers
speculated that the Fed might curtail its rate hikes. However, outgoing Fed
chairman Greenspan indicated that inflation was a greater concern than the
sustainability of economic growth, and we believe that the Fed is likely to
continue to raise short-term interest rates into the first half of 2006.
Despite volatility, stocks moved ahead
The S&P 500 Index -- a broad measure of large company stock market performance
- -- returned 5.88% for this reporting period. However, there was a wide gap
among the various style and market capitalization segments of the market.
Large-cap value stocks returned a modest 5.70%, as measured by the Russell 1000
Value Index/2/. Small-cap growth stocks led other sectors, as measured by the
Russell 2000 Growth Index, which gained 11.68%.
/1/The federal funds rate was increased to 4.25% on December 13, 2005.
/2/The Russell 1000 Value Index is an unmanaged index that measures the
performance of those Russell 1000 Index companies with lower price-to-book
ratios and lower forecasted growth values.
Summary
For the six-month period ended November 30, 2005
.. Investment-grade bonds slumped, as measured by the Lehman Brothers Aggregate
Bond Index. High-yield bonds led the fixed income markets, as measured by
the Merrill Lynch US High Yield, Cash Pay Index.
[GRAPHIC]
Lehman Index Merill Lynch Index
- ------------ ------------------
-0.48% 2.57%
.. Despite volatility, the broad stock market, as measured by the S&P 500
Index, returned 5.88%. Small-cap growth stocks were the period's best
performers, as measured by the Russell 2000 Growth Index.
[GRAPHIC]
S&P Index Russell Index
- --------- -------------
5.88% 11.68%
The Lehman Brothers Aggregate Bond Index is a market value-weighted index that
tracks the performance of fixed-rate, publicly placed, dollar-denominated, and
non-convertible investment grade debt issues.
The Merrill Lynch US High Yield, Cash Pay Index is an unmanaged index that
tracks the performance of non-investment-grade corporate bonds.
The S&P 500 Index is an unmanaged index that tracks the performance of 500
widely held, large-capitalization US stocks.
The Russell 2000 Growth Index is an unmanaged index that measures the
performance of those Russell 2000 Index companies with higher price-to-book
ratios and higher forecasted growth values.
4
PORTFOLIO MANAGERS' REPORT
----------------------------------
Columbia High Yield Opportunity Fund
For the six-month period ended November 30, 2005, class A shares of Columbia
High Yield Opportunity Fund returned 3.32% without sales charge. The fund
outperformed its benchmarks, the CSFB High Yield Index and the JP Morgan Global
High Yield Index, which returned 2.32% and 2.72%, respectively. It also
outperformed its peer group, the Lipper High Current Yield Funds Category,
which averaged a return of 2.90% for the same period./1/
Even though the fund gave up some performance because of its heavy weight in
lower-rated securities, it made up ground -- and then some -- with favorable
industry allocation. The biggest winners for the fund included the wireless
telecom sector, energy and utility companies. Wireless holdings were pushed
higher by the combined effects of strong growth and industry consolidation.
Fund holdings such as Nextel Partners, Inc., Western Wireless Corp., US
Unwired, Inc. and Alamosa Holdings, Inc. all benefited from acquisitions by
investment grade companies. Western Wireless Corp. was sold before the end of
the period. Energy and utility companies posted unusually robust operating
results, boosted by sustained high prices for oil and gas. As a result, the
fund added to its positions in Chesapeake Energy Corp. and the Williams
Companies, Inc.
By comparison, paper and packaging industry bonds lagged during the period, as
bottom line profits fell because companies were unable to pass on higher costs.
In particular, the competitive position of Canadian paper company Tembec
Industries, Inc. was hurt by lumber tariffs and the strength in the Canadian
dollar. Intensifying competition hurt the cable television industry, which
affected the fund's position in Charter Communications Holdings LLC, a holding
that we reduced on fairly advantageous terms following the announcement of a
debt exchange offer. Individual detractors from performance included Merisant
Worldwide, Inc., the manufacturer of Equal, which has faced increasing
competition from Johnson and Johnson's Splenda, and auto parts supplier Delco
Remy International, Inc., which was hurt by ongoing pressure on domestic
automobile manufacturers and sold from the portfolio.
Although the fund's lack of exposure to the automotive sector at the beginning
of the period aided results, we established positions in Ford
/1/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.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT PERFORMANCE MAY
BE LOWER OR HIGHER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. PLEASE VISIT
WWW.COLUMBIAFUNDS.COM FOR DAILY AND MOST RECENT MONTH-END PERFORMANCE UPDATES.
Net asset value per share as of 11/30/05 ($)
Class A 4.52
------------
Class B 4.52
------------
Class C 4.52
------------
Class Z 4.52
Distributions declared per share 06/01/05 - 11/30/05 ($)
Class A 0.19
------------
Class B 0.17
------------
Class C 0.18
------------
Class Z 0.20
SEC yields as of 11/30/05 (%)
Class A 6.61
------------
Class B 6.19
------------
Class C 6.34
------------
Class Z 7.20
The 30-day SEC yields reflect the portfolio's earning power net of expenses,
expressed as an annualized percentage of the public offering price per share at
the end of the period.
Holdings discussed in this report as of 11/30/05 (%)
Ford Motor Credit Co. 0.3
---------------------------------------
General Motors Corp. 0.2
---------------------------------------
Nextel Partners, Inc. 0.2
---------------------------------------
US Unwired, Inc. 0.4
---------------------------------------
Alamosa Holdings, Inc. 0.2
---------------------------------------
Chesapeake Energy Corp. 0.5
---------------------------------------
Williams Companies, Inc. 0.9
---------------------------------------
Tembec Industries, Inc. 0.2
---------------------------------------
Charter Communications Holdings LLC 0.8
---------------------------------------
Merisant Worldwide, Inc. 0.1
Your fund is actively managed and the composition of its portfolio will change
over time. Information provided is calculated as a percentage of net assets.
5
---------------------------------------
Columbia High Yield Opportunity Fund
and GM soon after the companies lost their investment-grade status. We believe
automotive companies face significant operational challenges in the years
ahead, but Ford and GM bonds enjoy some credit protection in the form of
profitable finance subsidiaries, which, in theory, can be spun off from their
respective parent companies.
High-yield investors became more risk averse during the period, the result of
bankruptcies at Delphi Corp. and Collins & Aikman as well as the historic
credit downgrades at Ford Motor Credit Co. and General Motors Corp. We
responded to this trend towards higher-quality securities by reducing our
exposure to CCC- and-lower rates securities, from 39.5% to 24.8% of total
assets.
Looking ahead
Our outlook for the high-yield market remains cautiously optimistic. We expect
solid economic growth and modest inflation in 2006. Even more important, we
expect the Federal Reserve to cease its series of short-term interest rate
hikes sometime in the first half of 2006. We expect default rates to rise
somewhat, but also expect them to remain well below their historical averages.
This overall macroeconomic environment has the potential to be favorable for
the high-yield sector. Nevertheless, we plan to take a neutral stance toward
the market because of our belief that prevailing prices already reflect these
positive business prospects.
[PHOTO] Thomas A. LaPointe Thomas A. LaPointe, CFA, has co-managed Columbia High
Yield Opportunity Fund since February 2003 and has been
with the advisor or its predecessors or affiliate organizations
since February 1999.
/s/
[PHOTO] Kevin L. Cronk Kevin L. Cronk, CFA, has co-managed the fund since
February 2003 and has been with the advisor or its
predecessors or affiliate organizations since August 1999.
/s/
Investing in fixed-income securities may involve certain risks, including the
credit quality of individual issuers, possible prepayments, market or economic
developments and yield and share price fluctuations due to changes in interest
rates. When interest rates go up, bond prices typically drop, and vice versa.
Investing in high-yield or "junk" bonds offers the potential for higher income
than investments in investment-grade bonds, but also has 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. Rising interest rates tend to lower the value of all bonds.
International investing involves special risks, including foreign taxation,
currency fluctuations, risks associated with possible differences in financial
standards and other monetary and political risks.
Our outlook for the high-yield market remains cautiously optimistic.
6
INVESTMENT PORTFOLIO
------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - 84.7%
BASIC MATERIALS - 8.0%
Chemicals - 4.2% Par ($) Value ($)
- ----------------------------------- ----------------------- ------------ ----------
Agricultural Chemicals - 1.3%
----------------------- ------------ ----------
IMC Global, Inc. 10.875% 08/01/13 1,050,000 1,220,625
----------------------- ------------ ----------
Terra Capital, Inc. 12.875% 10/15/08 1,920,000 2,236,800
----------------------- ------------ ----------
UAP Holding Corp. (a) 07/15/12
(10.750% 01/15/08) 1,190,000 1,023,400
----------------------- ------------ ----------
United Agri Products 8.250% 12/15/11 1,618,000 1,690,810
----------------------- ------------ ----------
6,171,635
Chemicals - Diversified - 2.5%
----------------------- ------------ ----------
BCP Crystal US Holdings Corp. 9.625% 06/15/14 917,000 1,017,870
----------------------- ------------ ----------
EquiStar Chemicals LP 10.625% 05/01/11 505,000 559,288
----------------------- ------------ ----------
Huntsman International LLC 7.375% 01/01/15 1,415,000 1,365,475
----------------------- ------------ ----------
Huntsman LLC 11.500% 07/15/12 1,570,000 1,774,100
----------------------- ------------ ----------
Innophos Investments Holdings, Inc. PIK,
12.340% 02/15/15 (b)(c) 1,101,693 1,037,812
----------------------- ------------ ----------
Lyondell Chemical Co. 9.625% 05/01/07 1,610,000 1,690,500
----------------------- ------------ ----------
Nell AF SARL 8.375% 08/15/15 (b) 870,000 852,600
8.375% 08/15/15 (b) EUR 735,000 866,565
----------------------- ------------ ----------
NOVA Chemicals Corp. 6.500% 01/15/12 1,620,000 1,583,550
7.561% 11/15/13 (b)(c) 1,010,000 1,030,200
----------------------- ------------ ----------
11,777,960
Chemicals - Specialty - 0.4%
----------------------- ------------ ----------
Rhodia SA 8.875% 06/01/11 2,020,000 2,050,300
----------------------- ------------ ----------
2,050,300
----------
Chemicals Total 19,999,895
Forest Products & Paper - 3.1%
Forestry - 0.3%
----------------------- ------------ ----------
Millar Western Forest Products Ltd. 7.750% 11/15/13 700,000 539,000
----------------------- ------------ ----------
Tembec Industries, Inc. 8.500% 02/01/11 1,605,000 971,025
----------------------- ------------ ----------
1,510,025
Paper & Related Products - 2.8%
----------------------- ------------ ----------
Abitibi-Consolidated, Inc. 8.375% 04/01/15 1,325,000 1,285,250
----------------------- ------------ ----------
Boise Cascade LLC 7.025% 10/15/12 (c) 1,370,000 1,342,600
7.125% 10/15/14 1,250,000 1,150,000
See Accompanying Notes to Financial Statements.
7
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
BASIC MATERIALS - (continued)
Forest Products & Paper - (continued) Par ($) Value ($)
-------------------------------------- ------------------ ---------- ----------
Paper & Related Products - (continued)
------------------ ---------- ----------
Buckeye Technologies, Inc. 8.500% 10/01/13 480,000 480,000
------------------ ---------- ----------
Caraustar Industries, Inc. 9.875% 04/01/11 1,075,000 1,077,688
------------------ ---------- ----------
Georgia-Pacific Corp. 8.000% 01/15/24 3,225,000 3,120,187
------------------ ---------- ----------
Neenah Paper, Inc. 7.375% 11/15/14 790,000 703,100
------------------ ---------- ----------
Newark Group, Inc. 9.750% 03/15/14 1,855,000 1,632,400
------------------ ---------- ----------
NewPage Corp. 10.000% 05/01/12 1,070,000 1,045,925
------------------ ---------- ----------
Norske Skog 7.375% 03/01/14 995,000 902,963
8.625% 06/15/11 450,000 439,875
------------------ ---------- ----------
13,179,988
----------
Forest Products & Paper Total 14,690,013
Iron/Steel - 0.6%
Steel - Producers - 0.2%
------------------ ---------- ----------
Steel Dynamics, Inc. 9.500% 03/15/09 1,080,000 1,138,050
------------------ ---------- ----------
1,138,050
Steel - Specialty - 0.4%
------------------ ---------- ----------
UCAR Finance, Inc. 10.250% 02/15/12 1,771,000 1,872,833
------------------ ---------- ----------
1,872,833
----------
Iron/Steel Total 3,010,883
Metals & Mining - 0.1%
Mining Services - 0.1%
------------------ ---------- ----------
Hudson Bay Mining & Smelting Co., Ltd. 9.625% 01/15/12 560,000 595,000
------------------ ---------- ----------
595,000
----------
Metals & Mining Total 595,000
----------
BASIC MATERIALS TOTAL 38,295,791
COMMUNICATIONS - 18.1%
Media - 7.4%
Broadcast Services/Programs - 0.2%
------------------ ---------- ----------
Fisher Communications, Inc. 8.625% 09/15/14 860,000 907,300
------------------ ---------- ----------
907,300
Cable TV - 3.1%
------------------ ---------- ----------
Atlantic Broadband Finance LLC 9.375% 01/15/14 1,855,000 1,674,137
See Accompanying Notes to Financial Statements.
8
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
COMMUNICATIONS - (continued)
Media - (continued) Par ($) Value ($)
- -------------------------------------- ----------------------- --------- ----------
Cable TV - (continued)
----------------------- --------- ----------
Charter Communications Holdings II LLC 10.250% 09/15/10 1,000,000 1,000,000
----------------------- --------- ----------
Charter Communications Holdings LLC 9.920% 04/01/14 (b) 5,775,000 3,609,375
----------------------- --------- ----------
CSC Holdings, Inc. 7.000% 04/15/12 (b) 625,000 595,313
7.625% 04/01/11 3,320,000 3,311,700
----------------------- --------- ----------
EchoStar DBS Corp. 6.625% 10/01/14 1,950,000 1,881,750
----------------------- --------- ----------
Insight Midwest LP 9.750% 10/01/09 1,255,000 1,295,788
----------------------- --------- ----------
Pegasus Satellite Communications, Inc. 11.250% 01/15/10 (b)(d) 2,325,000 232,500
----------------------- --------- ----------
Telenet Group Holding NV (a) 06/15/14
(11.500% 12/15/08) (b) 1,662,000 1,327,522
----------------------- --------- ----------
14,928,085
Multimedia - 0.7%
----------------------- --------- ----------
Advanstar Communications, Inc. 15.000% 10/15/11 1,325,000 1,387,938
----------------------- --------- ----------
Haights Cross Operating Co. 11.750% 08/15/11 665,000 721,525
----------------------- --------- ----------
Lamar Media Corp. 6.625% 08/15/15 (b) 1,445,000 1,452,225
----------------------- --------- ----------
3,561,688
Publishing - Newspapers - 0.5%
----------------------- --------- ----------
Hollinger, Inc. 11.875% 03/01/11 (b) 1,009,000 1,009,000
12.875% 03/01/11 (b) 1,474,000 1,555,070
----------------------- --------- ----------
2,564,070
Publishing - Periodicals - 1.8%
----------------------- --------- ----------
Dex Media, Inc. (a) 11/15/13
(9.000% 11/15/08) 1,230,000 971,700
----------------------- --------- ----------
Dex Media West LLC 9.875% 08/15/13 3,607,000 4,017,296
----------------------- --------- ----------
PriMedia, Inc. 8.875% 05/15/11 2,320,000 2,233,000
----------------------- --------- ----------
WDAC Subsidiary Corp. 8.375% 12/01/14 (b) 1,385,000 1,329,600
----------------------- --------- ----------
8,551,596
Television - 1.1%
----------------------- --------- ----------
LIN Television Corp. 6.500% 05/15/13 (b) 450,000 433,125
----------------------- --------- ----------
Paxson Communications Corp. (a) 01/15/09
(12.250% 01/15/06) 1,955,000 2,016,094
10.750% 07/15/08 495,000 508,612
----------------------- --------- ----------
Sinclair Broadcast Group, Inc. 8.750% 12/15/11 2,080,000 2,199,600
----------------------- --------- ----------
5,157,431
----------
Media Total 35,670,170
See Accompanying Notes to Financial Statements.
