September 19, 2008
Reporters may contact:
Jon Goldstein 617.434.7392
jon.goldstein@bankofamerica.com
BOSTON – Columbia Management Advisors, LLC, investment advisor to the Columbia Funds, today announced that the Columbia Funds will stop lending their equity and corporate debt securities in light of recent market volatility. Securities lending is generally employed to generate incremental revenue from the funds’ holdings.
"Columbia Management believes that it is in the best interests of the Columbia Funds’ shareholders not to lend out certain securities given the downward pressure that some borrowers of the securities are placing on the market,” said Colin Moore, chief investment officer, Columbia Management. “We believe under more stable market conditions that the income received from securities lending is a benefit to the Columbia Funds’ shareholders. Given the current market environment, however, we believe that this practice has the potential to be more detrimental than helpful."
The Columbia Funds will continue to lend government agency and Treasury securities. The move follows recent actions taken by the Securities and Exchange Commission to strengthen investor protections against “naked” short selling.
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
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”) is an SEC-registered investment advisor and indirect, wholly owned subsidiary of Bank of America Corporation and is part of Columbia Management
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, more than 18,500 ATMs and award-winning online banking with more than 25 million active users. Bank of America offers industry leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.www.bankofamerica.com
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