N-CSRS 1 d520553dncsrs.htm COLUMBIA FUNDS SERIES TRUST II Columbia Funds Series Trust II
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21852

 

 

Columbia Funds Series Trust II

(Exact name of registrant as specified in charter)

 

 

225 Franklin Street

Boston, Massachusetts 02110

(Address of principal executive offices) (Zip code)

 

 

Ryan Larrenaga

c/o Columbia Management Investment Advisers, LLC

225 Franklin Street

Boston, MA 02110

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (800) 345-6611

Date of fiscal year end: May 31

Date of reporting period: November 30, 2017

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 


Table of Contents

Item 1. Reports to Stockholders.


Table of Contents
SemiAnnual Report
November 30, 2017
Columbia Dividend Opportunity Fund
Not FDIC Insured • No bank guarantee • May lose value


Table of Contents
President’s Message
Dear Shareholders,
The current outlook for financial markets is clouded by two primary concerns: the high valuation of equities and the direction of interest rates. Following the U.S. presidential election, U.S. equities rallied based on the assumption that the new administration’s policies would stimulate growth quickly. Unfortunately it’s unclear whether those measures will get passed, much less passed quickly. In fixed income, uncertainty stems from the possibility that interest rates won’t rise as rapidly as expected if the administration’s proposed growth policies are not implemented.
Given this uncertainty, investors value a consistent approach more than ever. Investors want strong, repeatable risk-adjusted returns. Consistency — not surprises. As a leading global asset manager, we believe our consistent, collaborative investment approach enables us to deliver the dependable experience your portfolio demands. So, how do we strive to deliver a consistent investment experience?
Better insights
Your portfolio benefits from the investment insights uncovered by our talented investment teams around the world.
Better decisions
Our collaborative, interactive environment enables our investment teams to construct portfolios that take advantage of the best investment ideas.
Better outcomes
We aim to deliver a consistent experience, which means fewer surprises, dependable insights, and products designed to do the thing you want.
Whether you’re trying to save money to help your children go to college or for your own retirement, it’s the consistency of the return that is most essential. People who chase higher returns are usually also the first to sell when that investment goes through a bad patch. We try to combat this behavioral tendency by offering strategies that aim for a more consistent return. Our goal is for investors to panic less during periods of volatility, which can have a significant effect on their long-term results.
Nothing is more important to us than making sure those who have entrusted us to protect and grow their assets can do what matters most to them: build a nest egg, leave a legacy, and live confidently — now and throughout retirement. It’s why our talented professionals around the world work together to uncover uncommon opportunities and why our process encourages challenge and debate around our most compelling ideas to ensure better informed investment decisions, which hopefully lead to better outcomes for you.
Your success is our priority. Talk to your financial advisor about how working with Columbia Threadneedle Investments may help you position your portfolio for consistent, sustainable outcomes, no matter the market conditions.
Sincerely,
Christopher O. Petersen
President, Columbia Funds
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus and summary prospectus, which contains this and other important information about a fund, visit investor.columbiathreadneedleus.com. The prospectus should be read carefully before investing.
Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2018 Columbia Management Investment Advisers, LLC. All rights reserved.
Columbia Dividend Opportunity Fund   |  Semiannual Report 2017


