FIRST QUARTER 2017
INVESTMENT COMMENTARY
CLASS A | CRAAX CLASS C | CRACX
Overall Morningstar RatingTM
Class A
Class Z
The Morningstar Rating is for the
indicated share classes only as of
03/31/17; other classes may have
different performance characteristics.
The Morningstar ratings for the
overall and three-year periods for
Class A shares are 4 stars and 4 stars
and for Class Z shares are 4 stars and
4 stars among 247 and 247 Tactical
Allocation funds, respectively, and are
based on a Morningstar Risk-Adjusted
Return measure.
From a tactical perspective,
we continue to favor nonU.S. equity markets primarily
because of more favorable
valuations.
CLASS R | CRKRX
CLASS R4 | CARRX
CLASS R5 | CRDRX
CLASS Z | CRAZX
Columbia Adaptive Risk Allocation Fund
Fund performance
 Columbia Adaptive Risk Allocation Fund Class A shares returned 4.02% (excluding
sales charge) for the first quarter. Class Z shares returned 4.09% for the same period.
Monthly performance information is online at investor.columbiathreadneedleus.com.
 The fund’s benchmark, a 60%/40% blend of the MSCI All Cap World Index and the
Bloomberg Barclays Global Aggregate Bond Index, returned 4.77%.
 For the first quarter, global equities were the largest contributor to performance, in part
due to the continued post-U.S. election rally. Commodities were the only meaningful
detractor from the portfolio.
Market overview
Global equities continued to advance at a swift pace during the quarter. We expect that
global growth should stay reasonably firm over the next several months. Some inflection
points are looming though, including the possibility that domestic inflation measures will
peak over the next few months. The upward trend for inflation in recent months has
reinforced a sense that improved economic growth can help foster an extension of the
business cycle. However, a pull-back in equities within capital markets cannot be ruled out
over the near term. Consider for a moment that the S&P 500 Index recently enjoyed a
109-day streak without a 1% decline, its longest stretch in nearly 22 years. Another broad
measure for U.S. equity performance, the Russell 3000 Index, gained 5.74% during the
quarter.
While U.S. equity markets continued to flirt with new highs, overseas markets did manage
to make up some ground on their domestic counterparts during the quarter. A weakening
U.S. dollar, which fell by about 2% versus a basket of other developed-market currencies,
Average annual total returns (%) for period ending March 31, 2017
3-mon.
YTD
1-year
3-year
Since
inception
(06/19/12)
Class A without sales charge
4.02
4.02
9.63
4.34
4.13
Class A with 5.75% maximum sales charge
-1.94
-1.94
3.35
2.30
2.85
Class Z
4.09
4.09
9.94
4.59
4.40
Blended benchmark
4.77
4.77
8.25
2.99
—
Citi 3-Month U.S. Treasury Bill Index
0.12
0.12
0.34
0.15
—
Columbia Adaptive
Risk Allocation Fund
Expense ratio1
Share
class
A
Without waiver
(gross)
1.28%
With waiver
(net)
1.25%
Z
1.03%
1.00%
The investment manager and certain of its
affiliates have contractually (for at least
one year from the prospectus date)
agreed to waive certain fees and/or to
reimburse certain fund expenses.
Performance data shown represents past performance and is not a guarantee of future results. The
investment return and principal value of an investment will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. Current performance may be lower or higher than
the performance data shown. Please visit investor.columbiathreadneedleus.com for performance data
current to the most recent month end. Class Z shares are sold at net asset value and have limited
eligibility. Columbia Management Investment Distributors, Inc. offers multiple share classes, not all
necessarily available through all firms, and the share class ratings may vary. Contact us for details.
Columbia Management Investment Distributors, Inc.
225 Franklin Street, Boston, MA 02110-2804
investor.columbiathreadneedleus.com
800.426.3750
1756662 (04/17)
FIRST QUARTER 2017
INVESTMENT COMMENTARY
Columbia Adaptive
Risk Allocation Fund
helped the MSCI EAFE Index rise by 7.25% and the MSCI Emerging Markets Index
gained 11.45% in dollar terms during the quarter.