9
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
COMMUNICATIONS - (continued)
Telecommunication Services - 10.7% Par ($) Value ($)
- ----------------------------------- ----------------------- --------- ----------
Cellular Telecommunications - 3.5%
----------------------- --------- ----------
American Cellular Corp. 10.000% 08/01/11 1,805,000 1,958,425
----------------------- --------- ----------
Digicel Ltd. 9.250% 09/01/12 (b) 1,655,000 1,704,650
----------------------- --------- ----------
Dobson Cellular Systems, Inc. 8.375% 11/01/11 1,605,000 1,701,300
----------------------- --------- ----------
Horizon PCS, Inc. 11.375% 07/15/12 325,000 374,563
----------------------- --------- ----------
iPCS Escrow Co. 11.500% 05/01/12 790,000 910,475
----------------------- --------- ----------
Nextel Partners, Inc. 8.125% 07/01/11 1,070,000 1,147,575
----------------------- --------- ----------
Rogers Cantel, Inc. 9.750% 06/01/16 2,080,000 2,485,600
----------------------- --------- ----------
Rogers Wireless, Inc. 8.000% 12/15/12 1,295,000 1,372,700
----------------------- --------- ----------
Rural Cellular Corp. 8.250% 03/15/12 1,355,000 1,419,362
9.750% 01/15/10 375,000 375,938
10.041% 11/01/12 (b)(c) 1,315,000 1,308,425
----------------------- --------- ----------
US Unwired, Inc. 10.000% 06/15/12 1,845,000 2,098,687
----------------------- --------- ----------
16,857,700
Satellite Telecommunications - 1.4%
----------------------- --------- ----------
Inmarsat Finance II PLC (a) 11/15/12
(10.375% 11/15/08) 2,285,000 1,859,419
----------------------- --------- ----------
Intelsat Bermuda Ltd. 8.250% 01/15/13 (b) 2,685,000 2,678,287
----------------------- --------- ----------
PanAmSat Corp. 9.000% 08/15/14 1,031,000 1,083,839
----------------------- --------- ----------
Zeus Special Subsidiary Ltd. (a) 02/01/15
(9.250% 02/01/10) (b) 1,780,000 1,161,450
----------------------- --------- ----------
6,782,995
Telecommunication Equipment - 0.3%
----------------------- --------- ----------
Lucent Technologies, Inc. 6.450% 03/15/29 1,790,000 1,539,400
----------------------- --------- ----------
1,539,400
Telecommunication Services - 1.0%
----------------------- --------- ----------
Syniverse Technologies, Inc. 7.750% 08/15/13 (b) 1,210,000 1,229,662
----------------------- --------- ----------
Time Warner Telecom, Inc. 10.125% 02/01/11 2,690,000 2,817,775
----------------------- --------- ----------
Time Warner Telecom Holdings, Inc. 9.250% 02/15/14 750,000 770,625
----------------------- --------- ----------
4,818,062
See Accompanying Notes to Financial Statements.
10
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
COMMUNICATIONS - (continued)
Telecommunication Services - (continued) Par ($) Value ($)
- ---------------------------------------- --------------------- ---------- ----------
Telephone - Integrated - 3.9%
--------------------- ---------- ----------
Axtel SA de CV 11.000% 12/15/13 1,175,000 1,313,063
--------------------- ---------- ----------
Cincinnati Bell, Inc. 7.000% 02/15/15 2,880,000 2,772,000
--------------------- ---------- ----------
Citizens Communications Co. 9.000% 08/15/31 2,280,000 2,262,900
--------------------- ---------- ----------
Qwest Capital Funding, Inc. 6.875% 07/15/28 3,205,000 2,892,512
--------------------- ---------- ----------
Qwest Communications International, Inc. 7.500% 02/15/14 (b) 2,180,000 2,212,700
--------------------- ---------- ----------
Qwest Corp. 7.500% 06/15/23 2,430,000 2,399,625
8.875% 03/15/12 3,050,000 3,438,875
--------------------- ---------- ----------
US LEC Corp. 12.716% 10/01/09 (c) 960,000 1,027,200
--------------------- ---------- ----------
18,318,875
Wireless Equipment - 0.6%
--------------------- ---------- ----------
American Towers, Inc. 7.250% 12/01/11 1,825,000 1,902,563
--------------------- ---------- ----------
SBA Telecommunications, Inc. (a) 12/15/11
(9.750% 12/15/07) 935,000 855,525
--------------------- ---------- ----------
2,758,088
----------
Telecommunication Services Total 51,075,120
----------
COMMUNICATIONS TOTAL 86,745,290
CONSUMER CYCLICAL - 15.2%
Airlines - 0.4%
Airlines - 0.4%
--------------------- ---------- ----------
Continental Airlines, Inc. 7.568% 12/01/06 2,080,000 1,976,000
--------------------- ---------- ----------
1,976,000
----------
Airlines Total 1,976,000
Apparel - 1.4%
Apparel Manufacturers - 1.4%
--------------------- ---------- ----------
Broder Brothers Co. 11.250% 10/15/10 1,430,000 1,315,600
--------------------- ---------- ----------
Levi Strauss & Co. 9.750% 01/15/15 3,145,000 3,255,075
--------------------- ---------- ----------
Phillips-Van Heusen Corp. 7.250% 02/15/11 1,010,000 1,025,150
8.125% 05/01/13 1,000,000 1,042,500
--------------------- ---------- ----------
6,638,325
----------
Apparel Total 6,638,325
See Accompanying Notes to Financial Statements.
11
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
CONSUMER CYCLICAL - (continued)
Auto Manufacturers - 0.5% Par ($) Value ($)
- ---------------------------------------------- ------------------- --------- ---------
Auto - Cars/Light Trucks - 0.2%
------------------- --------- ---------
General Motors Corp. 8.375% 07/15/33 1,210,000 825,825
------------------- --------- ---------
825,825
Auto - Medium & Heavy Duty Trucks - 0.3%
------------------- --------- ---------
Navistar International Corp. 7.500% 06/15/11 1,505,000 1,452,325
------------------- --------- ---------
1,452,325
---------
Auto Manufacturers Total 2,278,150
Auto Parts & Equipment - 1.4%
Auto/Truck Parts & Equipment - Original - 0.2%
------------------- --------- ---------
Cooper-Standard Automotive, Inc. 7.000% 12/15/12 420,000 380,100
8.375% 12/15/14 950,000 717,250
------------------- --------- ---------
1,097,350
Auto/Truck Parts & Equipment - Replacement - 0.6%
------------------- --------- ---------
Commercial Vehicle Group 8.000% 07/01/13 (b) 1,475,000 1,460,250
------------------- --------- ---------
Rexnord Corp. 10.125% 12/15/12 1,360,000 1,470,500
------------------- --------- ---------
2,930,750
Rubber - Tires - 0.6%
------------------- --------- ---------
Goodyear Tire & Rubber Co. 9.000% 07/01/15 (b) 2,890,000 2,824,975
------------------- --------- ---------
2,824,975
---------
Auto Parts & Equipment Total 6,853,075
Distribution/Wholesale - 0.2%
Distribution/Wholesale - 0.2%
------------------- --------- ---------
Buhrmann US, Inc. 7.875% 03/01/15 945,000 937,913
------------------- --------- ---------
937,913
---------
Distribution/Wholesale Total 937,913
Entertainment - 1.3%
Casino Services - 0.2%
------------------- --------- ---------
Tunica-Biloxi Gaming Authority 9.000% 11/15/15 (b) 1,095,000 1,092,263
------------------- --------- ---------
1,092,263
Gambling (Non-Hotel) - 0.3%
------------------- --------- ---------
Global Cash Access LLC 8.750% 03/15/12 1,459,000 1,550,187
------------------- --------- ---------
1,550,187
See Accompanying Notes to Financial Statements.
12
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
CONSUMER CYCLICAL - (continued)
Entertainment - (continued) Par ($) Value ($)
- ---------------------------------------- ------------------ --------- ---------
Music - 0.4%
------------------ --------- ---------
Steinway Musical Instruments, Inc. 8.750% 04/15/11 1,350,000 1,410,750
------------------ --------- ---------
Warner Music Group 7.375% 04/15/14 270,000 263,250
------------------ --------- ---------
1,674,000
Resorts/Theme Parks - 0.4%
------------------ --------- ---------
Six Flags, Inc. 9.625% 06/01/14 1,935,000 1,915,650
------------------ --------- ---------
1,915,650
---------
Entertainment Total 6,232,100
Home Builders - 1.2%
Building - Residential/Commercial - 1.2%
------------------ --------- ---------
D.R. Horton, Inc. 9.750% 09/15/10 2,045,000 2,300,625
------------------ --------- ---------
K. Hovnanian Enterprises, Inc. 8.875% 04/01/12 1,435,000 1,485,225
10.500% 10/01/07 160,000 172,000
------------------ --------- ---------
Standard Pacific Corp. 7.000% 08/15/15 1,075,000 978,250
9.250% 04/15/12 625,000 637,500
------------------ --------- ---------
5,573,600
---------
Home Builders Total 5,573,600
Home Furnishings - 0.2%
Home Furnishings - 0.2%
------------------ --------- ---------
WII Components, Inc. 10.000% 02/15/12 1,160,000 1,119,400
------------------ --------- ---------
1,119,400
---------
Home Furnishings Total 1,119,400
Leisure Time - 0.7%
Leisure & Recreational Products - 0.1%
------------------ --------- ---------
Bombardier Recreational Products, Inc. 8.375% 12/15/13 190,000 189,525
------------------ --------- ---------
189,525
Recreational Centers - 0.6%
------------------ --------- ---------
Equinox Holdings, Inc. 9.000% 12/15/09 1,110,000 1,137,750
------------------ --------- ---------
Town Sports International, Inc. (a) 02/01/14
(11.000% 02/01/09) 2,640,000 1,755,600
------------------ --------- ---------
2,893,350
---------
Leisure Time Total 3,082,875
See Accompanying Notes to Financial Statements.
13
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
CONSUMER CYCLICAL - (continued)
Lodging - 5.9% Par ($) Value ($)
- --------------------------------------------------- -------------------- --------- ----------
Casino Hotels - 5.9%
-------------------- --------- ----------
CCM Merger, Inc. 8.000% 08/01/13 (b) 450,000 435,375
-------------------- --------- ----------
Chukchansi Economic Development Authority 8.000% 11/15/13 (b) 1,495,000 1,502,475
-------------------- --------- ----------
Circus & Eldorado/Silver Legacy Capital Corp. 10.125% 03/01/12 1,870,000 1,977,525
-------------------- --------- ----------
Eldorado Casino Shreveport/Shreveport Capital Corp. 10.000% 08/01/12 5,341,287 5,020,810
-------------------- --------- ----------
Greektown Holdings 10.750% 12/01/13 (b) 1,495,000 1,504,344
-------------------- --------- ----------
Hard Rock Hotel, Inc. 8.875% 06/01/13 2,205,000 2,353,837
-------------------- --------- ----------
Inn of the Mountain Gods Resort & Casino 12.000% 11/15/10 1,620,000 1,692,900
-------------------- --------- ----------
Kerzner International Ltd. 6.750% 10/01/15 (b) 2,280,000 2,205,900
-------------------- --------- ----------
MGM Mirage 6.750% 09/01/12 1,845,000 1,854,225
8.500% 09/15/10 575,000 625,313
-------------------- --------- ----------
Mohegan Tribal Gaming Authority 6.125% 02/15/13 380,000 374,300
-------------------- --------- ----------
Penn National Gaming, Inc. 6.750% 03/01/15 1,970,000 1,920,750
-------------------- --------- ----------
Pinnacle Entertainment, Inc. 8.750% 10/01/13 1,685,000 1,769,250
-------------------- --------- ----------
San Pasqual Casino 8.000% 09/15/13 (b) 1,260,000 1,253,700
-------------------- --------- ----------
Seneca Gaming Corp. 7.250% 05/01/12 620,000 627,750
-------------------- --------- ----------
Station Casinos, Inc. 6.000% 04/01/12 1,785,000 1,780,537
-------------------- --------- ----------
Wynn Las Vegas LLC 6.625% 12/01/14 1,455,000 1,400,438
-------------------- --------- ----------
28,299,429
----------
Lodging Total 28,299,429
Retail - 1.8%
Retail - Automobiles - 0.3%
-------------------- --------- ----------
Asbury Automotive Group, Inc. 8.000% 03/15/14 1,680,000 1,579,200
-------------------- --------- ----------
1,579,200
Retail - Drug Stores - 0.2%
-------------------- --------- ----------
Rite Aid Corp. 7.500% 01/15/15 625,000 578,125
9.250% 06/01/13 200,000 182,000
-------------------- --------- ----------
760,125
Retail - Home Furnishings - 0.4%
-------------------- --------- ----------
Tempur-Pedic, Inc. 10.250% 08/15/10 1,771,000 1,903,825
-------------------- --------- ----------
1,903,825
See Accompanying Notes to Financial Statements.
14
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
CONSUMER CYCLICAL - (continued)
Retail - (continued) Par ($) Value ($)
- ------------------------------------- -------------------- --------- ----------
Retail - Propane Distributors - 0.4%
-------------------- --------- ----------
Ferrellgas Partners LP 8.750% 06/15/12 1,355,000 1,324,512
-------------------- --------- ----------
Suburban Propane Partners LP/Suburban
Energy Finance Corp. 6.875% 12/15/13 920,000 848,700
-------------------- --------- ----------
2,173,212
Retail - Restaurants - 0.3%
-------------------- --------- ----------
Landry's Restaurants, Inc. 7.500% 12/15/14 1,355,000 1,266,925
-------------------- --------- ----------
1,266,925
Retail - Video Rental - 0.2%
-------------------- --------- ----------
Movie Gallery, Inc. 11.000% 05/01/12 1,230,000 922,500
-------------------- --------- ----------
922,500
----------
Retail Total 8,605,787
Textiles - 0.2%
Textile - Products - 0.2%
-------------------- --------- ----------
INVISTA 9.250% 05/01/12 (b) 890,000 954,525
-------------------- --------- ----------
954,525
----------
Textiles Total 954,525
----------
CONSUMER CYCLICAL TOTAL 72,551,179
CONSUMER NON-CYCLICAL - 13.0%
Agriculture - 0.2%
-------------------- --------- ----------
Alliance One International, Inc. 11.000% 05/15/12 (b) 1,220,000 1,058,350
-------------------- --------- ----------
Agriculture Total 1,058,350
Beverages - 0.2%
Beverages - Wine/Spirits - 0.2%
-------------------- --------- ----------
Constellation Brands, Inc. 8.000% 02/15/08 780,000 815,100
8.125% 01/15/12 320,000 332,800
-------------------- --------- ----------
1,147,900
----------
Beverages Total 1,147,900
Biotechnology - 0.5%
Medical - Biomedical/Gene - 0.5%
-------------------- --------- ----------
Bio-Rad Laboratories, Inc. 7.500% 08/15/13 2,015,000 2,120,788
-------------------- --------- ----------
2,120,788
----------
Biotechnology Total 2,120,788
See Accompanying Notes to Financial Statements.