Table of Contents


Table of Contents
Fund at a Glance
(Unaudited)
Investment objective
Columbia Dividend Opportunity Fund (the Fund) seeks to provide shareholders with a high level of current income. The Fund’s secondary objective is growth of income and capital.
Portfolio management
Steve Schroll
Co-portfolio manager
Managed Fund since 2004
Paul Stocking
Co-portfolio manager
Managed Fund since 2006
Dean Ramos, CFA
Co-portfolio manager
Managed Fund since 2013
Morningstar style boxTM
The Morningstar Style Box is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2018 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.
Average annual total returns (%) (for the period ended November 30, 2017)
    Inception 6 Months
cumulative
1 Year 5 Years 10 Years
Class A Excluding sales charges 08/01/88 6.56 15.64 11.63 6.89
  Including sales charges   0.39 8.98 10.32 6.27
Advisor Class* 11/08/12 6.68 15.88 11.91 7.02
Class C Excluding sales charges 06/26/00 6.09 14.77 10.77 6.08
  Including sales charges   5.09 13.77 10.77 6.08
Institutional Class* 09/27/10 6.66 15.85 11.89 7.08
Institutional 2 Class* 08/01/08 6.68 16.02 12.01 7.26
Institutional 3 Class* 11/08/12 6.82 16.08 12.05 7.11
Class K 03/20/95 6.56 15.63 11.74 7.04
Class R* 08/01/08 6.43 15.37 11.34 6.61
Class T Excluding sales charges 12/01/06 6.55 15.73 11.62 6.87
  Including sales charges   3.93 12.83 11.07 6.61
MSCI USA High Dividend Yield Index USD (Net)   9.13 19.57 14.21 8.41
Russell 1000 Value Index   8.79 14.83 14.17 6.84
Returns for Class A are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C are shown with and without the 1.00% contingent deferred sales charge for the first year only. The returns for Class T shares are shown with and without the maximum initial sales charge of 2.50% per transaction. The Fund’s other classes are not subject to sales charges and have limited eligibility. Effective November 1, 2017, Class R4, Class R5, Class Y and Class Z shares were renamed Advisor Class, Institutional 2 Class, Institutional 3 Class and Institutional Class shares, respectively. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.345.6611.
*The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, 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. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The MSCI USA High Dividend Yield Index USD (Net) is composed of those securities in the MSCI USA Index that have higher-than-average dividend yield (e.g. 30% higher than that of the MSCI USA Index), a track record of consistent dividend payments and the capacity to sustain future dividend payments. The MSCI USA Index is a free float adjusted market capitalization index that is designed to measure large- and mid-cap U.S. equity market performance.
The Russell 1000 Value Index, an unmanaged index, measures the performance of those stocks in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes (except the MSCI USA High Dividend Yield Index USD (Net), which reflects reinvested dividends net of withholding taxes) or other expenses of investing. Securities in the Fund may not match those in an index.
2 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Fund at a Glance   (continued)
(Unaudited)
Top 10 holdings (%) (at November 30, 2017)
Philip Morris International, Inc. 6.1
Cisco Systems, Inc. 4.7
AT&T, Inc. 4.6
Intel Corp. 4.5
Chevron Corp. 3.6
Pfizer, Inc. 3.1
Imperial Brands PLC 3.0
DowDuPont, Inc. 2.9
Microsoft Corp. 2.9
Altria Group, Inc. 2.6
Percentages indicated are based upon total investments (excluding Money Market Funds).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments.”
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.
Portfolio breakdown (%) (at November 30, 2017)
Common Stocks 98.1
Convertible Preferred Stocks 1.0
Equity-Linked Notes 0.4
Money Market Funds 0.5
Total 100.0
Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
Equity sector breakdown (%) (at November 30, 2017)
Consumer Discretionary 7.6
Consumer Staples 12.9
Energy 14.8
Financials 9.5
Health Care 8.2
Industrials 4.7
Information Technology 15.3
Materials 6.9
Telecommunication Services 9.2
Utilities 10.9
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
3