Top holdings (% of net assets)
as of March 31, 2017
eMini S&P 500 (CME) Jun 17
29.78
MSCI EAFE Mini (IFUS) Jun 17
20.21
5Y T-Note (CBT) Jun 17
14.01
CME: (CDX.NA.HY.28.V1)
11.39
Columbia Commodity Strategy
Fund Y
10.00
CDS: (CDX.EM.27.V1)
10.00
2Y T-Note (CBT) Jun 17
9.45
CME: (CDX.NA.IG.28.V1)
8.91
MSCI Emrg Markets Mini (IFUS)
Jun 17
Columbia Real Estate Equity
Class Y
8.32
6.91
Top holdings exclude short-term holdings
and cash, if applicable. Fund holdings are
as of the date given, are subject to change
at any time, and are not recommendations
to buy or sell any security.
Within fixed-income markets, corporate bonds and emerging market bonds were some of
the best performing areas in the quarter. Emerging markets, using the JP Morgan
Emerging Market Bond Index Global as a proxy, gained 3.90%. After a strong start to the
year, high-yield corporate bonds struggled somewhat in March. Still, high-yield corporate
bonds, as measured by the performance of the Bloomberg Barclays US Corporate High
Yield Bond Index, posted a total return of 2.70% during the quarter. No major fixed-income
sector generated a negative total return in the quarter.
From an economic perspective, we remain centered around a base case scenario that
sees U.S. growth in a range of 2.0% to 2.5% for 2017. Against this backdrop of steady
economic growth and with inflation hovering around 2%, we believe the Fed will be
prompted to continue to raise rates. Improved business and consumer confidence should
lead to a slight upshift in demand, together with a modest, albeit growing, amount of fiscal
stimulus in the second half of the year. The expectation of tax relief, regulatory relief and
overall reflationary efforts is something we continue to believe can extend the business
cycle into 2018 and potentially beyond. U.S. consumer personal balance sheets are still in
reasonably good shape, but there are areas of concern. Student debt and auto loans are
two of the more evident concerns, as each has grown significantly with respect to
disposable income over the past several years.
Market state update
The market state moved back to neutral for the month of April, as global equity volatility
measures no longer presented a favorable stance.
Market states over trailing 12 months:
Performance Review
Global asset markets rose steadily during the first quarter. Strong returns with low volatility
from international equities primarily drove the Columbia Adaptive Risk Allocation Fund’s
positive returns over the time period. Despite positive absolute contributors from nearly
every asset class the fund invests in, the strategy underperformed the fund’s blended
benchmark over the time period. Some of the areas that served as key contributors, as
well as detractors, from results during the quarter are as follows.
First-quarter contributors
 Global equities
 Real estate
 Global inflation-linked bonds
FIRST QUARTER 2017
INVESTMENT COMMENTARY
First-quarter detractors
 U.S. fixed income
Market state classification
The management team employs
quantitative and fundamental
methods to identify four distinct
market environments, described as
neutral, capital preservation, bullish
and highly bullish. The market states
are generally characterized by a
combination of bond and stock
market conditions as follows: capital
preservation (unfavorable bond
market and neutral stock market
conditions), neutral (neutral bond
and stock market conditions), bullish
(neutral bond market and favorable
stock market conditions), and highly
bullish (unfavorable bond market
and favorable stock market
conditions). A strategic risk
allocation is created for each
environment by analyzing multiple
market indicators such as interest
rates, inflation measures, yield
curve, momentum, volatility and
valuations. The different allocations
will include exposure to equity
securities, inflation-hedging assets
and fixed-income securities,
consisting of rate assets (generally,
fixed-income securities issued by
governments) and spread assets
(other fixed-income securities). The
neutral market state represents the
environment that the management
team expects to be in the most
frequently and under normal
circumstances. In this state they
intend to balance risk between
equities and three other risk
sources: interest rates, inflationhedging and spread assets. Within
the other market states, the
management team may increase or
decrease the risk exposure to
certain asset classes with the goal of
generating attractive risk-adjusted
returns and minimizing drawdown in
that environment. Allocations of risk
to asset classes may differ
significantly across market
environments.
