0001352280 2011-03-02 2012-03-01 0001352280 cfst31:S000031342Member 2011-03-02 2012-03-01 2012-03-01 2011-10-31 Columbia Funds Series Trust II 0001352280 false 2013-01-18 2013-01-18 Other <table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="1%"></td> <td width="14%"></td></tr> <tr bgcolor="#000000"> <td valign="bottom" colspan="3" align="center" bgcolor="#000000"> Prospectus Supplement January 18, 2013 to the Prospectuses, as supplemented, of the following fund:</td></tr> <tr> <td height="5"></td> <td height="5" colspan="2"></td></tr> <tr> <td valign="bottom">Fund</td> <td valign="bottom">  </td> <td valign="bottom" align="center">Prospectuses Dated</td></tr><tr bgcolor="#e5e5e5"> <td valign="top">Columbia Emerging Markets Opportunity Fund</td> <td valign="bottom">  </td> <td valign="top" nowrap="nowrap" align="center">3/1/2012</td></tr></table>If the proposed merger of Columbia Emerging Markets Opportunity Fund (the Fund) with and into Columbia Emerging Markets Fund is approved by Fund shareholders at the Joint Special Meeting of Shareholders scheduled to be held on February 27, 2013, effective on or about March 1, 2013, Threadneedle International Limited will no longer serve as the Funds Subadviser and the following changes will hereby be made to the Funds prospectus:   The information following the first paragraph in the sub-section entitled Principal Investment Strategies of the Fund under the section Summary of the Fund is superseded and replaced with the following: The Fund may invest in derivatives, including futures, forwards, options and other derivative instruments. The Fund may invest in derivatives for both hedging and non-hedging purposes, including, for example, to seek to enhance returns or as a substitute for a position in an underlying asset. The Fund may attempt to hedge the effects of currency value fluctuations on the Funds investments. The Fund may invest in special situations such as companies involved in initial public offerings, tender offers, mergers and other corporate restructurings, and in companies involved in management changes or companies developing new technologies. The Fund may invest in securities that Columbia Management Investment Advisers, LLC, the Funds investment adviser (the Investment Manager), believes are undervalued, represent growth opportunities, or both. The Investment Manager combines fundamental and quantitative analysis with risk management in identifying investment opportunities and constructing the Funds portfolio.   The information in the sub-section entitled Principal Risks of Investing in the Fund under the section Summary of the Fund is revised to delete Sector Risk and to include the following: Derivatives Risk/Forward Foreign Currency Contracts Risk. These instruments are a type of derivative contract whereby the Fund may agree to buy or sell a countrys or regions currency at a specific price on a specific date, usually 30, 60, or 90 days in the future. These contracts may fall in value due to foreign market downswings or foreign currency value fluctuations. The Funds investment or hedging strategies may not achieve their objective. Investment in these instruments also subjects the Fund to counterparty risk. Derivatives Risk/Futures Contracts Risk. The loss that may be incurred in entering into futures contracts may exceed the amount of the premium paid and may be potentially unlimited. Futures markets are highly volatile and the use of futures may increase the volatility of the Funds net asset value (NAV). Additionally, as a result of the low collateral deposits normally involved in futures trading, a relatively small price movement in a futures contract may result in substantial losses to the Fund. Futures contracts may be illiquid. Furthermore, exchanges may limit fluctuations in futures contract prices during a trading session by imposing a maximum permissible price movement on each futures contract. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible price movement. Futures contracts executed on foreign exchanges may not provide the same protection as U.S. exchanges. These transactions involve additional risks, including counterparty risk, hedging risk and pricing risk. Derivatives Risk/Options Risk. The Fund may buy and sell call and put options. If the Fund sells a put option, there is a risk that the Fund may be required to buy the underlying asset at a disadvantageous price. If the Fund sells a call option, there is a risk that the Fund may be required to sell the underlying asset at a disadvantageous price, and if the call option sold is not covered (for example, by owning the underlying asset), the Funds losses are potentially unlimited. These transactions involve other risks, including counterparty risk and hedging risk. Foreign Currency Risk. The performance of the Fund may be materially affected positively or negatively 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. Growth Securities Risk. Growth securities typically trade at a higher multiple of earnings than other types of equity securities. Accordingly, the market values of growth securities may be more sensitive to adverse economic or other circumstances or changes in current or expected earnings than the market values of other types of securities. In addition, growth securities, at times, may not perform as well as value securities or the stock market in general, and may be out of favor with investors for varying periods of time. Quantitative Model Risk. Investments selected using quantitative methods may perform differently from the market as a whole. There can be no assurance that these methodologies will enable the Fund to achieve its objective. Special Situations Risk. Securities of companies that are involved in an initial public offering or a major corporate event, such as a business consolidation or restructuring, may present special risk because of the high degree of uncertainty that can be associated with such events. Securities issued in initial public offerings often are issued by companies that are in the early stages of development, have a history of little or no revenues and may operate at a loss following the offering. It is possible that there will be no active trading market for the securities after the offering, and that the market price of the securities may be subject to significant and unpredictable fluctuations. Investing in special situations may have a magnified effect on the performance of funds with small amounts of assets. 