Table of Contents
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
June 1, 2017 — November 30, 2017
  Account value at the
beginning of the
period ($)
Account value at the
end of the
period ($)
Expenses paid during
the period ($)
Fund’s annualized
expense ratio (%)
  Actual Hypothetical Actual Hypothetical Actual Hypothetical Actual
Class A 1,000.00 1,000.00 1,065.60 1,020.10 5.13 5.01 0.99
Advisor Class (formerly Class R4) 1,000.00 1,000.00 1,066.80 1,021.36 3.83 3.75 0.74
Class C 1,000.00 1,000.00 1,060.90 1,016.34 8.99 8.80 1.74
Institutional Class (formerly Class Z) 1,000.00 1,000.00 1,066.60 1,021.36 3.83 3.75 0.74
Institutional 2 Class (formerly Class R5) 1,000.00 1,000.00 1,066.80 1,021.66 3.52 3.45 0.68
Institutional 3 Class (formerly Class Y) 1,000.00 1,000.00 1,068.20 1,021.86 3.32 3.24 0.64
Class K 1,000.00 1,000.00 1,065.60 1,020.36 4.87 4.76 0.94
Class R 1,000.00 1,000.00 1,064.30 1,018.85 6.42 6.28 1.24
Class T 1,000.00 1,000.00 1,065.50 1,020.16 5.07 4.96 0.98
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
4 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Portfolio of Investments
November 30, 2017 (Unaudited)
(Percentages represent value of investments compared to net assets)
Common Stocks 97.7%
Issuer Shares Value ($)
Consumer Discretionary 7.5%
Automobiles 1.1%
Ford Motor Co. 3,100,117 38,813,465
Hotels, Restaurants & Leisure 1.4%
Las Vegas Sands Corp. 766,076 53,081,406
Household Durables 1.1%
Whirlpool Corp. 251,284 42,358,944
Multiline Retail 3.9%
Kohl’s Corp. 1,095,792 52,565,142
Nordstrom, Inc. 453,225 20,599,076
Target Corp. 1,247,180 74,706,082
Total   147,870,300
Total Consumer Discretionary 282,124,115
Consumer Staples 12.7%
Household Products 1.2%
Procter & Gamble Co. (The) 506,554 45,584,794
Tobacco 11.5%
Altria Group, Inc. 1,434,275 97,286,873
Imperial Brands PLC 2,669,181 110,622,364
Philip Morris International, Inc. 2,205,252 226,589,643
Total   434,498,880
Total Consumer Staples 480,083,674
Energy 14.6%
Energy Equipment & Services 0.5%
Baker Hughes, Inc. 703,292 20,908,871
Oil, Gas & Consumable Fuels 14.1%
BP PLC, ADR 2,416,416 96,825,789
Chevron Corp. 1,145,636 136,319,228
Enbridge, Inc. 289,012 10,898,643
ENI SpA 1,262,754 20,756,323
Exxon Mobil Corp. 221,973 18,488,131
Occidental Petroleum Corp. 1,147,040 80,866,320
Royal Dutch Shell PLC, Class A 2,696,010 85,956,452
Total SA 1,083,464 61,133,131
Valero Energy Corp. 239,389 20,496,486
Total   531,740,503
Total Energy 552,649,374
Common Stocks (continued)
Issuer Shares Value ($)
Financials 9.4%
Banks 5.3%
Bank of America Corp. 1,817,593 51,201,595
Citigroup, Inc. 355,011 26,803,330
Enbridge Energy Management LLC(a) 1 16
JPMorgan Chase & Co. 692,105 72,338,815
SunTrust Banks, Inc. 186,053 11,466,446
Wells Fargo & Co. 669,016 37,779,334
Total   199,589,536
Capital Markets 1.6%
BlackRock, Inc. 39,374 19,733,855
Morgan Stanley 821,623 42,403,963
Total   62,137,818
Insurance 2.5%
Arthur J Gallagher & Co. 239,570 15,770,893
Prudential Financial, Inc. 668,925 77,488,272
Total   93,259,165
Total Financials 354,986,519
Health Care 7.7%
Biotechnology 1.5%
AbbVie, Inc. 583,872 56,588,874
Pharmaceuticals 6.2%
Johnson & Johnson 425,413 59,272,793
Merck & Co., Inc. 1,013,081 55,992,987
Pfizer, Inc. 3,239,584 117,467,316
Total   232,733,096
Total Health Care 289,321,970
Industrials 4.7%
Aerospace & Defense 1.0%
BAE Systems PLC 2,379,420 17,762,965
Lockheed Martin Corp. 57,978 18,501,940
Total   36,264,905
Airlines 1.0%
American Airlines Group, Inc. 419,870 21,199,236
Delta Air Lines, Inc. 297,281 15,732,111
Total   36,931,347
 