15
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
CONSUMER NON-CYCLICAL - (continued)
Commercial Services - 3.4% Par ($) Value ($)
- --------------------------------------- -------------------- --------- ----------
Commercial Services - 0.4%
-------------------- --------- ----------
Iron Mountain, Inc. 7.750% 01/15/15 1,620,000 1,628,100
-------------------- --------- ----------
Mac-Gray Corp. 7.625% 08/15/15 (b) 440,000 443,300
-------------------- --------- ----------
2,071,400
Commercial Services - Finance - 0.4%
-------------------- --------- ----------
Dollar Financial Group, Inc. 9.750% 11/15/11 1,965,000 2,019,038
-------------------- --------- ----------
2,019,038
Consulting Services - 0.2%
-------------------- --------- ----------
FTI Consulting 7.625% 06/15/13 (b) 960,000 986,400
-------------------- --------- ----------
986,400
Funeral Services & Related Items - 0.5%
-------------------- --------- ----------
Service Corp. International 7.700% 04/15/09 2,135,000 2,252,425
-------------------- --------- ----------
2,252,425
Printing - Commercial - 0.5%
-------------------- --------- ----------
Sheridan Group 10.250% 08/15/11 965,000 1,003,600
-------------------- --------- ----------
Vertis, Inc. 13.500% 12/07/09 (b) 1,570,000 1,240,300
-------------------- --------- ----------
2,243,900
Private Corrections - 0.7%
-------------------- --------- ----------
Corrections Corp. of America 6.250% 03/15/13 1,955,000 1,955,000
-------------------- --------- ----------
GEO Group, Inc. 8.250% 07/15/13 1,400,000 1,372,000
-------------------- --------- ----------
3,327,000
Rental Auto/Equipment - 0.7%
-------------------- --------- ----------
Ashtead Holdings PLC 8.625% 08/01/15 (b) 1,615,000 1,663,450
-------------------- --------- ----------
NationsRent, Inc. 9.500% 10/15/10 1,455,000 1,589,587
-------------------- --------- ----------
3,253,037
----------
Commercial Services Total 16,153,200
Cosmetics/Personal Care - 0.5%
Cosmetics & Toiletries - 0.5%
-------------------- --------- ----------
DEL Laboratories, Inc. 8.000% 02/01/12 1,490,000 1,199,450
-------------------- --------- ----------
Elizabeth Arden, Inc. 7.750% 01/15/14 1,395,000 1,395,000
-------------------- --------- ----------
2,594,450
----------
Cosmetics/Personal Care Total 2,594,450
See Accompanying Notes to Financial Statements.
16
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
CONSUMER NON-CYCLICAL - (continued)
Food - 1.8% Par ($) Value ($)
- ---------------------------------------- ------------------ --------- ---------
Food - Confectionery - 0.4%
------------------ --------- ---------
Merisant Co. 9.500% 07/15/13 1,590,000 1,033,500
------------------ --------- ---------
Merisant Worldwide, Inc. (a) 11/15/08
(12.250% 05/15/14) 4,820,000 698,900
------------------ --------- ---------
1,732,400
Food - Miscellaneous/Diversified - 1.0%
------------------ --------- ---------
Dole Food Co., Inc. 8.625% 05/01/09 1,650,000 1,699,500
------------------ --------- ---------
Pinnacle Foods Holding Corp. 8.250% 12/01/13 2,080,000 2,015,000
------------------ --------- ---------
Reddy Ice Holdings, Inc. (a) 11/01/12
(10.500% 11/01/08) 1,420,000 1,107,600
------------------ --------- ---------
4,822,100
Food - Retail - 0.4%
------------------ --------- ---------
Stater Brothers Holdings, Inc. 8.125% 06/15/12 1,935,000 1,920,488
------------------ --------- ---------
1,920,488
---------
Food Total 8,474,988
Healthcare Services - 3.3%
Dialysis Centers - 0.3%
------------------ --------- ---------
DaVita, Inc. 7.250% 03/15/15 1,330,000 1,353,275
------------------ --------- ---------
1,353,275
Medical - HMO - 0.2%
------------------ --------- ---------
Coventry Health Care, Inc. 8.125% 02/15/12 945,000 1,013,513
------------------ --------- ---------
1,013,513
Medical - Hospitals - 0.8%
------------------ --------- ---------
HCA, Inc. 7.875% 02/01/11 1,090,000 1,165,668
------------------ --------- ---------
Tenet Healthcare Corp. 9.875% 07/01/14 2,825,000 2,846,187
------------------ --------- ---------
4,011,855
Medical - Outpatient/Home Medical - 0.2%
------------------ --------- ---------
Select Medical Corp. 7.625% 02/01/15 965,000 916,750
------------------ --------- ---------
916,750
MRI/Medical Diagnostic Imaging - 1.2%
------------------ --------- ---------
InSight Health Services Corp. 9.875% 11/01/11 1,350,000 1,076,625
------------------ --------- ---------
MedQuest, Inc. 11.875% 08/15/12 2,095,000 2,100,238
------------------ --------- ---------
MQ Associates, Inc. (a) 08/15/12
(12.250% 08/15/08) 4,665,000 2,670,712
------------------ --------- ---------
5,847,575
See Accompanying Notes to Financial Statements.
17
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
CONSUMER NON-CYCLICAL - (continued)
Healthcare Services - (continued) Par ($) Value ($)
- -------------------------------------------- -------------------- ------------- ----------
Physician Practice Management - 0.6%
-------------------- ------------- ----------
US Oncology Holdings, Inc. 9.264% 03/15/15 (c) 745,000 731,962
-------------------- ------------- ----------
US Oncology, Inc. 9.000% 08/15/12 1,780,000 1,891,250
-------------------- ------------- ----------
2,623,212
----------
Healthcare Services Total 15,766,180
Household Products/Wares - 1.0%
Consumer Products - Miscellaneous - 0.8%
-------------------- ------------- ----------
Amscan Holdings, Inc. 8.750% 05/01/14 1,420,000 1,065,000
-------------------- ------------- ----------
Playtex Products, Inc. 9.375% 06/01/11 1,545,000 1,622,250
-------------------- ------------- ----------
Visant Corp. 7.625% 10/01/12 1,140,000 1,128,600
-------------------- ------------- ----------
3,815,850
Office Supplies & Forms - 0.2%
-------------------- ------------- ----------
ACCO Brands Corp. 7.625% 08/15/15 1,110,000 1,037,850
-------------------- ------------- ----------
1,037,850
----------
Household Products/Wares Total 4,853,700
Pharmaceuticals - 2.1%
Medical - Drugs - 0.7%
-------------------- ------------- ----------
Elan Finance PLC 7.750% 11/15/11 2,330,000 2,137,775
-------------------- ------------- ----------
Warner Chilcott Corp. 8.750% 02/01/15 (b) 1,300,000 1,183,000
-------------------- ------------- ----------
3,320,775
Medical - Generic Drugs - 0.4%
-------------------- ------------- ----------
Mylan Laboratories, Inc. 6.375% 08/15/15 (b) 2,015,000 2,004,925
-------------------- ------------- ----------
2,004,925
Medical - Wholesale Drug Distribution - 0.7%
-------------------- ------------- ----------
AmerisourceBergen Corp. 5.875% 09/15/15 (b) 1,565,000 1,568,912
-------------------- ------------- ----------
Nycomed A/S PIK,
11.750% 09/15/13 (b) EUR 1,616,891 1,932,344
-------------------- ------------- ----------
3,501,256
Vitamins & Nutrition Products - 0.3%
-------------------- ------------- ----------
NBTY, Inc. 7.125% 10/01/15 (b) 1,260,000 1,212,750
-------------------- ------------- ----------
1,212,750
----------
Pharmaceuticals Total 10,039,706
----------
CONSUMER NON-CYCLICAL TOTAL 62,209,262
See Accompanying Notes to Financial Statements.
18
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
ENERGY - 8.1%
Coal - 0.4% Par ($) Value ($)
- ----------------------------------------------- ------------------- --------- ----------
Coal - 0.4%
------------------- --------- ----------
Arch Western Finance LLC 6.750% 07/01/13 1,835,000 1,853,350
------------------- --------- ----------
1,853,350
----------
Coal Total 1,853,350
----------
Oil & Gas - 3.0%
Oil & Gas Drilling - 0.2%
------------------- --------- ----------
Pride International, Inc. 7.375% 07/15/14 960,000 1,032,000
------------------- --------- ----------
1,032,000
Oil Companies - Exploration & Production - 2.3%
------------------- --------- ----------
Chesapeake Energy Corp. 6.375% 06/15/15 1,145,000 1,110,650
7.500% 06/15/14 1,145,000 1,205,113
------------------- --------- ----------
Compton Petroleum Corp. 7.625% 12/01/13 (b) 1,415,000 1,418,537
------------------- --------- ----------
Delta Petroleum Corp. 7.000% 04/01/15 1,060,000 991,100
------------------- --------- ----------
Forest Oil Corp. 8.000% 12/15/11 1,080,000 1,188,000
------------------- --------- ----------
Magnum Hunter Resources, Inc. 9.600% 03/15/12 1,133,000 1,223,640
------------------- --------- ----------
Pogo Producing Co. 6.625% 03/15/15 1,100,000 1,072,500
------------------- --------- ----------
Whiting Petroleum Corp. 7.250% 05/01/12 2,570,000 2,582,850
------------------- --------- ----------
10,792,390
Oil Refining & Marketing - 0.5%
------------------- --------- ----------
Premcor Refining Group, Inc. 7.500% 06/15/15 1,015,000 1,073,363
------------------- --------- ----------
Tesoro Corp. 6.625% 11/01/15 (b) 1,465,000 1,461,337
------------------- --------- ----------
2,534,700
----------
Oil & Gas Total 14,359,090
Oil & Gas Services - 0.7%
Oil - Field Services - 0.7%
------------------- --------- ----------
Hornbeck Offshore Services, Inc. 6.125% 12/01/14 (b) 1,755,000 1,702,350
------------------- --------- ----------
Newpark Resources, Inc. 8.625% 12/15/07 1,660,000 1,660,000
------------------- --------- ----------
3,362,350
----------
Oil & Gas Services Total 3,362,350
See Accompanying Notes to Financial Statements.
19
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
ENERGY - (continued)
Pipelines - 4.0% Par ($) Value ($)
- ----------------------------------------- ----------------------- ------------ ----------
Pipelines - 4.0%
----------------------- ------------ ----------
Coastal Corp. 7.625% 09/01/08 500,000 504,375
7.750% 06/15/10 2,685,000 2,711,850
----------------------- ------------ ----------
Colorado Interstate Gas Co. 6.800% 11/15/15 (b) 2,145,000 2,150,362
----------------------- ------------ ----------
Northwest Pipeline Corp. 8.125% 03/01/10 915,000 972,188
----------------------- ------------ ----------
Pacific Energy Partners LP/Pacific
Energy Finance Corp. 6.250% 09/15/15 (b) 1,960,000 1,925,700
----------------------- ------------ ----------
Sonat, Inc. 7.625% 07/15/11 4,860,000 4,847,850
----------------------- ------------ ----------
Southern Natural Gas Co. 8.875% 03/15/10 1,630,000 1,744,100
----------------------- ------------ ----------
Williams Companies, Inc. 6.375% 10/01/10 (b) 3,030,000 2,999,700
8.125% 03/15/12 1,015,000 1,096,200
----------------------- ------------ ----------
18,952,325
----------
Pipelines Total 18,952,325
----------
ENERGY TOTAL 38,527,115
FINANCIALS - 2.9%
Diversified Financial Services - 2.4%
Finance - Auto Loans - 1.3%
----------------------- ------------ ----------
Ford Motor Credit Co. 7.375% 02/01/11 1,670,000 1,524,159
----------------------- ------------ ----------
General Motors Acceptance Corp. 8.000% 11/01/31 5,045,000 4,999,393
----------------------- ------------ ----------
6,523,552
Finance - Investment Banker/Broker - 1.1%
----------------------- ------------ ----------
E*Trade Financial Corp. 8.000% 06/15/11 1,680,000 1,713,600
----------------------- ------------ ----------
LaBranche & Co., Inc. 11.000% 05/15/12 3,155,000 3,470,500
----------------------- ------------ ----------
5,184,100
----------
Diversified Financial Services Total 11,707,652
Real Estate Investment Trusts - 0.2%
REITS - Mortgage - 0.2%
----------------------- ------------ ----------
Thornburg Mortgage, Inc. 8.000% 05/15/13 985,000 960,375
----------------------- ------------ ----------
960,375
----------
Real Estate Investment Trusts Total 960,375
See Accompanying Notes to Financial Statements.
20
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
FINANCIALS - (continued)
Savings & Loans - 0.3% Par ($) Value ($)
- --------------------------------------------- ----------------------- --------- ----------
Savings & Loans/Thrifts - Western US - 0.3%
----------------------- --------- ----------
Western Financial Bank 9.625% 05/15/12 1,310,000 1,467,200
----------------------- --------- ----------
1,467,200
----------
Savings & Loans Total 1,467,200
----------
FINANCIALS TOTAL 14,135,227
INDUSTRIALS - 14.3%
Aerospace & Defense - 1.8%
Aerospace/Defense - Equipment - 1.4%
----------------------- --------- ----------
Argo-Tech Corp. 9.250% 06/01/11 1,250,000 1,284,375
----------------------- --------- ----------
BE Aerospace, Inc. 8.500% 10/01/10 1,655,000 1,766,713
----------------------- --------- ----------
Sequa Corp. 8.875% 04/01/08 1,048,000 1,089,920
9.000% 08/01/09 780,000 820,950
----------------------- --------- ----------
Standard Aero Holdings, Inc. 8.250% 09/01/14 1,040,000 863,200
----------------------- --------- ----------
TransDigm, Inc. 8.375% 07/15/11 1,160,000 1,200,600
----------------------- --------- ----------
7,025,758
Electronics - Military - 0.4%
----------------------- --------- ----------
Condor Systems, Inc. 11.875% 05/01/09 (d)(e) 4,000,000 40,000
----------------------- --------- ----------
L-3 Communications Corp. 6.375% 10/15/15 (b) 1,745,000 1,727,550
----------------------- --------- ----------
1,767,550
----------
Aerospace & Defense Total 8,793,308
Building Materials - 0.6%
Building & Construction Products - Miscellaneous - 0.4%
----------------------- --------- ----------
Nortek, Inc. 8.500% 09/01/14 1,110,000 1,065,600
----------------------- --------- ----------
NTK Holdings, Inc. (a) 03/01/14
(10.750% 09/01/09) 1,215,000 735,075
----------------------- --------- ----------
1,800,675
Building Products - Cement/Aggregation - 0.2%
----------------------- --------- ----------
RMCC Acquisition Co. 9.500% 11/01/12 (b) 1,250,000 1,256,250
----------------------- --------- ----------
1,256,250
----------
Building Materials Total 3,056,925
See Accompanying Notes to Financial Statements.