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 managers perceived value assessment of that security, or may decline in price, even though the portfolio manager(s) believe 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 managers 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. <table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="1%"></td> <td width="14%"></td></tr> <tr bgcolor="#000000"> <td valign="bottom" colspan="3" align="center" bgcolor="#000000"> Prospectus Supplement January 18, 2013 to the Prospectuses, as supplemented, of the following fund:</td></tr> <tr> <td height="5"></td> <td height="5" colspan="2"></td></tr> <tr> <td valign="bottom">Fund</td> <td valign="bottom">  </td> <td valign="bottom" align="center">Prospectuses Dated</td></tr><tr bgcolor="#e5e5e5"> <td valign="top">Columbia Emerging Markets Opportunity Fund</td> <td valign="bottom">  </td> <td valign="top" nowrap="nowrap" align="center">3/1/2012</td></tr></table>If the proposed merger of Columbia Emerging Markets Opportunity Fund (the Fund) with and into Columbia Emerging Markets Fund is approved by Fund shareholders at the Joint Special Meeting of Shareholders scheduled to be held on February 27, 2013, effective on or about March 1, 2013, Threadneedle International Limited will no longer serve as the Funds Subadviser and the following changes will hereby be made to the Funds prospectus:   The information following the first paragraph in the sub-section entitled Principal Investment Strategies of the Fund under the section Summary of the Fund is superseded and replaced with the following: The Fund may invest in derivatives, including futures, forwards, options and other derivative instruments. The Fund may invest in derivatives for both hedging and non-hedging purposes, including, for example, to seek to enhance returns or as a substitute for a position in an underlying asset. The Fund may attempt to hedge the effects of currency value fluctuations on the Funds investments. The Fund may invest in special situations such as companies involved in initial public offerings, tender offers, mergers and other corporate restructurings, and in companies involved in management changes or companies developing new technologies. The Fund may invest in securities that Columbia Management Investment Advisers, LLC, the Funds investment adviser (the Investment Manager), believes are undervalued, represent growth opportunities, or both. The Investment Manager combines fundamental and quantitative analysis with risk management in identifying investment opportunities and constructing the Funds portfolio.   The information in the sub-section entitled Principal Risks of Investing in the Fund under the section Summary of the Fund is revised to delete Sector Risk and to include the following: Derivatives Risk/Forward Foreign Currency Contracts Risk. These instruments are a type of derivative contract whereby the Fund may agree to buy or sell a countrys or regions currency at a specific price on a specific date, usually 30, 60, or 90 days in the future. These contracts may fall in value due to foreign market downswings or foreign currency value fluctuations. The Funds investment or hedging strategies may not achieve their objective. Investment in these instruments also subjects the Fund to counterparty risk. Derivatives Risk/Futures Contracts Risk. The loss that may be incurred in entering into futures contracts may exceed the amount of the premium paid and may be potentially unlimited. Futures markets are highly volatile and the use of futures may increase the volatility of the Funds net asset value (NAV). Additionally, as a result of the low collateral deposits normally involved in futures trading, a relatively small price movement in a futures contract may result in substantial losses to the Fund. Futures contracts may be illiquid. Furthermore, exchanges may limit fluctuations in futures contract prices during a trading session by imposing a maximum permissible price movement on each futures contract. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible price movement. Futures contracts executed on foreign exchanges may not provide the same protection as U.S. exchanges. These transactions involve additional risks, including counterparty risk, hedging risk and pricing risk. Derivatives Risk/Options Risk. The Fund may buy and sell call and put options. If the Fund sells a put option, there is a risk that the Fund may be required to buy the underlying asset at a disadvantageous price. If the Fund sells a call option, there is a risk that the Fund may be required to sell the underlying asset at a disadvantageous price, and if the call option sold is not covered (for example, by owning the underlying asset), the Funds losses are potentially unlimited. These transactions involve other risks, including counterparty risk and hedging risk. Foreign Currency Risk. The performance of the Fund may be materially affected positively or negatively 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. Growth Securities Risk. Growth securities typically trade at a higher multiple of earnings than other types of equity securities. Accordingly, the market values of growth securities may be more sensitive to adverse economic or other circumstances or changes in current or expected earnings than the market values of other types of securities. In addition, growth securities, at times, may not perform as well as value securities or the stock market in general, and may be out of favor with investors for varying periods of time. Quantitative Model Risk. Investments selected using quantitative methods may perform differently from the market as a whole. There can be no assurance that these methodologies will enable the Fund to achieve its objective. Special Situations Risk. Securities of companies that are involved in an initial public offering or a major corporate event, such as a business consolidation or restructuring, may present special risk because of the high degree of uncertainty that can be associated with such events. Securities issued in initial public offerings often are issued by companies that are in the early stages of development, have a history of little or no revenues and may operate at a loss following the offering. It is possible that there will be no active trading market for the securities after the offering, and that the market price of the securities may be subject to significant and unpredictable fluctuations. Investing in special situations may have a magnified effect on the performance of funds with small amounts of assets. 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 managers perceived value assessment of that security, or may decline in price, even though the portfolio manager(s) believe 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 managers 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.