 
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
5


Table of Contents
Portfolio of Investments  (continued)
November 30, 2017 (Unaudited)
Common Stocks (continued)
Issuer Shares Value ($)
Industrial Conglomerates 0.7%
Siemens AG, Registered Shares 206,175 28,024,644
Machinery 0.5%
Ingersoll-Rand PLC 221,480 19,406,077
Road & Rail 1.5%
Union Pacific Corp. 443,196 56,064,294
Total Industrials 176,691,267
Information Technology 15.1%
Communications Equipment 5.5%
Cisco Systems, Inc. 4,727,610 176,339,853
Nokia OYJ 6,142,960 30,825,937
Total   207,165,790
IT Services 1.0%
International Business Machines Corp. 246,787 37,997,795
Semiconductors & Semiconductor Equipment 5.8%
Intel Corp. 3,753,642 168,313,307
QUALCOMM, Inc. 734,300 48,713,462
Total   217,026,769
Software 2.8%
Microsoft Corp. 1,268,287 106,751,717
Total Information Technology 568,942,071
Materials 6.8%
Chemicals 4.5%
Agrium, Inc. 176,755 19,432,445
DowDuPont, Inc. 1,529,803 110,084,624
Eastman Chemical Co. 180,339 16,657,913
LyondellBasell Industries NV, Class A 215,399 22,552,275
Total   168,727,257
Containers & Packaging 2.3%
Graphic Packaging Holding Co. 974,336 14,917,084
International Paper Co. 586,008 33,173,913
WestRock Co. 635,814 39,681,152
Total   87,772,149
Total Materials 256,499,406
Common Stocks (continued)
Issuer Shares Value ($)
Telecommunication Services 9.0%
Diversified Telecommunication Services 7.7%
AT&T, Inc. 4,715,324 171,543,487
BCE, Inc. 778,517 37,220,898
CenturyLink, Inc. 1,112,777 16,235,417
Orange SA 1,625,256 28,010,982
Verizon Communications, Inc. 725,776 36,934,741
Total   289,945,525
Wireless Telecommunication Services 1.3%
Vodafone Group PLC 3,645,849 11,059,442
Vodafone Group PLC, ADR 1,309,574 40,308,688
Total   51,368,130
Total Telecommunication Services 341,313,655
Utilities 10.2%
Electric Utilities 7.6%
American Electric Power Co., Inc. 625,531 48,559,972
Duke Energy Corp. 711,780 63,476,540
Entergy Corp. 390,293 33,752,539
Exelon Corp. 935,424 39,016,535
PPL Corp. 1,181,018 43,307,930
Xcel Energy, Inc. 1,185,772 61,197,693
Total   289,311,209
Multi-Utilities 2.6%
Ameren Corp. 640,251 40,950,454
DTE Energy Co. 249,548 28,840,262
Veolia Environnement SA 1,112,525 28,145,495
Total   97,936,211
Total Utilities 387,247,420
Total Common Stocks
(Cost $2,966,264,145)
3,689,859,471
    
Convertible Preferred Stocks 1.0%
Issuer Coupon
Rate
Shares Value ($)
Health Care 0.5%
Health Care Equipment & Supplies 0.5%
Becton Dickinson and Co. 6.125% 297,302 18,040,285
Total Health Care 18,040,285
 