21
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
INDUSTRIALS - (continued)
Electrical Components & Equipment - 0.2% Par ($) Value ($)
- ---------------------------------------------- --------------------------- ----------- ---------
Wire & Cable Products - 0.2%
--------------------------- ----------- ---------
Coleman Cable, Inc. 9.875% 10/01/12 1,360,000 1,169,600
--------------------------- ----------- ---------
1,169,600
---------
Electrical Components & Equipment Total 1,169,600
Electronics - 0.5%
Electronic Components - Miscellaneous - 0.5%
--------------------------- ----------- ---------
Flextronics International Ltd. 6.250% 11/15/14 1,470,000 1,440,600
--------------------------- ----------- ---------
Sanmina-SCI Corp. 6.750% 03/01/13 855,000 816,525
--------------------------- ----------- ---------
2,257,125
---------
Electronics Total 2,257,125
Engineering & Construction - 0.5%
Building & Construction - Miscellaneous - 0.5%
--------------------------- ----------- ---------
J. Ray McDermott SA 11.500% 12/15/13 (b) 1,960,000 2,241,750
--------------------------- ----------- ---------
2,241,750
---------
Engineering & Construction Total 2,241,750
Environmental Control - 1.3%
Non-Hazardous Waste Disposal - 1.2%
--------------------------- ----------- ---------
Allied Waste North America, Inc. 7.250% 03/15/15 2,025,000 2,027,531
7.875% 04/15/13 2,010,000 2,090,400
--------------------------- ----------- ---------
Waste Services, Inc. 9.500% 04/15/14 1,479,000 1,471,605
--------------------------- ----------- ---------
5,589,536
Recycling - 0.1%
--------------------------- ----------- ---------
Aleris International, Inc. 9.000% 11/15/14 670,000 685,075
--------------------------- ----------- ---------
685,075
---------
Environmental Control Total 6,274,611
Hand/Machine Tools - 0.1%
Machine Tools & Related Products - 0.1%
--------------------------- ----------- ---------
Newcor, Inc. 6.000% 01/31/13
(8.500% 01/31/08) (e)(f) 847,510 525,456
--------------------------- ----------- ---------
525,456
---------
Hand/Machine Tools Total 525,456
Machinery - Diversified - 0.7%
Machinery - General Industry - 0.2%
--------------------------- ----------- ---------
Douglas Dynamics LLC 7.750% 01/15/12 (b) 1,300,000 1,254,500
--------------------------- ----------- ---------
1,254,500
See Accompanying Notes to Financial Statements.
22
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
INDUSTRIALS - (continued)
Machinery - Diversified - (continued) Par ($) Value ($)
- ------------------------------------------------- --------------------- ----------- ---------
Machinery - Material Handling - 0.5%
--------------------- ----------- ---------
Columbus McKinnon Corp. 8.875% 11/01/13 (b) 2,175,000 2,262,000
--------------------- ----------- ---------
2,262,000
---------
Machinery - Diversified Total 3,516,500
Metal Fabricate/Hardware - 1.1%
Metal Processors & Fabrication - 0.7%
--------------------- ----------- ---------
Mueller Group, Inc. 10.000% 05/01/12 1,065,000 1,118,250
--------------------- ----------- ---------
Mueller Holdings, Inc. (a) 04/15/14
(14.750% 04/15/09) 1,190,000 868,700
--------------------- ----------- ---------
TriMas Corp. 9.875% 06/15/12 1,645,000 1,357,125
--------------------- ----------- ---------
3,344,075
Metal Products - Fasteners - 0.4%
--------------------- ----------- ---------
FastenTech, Inc. 11.500% 05/01/11 1,800,000 1,773,000
--------------------- ----------- ---------
1,773,000
---------
Metal Fabricate/Hardware Total 5,117,075
Miscellaneous Manufacturing - 2.0%
Diversified Manufacturing Operators - 1.7%
--------------------- ----------- ---------
Bombardier, Inc. 6.300% 05/01/14 (b) 2,961,000 2,576,070
--------------------- ----------- ---------
J.B. Poindexter & Co. 8.750% 03/15/14 1,715,000 1,500,625
--------------------- ----------- ---------
Koppers Industries, Inc. 9.875% 10/15/13 1,625,000 1,771,250
--------------------- ----------- ---------
Trinity Industries, Inc. 6.500% 03/15/14 2,136,000 2,087,940
--------------------- ----------- ---------
7,935,885
Miscellaneous Manufacturing - 0.3%
--------------------- ----------- ---------
Samsonite Corp. 8.875% 06/01/11 1,615,000 1,647,300
--------------------- ----------- ---------
1,647,300
---------
Miscellaneous Manufacturing Total 9,583,185
Packaging & Containers - 2.4%
Containers - Metal/Glass - 1.1%
--------------------- ----------- ---------
Crown Americas LLC & Crown Americas Capital Corp. 7.750% 11/15/15 (b) 1,830,000 1,857,450
--------------------- ----------- ---------
Owens-Brockway Glass Container, Inc. 6.750% 12/01/14 1,300,000 1,244,750
8.250% 05/15/13 1,045,000 1,073,737
--------------------- ----------- ---------
Owens-Illinois, Inc. 7.500% 05/15/10 770,000 771,925
--------------------- ----------- ---------
4,947,862
See Accompanying Notes to Financial Statements.
23
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
INDUSTRIALS - (continued)
Packaging & Containers - (continued) Par ($) Value ($)
- --------------------------------------------- -------------------- ------------- ----------
Containers - Paper/Plastic - 1.3%
-------------------- ------------- ----------
Consolidated Container Co. LLC (a) 06/15/09
(10.750% 06/15/07) 1,065,000 901,256
-------------------- ------------- ----------
Jefferson Smurfit Corp. 8.250% 10/01/12 1,575,000 1,531,688
PIK,
11.500% 10/01/15 (b) EUR 1,831,548 1,898,139
-------------------- ------------- ----------
MDP Acquisitions PLC 9.625% 10/01/12 1,990,000 1,960,150
-------------------- ------------- ----------
6,291,233
----------
Packaging & Containers Total 11,239,095
Transportation - 3.1%
Transportation - Marine - 1.3%
-------------------- ------------- ----------
Ship Finance International Ltd. 8.500% 12/15/13 3,010,000 2,889,600
-------------------- ------------- ----------
Stena AB 7.500% 11/01/13 1,805,000 1,737,313
9.625% 12/01/12 1,205,000 1,301,400
-------------------- ------------- ----------
5,928,313
Transportation - Railroad - 0.6%
-------------------- ------------- ----------
TFM SA de CV 9.375% 05/01/12 (b) 1,955,000 2,140,725
12.500% 06/15/12 780,000 896,025
-------------------- ------------- ----------
3,036,750
Transportation - Services - 0.8%
-------------------- ------------- ----------
CHC Helicopter Corp. 7.375% 05/01/14 2,015,000 2,030,112
-------------------- ------------- ----------
Petroleum Helicopters, Inc. 9.375% 05/01/09 1,875,000 1,982,813
-------------------- ------------- ----------
4,012,925
Transportation - Trucks - 0.4%
-------------------- ------------- ----------
QDI LLC 9.000% 11/15/10 1,970,000 1,773,000
-------------------- ------------- ----------
1,773,000
----------
Transportation Total 14,750,988
----------
INDUSTRIALS TOTAL 68,525,618
TECHNOLOGY - 0.3%
Semiconductors - 0.3%
Electronic Components - Semiconductors - 0.3%
-------------------- ------------- ----------
Amkor Technology, Inc. 9.250% 02/15/08 1,250,000 1,203,125
-------------------- ------------- ----------
1,203,125
----------
Semiconductors Total 1,203,125
----------
TECHNOLOGY TOTAL 1,203,125
See Accompanying Notes to Financial Statements.
24
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Corporate Fixed-Income Bonds & Notes - (continued)
UTILITIES - 4.8%
Electric - 4.8% Par ($) Value ($)
- --------------------------------- ------------------------------------------ --------- -----------
Electric - Generation - 1.1%
------------------------------------------ --------- -----------
AES Corp. 9.000% 05/15/15 (b) 610,000 667,950
9.500% 06/01/09 1,773,000 1,910,408
------------------------------------------ --------- -----------
Edison Mission Energy 7.730% 06/15/09 2,090,000 2,184,050
------------------------------------------ --------- -----------
Texas Genco LLC 6.875% 12/15/14 (b) 525,000 561,750
------------------------------------------ --------- -----------
5,324,158
Electric - Integrated - 1.5%
------------------------------------------ --------- -----------
CMS Energy Corp. 8.900% 07/15/08 1,900,000 2,030,625
------------------------------------------ --------- -----------
Nevada Power Co. 9.000% 08/15/13 640,000 706,464
10.875% 10/15/09 1,147,000 1,255,965
------------------------------------------ --------- -----------
Sierra Pacific Resources 6.750% 08/15/17 (b) 1,570,000 1,571,962
------------------------------------------ --------- -----------
TECO Energy, Inc. 7.000% 05/01/12 1,205,000 1,259,225
------------------------------------------ --------- -----------
6,824,241
Independent Power Producer - 2.2%
------------------------------------------ --------- -----------
Calpine Generating Co. LLC 10.041% 04/01/10 (c) 1,430,000 1,447,875
------------------------------------------ --------- -----------
Dynegy Holdings, Inc. 6.875% 04/01/11 1,275,000 1,239,937
7.125% 05/15/18 870,000 778,650
9.875% 07/15/10 (b) 1,230,000 1,340,700
------------------------------------------ --------- -----------
MSW Energy Holdings LLC 7.375% 09/01/10 910,000 930,475
8.500% 09/01/10 1,260,000 1,335,600
------------------------------------------ --------- -----------
Orion Power Holdings, Inc. 12.000% 05/01/10 3,065,000 3,509,425
------------------------------------------ --------- -----------
10,582,662
-----------
Electric Total 22,731,061
-----------
UTILITIES TOTAL 22,731,061
Total Corporate Fixed-Income Bonds & Notes
(cost of $418,623,034) 404,923,668
See Accompanying Notes to Financial Statements.
25
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Preferred Stocks - 2.7%
COMMUNICATIONS - 1.2%
Media - 1.2% Shares Value ($)
- -------------------------------------- ------------------------------------ --------- ----------
PTV Inc. 10.000% 18 31
------------------------------------ --------- ----------
Spanish Broadcasting System, Inc. PIK,
10.750% 5,468 5,850,760
------------------------------------ --------- ----------
Media Total 5,850,791
----------
COMMUNICATIONS TOTAL 5,850,791
CONSUMER CYCLICAL - 0.2%
Lodging - 0.2%
------------------------------------ --------- ----------
La Quinta Corp. 9.000% 46,965 1,183,518
------------------------------------ --------- ----------
Lodging Total 1,183,518
----------
CONSUMER CYCLICAL TOTAL 1,183,518
FINANCIALS - 1.3%
Real Estate Investment Trusts - 1.3%
------------------------------------ --------- ----------
iStar Financial, Inc. Series E, 7.850% 86,769 2,166,518
Series F, 7.800% 57,000 1,416,096
------------------------------------ --------- ----------
Sovereign Real Estate Investment Corp. 12.000% (b) 1,800,000 2,592,000
------------------------------------ --------- ----------
Real Estate Investment Trusts Total 6,174,614
----------
FINANCIALS TOTAL 6,174,614
Total Preferred Stocks
(cost of $12,565,049) 13,208,923
Common Stocks - 1.5%
CONSUMER DISCRETIONARY - 0.3%
- -------------------------------------- ------------------------------------ --------- ----------
Hotels, Restaurants & Leisure - 0.3% Pinnacle Entertainment, Inc. (g) 35,300 843,317
Shreveport Gaming Holdings, Inc. (g) 36,086 523,969
------------------------------------ --------- ----------
Hotels, Restaurants & Leisure Total 1,367,286
----------
CONSUMER DISCRETIONARY TOTAL 1,367,286
INDUSTRIALS - 0.1%
- -------------------------------------- ------------------------------------ --------- ----------
Commercial Services & Supplies - 0.1% Allied Waste Industries, Inc. (g) 72,500 609,725
Fairlane Management Corp. (g)(h) 50,004 --
------------------------------------ --------- ----------
Commercial Services & Supplies Total 609,725
----------
INDUSTRIALS TOTAL 609,725
MATERIALS - 0.2%
- -------------------------------------- ------------------------------------ --------- ----------
Chemicals - 0.2% Lyondell Chemical Co. 30,000 762,900
------------------------------------ --------- ----------
Chemicals Total 762,900
----------
MATERIALS TOTAL 762,900
See Accompanying Notes to Financial Statements.
26
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Common Stocks - (continued)
TELECOMMUNICATION SERVICES - 0.8% Shares Value ($)
- --------------------------------------------- ------------------------------- ------------ ---------
Diversified Telecommunication Services - 0.2% NTL, Inc. (g) 14,154 824,187
------------------------------- ------------ ---------
Diversified Telecommunication Services Total 824,187
------------------------------- ------------ ---------
Wireless Telecommunication Services - 0.6% Alamosa Holdings, Inc. (g) 57,483 1,062,286
Sprint Nextel Corp. 76,922 1,926,127
------------------------------- ------------ ---------
Wireless Telecommunication Services Total 2,988,413
---------
TELECOMMUNICATION SERVICES TOTAL 3,812,600
UTILITIES - 0.1%
- --------------------------------------------- ------------------------------- ------------ ---------
Independent Power Producers & Energy
Traders - 0.1%
Dynegy, Inc., Class A (g) 113,000 541,270
------------------------------- ------------ ---------
Independent Power Producers & Energy Traders Total 541,270
---------
UTILITIES TOTAL 541,270
Total Common Stocks
(cost of $7,144,897) 7,093,781
Convertible Bonds - 0.8%
COMMUNICATIONS - 0.6%
Telecommunication Services - 0.6% Par ($)
- ---------------------------------------- ----------------------- --------- ---------
Telecommunication Equipment - 0.5%
----------------------- --------- ---------
Nortel Networks Corp. 4.250% 09/01/08 2,605,000 2,442,187
----------------------- --------- ---------
2,442,187
Telephone - Integrated - 0.1%
----------------------- --------- ---------
Qwest Communications International, Inc. 3.250% 11/15/25 340,000 370,600
----------------------- --------- ---------
370,600
---------
Telecommunication Services Total 2,812,787
---------
COMMUNICATIONS TOTAL 2,812,787
UTILITIES - 0.2%
Electric - 0.2%
- ----------------------------------------
Independent Power Producer - 0.2%
----------------------- --------- ---------
Mirant Corp. 2.500% 06/15/21 (d) 935,000 981,750
----------------------- --------- ---------
981,750
---------
Electric Total 981,750
---------
UTILITIES TOTAL 981,750
Total Convertible Bonds
(cost of $3,437,182) 3,794,537
See Accompanying Notes to Financial Statements.