 Commodities
Outlook
The market state classification assigned to the portfolios hovered between bullish
(January) and highly bullish (February and March) readings. As we headed into January,
the market state classification associated with the positioning of risk inside the portfolios
had moved to a bullish reading due to positive equity market dynamics. Positive stock
market conditions reflect the following characteristics within global equities: upward
trending momentum, low levels of realized volatility and valuations that are not at
unusually high levels versus their long-term historical averages. In February and March,
the bond market indicators turned negative, which led to a highly bullish reading. Heading
into the second quarter, we’ve seen stock market conditions deteriorate and, as a result,
the portfolios are positioned with less exposure to risk assets than they otherwise were
during the first three months of the year.
We currently recommend a neutral stance on U.S. equities. From a tactical perspective,
we continue to favor non-U.S. equity markets primarily because of more favorable
valuations. We are also witnessing a cyclical upswing in economic activity across different
regions outside the United States.
Consumer confidence in the U.S. has soared to historic high levels since the election of
President Trump, and confidence levels reflect expectations for a business-friendly
political agenda. Therefore, unsuccessful implementation of pro-growth policies would be
disappointing to markets. The global growth outlook appears mostly healthy and stable;
however, a global equity correction cannot be ruled out. If a correction were to occur, we
do not see an outright bear market taking shape over the near term. The latest global
purchasing managers surveys point to above-average economic expansion with signs of
improving momentum in the months ahead. Analysts' consensus for S&P 500 Index
operating earnings have come down over the past few months but still show earnings
growth at a rate of 9.1% (year-over-year earnings growth) for the index. If this growth rate
is realized, it would be the largest year-over-year quarterly rate of growth since the fourth
quarter of 2011 (11.6%). Equity prices have adjusted higher in anticipation of this
improved earnings outlook. Other indicators of global growth are leaning somewhat more
cautious and not corroborating further improvements. For instance, small caps have
recently underperformed large caps and oil has underperformed gold.
Global growth may be poised to move higher for several reasons and the plunge in the
commodity sector that investors experienced during 2014 and 2015 seems to have finally
run its course for this cycle. In fact, in contrast to traditional equities, which in many cases
are close to fresh highs, commodity markets appear to be forming a base at relatively low
levels. Prevailing low commodity prices continue to stimulate demand growth while
investment in future production continues to be restricted, tightening supply. These
dynamics along with improved global growth should help support commodity sector
performance.
Within fixed income, we have a general view that is neutral in scope for taking on interest
rate risk within the portfolios. At the end of 2016, this view was cautious, as inflation
measures were signaling continued pressure on interest rate sensitive assets. However,
while concerns tied to a rising rate environment persist over the medium-to-long term,
over the short-term we feel a more neutral outlook is warranted.
FIRST QUARTER 2017
INVESTMENT COMMENTARY
Investment Risks
Market risk may affect a single issuer,
sector of the economy, industry or the
market as a whole. The Fund’s investment
in other funds subjects it to the investment
performance (positive or negative), risks and
expenses of these underlying funds. Asset
allocation does not assure a profit or protect
against loss. Investing in derivatives is a
specialized activity that involves special risks
that subject the fund to significant loss
potential, including when used as leverage,
and may result in greater fluctuation in fund
value. Commodity investments may be
affected by the overall market and industryand commodity-specific factors, and may be
more volatile and less liquid than other
investments. Short positions (where the
underlying asset is not owned) can create
unlimited risk. International investing
involves certain risks and volatility due to
potential political, economic or currency
instabilities and different financial and
accounting standards. Risks are enhanced
for emerging market issuers. Investment in
or exposure to foreign currencies subjects
the fund to currency fluctuation and risk of
loss. Investments in small- and mid-cap
companies involve risks and volatility greater
than investments in larger, more established
companies. Fixed-income securities present
issuer default risk. A rise in interest rates
may result in a price decline of fixed-income
instruments held by the fund, negatively
impacting its performance and NAV. Falling
rates may result in the fund investing in
lower yielding debt instruments, lowering the
fund’s income and yield. These risks may be
heightened for longer maturity and duration
securities. Interest payments on inflationprotected securities may be more volatile
than interest paid on ordinary bonds. In
periods of deflation, these securities provide
no income. As a non-diversified fund, fewer
investments could have a greater affect on
performance. Investments selected using
quantitative methods may perform differently
from the market as a whole and may not
enable the fund to achieve its objective.