 
The accompanying Notes to Financial Statements are an integral part of this statement.
6 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Portfolio of Investments  (continued)
November 30, 2017 (Unaudited)
Convertible Preferred Stocks (continued)
Issuer Coupon
Rate
Shares Value ($)
Utilities 0.5%
Electric Utilities 0.5%
NextEra Energy, Inc. 6.123% 343,587 19,378,307
Total Utilities 19,378,307
Total Convertible Preferred Stocks
(Cost $36,205,680)
37,418,592
Equity-Linked Notes 0.4%
Credit Suisse AG(b)
(linked to common stock of Graphic Packaging Holding Co.)
01/16/2018 10.100% 1,168,935 17,533,211
Total Equity-Linked Notes
(Cost $16,575,498)
17,533,211
Money Market Funds 0.5%
  Shares Value ($)
Columbia Short-Term Cash Fund, 1.213%(c),(d) 17,709,035 17,709,035
Total Money Market Funds
(Cost $17,709,035)
17,709,035
Total Investments
(Cost: $3,036,754,358)
3,762,520,309
Other Assets & Liabilities, Net   13,689,385
Net Assets 3,776,209,694
 
 
Notes to Portfolio of Investments
(a) Non-income producing investment.
(b) Represents privately placed and other securities and instruments exempt from SEC registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At November 30, 2017, the value of these securities amounted to $17,533,211, which represents 0.46% of net assets.
(c) The rate shown is the seven-day current annualized yield at November 30, 2017.
(d) As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended November 30, 2017 are as follows:
    
Issuer Beginning
shares
Shares
purchased
Shares
sold
Ending
shares
Realized gain
(loss) —
affiliated
issuers ($)
Net change in
unrealized
appreciation
(depreciation) —
affiliated
issuers ($)
Dividends —
affiliated
issuers($)
Value —
affiliated
issuers
at end of
period ($)
Columbia Short-Term Cash Fund, 1.213% 33,594,214 719,446,490 (735,331,669) 17,709,035 (922) (86) 250,001 17,709,035
Abbreviation Legend
ADR American Depositary Receipt
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
¦ Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
¦ Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
¦ Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
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Table of Contents
Portfolio of Investments  (continued)
November 30, 2017 (Unaudited)
Fair value measurements  (continued)
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Foreign equity securities actively traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange are classified as Level 2. The values of these securities may include an adjustment to reflect the impact of significant market movements following the close of local trading, as described in Note 2 to the financial statements – Security valuation.
Certain investments that have been measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Short-Term Cash Fund seeks to provide shareholders with maximum current income consistent with liquidity and stability of principal. Columbia Short-Term Cash Fund prices its shares with a floating NAV and no longer seeks to maintain a stable NAV.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.
The following table is a summary of the inputs used to value the Fund’s investments at November 30, 2017:
  Level 1
quoted prices
in active
markets for
identical
assets ($)
Level 2
other
significant
observable
inputs ($)
Level 3
significant
unobservable
inputs ($)
Investments
measured at
net asset
value ($)
Total ($)
Investments          
Common Stocks          
Consumer Discretionary 282,124,115 282,124,115
Consumer Staples 369,461,310 110,622,364 480,083,674
Energy 384,803,468 167,845,906 552,649,374
Financials 354,986,503 16 354,986,519
Health Care 289,321,970 289,321,970
Industrials 130,903,658 45,787,609 176,691,267
Information Technology 538,116,134 30,825,937 568,942,071
Materials 256,499,406 256,499,406
The accompanying Notes to Financial Statements are an integral part of this statement.
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Table of Contents
Portfolio of Investments  (continued)
November 30, 2017 (Unaudited)
Fair value measurements  (continued)
  Level 1
quoted prices
in active
markets for
identical
assets ($)
Level 2
other
significant
observable
inputs ($)
Level 3
significant
unobservable
inputs ($)
Investments
measured at
net asset
value ($)
Total ($)
Telecommunication Services 302,243,231 39,070,424 341,313,655
Utilities 359,101,925 28,145,495 387,247,420
Total Common Stocks 3,267,561,720 422,297,751 3,689,859,471
Convertible Preferred Stocks          
Health Care 18,040,285 18,040,285
Utilities 19,378,307 19,378,307
Total Convertible Preferred Stocks 37,418,592 37,418,592
Equity-Linked Notes 17,533,211 17,533,211
Money Market Funds 17,709,035 17,709,035
Total Investments 3,304,980,312 439,830,962 17,709,035 3,762,520,309
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets. These assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation. The model utilized by such third party statistical pricing service takes into account a security’s correlation to available market data including, but not limited to, intraday index, ADR, and exchange-traded fund movements.
There were no transfers of financial assets between levels during the period.
The accompanying Notes to Financial Statements are an integral part of this statement.
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9


