Download Columbia Limited Duration Credit Fund

Q1 | MARCH 31, 2017
COLUMBIA LIMITED DURATION CREDIT FUND
A transparent approach
Focus on sound fundamentals
Research-driven investment process
The fund invests at least 80% of its net assets in
corporate bonds, primarily in debt securities with shortand intermediate-term maturities. The fund may invest
up to 15% of its net assets in securities rated belowinvestment-grade (i.e., junk bonds).
We prefer to invest in bonds issued by asset-rich
corporations with strong cash-flow-generating
capabilities and transparent business models in noncyclical industries.
Our investment approach is driven by rigorous and
independent bottom-up credit research with a constant
focus on downside risk management intended to enable
strong risk-adjusted returns.
Class A ALDAX | Class C RDCLX | Class R4 CDLRX | Class R5 CTLRX | Class Y CLDYX | Class Z CLDZX
Overall Morningstar Rating
★★★★
Class A
Average Annual Total Returns (%)
★★★★
Class Z
The Morningstar rating is for the indicated share classes
only as of 03/31/17; other classes may have different
performance characteristics. Among 444 Short-Term
Bond funds.
Morningstar Rankings
Category: Short-Term Bond
1-year
3-year
5-year
10-year
Share classes
A
Z
7
5
26
14
15
9
16
9
Expense Ratio*
Class A
Class C
Class R4
Class R5
Class Y
Class Z
Gross
0.88
1.63
0.63
0.52
0.47
0.63
Net
0.80
1.55
0.55
0.52
0.47
0.55
30-day SEC Yield (%)
30-day SEC yield (%)
Unsubsidized
Inception Date
1-year
3-year
5-year
10-year
Since Inception
Class A
06/19/03
4.77
1.46
1.98
3.25
3.07
Class C
06/19/03
4.11
0.75
1.24
2.48
2.30
Class Z
09/27/10
Without sales charges
5.15
1.76
2.25
3.42
3.20
Bloomberg Barclays U.S. 1-5 Year
Corporate Index
2.05
2.10
2.46
3.99
—
Morningstar category: Short-Term
Bond
1.66
1.06
1.29
2.41
—
Class A
1.68
0.43
1.36
2.94
2.84
Class C
3.11
0.75
1.24
2.48
2.30
1
With sales charge
Calendar-Year Total Returns (%)
7
6
5
4
3
2
1
0
-1
-2
YTD
2016
2015
Calendar-Year Total Returns (%)
Class A
1.45
1.44
Class Z
1.83
1.76
2014
YTD
2013
2016
2015
2012
2014
2013
2012
Class A NAV
0.66
6.19
-1.78
0.41
1.20
5.77
Bloomberg Barclays U.S. 1-5 Year Corporate Index
0.94
2.87
1.24
2.08
1.52
6.17
Morningstar category: Short-Term Bond
0.62
2.08
0.19
1.07
0.45
3.67
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. With
sales charge performance is calculated with maximum sales charge of 3.00% for the A share and 1.00% CDSC for the C share. Please visit columbiathreadneedle.com/us
for performance data current to the most recent month end. Class R4, R5, Y and 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.
The returns shown for periods prior to the share class inception date (including returns since inception, which are since fund inception) include the returns of the fund’s oldest share class. These
returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. For more information please visit: www.columbiathreadneedle.com/us/
investment-products/mutual-funds/appended-performance.
* The fund’s expense ratio is from the most recent prospectus. The investment manager and certain of its affiliates have contractually (for at least twelve months after the date of the fund prospectus)
agreed to waive certain fees and/or to reimburse certain expenses of the fund.
1
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 www.columbiathreadneedle.com/us. Read the prospectus carefully before investing.
Not FDIC insured • No bank guarantee • May lose value
Columbia Management Investment Distributors, Inc.
225 Franklin Street, Boston, MA 02110 800.426.3750 | www.columbiathreadneedle.com/us
Q1 | MARCH 31, 2017
COLUMBIA LIMITED DURATION CREDIT FUND
Fund Information
Top Industries (% net assets)
䊱
Fund inception
Fiscal year end
Total net assets (all classes, $m)
Number of Holdings
Turnover Rate (1-year, %)
Average effective duration (years)
Average maturity (years)
Risk: 3 Years
06/19/03
07/31/17
746
90
49
2.35
3.36
䊱
Sharpe ratio
Beta
R-squared
Standard deviation
Standard deviation, Bloomberg Barclays U.S. 1-5 Year Corporate Index
0.70
1.24
0.35
3.08
1.48
Asset Allocation (% net assets)〫
Domestic Bonds
Foreign Bonds
Cash and Cash Equivalents
77.5
13.6
8.9
Investment Objective
The fund seeks to provide shareholders with a level of current income consistent with
preservation of capital.