Market or other (e.g., interest rate)
environments may adversely affect the
liquidity of fund investments, negatively
impacting their price. Generally, the less
liquid the market at the time the fund sells a
holding, the greater the risk of loss or decline
of value to the fund.
Investors should consider the investment objectives, risks, charges and expenses of
a mutual fund carefully before investing. For a free prospectus or a summary
prospectus, which contains this and other important information about the funds,
visit investor.columbiathreadneedleus.com. Read the prospectus carefully before
investing.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle
group of companies.
Columbia funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by
Columbia Management Investment Advisers, LLC.
The views expressed are as of the date given, may change as market or other conditions change and may differ from views
expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates. Actual investments or
investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, may not necessarily
reflect the views expressed. This information is not intended to provide investment advice and does not take into
consideration individual investor circumstances. Investment decisions should always be made based on an investor's specific
financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all
investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either.
Since economic and market conditions change frequently, there can be no assurance that the trends described here will
continue or that any forecasts are accurate.
Additional performance information: All results shown assume reinvestment of distributions and do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
1Expense ratios are generally based on the fund's most recently completed fiscal year and are not adjusted for current asset
levels or other changes. In general, expense ratios increase as net assets decrease. See the fund's prospectus for additional
details.
© 2017 Morningstar, Inc. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content
providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither
Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM used to rank the fund
against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return measure that
accounts for variation in a fund's monthly excess performance, without any adjustments for loads (front-end,
deferred, or redemption fees), placing more emphasis on downward variations and rewarding consistent
performance. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative
purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3
stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star (Each share class is counted as a fraction of one
fund within this scale and rated separately, which may cause slight variations in the distribution percentages).
The MSCI All Cap World Index Net captures large, mid, small and micro cap representation across 23 developed markets
countries.
The Bloomberg Barclays Global Aggregate Bond Index is a flagship measure of global investment grade debt from twenty
-four different local currency markets. This multi-currency benchmark includes fixed-rate treasury, government-related,
corporate and securitized bonds from both developed and emerging markets issuers.
The Bloomberg Barclays US Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate
corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+
or below. Bonds from issuers with an emerging markets country of risk, based on Bloomberg Barclays EM country definition,
are excluded.
The MSCI Emerging Markets Index is a U.S. dollar denominated index comprised of stocks of countries with below average
per capita GDP as defined by the World Bank, foreign ownership restrictions, a lax regulatory environment, and greater
perceived market risk than in the developed countries.
The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to
measure the equity market performance of developed markets, excluding the US & Canada.
The S&P 500 Index is an unmanaged list of common stocks which includes 500 large companies.
The Bloomberg Barclays US Treasury Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US
Treasury. Treasury bills are excluded by the maturity constraint, but are part of a separate Short Treasury Index.
The JPMorgan Emerging Market Bond Index Global tracks total returns for traded external debt instruments in the
emerging markets and is an expanded version of the JPMorgan EMBI+. As with the EMBI+, the EMBI Global includes U.S.
dollar-denominated Brady bonds, loans and Eurobonds with an outstanding face value of at least $500 million.
Indices shown are unmanaged and do not reflect the impact of fees. It is not possible to invest directly in an index.