Table of Contents
Statement of Assets and Liabilities
November 30, 2017 (Unaudited)
Assets  
Investments in unaffiliated issuers, at cost $3,019,045,323
Investments in affiliated issuers, at cost 17,709,035
Investments in unaffiliated issuers, at value 3,744,811,274
Investments in affiliated issuers, at value 17,709,035
Cash 51
Receivable for:  
Capital shares sold 1,614,172
Dividends 18,326,616
Interest 65,105
Foreign tax reclaims 1,714,725
Prepaid expenses 10,981
Other assets 31,049
Total assets 3,784,283,008
Liabilities  
Payable for:  
Capital shares purchased 7,176,469
Management services fees 62,531
Distribution and/or service fees 23,408
Transfer agent fees 432,675
Plan administration fees 886
Compensation of board members 233,736
Compensation of chief compliance officer 452
Other expenses 143,157
Total liabilities 8,073,314
Net assets applicable to outstanding capital stock $3,776,209,694
Represented by  
Paid in capital 2,755,659,058
Undistributed net investment income 35,004,170
Accumulated net realized gain 259,632,943
Unrealized appreciation (depreciation) on:  
Investments - unaffiliated issuers 725,765,951
Foreign currency translations 147,572
Total - representing net assets applicable to outstanding capital stock $3,776,209,694
The accompanying Notes to Financial Statements are an integral part of this statement.
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Table of Contents
Statement of Assets and Liabilities  (continued)
November 30, 2017 (Unaudited)
Class A  
Net assets $1,868,211,559
Shares outstanding 179,828,451
Net asset value per share $10.39
Maximum offering price per share(a) $11.02
Advisor Class(b)  
Net assets $114,481,282
Shares outstanding 10,839,574
Net asset value per share $10.56
Class C  
Net assets $366,736,301
Shares outstanding 36,050,377
Net asset value per share $10.17
Institutional Class(c)  
Net assets $978,398,239
Shares outstanding 93,771,705
Net asset value per share $10.43
Institutional 2 Class(d)  
Net assets $233,717,496
Shares outstanding 22,361,964
Net asset value per share $10.45
Institutional 3 Class(e)  
Net assets $163,557,778
Shares outstanding 15,450,658
Net asset value per share $10.59
Class K  
Net assets $4,321,986
Shares outstanding 413,911
Net asset value per share $10.44
Class R  
Net assets $46,731,538
Shares outstanding 4,501,909
Net asset value per share $10.38
Class T  
Net assets $53,515
Shares outstanding 5,142
Net asset value per share $10.41
Maximum offering price per share(f) $10.68
    