27
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Municipal Bond (Taxable) - 0.7%
CALIFORNIA - 0.7% Par ($) Value ($)
---------------------------------- ----------------------- --------- ---------
CA Cabazon Band Mission Indians 13.000% 10/01/11 3,250,000 3,283,832
---------
CALIFORNIA TOTAL 3,283,832
Total Municipal Bond (Taxable)
(cost of $3,250,000) 3,283,832
Warrants (g) - 0.0%
COMMUNICATIONS - 0.0%
Media - 0.0% Units
---------------------------------- ----------------------- --------- ---------
Broadcast Services/Programs - 0.0%
----------------------- --------- ---------
XM Satellite Radio Holdings, Inc. Expires 03/15/10 2,435 109,575
----------------------- --------- ---------
109,575
---------
Media Total 109,575
---------
Telecommunication Services - 0.0%
Cellular Telecommunications - 0.0%
----------------------- --------- ---------
UbiquiTel, Inc. Expires 04/15/10 (b)(e) 5,250 52
----------------------- --------- ---------
52
Telecommunication Services - 0.0%
----------------------- --------- ---------
Jazztel PLC Expires 07/15/10 (e)(h) 1,435 --
----------------------- --------- ---------
--
---------
Telecommunication Services Total 52
---------
COMMUNICATIONS TOTAL 109,627
CONSUMER NON-CYCLICAL - 0.0%
Food - 0.0%
----------------------------------
Food - Retail - 0.0%
----------------------- --------- ---------
Pathmark Stores Inc. Expires 09/19/10 58,758 19,067
----------------------- --------- ---------
19,067
---------
Food Total 19,067
---------
CONSUMER NON-CYCLICAL TOTAL 19,067
See Accompanying Notes to Financial Statements.
28
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Warrants - (continued)
INDUSTRIALS - 0.0%
Metal Fabricate/Hardware - 0.0% Units Value ($)
- ------------------------------------- -------------------------------------------------- ---------- -----------
Metal Processors & Fabrication - 0.0%
-------------------------------------------------- ---------- -----------
Mueller Holdings, Inc. Expires 04/15/14 (e) 1,310 1,546
-------------------------------------------------- ---------- -----------
1,546
-----------
Metal Fabricate/Hardware Total 1,546
Transportation - 0.0%
Transportation - Trucks - 0.0%
-------------------------------------------------- ---------- -----------
QDI LLC Expires 01/15/07 (b)(e) 10,207 32,458
-------------------------------------------------- ---------- -----------
32,458
-----------
Transportation Total 32,458
-----------
INDUSTRIALS TOTAL 34,004
Total Warrants
(cost of $7,829,465) 162,698
Short-Term Obligation - 5.2% Par ($)
- ------------------------------------- -------------------------------------------------- ---------- -----------
Repurchase agreement with State Street Bank &
Trust Co., dated 11/30/05, due 12/01/05 at 3.850%,
collateralized by a U.S. Treasury Bond maturing
12/22/05, market value of $25,151,963 (repurchase
proceeds $24,656,637) 24,654,000 24,654,000
Total Short-Term Obligation
(cost of $24,654,000) 24,654,000
Total Investments - 95.6%
(cost of $477,503,627) (i) 457,121,439
Other Assets & Liabilities, Net - 4.4% 20,945,631
Net Assets - 100.0% 478,067,070
See Accompanying Notes to Financial Statements.
29
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
NOTES TO INVESTMENT PORTFOLIO:
(a)Step bond. This security is currently not
paying coupon. Shown parenthetically is the
next interest rate to be paid and the date
the Fund will begin accruing at this rate.
(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 November 30, 2005, these securities,
which did not include any illiquid
securities except for the following,
amounted to $87,792,911, which represents
18.4% of net assets.
Acquisition
Security Date Par/Units Cost Value
-------------------------------------------------------------
Hollinger, Inc.
11.875% 03/01/11 09/30/04 $1,009,000 $1,009,000 $1,009,000
12.875% 03/01/11 03/05/03 1,474,000 1,464,817 1,555,070
QDI LLC 05/28/02 10,207 -- 32,458
----------
$2,596,528
----------
(c)The interest rate shown on floating rate or
variable rate securities reflects the rate
at November 30, 2005.
(d)The issuer has filed for bankruptcy
protection under Chapter 11, and is in
default of certain debt covenants. Income is
not being accrued. At November 30, 2005, the
value of these securities amounted to
$1,254,250, which represents 0.3% of net
assets.
(e)Represents fair value as determined in good
faith under procedures approved by the Board
of Trustees.
(f)Step bond. Shown parenthetically is the next
interest rate to be paid and the date the
Fund will begin accruing at this rate.
(g)Non-income producing.
(h)Security has no value.
(i)Cost for federal income tax purposes is
$478,228,992.
At November 30, 2005, the Fund had entered
into the following forward currency exchange
contracts:
Forward Currency Aggregate Settlement Unrealized
Contracts to Sell Value Face Value Date Depreciation
---------------------------------------------------------------
EUR $3,813,182 $3,802,178 01/23/2006 $(11,004)
EUR 871,731 865,135 01/30/2006 (6,596)
--------
$(17,600)
--------
ACRONYM NAME
------------------------------------
EUR Euro
PIK Payment-In-Kind
REIT Real Estate Investment Trust
At November 30, 2005, the asset allocation
of the Fund is as follows:
ASSET ALLOCATION % OF NET ASSETS
----------------------------------------------------
Corporate Fixed-Income Bonds & Notes 84.7%
Preferred Stocks 2.7
Common Stocks 1.5
Convertible Bonds 0.8
Municipal Bond (Taxable) 0.7
Warrants 0.0*
Short-Term Obligation 5.2
Other Assets & Liabilities, Net 4.4
-----
100.0%
-----
*Rounds to less than 0.1%.
See Accompanying Notes to Financial Statements.
30
STATEMENT OF ASSETS AND LIABILITIES
------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
($)
- ------------------------- ----------------------------------------------------------------- ------------
Assets Investments, at cost 477,503,627
------------
Investments, at value 457,121,439
Cash 337,167
Receivable for:
Investments sold 4,582,589
Fund shares sold 13,469,651
Interest 8,914,757
Dividends 77,244
Deferred Trustees' compensation plan 48,773
------------
Total Assets 484,551,620
----------------------------------------------------------------- ------------
Liabilities Net unrealized depreciation on foreign forward currency contracts 17,600
Payable for:
Investments purchased 2,836,408
Fund shares repurchased 1,043,228
Distributions 1,609,194
Investment advisory fee 233,870
Transfer agent fee 119,045
Pricing and bookkeeping fees 17,950
Trustees' fees 1,345
Custody fee 8,734
Distribution and service fees 216,716
Chief compliance officer expenses 1,914
Deferred Trustees' fees 48,773
Other liabilities 329,773
------------
Total Liabilities 6,484,550
Net Assets 478,067,070
----------------------------------------------------------------- ------------
Composition of Net Assets Paid-in capital 894,552,431
Overdistributed net investment income (1,072,486)
Accumulated net realized loss (395,242,632)
Net unrealized appreciation (depreciation) on:
Investments (20,382,188)
Foreign currency translations 211,945
------------
Net Assets 478,067,070
----------------------------------------------------------------- ------------
Class A Net assets 272,726,481
Shares outstanding 60,347,954
Net asset value per share 4.52(a)
Maximum offering price per share ($4.52/0.9525) 4.75(b)
----------------------------------------------------------------- ------------
Class B Net assets 166,479,201
Shares outstanding 36,837,319
Net asset value and offering price per share 4.52(a)
----------------------------------------------------------------- ------------
Class C Net assets 26,129,621
Shares outstanding 5,781,920
Net asset value and offering price per share 4.52(a)
----------------------------------------------------------------- ------------
Class Z Net assets 12,731,767
Shares outstanding 2,817,172
Net asset value, offering and redemption price per share 4.52
(a)Redemption price per share is equal to net
asset value less any applicable contingent
deferred sales charge.
(b)On sales of $50,000 or more the offering
price is reduced.
See Accompanying Notes to Financial Statements.
31
STATEMENT OF OPERATIONS
------------------------------------
For the Six Months Ended November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
($)
- --------------------------------------- -------------------------------------------------------------- ----------
Investment Income Dividends 329,838
Interest 20,954,403
----------
Total Investment Income 21,284,241
-------------------------------------------------------------- ----------
Expenses Investment advisory fee 1,485,858
Distribution fee:
Class B 685,573
Class C 110,405
Service fee:
Class A 338,438
Class B 228,524
Class C 36,851
Transfer agent fee 566,263
Pricing and bookkeeping fees 87,111
Trustees' fees 11,628
Custody fee 23,422
Chief compliance officer expenses (See Note 4) 4,312
Non-recurring costs (See Note 7) 3,454
Other expenses 134,364
----------
Total Expenses 3,716,203
Fees waived by Distributor - Class C (21,963)
Fees waived by Transfer Agent (76,688)
Non-recurring costs assumed by Investment Advisor (See Note 7) (3,454)
Custody earnings credit (12,163)
----------
Net Expenses 3,601,935
----------
Net Investment Income 17,682,306
-------------------------------------------------------------- ----------
Net Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
on Investments and Foreign Currency Investments (7,497,261)
Foreign currency transactions 427,842
----------
Net realized loss (7,069,419)
Net change in unrealized appreciation (depreciation) on:
Investments 5,576,215
Foreign currency translations (423,202)
----------
Net change in unrealized appreciation (depreciation) 5,153,013
----------
Net Loss (1,916,406)
----------
Net Increase in Net Assets from Operations 15,765,900
See Accompanying Notes to Financial Statements.
32
STATEMENT OF CHANGES IN NET ASSETS
------------------------------------
Columbia High Yield Opportunity Fund
(unaudited)
Six Months Year
Ended Ended
November 30, May 31,
Increase (Decrease) in Net Assets 2005 ($) 2005 ($)
- -------------------------------------- ---------------------------------------------------- ------------ ------------
Operations Net investment income 17,682,306 42,938,667
Net realized gain (loss) on investments and foreign
currency transactions (7,069,419) 16,486,865
Net change in unrealized appreciation (depreciation)
on investments and foreign currency translations 5,153,013 (6,978,243)
------------ ------------
Net Increase from Operations 15,765,900 52,447,289
---------------------------------------------------- ------------ ------------
Distributions Declared to Shareholders From net investment income:
Class A (11,207,674) (24,843,221)
Class B (6,873,934) (17,229,500)
Class C (1,129,748) (3,195,340)
Class Z (537,695) (1,286,008)
------------ ------------
Total Distributions Declared to Shareholders (19,749,051) (46,554,069)
---------------------------------------------------- ------------ ------------
Share Transactions Class A:
Subscriptions 27,894,175 51,631,025
Distributions reinvested 5,777,210 12,970,332
Redemptions (31,715,648) (119,788,196)
------------ ------------
Net Increase (Decrease) 1,955,737 (55,186,839)
Class B:
Subscriptions 3,905,652 15,033,791
Distributions reinvested 3,398,250 8,549,272
Redemptions (33,994,497) (84,300,266)
------------ ------------
Net Decrease (26,690,595) (60,717,203)
Class C:
Subscriptions 1,155,715 2,313,673
Distributions reinvested 635,011 2,060,574
Redemptions (5,775,145) (20,777,439)
------------ ------------
Net Decrease (3,984,419) (16,403,192)
Class Z:
Subscriptions 1,549,792 8,036,535
Distributions reinvested 388,909 964,387
Redemptions (1,928,264) (10,416,599)
------------ ------------
Net Increase (Decrease) 10,437 (1,415,677)
Net Decrease from Share Transactions (28,708,840) (133,722,911)
------------ ------------
Total Decrease in Net Assets (32,691,991) (127,829,691)
---------------------------------------------------- ------------ ------------
Net Assets Beginning of period 510,759,061 638,588,752
End of period 478,067,070 510,759,061
Undistributed (overdistributed) net investment
income at end of period (1,072,486) 994,259
See Accompanying Notes to Financial Statements.
33
- --------------------------------------------------------------------------------
Columbia High Yield Opportunity Fund
(unaudited)
Six Months Year
Ended Ended
November 30, May 31,
2005 2005
- ----------------- ------------------------------------- ------------ -----------
Changes in Shares Class A:
Subscriptions 6,118,726 11,017,719
Issued for distributions reinvested 1,256,943 2,760,651
Redemptions (6,899,205) (25,637,277)
------------ -----------
Net Increase (Decrease) 476,464 (11,858,907)
Class B:
Subscriptions 854,019 3,195,705
Issued for distributions reinvested 739,070 1,819,533
Redemptions (7,386,271) (17,983,556)
------------ -----------
Net Decrease (5,793,182) (12,968,318)
Class C:
Subscriptions 249,756 492,732
Issued for distributions reinvested 138,092 438,421
Redemptions (1,262,746) (4,477,212)
------------ -----------
Net Decrease (874,898) (3,546,059)
Class Z:
Subscriptions 339,850 1,698,113
Issued for distributions reinvested 84,609 204,777
Redemptions (419,739) (2,216,660)
------------ -----------
Net Increase (Decrease) 4,720 (313,770)
See Accompanying Notes to Financial Statements.
34
NOTES TO FINANCIAL STATEMENTS
------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Note 1. Organization
Columbia High Yield Opportunity Fund (the "Fund"), a series of Columbia Funds
Trust I (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.
Investment Goal
The Fund seeks high current income and total return.
Fund Shares
The Fund may issue an unlimited number of shares and offers four classes of
shares: Class A, Class B, Class C and Class Z. Each share class has its own
sales charge and expense structure.
Class A shares are subject to a maximum front-end sales charge of 4.75% based
on the amount of initial investment. Class A shares purchased without an
initial sales charge are subject to a 1.00% contingent deferred sales charge
("CDSC") on shares sold within twelve months on an original purchase of $1
million to $50 million. Class B shares are subject to a maximum CDSC of 5.00%
based upon the holding period after purchase. Class B shares will convert to
Class A shares in a certain number of years after purchase, depending on the
program under which shares were purchased. Class C shares are subject to a
1.00% CDSC on shares sold within one year after purchase. Class Z shares are
offered continuously at net asset value. There are certain restrictions on the
purchase of Class Z shares, as described in the Fund's prospectus.
Note 2. Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America ("GAAP") requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements.
Security Valuation
Debt securities generally are valued by pricing services approved by the Fund'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.
Equity securities are valued at the last sale price on the principal exchange
on which they trade, except for securities traded on the NASDAQ, which are
valued at the NASDAQ official close price. Unlisted securities or listed
securities for which there were no sales during the day are valued at the
closing bid price on such exchanges or over-the-counter markets.
Short-term debt obligations maturing within 60 days are valued at amortized
cost, which approximates market value.
Forward currency exchange contracts are valued at the prevailing forward
exchange rate of the underlying currencies.
Foreign securities are generally valued at the last sale price on the foreign
exchange or market on which they trade. If any foreign share prices are not
readily available as a result of limited share activity, the securities are
valued at the last sale price of the local shares in the principal market in
which such securities are normally traded.
