February 24, 2005
Reporters may contact:
Jon Goldstein, Bank of America
617-346-1419 (o); 516-946-5598 (c)
jon.goldstein@bankofamerica.com
BOSTON - Columbia Management Group, the asset management arm of Bank of America, today announced the proposed next phase of its fund consolidation process, part of its effort to deliver diverse, high performing investment products to individual and institutional investors worldwide. Specifically, Columbia Management announced plans to consolidate 12 open-end retail mutual funds and one variable series fund into similar funds and liquidate two other funds.
These changes were recently approved by the Columbia Funds Board of Trustees and are now subject, in some cases, to approval by the Nations Funds Board of Trustees and, in all cases, by the non-surviving funds' shareholders. This represents another step in the development of Columbia Management, the combined asset management organization created through the Bank of America - FleetBoston Financial merger.
"This transition plan reflects our commitment to providing investors with a broad-based menu of high performing, cost-effective investment products that address their long-term needs and objectives," said Columbia Management President Keith Banks. "Currently, our product offering includes more than 100 Columbia funds and Nations funds. We are taking a phased approach to consolidating and updating this product line to address redundancies, achieve efficiencies of scale, and simplify the menu of choices we provide to investors."
Proposed Fund Changes
Columbia Management's product line currently includes 114 retail open-end mutual funds, excluding money market funds, in its Columbia Funds and Nations Funds complexes. In this next phase of the consolidation process, Columbia Management is proposing to merge 13 of these funds into similar ones, pending shareholder approval, as listed here (fund asset size as of 1/31/05 listed in parentheses):
- Columbia Tax-Managed Value Fund ($74.2 million) into Columbia Growth & Income Fund ($1,907.2 million).
- Columbia Newport Tiger Fund ($340.6 million) into Columbia International Stock Fund ($663.3 million).
- Columbia Tax-Managed Growth Fund II ($38.5 million) into Columbia Tax-Managed Growth Fund ($269.9 million).
- Columbia Mid-Cap Value Fund ($1,816.9 million) into Nations MidCap Value Fund ($571.2 million).
- Columbia Large Company Index Fund ($872.9 million) into Nations LargeCap Index Fund ($1,349.6 million).
- Columbia Small Company Index Fund ($342.4 million) into Nations SmallCap Index Fund ($1,073.2 million).
- Columbia Short Term Bond Fund ($507.1 million) into Nations Short-Term Income Fund ($1,100.5 million).
- Columbia Intermediate Government Income Fund ($356.7 million) into Nations Intermediate Bond Fund ($655.6 million).
- Columbia Income Fund ($632.1 million) into Columbia Intermediate Bond Fund ($1,140.4 million).
- Columbia Pennsylvania Intermediate Fund ($25.1 million) into Columbia Intermediate Tax-Exempt Fund ($516.2 million).
- Columbia Managed Municipals Fund ($421.4 million) into Columbia Tax-Exempt Fund ($1,705.2 million).
- Columbia Florida Intermediate Municipal Bond Fund ($68.6 million) into Nations Florida Intermediate Municipal Bond Fund ($199.8 million)).
- Columbia High-Yield Fund, Variable Series ($86.1 million) into Nations High Yield Bond Portfolio ($98.6 million). These portfolios are used by variable annuity holders.
Columbia Management today also announced its plans to liquidate two funds, Columbia National Municipal Bond Fund ($13.1 million) and Columbia Corporate Bond Fund ($192.1 million). The small size of Columbia National Municipal Bond Fund reduced the likelihood that shareholders would be able to benefit from lower expense ratios that larger funds may generate. The fund is expected to be closed to new investments beginning April 29, 2005 and liquidated following shareholder approval later this year. It was determined that merging Columbia Corporate Bond Fund into another fund was not in the best interest of shareholders. The Columbia Corporate Bond Fund will be liquidated later in 2005.
Fund mergers occurring within the Columbia fund complex have been approved by the Columbia Funds Board of Trustees. All fund mergers are also subject to approval by shareholders of the non-surviving funds. Proposed fund mergers to occur between Columbia Funds into Nations Funds have been approved by the Columbia Funds Board and are pending approval by the Nations Funds Board of Trustees, which is expected to meet on the issue in late March.
Fund Changes Previously Announced
Changes announced today are in addition to a number of mergers and liquidations previously announced and listed below.
The following fund mergers are scheduled to be completed on March 18, 2005, pending shareholder approval:
- Columbia Common Stock Fund ($252.1 million) into Columbia Large Cap Core Fund ($375.8 million).
- Columbia International Equity Fund ($488.9 million) into Columbia International Stock Fund ($663.3 million).
- Columbia Contrarian Income Fund ($47.2 million) into Columbia Quality Plus Bond Fund ($979.7 million).
- Columbia Growth Fund ($762.8 million) into Columbia Large Cap Growth Fund ($932.6 million).
Two Variable Series funds were liquidated on February 18, 2005:
- Columbia Real Estate Equity Fund, Variable Series
- Newport Tiger Fund, Variable Series
Columbia Management has determined that liquidation of these funds is a more cost-effective option for shareholders than merger into other funds.
The following funds were liquidated in December 2004:
- Columbia Europe Fund
- Columbia Europe Thematic Equity Fund
- Columbia Global Thematic Equity Fund
- Columbia Newport Asia Pacific Fun
- Columbia Tax Managed Aggressive Growth Fund
Columbia Management, based in Boston, MA, is a part of the Wealth & Investment Management division at Bank of America. With approximately $330 billion in assets under management Columbia Management offers products in every major asset class and investment style to both individual and institutional investors. Columbia Management is focused on delivering strong investment performance and superior client service. (Assets as of December 31, 2004).
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 33 million consumer relationships with more than 5,800 retail banking offices, more than 16,700 ATMs and award-winning online banking with more than twelve million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 150 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 85 percent of the Global Fortune 500. Bank of America Corporation stock (ticker: BAC) is listed on the New York Stock Exchange. www.bankofamerica.com
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Please consider the objectives, risks, charges and expenses of any Columbia fund or Nations fund carefully before investing. Contact your financial advisor for a prospectus, which contains this and other important information about the fund. You should read it carefully before investing.
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. Nations Funds are distributed by BACAP Distributors, LLC. Columbia Funds Distributors, Inc. also provides certain intermediary relationship management services to BACAP Distributors, LLC with respect to the Nations Funds. BACAP Distributors, LLC and Columbia Funds Distributor, Inc., members FINRA, SIPC, are both part of Columbia Management and are affiliates of Bank of America Corporation.