Portfolio Management
Tom Murphy, CFA
Timothy Doubek, CFA
Royce Wilson, CFA
†
30 years of experience
29 years of experience
14 years of experience
Portfolio Weight
Bloomberg Barclays U.S. 1-5 Year Corporate Index
Food And Beverage
Electric
Midstream
Cash
Life
Treasuries
Pharmaceuticals
P&C
Media Entertainment
Aerospace/Defense
20.2
18.1
10.7
8.9
5.4
5.3
5.2
4.4
3.5
2.5
Credit Rating (% net assets)†
Treasury
AA
A
BBB
Cash and Cash Equivalents
5.3
0.6
9.4
75.7
8.9
Top Issues (% of net assets)
Treasury Note 1.000 11/15/2019
TIAA Asset Management Finance Co 2.950 11/01/2019
TransAlta Corp 1.900 06/03/2017
Progress Energy Inc 3.150 04/01/2022
Wm Wrigley Jr 2.400 10/21/2018
3.9
2.5
2.5
2.3
2.1
Percentages may not add up to 100 due to rounding.
〫
Foreign Bonds are all U.S. dollar-denominated.
䊱
Beta measures a fund’s risk relative to its benchmark. A beta of 1.00 indicates that the fund is as
volatile as its benchmark. R-squared ranges from 0.00 to 1.00 and tells what percentage of an
investment’s movements is explained by movements in its benchmark index. Sharpe ratio divides
an investment’s return in excess of the 90-day Treasury bill by the investment’s standard deviation
to measure risk-adjusted performance. Standard deviation is a statistical measure of the degree
to which an individual value in a probability distribution tends to vary from the mean of the distribution.
Duration measures the sensitivity of bond prices to changes in interest rates. Bonds with a higher
duration experience greater price volatility from interest rate movements.
Investment risks — Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. 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. Non-investment-grade securities (high-yield or junk bonds) are volatile and carry more risk to principal and income than
investment-grade securities. Prepayment and extension risk exists because a loan, bond or other investment may be called, prepaid or redeemed before maturity and similar yielding investments may not be
available for purchase. As a non-diversified fund, fewer investments could have a greater effect on performance. Foreign investments subject the fund to risks, including political, economic, market, social and
others within a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. Risks are enhanced for emerging market issuers.
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. 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.
Bond ratings are divided into categories ranging from AAA (highest) to D (lowest) and are subject to change. The ratings shown are determined by using the middle rating of Moody’s, S&P and Fitch, each a
third-party rating agency, after dropping the highest and lowest available ratings. When a rating from only two agencies is available, the lower rating is used. When a rating from only one agency is available,
that rating is used. When a bond is not rated by one of these agencies, it is designated as Not Rated. Securities designated as Not Rated do not necessarily indicate low credit quality, and for such securities
the investment adviser evaluates the credit quality. Holdings of the portfolio other than bonds are categorized under Other. Credit ratings are subjective opinions of the credit rating agency and not statements
of fact and may become stale or subject to change.
The 30-day SEC Yield: is an estimate of the fund’s rate of investment income reflecting an estimated yield to maturity (assuming all current portfolio holdings are held to maturity), and it may not equal the fund’s
actual income distribution rate or the income paid to a shareholder’s account. The yield shown reflects fee waivers in effect, if any. In the absence of such waivers, yields would be reduced. The yield will reflect an
inflation adjustment that is attributable to any inflation-protected securities owned by the fund. This adjustment and the resulting yield can be positive (in the case of inflation) or negative (in the case of deflation).
The unsubsidized 30-day SEC Yield: is the SEC yield adjusted to reflect the gross expense ratio applicable to the share class shown and without regard to the contractual reimbursements and fee waivers required
of the fund’s investment manager and affiliates. The 30-day SEC yields may appear to be the same due to rounding.
©2017 Morningstar, Inc. All rights reserved. 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.
Morningstar Percentile Rankings are based on the average annual total returns of the funds in the category for the periods stated. They do not include sales charges or redemption fees but
do include operating expenses and the reinvestment of dividends and capital gains distributions. The highest (most favorable) percentile rank is 1 and the lowest (least favorable) percentile
rank is 100. Share class rankings vary due to different expenses. If sales charges or redemption fees were included, total returns would be lower. For the one-, three-, five- and ten-year
periods there are 516, 444, 359 and 257 Short-Term Bond funds, respectively. 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 Morningstar ratings for the overall-, three-, five- and ten-year periods for the A-share are 4 stars, 4 stars, 4 stars, and 4 stars and for the
Z-share are 4 stars, 4 stars, 4 stars, and 4 stars among 444, 444, 359 and 257 Short-Term Bond funds, respectively, and are based on a Morningstar Risk-Adjusted Return measure. The
Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.
This Bloomberg Barclays U.S. 1-5 Year Corporate Index includes U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities issued by industrial, utility, and financial companies, with maturities
between 1 and 5 years. It is not possible to invest directly in an index.
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. Top holdings include cash but exclude short-term holdings, if applicable.
Returns 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.
Not all products and share classes are available through all firms.
Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
FST32064 Y 1Q17
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.