Generally, trading in foreign securities is substantially completed each day at
various times prior to the close of the New York Stock Exchange ("NYSE"). The
values of such securities used in computing the net asset value of the Fund's
shares are determined as of such times. Foreign currency exchange rates are
generally determined at 4:00 p.m. Eastern (U.S.) time. Events affecting the
values of such foreign securities and such exchange rates may occur between the
times at which
35
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
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. If a security is valued at "fair value", such value is
likely to be different from the last quoted market price for the security.
Investments for which market quotations are not readily available, or have
quotations which management believes are not appropriate, 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.
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.
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 contracts. The Fund may utilize
forward foreign currency exchange contracts in connection with the settlement
of purchases and sales of securities. The Fund may also enter into these
contracts to 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 Fund's investments against currency
fluctuations. Forward currency contracts are valued daily at the current
exchange rate of the underlying currency, resulting in unrealized gains
(losses) which become realized at the time the foreign currency 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 currency contracts does not
eliminate fluctuations in the prices of the Fund's portfolio securities. While
the maximum potential loss from such contracts is the aggregate face value in
U.S. dollars at the time the contract was opened, exposure is typically limited
to the change in value of the contract (in U.S. dollars) over the period it
remains open. The Fund could also be exposed to risk if the counterparties of
the contracts are unable to fulfill the terms of the contracts.
Repurchase Agreements
The Fund may engage in repurchase agreement transactions with institutions that
the Fund's investment advisor has determined are creditworthy. The Fund,
through its custodian, receives delivery of underlying securities
collateralizing a repurchase agreement. 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 or
restrictions upon 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. Premium and discount are
amortized and accreted, respectively, on all debt securities. Corporate actions
and dividend income are recorded on the ex-date. The value of additional
securities received as an income payment is recorded as income and as the cost
basis of such securities.
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
36
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
market prices of the investments. Such fluctuations are included with the net
realized and unrealized gains (losses) on investments.
Determination of Class Net Asset Values
All income, expenses (other than class-specific expenses, as shown on the
Statement of Operations) and realized and unrealized gains (losses) are
allocated to each class of the Fund on a daily basis for purposes of
determining the net asset value of each class. Income and expenses are
allocated to each class based on the settled shares method, while realized and
unrealized gains (losses) are allocated based on the relative net assets of
each class.
Federal Income Tax Status
The Fund intends to qualify each year as a "regulated investment company" under
Subchapter M of the Internal Revenue Code, as amended, and will distribute
substantially all of its tax-exempt or taxable income, if any, for its tax
year, and as such will not be subject to federal income taxes. In addition, the
Fund intends to distribute in each calendar year substantially all of its net
investment income, capital gains and certain other amounts, if any, such that
the Fund should not be subject to federal excise tax. Therefore, no federal
income or excise tax provision is recorded.
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.
Note 3. Federal Tax Information
The tax character of distributions paid during the year ended May 31, 2005 was
as follows:
May 31, 2005
-------------------------------------
Distributions paid from:
-------------------------------------
Ordinary Income* $46,554,069
-------------------------------------
Long-Term Capital Gains --
-------------------------------------
Unrealized appreciation and depreciation at November 30, 2005, based on cost of
investments for federal income tax purposes, was:
Unrealized appreciation $ 12,193,095
Unrealized depreciation (33,300,648)
------------
Net unrealized depreciation $(21,107,553)
------------------------------------------
The following capital loss carryforwards, determined as of May 31, 2005, 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 Capital Loss
Expiration Carryforward
-----------------------
2008 $ 37,575,496
-----------------------
2009 161,087,717
-----------------------
2010 171,019,187
-----------------------
2011 18,463,873
------------
$388,146,273
-----------------------
Of the capital loss carryforwards attributable to the Fund $3,086,545
($2,216,468 will expire May 31, 2008 and $870,077 will expire May 31, 2009) was
obtained in the merger with Stein Roe High Yield Fund.
Note 4. Fees and Compensation Paid to Affiliates
Investment Advisory Fee
Columbia Management Advisors, LLC ("Columbia"), an indirect wholly owned
subsidiary of Bank of America Corporation ("BOA"), is the investment advisor to
the Fund and provides administrative and other services to the Fund. Prior to
September 30, 2005, Columbia Management Advisors, Inc. was the investment
advisor to the Fund under the same fee structure. On September 30, 2005,
Columbia Management Advisors, Inc. merged into Banc of America Capital
Management, LLC. At that time, the investment advisor was then renamed Columbia
Management Advisors, LLC. Columbia receives a monthly investment advisory fee
based on the Fund's average daily net assets at the following annual rates:
Average Daily Net Assets Annual Fee Rate
----------------------------------------------
First $500 million 0.60%
----------------------------------------------
$500 million to $1 billion 0.55%
----------------------------------------------
$1 billion to $1.5 billion 0.52%
----------------------------------------------
Over $1.5 billion 0.49%
----------------------------------------------
For the six months ended November 30, 2005, the Fund's annualized effective
investment advisory fee rate was 0.60%.
Pricing and Bookkeeping Fees
Columbia is responsible for providing pricing and bookkeeping services to the
Fund under a pricing and
37
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
bookkeeping agreement. Under a separate agreement (the "Outsourcing
Agreement"), Columbia has delegated those functions to State Street Corporation
("State Street"). As a result, the total fees payable under the pricing and
bookkeeping agreement are paid to State Street.
Under its pricing and bookkeeping agreement with the Fund, Columbia receives an
annual fee of $38,000 paid monthly plus an additional monthly fee based on the
level of average daily net assets for the month; provided that during any
12-month period, the aggregate fee shall not exceed $140,000.
Prior to November 1, 2005, Columbia received from the Fund an annual fee of
$10,000 paid monthly, and in any month that the Fund's average daily net assets
exceeded $50 million, an additional monthly fee, calculated by taking into
account the fees payable to State Street under the Outsourcing Agreement.
The Fund also reimburses Columbia and State Street for out-of pocket expenses
and charges, including fees payable to third parties for pricing the Fund's
portfolio securities and direct internal costs incurred by Columbia in
connection with providing fund accounting oversight and monitoring and certain
other services. For the six months ended November 30, 2005, the Fund's
annualized effective pricing and bookkeeping rate, inclusive of out-of-pocket
expenses, was 0.035%.
Transfer Agent Fee
Columbia Management Services, Inc. (formerly Columbia Funds Services, Inc.)
(the "Transfer Agent"), an affiliate of Columbia and a 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. For
such services, the Transfer Agent receives a fee, paid monthly, at the annual
rate of $15.23 per open account plus sub-transfer agent fees (exclusive of BFDS
fees) calculated based on assets held in omnibus accounts and intended to
recover the cost of payments to third parties for services to those accounts.
The Transfer Agent may also retain as additional compensation for its services
revenues for 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.
Prior to November 1, 2005, the Transfer Agent received a fee, paid monthly at
the annual rate of $34.00 per open account and was reimbursed for certain
out-of-pocket expenses. For the period September 1, 2005 through October 31,
2005, the Transfer Agent voluntarily waived fees of $76,688 for the Fund.
For the six months ended November 30, 2005, the Fund's annualized effective
transfer agent fee rate, inclusive of out-of-pocket fees, was 0.20%.
Underwriting Discounts, Service and Distribution Fees
Columbia Management Distributors, Inc. (the "Distributor"), an affiliate of
Columbia and a wholly owned subsidiary of BOA, is the principal underwriter of
the Fund. On August 22, 2005, Columbia Funds Distributor, Inc. was renamed
Columbia Management Distributors, Inc. For the six months ended November 30,
2005, the Distributor has retained net underwriting discounts of $14,029 on
sales of the Fund's Class A shares and received net CDSC fees of $3, $189,079
and $1,128 on Class A, Class B and Class C share redemptions, respectively.
The Fund has adopted a 12b-1 plan (the "Plan") which allows the payment of a
monthly service fee to the Distributor equal to 0.25% annually of the average
daily net assets attributable to Class A, Class B and Class C shares. The Plan
also requires the payment of a monthly distribution fee to the Distributor
equal to 0.75% annually of the average daily net assets attributable to Class B
and Class C shares only. The Distributor has voluntarily agreed to waive a
portion of the Class C share distribution fee so that it will not exceed 0.60%
annually.
The CDSC and the distribution fees received from the Plan are used principally
as repayment to the Distributor for amounts paid by the Distributor to dealers
who sold such shares.
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.
38
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
Fees Paid to Officers and Trustees
All officers of the Fund, with the exception of the Fund's Chief Compliance
Officer, are employees of Columbia or its affiliates and receive no
compensation from the Fund. The Board of Trustees has appointed a Chief
Compliance Officer to the Fund in accordance with federal securities
regulations. The Fund, along with other affiliated funds, pays its pro-rata
share of the expenses associated with the Chief Compliance Officer. The Fund's
expenses for the Chief Compliance Officer will not exceed $15,000 per year.
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.
Other
Columbia provides certain services to the Fund related to Sarbanes-Oxley
compliance. For the six months ended November 30, 2005, the Fund paid $1,053 to
Columbia for such services. This amount is included in "Other expenses" on the
Statement of Operations.
Note 5. Portfolio Information
For the six months ended November 30, 2005, the cost of purchases and proceeds
from sales of securities, excluding short-term obligations, were $161,598,172
and $212,734,963, respectively.
Note 6. Line of Credit
The Fund and other affiliated funds participate in a $350,000,000 committed
unsecured revolving line of credit provided by State Street Bank and Trust
Company. Borrowings are used for temporary or emergency purposes to facilitate
portfolio liquidity. Interest is charged to each participating fund based on
its 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 accrued and apportioned
among the participating funds based on their pro-rata portion of the unutilized
line of credit. The commitment fee is included in "Other expenses" on the
Statement of Operations.
For the six months ended November 30, 2005, the Fund did not borrow under this
arrangement.
Note 7. Disclosure of Significant Risks and Contingencies
Industry Focus
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
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.
Foreign Securities
There are certain additional risks involved when investing in foreign
securities that are not inherent with investments in domestic 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.
Legal Proceedings
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")
39
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
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"). The SEC Order and the NYAG Settlement are referred to
collectively as the "Settlements". The Settlements contain substantially the
same terms and conditions as outlined in the agreements in principle which
Columbia Group entered into with the SEC and NYAG in March 2004.
Under the terms of the SEC Order, the Columbia Group has 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 certain Columbia Funds
(including the former Nations Funds) and other mutual funds management fees
collectively by $32 million per year for 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 will be distributed in accordance with a
distribution plan to be developed by an independent distribution consultant,
who is acceptable to the SEC staff and the Columbia Funds' independent
trustees. The distribution plan must be based on a methodology developed in
consultation with the Columbia Group and the funds' independent trustees and
not unacceptable to the staff of the SEC. At this time, the distribution plan
is still under development. As such, any gain to the funds or their
shareholders cannot currently be determined.
As a result of these matters or any adverse publicity or other developments
resulting from them, there may be increased redemptions or reduced sales of
fund shares, which could increase transaction costs or operating expenses, or
have other adverse consequences for the funds.
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 in detail 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. More than 300 cases including those filed
against entities unaffiliated with the funds, their Boards, FleetBoston
Financial Corporation and its affiliated entities and/or Bank of America and
its affiliated entities have been transferred to the Federal District Court in
Maryland and consolidated in a multi-district proceeding (the "MDL").
The derivative cases purportedly brought on behalf of the Columbia Funds in the
MDL have been consolidated under the lead case. The fund derivative plaintiffs
allege that the funds were harmed by market timing and late trading activity
and seek, among other things, the removal of the trustees of the Columbia
Funds, removal of the Columbia Group, disgorgement of all management fees and
monetary damages.
On March 21, 2005, purported class action plaintiffs filed suit in
Massachusetts state court alleging that the conduct, including market timing,
entitles Class B shareholders in certain Columbia Funds to an exemption from
contingent deferred sales charges upon early redemption ("the CDSC Lawsuit").
The CDSC Lawsuit has been removed to federal court in Massachusetts and the
federal Judicial Panel has transferred the CDSC Lawsuit to the MDL.
The MDL is ongoing. Accordingly, an estimate of the financial impact of this
litigation on any fund, if any, cannot currently be made.
In 2004, certain Columbia Funds, the Trustees of the Columbia Funds, advisers
and affiliated entities 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.
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
40
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims
by plaintiffs and ordered that the case be closed. The plaintiffs filed a
notice of appeal on December 30, 2005.
For the six months ended November 30, 2005, Columbia has assumed $3,454 of
legal, consulting services and Trustees' fees incurred by the Fund in
connection with these matters.
41
FINANCIAL HIGHLIGHTS
------------------------------------
Columbia High Yield Opportunity Fund
Selected data for a share outstanding throughout each period is as follows:
(Unaudited)
Six Months Period
Ended Ended
November 30, Year Ended May 31, May 31,
Class A Shares 2005 2005 2004 2003(a)
- -------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.56 $ 4.54 $ 4.30 $ 4.01
- -------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.17(b) 0.35(b) 0.35(b) 0.14(b)
Net realized and unrealized gain
(loss) on investments and foreign
currency (0.02) 0.05 0.21 0.30
-------- -------- -------- --------
Total from Investment Operations 0.15 0.40 0.56 0.44
- -------------------------------------------------------------------------------------------------------
Less Distributions Declared to
Shareholders:
From net investment income (0.19) (0.38) (0.32) (0.15)
Return of capital -- -- -- --
-------- -------- -------- --------
Total Distributions Declared to
Shareholders (0.19) (0.38) (0.32) (0.15)
- -------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.52 $ 4.56 $ 4.54 $ 4.30
Total return (e) 3.32%(f)(g) 8.93%(h) 13.30%(g) 11.01%(f)(g)
- -------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 1.15%(j) 1.15% 1.19% 1.29%(j)
Net investment income (i) 7.44%(j) 7.55% 7.65% 8.24%(j)
Waiver/reimbursement 0.03%(j) -- 0.01% --%(j)(k)
Portfolio turnover rate 34%(f) 67% 75% 45%(f)
Net assets, end of period (000's) $272,726 $273,104 $325,658 $376,944
- -------------------------------------------------------------------------------------------------------
(Unaudited)
Six Months
Ended
November 30, Year Ended December 31,
Class A Shares 2002 2001 2000
- -------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.62 $ 5.30 $ 6.55
- -------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.34(b) 0.52(b)(c) 0.61(d)
Net realized and unrealized gain
(loss) on investments and foreign
currency (0.53) (0.65)(c) (1.24)
-------- -------- --------
Total from Investment Operations (0.19) (0.13) (0.63)
- -------------------------------------------------------------------------------
Less Distributions Declared to
Shareholders:
From net investment income (0.39) (0.51) (0.62)
Return of capital (0.03) (0.04) --
-------- -------- --------
Total Distributions Declared to
Shareholders (0.42) (0.55) (0.62)
- -------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.01 $ 4.62 $ 5.30
Total return (e) (4.27)% (2.78)% (10.28)%
- -------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 1.31% 1.22% 1.16%
Net investment income (i) 7.92% 10.34%(c) 10.00%
Waiver/reimbursement -- -- --
Portfolio turnover rate 63% 62% 28%
Net assets, end of period (000's) $361,780 $369,043 $390,917
- -------------------------------------------------------------------------------
(a)The Fund changed its fiscal year end from December 31 to May 31.
