Investment Commentary

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Market Environment

International equities in developed markets once again were resurgent during the third quarter. Stocks were boosted by a variety of data that suggested a global economic recovery was gaining momentum, aided by an unprecedented amount of global government stimulus. Developed international equity markets, as represented by the MSCI EAFE Index, rose 19.47% in dollar terms — a very strong return in its own right but particularly so considering that its largest country-level constituent, Japan, gained a relatively modest 7%. U.S. dollar weakness (the dollar slipped by 4.3% during the quarter) created a substantial positive currency translation effect for U.S.-based international equity investors; the EAFE Index’s quarterly return measured in local currency terms was 14.82%. Emerging market equities also demonstrated widespread strength. The MSCI Emerging Markets Index soared 20.91% during the quarter. The BRIC countries (Brazil, Russia, India and China) gained 18.13% as a group and shrugged off a substantial sell-off in the Chinese equity market in August. Year to date, the Emerging Markets Index and BRIC group produced stunning gains of 65% and 75%, respectively — far in excess of the performance produced in both developed international and U.S. markets.

At a country level, performance strength was widespread. All 23 of the EAFE Index’s country-level constituents were well into positive territory, with only Japan producing a gain of less than 10%. The six largest country positions, representing 77% of the index on average, produced gains ranging from 33% (Australia) to 7% (Japan).

Product Performance

For the third quarter of 2009, Columbia Marsico International Opportunities Fund underperformed its primary benchmark, the MSCI EAFE Index, which posted a 19.47% return.

Sector Performance

From an economic sector standpoint (using the EAFE Index as a reference), the performance picture was similarly upbeat. All 10 GICS sectors in the index rose substantially, paced by the still-resurgent financials sector. There also was a surplus of strength elsewhere in a variety of sectors, with relatively little differentiation in returns. Industry-level performance presented a similarly bright story. Every group had a positive return of at least 10%, and nearly half were up 20% or more.

In terms of international investment style, the quarter was a value-led market, and decisively so. The MSCI EAFE Value Index and MSCI EAFE Growth Index had total quarterly returns of 22.13% and 16.78%, respectively. The Value Index’s higher weighting in financial services-related holdings was the primary underlying reason for its substantial outperformance during the quarter and, for that matter, for its near-10% advantage year to date as well.

Performance Contributors¹

Portfolio Holding	GICS Industry Group	Average Portfolio Weight%
Credit Suisse Group	Diversified financials	3.48%
Anheuser-Busch	Food beverage and tobacco	3.38%
CEMEX S.	Materials	2.88%
Daimler	Automobiles and components	2.36%
Gafisa	Consumer durables and apparel	1.16%

Performance Detractors¹

Portfolio Holding	GICS Industry Group	Average Portfolio Weight%
Mizuho Financial Group	Banks	2.96%
Daiwa Securities Group	Diversified financials	2.01%
Industrial & Commercial Bank of China	Banks	0.53%
BG Group	Energy	0.13%
BMW	Automobiles and components	0.09%

Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results.

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

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

The Morgan Stanley Capital International Emerging Markets Index (MSCI EMI) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. As of June 2006, the MSCI Emerging Markets Index consisted of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.

The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Value Index is a subset of the MSCI EAFE Index, and constituents of the index include securities from Europe, Australasia and the Far East. The index generally represents approximately 50% of the free float-adjusted market capitalization of the underlying MSCI EAFE Index, and consists of those securities classified by Morgan Stanley Capital International, Inc. (MSCI) as most representing the value style, such as higher book-value-to-price ratios, higher forward earnings-to-price ratios, higher dividend yields and lower forecasted growth rates than securities representing the growth style.

The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Growth Index is a subset of the MSCI EAFE Index, and constituents of the index include securities from Europe, Australasia and the Far East. The index generally represents approximately 50% of the free float-adjusted market capitalization of the MSCI EAFE Index, and consists of those securities classified by Morgan Stanley Capital International, Inc. (MSCI) as most representing the growth style, such as higher forecasted growth rates, lower book-value-to-price ratios, lower forward earnings-to-price ratios and lower dividend yields than securities representing the value style.

Unlike mutual funds, indices are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.

Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that the forecasts will come to pass. The views and opinions expressed are those of the portfolio managers and analysts of the affiliated advisors of Columbia Management Group, are subject to change without notice at any time, may not come to pass and may differ from views expressed by other Columbia Management associates or other divisions of Bank of America. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any security or sector.

There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. It should not be assumed that any securities transaction or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions made in the future will be profitable or will equal the investment performance of the securities discussed herein.

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

Columbia Management Advisors, LLC ("CMA") has retained Marsico Capital Management, LLC ("MCM") to serve as investment subadviser to the Columbia Marsico International Opportunities Fund. As the investment subadviser, MCM makes the investment decisions and manages all or a portion of the fund or strategy. MCM is an investment adviser registered with the Securities and Exchange Commission. MCM is not affiliated with Bank of America.