(a) The maximum offering price per share is calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge of 5.75% for Class A shares.
(b) Prior to November 1, 2017, Advisor Class shares were known as Class R4 shares.
(c) Prior to November 1, 2017, Institutional Class shares were known as Class Z shares.
(d) Prior to November 1, 2017, Institutional 2 Class shares were known as Class R5 shares.
(e) Prior to November 1, 2017, Institutional 3 Class shares were known as Class Y shares.
(f) The maximum offering price per share is calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge of 2.50% for Class T shares.
The accompanying Notes to Financial Statements are an integral part of this statement.
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Table of Contents
Statement of Operations
Six Months Ended November 30, 2017 (Unaudited)
Net investment income  
Income:  
Dividends — unaffiliated issuers $91,985,232
Dividends — affiliated issuers 250,001
Interest 6,291,874
Foreign taxes withheld (1,164,772)
Total income 97,362,335
Expenses:  
Management services fees 11,739,000
Distribution and/or service fees  
Class A 2,361,352
Class B(a) 6,366
Class C 1,872,219
Class R 113,352
Class T 69
Transfer agent fees  
Class A 1,029,345
Advisor Class(b) 56,215
Class B(a) 725
Class C 201,518
Institutional Class(c) 573,402
Institutional 2 Class(d) 69,230
Institutional 3 Class(e) 9,481
Class K 1,197
Class R 24,376
Class T 30
Plan administration fees  
Class K 5,023
Compensation of board members 49,845
Custodian fees 45,674
Printing and postage fees 136,586
Registration fees 92,549
Audit fees 21,139
Legal fees 23,001
Line of credit interest expense 1,103
Compensation of chief compliance officer 452
Other 89,018
Total expenses 18,522,267
Fees waived by transfer agent  
Institutional 2 Class(d) (3,188)
Institutional 3 Class(e) (3,796)
Class K (58)
Expense reduction (40)
Total net expenses 18,515,185
Net investment income 78,847,150
Realized and unrealized gain (loss) — net  
Net realized gain (loss) on:  
Investments — unaffiliated issuers 76,850,692
Investments — affiliated issuers (922)
Foreign currency translations (67,267)
Net realized gain 76,782,503
Net change in unrealized appreciation (depreciation) on:  
Investments — unaffiliated issuers 85,062,762
Investments — affiliated issuers (86)
Foreign currency translations 131,850
Net change in unrealized appreciation (depreciation) 85,194,526
Net realized and unrealized gain 161,977,029
Net increase in net assets resulting from operations $240,824,179
    
The accompanying Notes to Financial Statements are an integral part of this statement.
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Table of Contents
Statement of Operations  (continued)
Six Months Ended November 30, 2017 (Unaudited)
(a) Effective July 17, 2017, Class B shares were automatically converted to Class A shares.
(b) Prior to November 1, 2017, Advisor Class shares were known as Class R4 shares.
(c) Prior to November 1, 2017, Institutional Class shares were known as Class Z shares.
(d) Prior to November 1, 2017, Institutional 2 Class shares were known as Class R5 shares.
(e) Prior to November 1, 2017, Institutional 3 Class shares were known as Class Y shares.
The accompanying Notes to Financial Statements are an integral part of this statement.
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Table of Contents
Statement of Changes in Net Assets
  Six Months Ended
November 30, 2017
(Unaudited)
Year Ended
May 31, 2017
Operations    
Net investment income $78,847,150 $147,333,884
Net realized gain 76,782,503 277,735,880
Net change in unrealized appreciation (depreciation) 85,194,526 52,176,399
Net increase in net assets resulting from operations 240,824,179 477,246,163
Distributions to shareholders    
Net investment income    
Class A (32,859,642) (102,131,930)
Advisor Class(a) (1,867,069) (4,349,995)
Class B(b) (31,752) (274,051)
Class C (5,229,616) (13,234,880)
Class I(c) (2,280,015)
Institutional Class(d) (19,804,995) (31,349,097)
Institutional 2 Class(e) (4,367,119) (10,169,829)
Institutional 3 Class(f) (3,171,189) (2,991,465)
Class K (69,246) (154,942)
Class R (723,635) (1,536,839)
Class T (941) (2,761)
Total distributions to shareholders (68,125,204) (168,475,804)
Decrease in net assets from capital stock activity (435,119,058) (639,350,376)
Total decrease in net assets (262,420,083) (330,580,017)
Net assets at beginning of period 4,038,629,777 4,369,209,794
Net assets at end of period $3,776,209,694 $4,038,629,777
Undistributed net investment income $35,004,170 $24,282,224
    