(b)Per share data was calculated using average shares outstanding during the
period.
(c)Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to increase net investment
income per share by $0.05, decrease net realized and unrealized loss per
share by $0.05 and increase the ratio of net investment income to average
net assets from 9.76% to 10.34%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(d)The per share net investment income amount does not reflect the period's
reclassification of differences between book and tax basis net investment
income.
(e)Total return at net asset value assuming all distributions reinvested and no
initial sales charge or contingent deferred sales charge.
(f)Not annualized.
(g)Had the Investment Advisor and/or Transfer Agent not waived a portion of
expenses, total return would have been reduced.
(h)Total return includes a voluntary reimbursement by the Investment Advisor
for a realized investment loss. This reimbursement had an impact of less
than 0.01% on the Fund's total return.
(i)The benefits derived from custody credits had an impact of less than 0.01%.
(j)Annualized.
(k)Rounds to less than 0.01%.
42
- --------------------------------------------------------------------------------
Columbia High Yield Opportunity Fund
Selected data for a share outstanding throughout each period is as follows:
(Unaudited)
Six Months Period
Ended Ended
November 30, Year Ended May 31, May 31,
Class B Shares 2005 2005 2004 2003(a)
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.56 $ 4.54 $ 4.30 $ 4.01
- ---------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.16(b) 0.32(b) 0.31(b) 0.13(b)
Net realized and unrealized gain
(loss) on investments and foreign
currency (0.03) 0.05 0.22 0.29
-------- -------- -------- --------
Total from Investment Operations 0.13 0.37 0.53 0.42
- ---------------------------------------------------------------------------------------------------------------
Less Distributions Declared to Shareholders:
From net investment income (0.17) (0.35) (0.29) (0.13)
Return of capital -- -- -- --
-------- -------- -------- --------
Total Distributions Declared to
Shareholders (0.17) (0.35) (0.29) (0.13)
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.52 $ 4.56 $ 4.54 $ 4.30
Total return (e) 2.94%(f)(g) 8.13%(h) 12.46%(g) 10.67%(f)(g)
- ---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 1.90%(j) 1.90% 1.94% 2.04%(j)
Net investment income (i) 6.69%(j) 6.80% 6.90% 7.49%(j)
Waiver/reimbursement 0.03%(j) -- 0.01% --%(j)(k)
Portfolio turnover rate 34%(f) 67% 75% 45%(f)
Net assets, end of period (000's) $166,479 $194,460 $252,415 $305,021
- ---------------------------------------------------------------------------------------------------------------
(Unaudited)
Six Months
Ended
November 30, Year Ended December 31,
Class B Shares 2002 2001 2000
- ---------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.62 $ 5.30 $ 6.55
- ---------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.31(b) 0.48(b)(c) 0.56(d)
Net realized and unrealized gain
(loss) on investments and foreign
currency (0.54) (0.65)(c) (1.24)
-------- -------- --------
Total from Investment Operations (0.23) (0.17) (0.68)
- ---------------------------------------------------------------------------------------
Less Distributions Declared to Shareholders:
From net investment income (0.35) (0.47) (0.57)
Return of capital (0.03) (0.04) --
-------- -------- --------
Total Distributions Declared to
Shareholders (0.38) (0.51) (0.57)
- ---------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.01 $ 4.62 $ 5.30
Total return (e) (4.99)% (3.51)% (10.96)%
- ---------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 2.06% 1.97% 1.91%
Net investment income (i) 7.17% 9.59%(c) 9.25%
Waiver/reimbursement -- -- --
Portfolio turnover rate 63% 62% 28%
Net assets, end of period (000's) $280,220 $350,464 $433,949
- ---------------------------------------------------------------------------------------
(a)The Fund changed its fiscal year end from December 31 to May 31.
(b)Per share data was calculated using average shares outstanding during the
period.
(c)Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to increase net investment
income per share by $0.05, decrease net realized and unrealized loss per
share by $0.05 and increase the ratio of net investment income to average
net assets from 9.02% to 9.59%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(d)The per share net investment income amount does not reflect the period's
reclassification of differences between book and tax basis net investment
income.
(e)Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(f)Not annualized.
(g)Had the Investment Advisor and/or Transfer Agent not waived a portion of
expenses, total return would have been reduced.
(h)Total return includes a voluntary reimbursement by the Investment Advisor
for a realized investment loss. This reimbursement had an impact of less
than 0.01% on the Fund's total return.
(i)The benefits derived from custody credits had an impact of less than 0.01%.
(j)Annualized.
(k)Rounds to less than 0.01%.
43
- --------------------------------------------------------------------------------
Columbia High Yield Opportunity Fund
Selected data for a share outstanding throughout each period is as follows:
(Unaudited)
Six Months Period
Ended Ended
November 30, Year Ended May 31, May 31,
Class C Shares 2005 2005 2004 2003(a)
- ----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.56 $ 4.54 $ 4.30 $ 4.01
- ----------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.16(b) 0.33(b) 0.32(b) 0.13(b)
Net realized and unrealized gain (loss) on
investments and foreign currency (0.02) 0.04 0.21 0.29
------- ------- ------- -------
Total from Investment Operations 0.14 0.37 0.53 0.42
- ----------------------------------------------------------------------------------------------------
Less Distributions Declared to Shareholders:
From net investment income (0.18) (0.35) (0.29) (0.13)
Return of capital -- -- -- --
------- ------- ------- -------
Total Distributions Declared to
Shareholders (0.18) (0.35) (0.29) (0.13)
- ----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.52 $ 4.56 $ 4.54 $ 4.30
Total return (e)(f) 3.01%(g) 8.29%(h) 12.63% 10.74%(g)
- ----------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 1.75%(j) 1.75% 1.79% 1.89%(j)
Net investment income (i) 6.84%(j) 6.95% 7.05% 7.64%(j)
Waiver/reimbursement 0.18%(j) 0.15% 0.16% 0.15%(j)
Portfolio turnover rate 34%(g) 67% 75% 45%(g)
Net assets, end of period (000's) $26,130 $30,366 $46,322 $51,471
- ----------------------------------------------------------------------------------------------------
(Unaudited)
Six Months
Ended
November 30, Year Ended December 31,
Class C Shares 2002 2001 2000
- ------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.62 $ 5.30 $ 6.55
- ------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.31(b) 0.49(b)(c) 0.57(d)
Net realized and unrealized gain (loss) on
investments and foreign currency (0.53) (0.65)(c) (1.24)
------- ------- -------
Total from Investment Operations (0.22) (0.16) (0.67)
- ------------------------------------------------------------------------------------
Less Distributions Declared to Shareholders:
From net investment income (0.36) (0.48) (0.58)
Return of capital (0.03) (0.04) --
------- ------- -------
Total Distributions Declared to
Shareholders (0.39) (0.52) (0.58)
- ------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.01 $ 4.62 $ 5.30
Total return (e)(f) (4.85)% (3.37)% (10.78)%
- ------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 1.91% 1.82% 1.76%
Net investment income (i) 7.32% 9.74%(c) 9.40%
Waiver/reimbursement 0.15% 0.15% 0.15%
Portfolio turnover rate 63% 62% 28%
Net assets, end of period (000's) $46,568 $52,122 $48,904
- ------------------------------------------------------------------------------------
(a)The Fund changed its fiscal year end from December 31 to May 31.
(b)Per share data was calculated using average shares outstanding during the
period.
(c)Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to increase net investment
income per share by $0.05, decrease net realized and unrealized loss per
share by $0.05 and increase the ratio of net investment income to average
net assets from 9.16% to 9.74%. Per share data and ratios for periods prior
to December 31, 2001 have not been restated to reflect this change in
presentation.
(d)The per share net investment income amount does not reflect the period's
reclassification of differences between book and tax basis net investment
income.
(e)Total return at net asset value assuming all distributions reinvested and no
contingent deferred sales charge.
(f)Had the Investment Advisor, Transfer Agent and/or Distributor not waived a
portion of expenses, total return would have been reduced.
(g)Not annualized.
(h)Total return includes a voluntary reimbursement by the Investment Advisor
for a realized investment loss. This reimbursement had an impact of less
than 0.01% on the Fund's total return.
(i)The benefits derived from custody credits had an impact of less than 0.01%.
(j)Annualized.
44
- --------------------------------------------------------------------------------
Columbia High Yield Opportunity Fund
Selected data for a share outstanding throughout each period is as follows:
(Unaudited)
Six Months Period
Ended Ended
November 30, Year Ended May 31, May 31,
Class Z Shares 2005 2005 2004 2003(a)
- -----------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.56 $ 4.54 $ 4.30 $ 4.01
- -----------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.18(b) 0.37(b) 0.36(b) 0.15(b)
Net realized and unrealized gain (loss) on
investments and foreign currency (0.02) 0.04 0.21 0.29
------- ------- ------- -------
Total from Investment Operations 0.16 0.41 0.57 0.44
- -----------------------------------------------------------------------------------------------------------
Less Distributions Declared to Shareholders:
From net investment income (0.20) (0.39) (0.33) (0.15)
Return of capital -- -- -- --
------- ------- ------- -------
Total Distributions Declared to Shareholders (0.20) (0.39) (0.33) (0.15)
- -----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.52 $ 4.56 $ 4.54 $ 4.30
Total return (e) 3.45%(f)(g) 9.21%(h) 13.58%(g) 11.12%(f)(g)
- -----------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 0.90%(j) 0.90% 0.94% 1.04%(j)
Net investment income (i) 7.68%(j) 7.80% 7.92% 8.49%(j)
Waiver/reimbursement 0.03%(j) -- 0.01% --%(j)(k)
Portfolio turnover rate 34%(f) 67% 75% 45%(f)
Net assets, end of period (000's) $12,732 $12,829 $14,194 $45,803
- -----------------------------------------------------------------------------------------------------------
(Unaudited)
Six Months
Ended
November 30, Year Ended December 31,
Class Z Shares 2002 2001 2000
- -----------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.62 $ 5.30 $ 6.55
- -----------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.33(b) 0.53(b)(c) 0.62(d)
Net realized and unrealized gain (loss) on
investments and foreign currency (0.51) (0.65)(c) (1.24)
------- ------ -------
Total from Investment Operations (0.18) (0.12) (0.62)
- -----------------------------------------------------------------------------------
Less Distributions Declared to Shareholders:
From net investment income (0.40) (0.52) (0.63)
Return of capital (0.03) (0.04) --
------- ------ -------
Total Distributions Declared to Shareholders (0.43) (0.56) (0.63)
- -----------------------------------------------------------------------------------
Net Asset Value, End of Period $ 4.01 $ 4.62 $ 5.30
Total return (e) (4.03)% (2.53)% (10.06)%
- -----------------------------------------------------------------------------------
Ratios to Average Net Assets/
Supplemental Data:
Expenses (i) 1.06% 0.97% 0.91%
Net investment income (i) 8.17% 10.59%(c) 10.25%
Waiver/reimbursement -- -- --
Portfolio turnover rate 63% 62% 28%
Net assets, end of period (000's) $35,541 $1,978 $ 566
- -----------------------------------------------------------------------------------
(a)The Fund changed its fiscal year end from December 31 to May 31.
(b)Per share data was calculated using average shares outstanding during the
period.
(c)Effective January 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began amortizing
premium and accreting discount on all debt securities. The effect of this
change for the year ended December 31, 2001 was to increase net investment
income per share by $0.05, decrease net realized and unrealized loss per
share by $0.05 and increase the ratio of net investment income to average
net assets from 10.01% to 10.59%. Per share data and ratios for periods
prior to December 31, 2001 have not been restated to reflect this change in
presentation.
(d)The per share net investment income amount does not reflect the period's
reclassification of differences between book and tax basis net investment
income.
(e)Total return at net asset value assuming all distributions reinvested.
(f)Not annualized.
(g)Had the Investment Advisor and/or Transfer Agent not waived a portion of
expenses, total return would have been reduced.
(h)Total return includes a voluntary reimbursement by the Investment Advisor
for a realized investment loss. This reimbursement had an impact of less
than 0.01% on the Fund's total return.
(i)The benefits derived from custody credits had an impact of less than 0.01%.
(j)Annualized.
(k)Rounds to less than 0.01%.
45
BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
The Advisory Fees and Expenses Committee of the Board of Trustees meets one or
more times annually, usually in late summer, to review the advisory agreements
(collectively, the "Agreements") of the funds for which the Trustees serve as
trustees or directors (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 the heads of
each investment area within Columbia. The Trustees also meet with selected fund
portfolio managers at various 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) sales and redemption data, (iv) information about the
profitability of the Agreements to Columbia, and potential "fall-out" or
ancillary benefits that Columbia and its affiliates may receive as a result of
their relationships with the funds and (v) information 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 (vi) Columbia's
financial results and financial condition, (vii) 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, (viii) the allocation of the funds' brokerage, if any,
including allocations to brokers affiliated with Columbia and the use of "soft"
commission dollars to pay fund expenses and to pay for research products and
services, (ix) 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, (x) Columbia's response
to various legal and regulatory proceedings since 2003 and (xi) the economic
outlook generally and for the mutual fund industry in particular. In addition,
the Trustees confer with their independent fee consultant and review materials
relating to the Agreements that the independent fee consultant provides.
Throughout the process, the Trustees have the opportunity to ask questions of
and request additional materials from Columbia and to consult independent legal
counsel to the Independent Trustees.
The Board of Trustees most recently approved the continuation of the Agreements
at its October, 2005 meeting, following meetings of the Advisory Fees and
Expenses Committee held in August, September, and October, 2005. 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 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 for 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
46
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield
Opportunity Fund
Trustees reviewed information about the performance of each fund over various
time periods, including information prepared by an independent third party 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 that
had performance that lagged that of a relevant peer group for certain (although
not necessarily all) periods, the Trustees 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 as
expected, given 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; (v) that the fund's advisory fee had recently been, or
was proposed to be, reduced, with the goal of helping the fund's net return to
shareholders become more competitive; and (vi) that other fund expenses, such
as transfer agency or fund accounting fees, have recently been reduced, with
the goal of helping the fund's net return to shareholders become more
competitive. 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 Agreements.
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 both by
management and by an independent third party) of the funds' advisory fees and
total expense levels to those of their peer groups and information about the
advisory fees charged by Columbia to comparable accounts. In considering the
fees charged to comparable 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 the
additional resources required to effectively manage mutual funds and distribute
mutual fund shares. 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 reductions in advisory fee
rates, implementation of advisory fee breakpoints, institution of advisory fee
waivers, and changes to expense caps, which benefited a number of the funds.
Furthermore, the Trustees considered the projected impact on expenses resulting
from the overall cost reductions that management anticipated would result from
the shift to a common group of service providers for transfer agency, fund
accounting and custody services for mutual funds advised by Bank of America
affiliates. The Trustees also noted management's stated justification for the
fees charged to the funds, which included information about the performance of
the funds, the services provided to the funds and management's view as to why
it was appropriate that some funds bear advisory fees or total expenses greater
than their peer group medians. 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 the funds, 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 levels of
the funds, and whether Columbia had implemented
47
- --------------------------------------------------------------------------------
November 30, 2005 (unaudited) Columbia High Yield
Opportunity Fund
breakpoints and/or expense caps with respect to the funds.
