Mutual Fund Summary Prospectus (497k)
September 27 2013 - 4:41PM
Edgar (US Regulatory)
Summary
Prospectus
October 1, 2013
Columbia
Active Portfolios
®
– Diversified Equity Income Fund
Class
|
|
Ticker
Symbol
|
Class A
Shares
|
|
CDEIX
|
Before you invest, you may want to review the fund’s prospectus, which
contains more information about the fund and its risks. You can find the fund’s prospectus and other information about the fund online at columbiamanagement.com. You can also get this information at no cost by calling 800.345.6611 or by
sending an email to serviceinquiries@columbiamanagement.com. This Summary Prospectus incorporates by reference the fund’s prospectus, dated October 1, 2013 and current Statement of Additional Information.
As with all mutual funds, the Securities and Exchange
Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
Investment Objective
Columbia
Active
Portfolios
®
– Diversified Equity Income Fund (the Fund) seeks to provide shareholders with a high level of current income and, as a secondary objective, steady growth of
capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you
may pay if you buy and hold shares of the Fund.
Shareholder
Fees (fees paid directly from your investment)
|
|
Class
A
|
Maximum
sales charge (load) imposed on purchases (as a % of offering price)
|
None
|
Maximum
Deferred Sales Charge (Load) Imposed on Redemptions (as a % of the lower of the original purchase price or current net asset value)
|
None
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
|
Class
A
|
Management
fees
|
0.65%
|
Distribution
and/or service (12b-1) fees
|
0.25%
|
Other
expenses
(a)
|
0.35%
|
Total
annual Fund operating expenses
|
1.25%
|
Less:
Fee waivers and/or expense reimbursements
(b)
|
(0.17%)
|
Total
annual Fund operating expenses after fee waivers and/or expense reimbursements
|
1.08%
|
(a)
|
Other expenses for Class A
have been restated to reflect contractual changes to certain fees paid by the Fund.
|
(b)
|
Columbia Management
Investment Advisers, LLC and certain of its affiliates have contractually agreed to waive fees and/or to reimburse expenses (excluding certain fees and expenses, such as any transaction costs and certain other investment related expenses, interest,
taxes, acquired fund fees and expenses, and extraordinary expenses) until September 30, 2014, unless sooner terminated at the sole discretion of the Fund’s Board of Trustees. Under this agreement, the Fund’s net operating expenses,
subject to applicable exclusions, will not exceed the annual rates of 1.08% for Class A.
|
The following example is intended
to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example illustrates the hypothetical expenses that you would incur over the time periods indicated, and assumes that:
■
|
you invest $10,000
in the Fund for the periods indicated,
|
■
|
your investment
has a 5% return each year, and
|
■
|
the Fund’s
total annual operating expenses remain the same as shown in the Annual Fund Operating Expenses table above.
|
Since the waivers and/or
reimbursements shown in the Annual Fund Operating Expenses table above expire as indicated in the preceding table, they are only reflected in the 1 year example and the first year of the other examples. Although your actual costs may be higher or
lower, based on the assumptions listed above, your costs would be:
|
1
year
|
3
years
|
5
years
|
10
years
|
Class
A
(whether or not shares are redeemed)
|
$110
|
$380
|
$670
|
$1,496
|
Portfolio Turnover
The Fund may pay transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 55% of the average value of its
portfolio.
Principal Investment Strategies
The Fund’s assets primarily are invested in
equity securities. Under normal market conditions, the Fund will invest at least 80% of its net assets (including the amount of any borrowings for investment purposes) in dividend-paying common and preferred stocks.
The Fund may invest up to 25% of its net assets in
foreign investments. The Fund may from time to time emphasize one or more economic sectors in selecting its investments, including the financial services sector.
1
|
Columbia
Active Portfolios
®
– Diversified Equity Income Fund
|
Principal Risks
An investment in the Fund involves risk, including
those described below.
There is no assurance that the Fund will achieve its investment objective and you may lose money
. The value of the Fund’s holdings may decline, and the Fund’s net asset value
(NAV) and Fund share price may go down.
Active
Management Risk.
Due to its active management, the Fund could underperform its benchmark index and/or other funds with similar investment objectives. The Fund may fail to achieve its investment objective and you may
lose money.
Changing Distribution Level
Risk.
The amount of the distributions paid by the Fund will vary and generally depends on the amount of interest income and/or dividends received by the Fund on the securities it holds. The Fund may not be able to
pay distributions or may have to reduce its distribution level if the interest income and/or dividends the Fund receives from its investments decline.
Foreign Securities Risk.