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 of the funds were fair and reasonable, and that
the costs of the advisory services generally, and the related profitability to
Columbia and its affiliates of their relationships with the funds, supported
the continuation of the Agreements.
Economies of Scale. The Trustees considered the existence of any economies of
scale in the provision of services by Columbia to each fund and whether those
economies were shared with the fund through breakpoints in the investment
advisory fees or other means, such as expense waivers. 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:
.. the extent to which each fund had operated in accordance with its investment
objective and its record of compliance with its investment restrictions, and
the compliance programs of the funds and Columbia. They also considered the
compliance-related resources that Columbia and its affiliates were providing
to the funds.
.. the nature, quality, cost and extent of administrative and shareholder
services performed by Columbia and its affiliates, both under the Agreements
and under separate agreements for the provision of transfer agency and
administrative services.
.. so-called "fall-out benefits" to Columbia, 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.
.. the draft report provided by the 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 November 30, 2006.
48
SUMMARY OF MANAGEMENT FEE EVALUATION BY INDEPENDENT FEE CONSULTANT
------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
PREPARED PURSUANT TO THE FEBRUARY 9, 2005
ASSURANCE OF DISCONTINUANCE
BETWEEN THE OFFICE OF
ATTORNEY GENERAL OF NEW YORK STATE AND
COLUMBIA MANAGEMENT ADVISORS, INC. AND
COLUMBIA FUNDS DISTRIBUTOR, INC.
OCTOBER 11, 2005
I. OVERVIEW
Columbia Management Advisors, Inc. ("CMA") and Columbia Funds Distributors,
Inc. ("CFD") (CFD together with CMA referred to herein as Columbia Management
Group or "CMG/1/"), entered into an agreement with the New York Attorney
General's Office in the form of an Assurance of Discontinuance (the "AOD"). The
AOD stipulated that CMA would be permitted to manage or advise the Columbia
Funds only if the Independent Members (as such term is defined in the AOD) of
the Columbia Funds' Board of Trustees/Directors (collectively the "Trustees")
appointed a Senior Officer or an Independent Fee Consultant ("IFC") who, among
other things, is to manage the process by which management fees are negotiated.
On May 15, 2005, the Independent Members of the Board appointed me as the IFC
for the Columbia Funds. This report is the annual written evaluation of the
Columbia Funds for 2005 that I have prepared in my capacity as IFC, as required
by the AOD.
A. Duties of the Independent Fee Consultant
As part of the AOD, the Independent Members of the Columbia Funds' Board of
Trustees/Directors agreed to retain an independent fee consultant who was to
participate in the management fee negotiation process. The IFC is charged with
"... duties and responsibilities [that] include managing the process by which
proposed management fees (including, but not limited to, advisory fees) to be
charged the Columbia Fund[s] are negotiated so that they are negotiated in a
manner which is at arms length and reasonable and consistent with this
Assurance of Discontinuance." However, the IFC does not replace the Trustees in
their role of negotiating management and other fees with CMG and its
affiliates. In particular, the AOD states that "Columbia Advisors may manage or
advise a Columbia Fund only if the reasonableness of the proposed management
fees is determined by the Board of Trustees of the Columbia Fund using ... an
annual independent written evaluation prepared by or under the direction of the
.... Independent Fee Consultant...." This report, pursuant to the AOD,
constitutes the "annual independent written evaluation prepared by or under the
direction of the... Independent Fee Consultant."
The AOD requires the IFC report to consider at least the following:
a) Management fees (including any components thereof ) charged by other mutual
fund companies for like services;
b) Management fees (including any components thereof ) charged to institutional
and other clients of CMA for like services;
c) Costs to CMA and its affiliates of supplying services pursuant to the
management fee agreements, excluding any intra-corporate profit;
d) Profit margins of CMA and its affiliates from supplying such services;
e) Possible economies of scale as the CMA fund grows larger; and
f) The nature and quality of CMA services, including Columbia Funds'
performance.
This report is designed to assist the Board in evaluating the 2005 contract
renewal for Columbia Funds. In addition, this report points out areas where the
Board may deem additional information and analysis to be appropriate over time.
B. Sources of Information Used in My Evaluation
I have requested data from CMG and various third party industry data sources or
independent research companies that work in the mutual fund arena. The
following list generally describes the types of information I requested.
1. I collected data on performance, management fees, and expense ratios of both
Columbia Funds and comparable non-Columbia Funds. The sources of this
information were CMG, Lipper Inc. ("Lipper") and Morningstar Inc.
("Morningstar"). While Lipper and Morningstar each selected a different group
of peer funds it deemed appropriate against which to measure the relative
performance and fees of Columbia Funds, I conducted an independent review of
the appropriateness of each peer group.
2. I reviewed data on CMG's expense and profitability that I obtained from CMA
directly.
1Prior to the date of this report, CMA merged into an affiliated entity, Banc
of America Capital Management, LLC ("BACAP"), and BACAP then changed its name
to Columbia Management Advisors, LLC which carries on the business of CMA, and
CFD changed its name to Columbia Management Distributors, Inc.
49
SUMMARY OF MANAGEMENT FEE EVALUATION BY INDEPENDENT FEE CONSULTANT
------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
3. I have reviewed data on the organizational structure of CMG in general.
4. I collected information on profitability from Strategic Insight Mutual Fund
Research and Consulting, LLC ("Strategic Insight"). I used this third-party
independent research as an additional method to gauge the accuracy of the data
collected in (2) above.
5. I conducted interviews with various CMG staff, including members of the
senior management team, legal staff, heads of affiliates, portfolio managers,
and financial personnel.
6. I reviewed current 2005 Section 15(c) material provided to the Board and
material presented to the Board in the 2004 fee and performance evaluation.
7. I have reviewed various academic research papers, industry publications, and
other available literature dealing with mutual fund operations, profitability,
and other issues. In addition, I have reviewed SEC releases and studies of
mutual fund expenses.
8. I have reviewed documents pertaining to recent mutual fund litigation in
general and publicly available information about litigation where CMG has been
involved. In addition, I have engaged NERA Economic Consulting ("NERA") and
independent consultant Dr. John Rea to assist me in data management and
analysis. Both NERA and Dr. Rea have extensive experience in the mutual fund
industry through consulting, government positions, or industry trade groups
that provide unique insights and special knowledge pertaining to my independent
analysis of fees, performance, and profitability. I have also retained
Shearman & Sterling LLP as outside counsel to advise me in connection with my
review.
C. Qualifications and Independence
I am the Walter H. Carpenter Chair and Professor of Finance at Babson College.
Before this I was the Chief Economist of the U.S. Securities and Exchange
Commission. I have no material relationship with Bank of America or CMG aside
from acting as IFC, and am aware of no relationship with any of their
affiliates. {Resume omitted]
II. EVALUATION OF THE GENERAL PROCESS USED
TO NEGOTIATE THE ADVISORY CONTRACT
A. General Considerations
My analysis considered all factors and information I reviewed on the finances
and operations of Columbia Funds. I gave each factor an appropriate weight in
my overall findings, and no single factor was in itself the sole criterion for
a finding or conclusion. My objective was to assess all of the information
provided and conduct a robust evaluation of Columbia Funds' operations, fees,
and performance.
My analysis and thought processes will and, I believe, should, differ in
certain ways from the processes used by Trustees in their evaluation of the
management agreements. In particular, because of my technical and quantitative
background, I may use techniques and data that Trustees have not previously
felt would be useful. I view this supplemental analysis as appropriate because
my role is to assist Trustees in their decisions, and to the extent that I
bring new ideas or analysis to the evaluation, I believe this improves the
process by which management fees for the Columbia Funds may be negotiated in
accordance with the AOD.
Finally, as part of my role as IFC, I have, from time to time, sent to Trustees
additional papers and reports produced by third parties that I felt had bearing
on the fee negotiation process. I viewed these materials as educational in
nature and felt they would aid Trustees in placing their work in context.
B. CMG Management Interviews
As a starting point of my analysis, I have met with members of CMG staff to
gain an understanding of the organizational structure and personnel involved in
running the Columbia fund family.
I have had general discussions and have received information about the
management structure of CMG. My conversations with management have been
informative. In addition, I have participated in Board meetings where Trustees
and management have discussed issues relating to management agreements and
performance of Columbia Funds. When I felt it was appropriate, I added my
opinions on particular matters, such as fund performance or fee levels, to the
discussion.
C. Trustees' Fee and Performance Evaluation Process
After making initial requests for information, members of the Trustees of the
Columbia Funds met in advance of the October Section 15(c) contract approval
meeting to review certain fee, performance and other data for the Columbia
Funds and to ask questions and make requests of management. Trustees have
developed a process to evaluate the fee and expense levels and performance of
Columbia Funds.
50
SUMMARY OF MANAGEMENT FEE EVALUATION BY INDEPENDENT FEE CONSULTANT
------------------------------------
November 30, 2005 (unaudited) Columbia High Yield Opportunity Fund
This process is used to highlight those funds that have been performing poorly,
may have had higher management fees or expense ratios, or both.
The process involves providing instructions to Lipper to prepare specific data
analyses tailored to the Trustees review framework. These instructions include
highlighting funds that hit one or more fee performance "screens." The six
screens the Trustees use are as follows:
a. 5th Lipper quintile in actual management fee;
b. 5th Lipper quintile in total expense ratio;
c. Three or more 5th Lipper quintile rankings in the 1-, 3-, 5- or 10-year
performance rankings;
d. Sum of the Lipper Quintile Rank (1-year performance) and the Lipper Quintile
Rank (actual management fee) totals a number equal to or higher than 8;
e. Sum of the Lipper Quintile Rank (1-year performance) and the Lipper Quintile
Rank (total expense ratio) totals a number equal to or higher than 8; and
f. Sum of the Lipper Quintile Rank (3-year performance) and the Lipper Quintile
Rank (total expense ratio) totals a number equal to or higher than 8.
If a fund hits one or more of these screens, it is highlighted for additional
review by the Trustees. This method is only used as an aid for Trustees to
highlight funds and is not the sole test of whether the Board will determine to
take particular actions concerning fees or performance. Funds that have not
been flagged by this screen also may be singled out for fee and performance
reasons, and the Trustees may determine not to take action with respect to the
fees or performance of funds that have been flagged by the screen. These
screens contribute to the basis for discussions on Trustees' views on the
Columbia Funds.
III. FINDINGS
My findings based on my work as IFC are as follows:
1. The Trustees have the relevant information necessary to form an opinion on
the reasonableness of fees and evaluate the performance of the Columbia Funds.
The process the Trustees used in preparing to reach their determination has
been open and informative. In my view, the 2005 process by which the management
fees of the Columbia Funds have been negotiated thus far has been, to the
extent practicable, at arm's length and reasonable and consistent with the AOD.
2. Columbia Funds demonstrated a range of performance relative to their peers.
I find that across the fund complex, 54.26 percent of Columbia Funds have
performance higher than the median of their respective Lipper performance
universe, and 42.55 percent of Columbia Funds have performance higher than the
median of their respective Lipper performance group. In addition, Lipper
performance universe and group comparison showed that Columbia Funds were
distributed roughly evenly across these quintiles. The Trustees have worked
with management to address issues of funds that have demonstrated consistent or
significant underperformance.
3. Columbia Funds demonstrate a range of management fees and expense ratios
relative to their peers. I find that across the fund complex, 58.51 percent of
Columbia Funds have expenses below the median of their Lipper expense universe,
and 53.19 percent of Columbia Funds have expenses below the median of their
Lipper expense group. In addition, Lipper expense universe and group
comparisons show that Columbia Funds are distributed roughly evenly across
these quintiles. The Trustees have taken steps to limit shareholder expenses
for certain funds having management fees significantly above their peers, often
though the use of fee waivers to which CMG has agreed. Consolidation of various
funds and fund families managed by CMG has resulted in substantial savings in
non-advisory expenses.
4. Profitability to CMG of the individual funds ranges widely, but the overall
profitability to CMG of its relationship with the Columbia Funds appears to
fall within a reasonable range. The method of cost allocation to funds is
addressed in the material provided by CMG to the Trustees, but additional
information may be necessary to make a judgment on fund level profitability. My
review of profitability and cost allocation is ongoing, and I plan to continue
to develop my views with regard to fund level profitability.
5. Columbia Funds have instituted fee schedules with breakpoints designed to
enable investors to benefit from fund economies of scale, although 71% of the
funds have not yet reached their first breakpoint. My analysis of the
appropriateness of the breakpoint levels, which I expect will take into account
the cost and profitability of the individual funds, is ongoing. My work is
ongoing and my views may develop over time in light of new information and
analysis.
Respectfully submitted,
Erik R. Sirri
51
IMPORTANT INFORMATION ABOUT THIS REPORT
------------------------------------
Columbia High Yield Opportunity Fund
Transfer Agent
Columbia Management Services, Inc.
P.O. Box 8081
Boston MA 02266-8081
800-345-6611
Distributor
Columbia Management Distributors, Inc.
One Financial Center
Boston MA 02111
Investment Advisor
Columbia Management Advisors, LLC
100 Federal Street
Boston MA 02110
The fund mails one shareholder report to each shareholder address. If you would
like more than one report, please call shareholder services at 800-345-6611 and
additional reports will be sent to you.
This report has been prepared for shareholders of Columbia High Yield
Opportunity Fund. This report may also be used as sales literature when
preceded or accompanied by the current prospectus which provides details of
sales charges, investment objectives and operating policies of the fund and
with the most recent copy of the Columbia Funds Performance Update.
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 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.
The fund files a complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q
is available on the SEC's website at www.sec.gov and may be reviewed and copied
at the SEC's Public Reference Room in Washington, DC. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Columbia Management is the primary investment management division of Bank of
America Corporation. Columbia Management entities furnish investment management
services and advise institutional and mutual fund portfolios. Columbia
Management Advisors, Inc. and Banc of America Capital Management, LLC, both SEC
registered investment advisors and wholly owned subsidiaries of Bank of
America, N.A, merged on September 30, 2005. At that time, the newly combined
advisor changed its name to Columbia Management Advisors, LLC ("CMA"). CMA will
continue to operate as a SEC-registered investment advisor, wholly owned
subsidiary of Bank of America, N.A. and part of Columbia Management.
52
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your shareholder reports by electronic delivery. With Columbia's
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is registered with Columbia Funds, you can sign up quickly and
easily on our website at www.columbiafunds.com.
Please note - if you own your fund shares through a financial
institution, contact the institution to see if it offers
electronic delivery. If you own your fund shares through a
retirement plan, electronic delivery may not be available to you.
Columbia High Yield Opportunity Fund Semiannual Report, November 30, 2005
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PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20
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Columbia Management.
(C)2006 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621
800.345.6611 www.columbiafunds.com
Item 2. Code of Ethics.
Not applicable at this time.
Item 3. Audit Committee Financial Expert.
Not applicable at this time.
Item 4. Principal Accountant Fees and Services.
Not applicable at this time.
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 the requirements of
Item 7(d)(2)(ii)(G) 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 were no changes 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 Trust I
By (Signature and Title) /S/ Christopher L. Wilson
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Christopher L. Wilson, President
Date January 25, 2006
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
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Christopher L. Wilson, President
Date January 25, 2006
By (Signature and Title) /S/ J. Kevin Connaughton
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J. Kevin Connaughton, Treasurer
Date January 25, 2006