Investments in foreign securities involve certain risks not associated with investments in securities of U.S. companies. Foreign securities subject the Fund to the risks associated with investing in the particular
country, including the political, regulatory, economic, social, diplomatic and other conditions or events occurring in the country or region, as well as risks associated with less developed custody and settlement practices. Foreign securities may be
more volatile and less liquid than investments in securities of U.S. companies. The performance of the Fund may be negatively impacted by foreign currency strength or weakness relative to the U.S. dollar, particularly if the Fund invests a
significant percentage of its assets in foreign securities or other assets denominated in currencies other than the U.S. dollar.
Issuer Risk.
An
issuer in which the Fund invests may perform poorly, and the value of its securities may therefore decline, which would negatively affect the Fund’s performance. Poor performance may be caused by poor management decisions, competitive
pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters or other events, conditions or factors.
Market Risk.
Market
risk refers to the possibility that the market values of securities or other investments that the Fund holds will fall, sometimes rapidly or unpredictably, or fail to rise. An investment in the Fund could lose money over short or even long
periods. In general, equity securities tend to have greater price volatility than debt securities.
Preferred Stock
Risk.
Preferred stock is a type of stock that generally pays dividends at a specified rate and that has preference over common stock in the payment of dividends and the liquidation of assets. Preferred stock does
not ordinarily carry voting rights. The price of a preferred stock is generally determined by earnings, type of products or services, projected growth rates, experience of management, liquidity, and general market conditions of the markets on which
the stock trades. The most significant risks associated with investments in preferred stock include Issuer Risk, Market Risk and Interest Rate Risk (i.e., the risk of losses attributable to changes in interest rates).
Sector Risk.
At
times, the Fund may have a significant portion of its assets invested in securities of companies conducting business in a related group of industries within an economic sector, including the financial services sector. Companies in the same
economic sector may be similarly affected by economic, regulatory, political or market events or conditions, making the Fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. The more a
fund diversifies its investments, the more it spreads risk and potentially reduces the risks of loss and volatility.
Because the Fund’s portfolio managers may
invest significantly in the financial services sector, the Fund may be more susceptible to the particular risks of the financial services sector than if the Fund were invested in a wider variety of companies in unrelated industries.
Value Securities Risk.
Value securities are securities of companies that may have experienced, for example, adverse business, industry or other developments or may be subject to special risks that have caused the securities to be out of favor
and, in turn, potentially undervalued. The market value of a portfolio security may not meet the portfolio manager's perceived value assessment of that security, or may decline in price, even though the portfolio manager(s) believe(s) the securities
are already undervalued. There is also a risk that it may take longer than expected for the value of these investments to rise to the portfolio manager’s perceived value. In addition, value securities, at times, may not perform as well as
growth securities or the stock market in general, and may be out of favor with investors for varying periods of time.
Performance Information
The Fund has not had a full calendar year of
operations as of the date of this prospectus and therefore performance information is not available.
When available, the Fund intends to compare its
performance to the performance of the Russell 1000 Value Index, which is an unmanaged index that measures the performance of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values.
Updated performance information can be obtained by
calling toll-free 800.345.6611 or visiting columbiamanagement.com.
Columbia
Active Portfolios
®
– Diversified Equity Income Fund
|
2
|
Fund Management
Investment Manager:
Columbia Management Investment Advisers, LLC
Portfolio
Manager
|
|
Title
|
|
Role
with Fund
|
|
Managed
Fund Since
|
Steven
Schroll, CFA
|
|
Portfolio
Manager
|
|
Co-manager
|
|
2012
|
Paul
Stocking, CFA
|
|
Portfolio
Manager
|
|
Co-manager
|
|
2012
|
Dean
Ramos, CFA
|
|
Portfolio
Manager
|
|
Co-manager
|
|
March
2013
|
Purchase and Sale of Fund
Shares
Class A shares of the Fund are
available only to certain eligible investors through certain wrap fee programs sponsored and/or managed by Ameriprise Financial, Inc. or its affiliates. Fund shares are sold in accordance with the terms of the account through which you invested in
the Fund and redeemed in accordance with the terms of the Fund’s prospectus. There is a $500 minimum initial investment and no minimum additional investment.
Tax Information
The Fund normally distributes net investment income
and net realized capital gains, if any, to shareholders. These distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-advantaged account, such as a 401(k) plan or an IRA. If you are
investing through a tax-advantaged account, you may be taxed upon withdrawals from that account.
Payments to Broker-Dealers and Other Financial
Intermediaries
If you purchase the Fund
through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies — including Columbia Management Investment Advisers, LLC (the Investment Manager), Columbia Management Investment Distributors, Inc.
(the Distributor) and Columbia Management Investment Services Corp. (the Transfer Agent) — may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your financial advisor to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
225 Franklin Street,
Boston, MA 02110
800.345.6611 columbiamanagement.com
© 2013 Columbia
Management Investment Distributors, Inc.
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SUM116_05_C01_(10/13)
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