(a) Prior to November 1, 2017, Advisor Class shares were known as Class R4 shares.
(b) Effective July 17, 2017, Class B shares were automatically converted to Class A shares.
(c) Effective March 27, 2017, Class I shares were redeemed or exchanged for Institutional 3 Class shares.
(d) Prior to November 1, 2017, Institutional Class shares were known as Class Z shares.
(e) Prior to November 1, 2017, Institutional 2 Class shares were known as Class R5 shares.
(f) Prior to November 1, 2017, Institutional 3 Class shares were known as Class Y shares.
The accompanying Notes to Financial Statements are an integral part of this statement.
14 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Statement of Changes in Net Assets   (continued)
  Six Months Ended Year Ended
  November 30, 2017 (Unaudited) May 31, 2017
  Shares Dollars ($) Shares Dollars ($)
Capital stock activity
Class A(a)        
Subscriptions (b) 4,851,923 48,328,865 26,797,438 254,665,339
Distributions reinvested 3,267,344 32,457,192 10,544,360 100,287,335
Redemptions (24,129,930) (240,326,573) (145,325,267) (1,412,609,515)
Net decrease (16,010,663) (159,540,516) (107,983,469) (1,057,656,841)
Advisor Class(c)        
Subscriptions 2,070,034 21,051,240 3,090,666 30,054,417
Distributions reinvested 172,210 1,738,520 398,064 3,849,126
Redemptions (1,439,807) (14,593,411) (4,763,408) (46,399,473)
Net increase (decrease) 802,437 8,196,349 (1,274,678) (12,495,930)
Class B(a)        
Subscriptions 22 221 23,060 215,250
Distributions reinvested 3,197 31,330 28,753 270,749
Redemptions (b) (512,996) (5,004,070) (704,172) (6,687,837)
Net decrease (509,777) (4,972,519) (652,359) (6,201,838)
Class C        
Subscriptions 1,107,190 10,799,726 4,978,767 46,509,626
Distributions reinvested 506,684 4,934,513 1,301,259 12,154,939
Redemptions (5,946,249) (58,047,039) (11,340,692) (106,476,703)
Net decrease (4,332,375) (42,312,800) (5,060,666) (47,812,138)
Class I(d)        
Distributions reinvested 238,424 2,279,906
Redemptions (9,558,766) (91,952,539)
Net decrease (9,320,342) (89,672,633)
Institutional Class(e)        
Subscriptions 7,308,803 73,063,427 81,663,020 803,012,833
Distributions reinvested 1,867,689 18,615,918 2,958,917 28,428,663
Redemptions (30,803,529) (307,709,331) (34,265,001) (330,933,696)
Net increase (decrease) (21,627,037) (216,029,986) 50,356,936 500,507,800
Institutional 2 Class(f)        
Subscriptions 2,116,409 21,213,396 8,882,119 85,267,440
Distributions reinvested 398,680 3,980,087 964,825 9,238,876
Redemptions (4,091,086) (40,824,514) (11,494,700) (110,607,534)
Net decrease (1,575,997) (15,631,031) (1,647,756) (16,101,218)
Institutional 3 Class(d),(g)        
Subscriptions 2,662,318 26,994,481 11,339,901 112,370,650
Distributions reinvested 313,441 3,171,189 308,609 2,991,465
Redemptions (3,349,821) (34,447,033) (2,825,455) (27,825,518)
Net increase (decrease) (374,062) (4,281,363) 8,823,055 87,536,597
Class K        
Subscriptions 45,304 454,553 41,599 399,034
Distributions reinvested 6,935 69,246 16,202 154,942
Redemptions (23,146) (232,365) (184,624) (1,759,996)
Net increase (decrease) 29,093 291,434 (126,823) (1,206,020)
Class R        
Subscriptions 279,233 2,779,996 1,765,744 16,768,632
Distributions reinvested 68,100 675,866 148,816 1,417,615
Redemptions (431,512) (4,284,988) (1,510,154) (14,413,478)
Net increase (decrease) (84,179) (829,126) 404,406 3,772,769
The accompanying Notes to Financial Statements are an integral part of this statement.
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15


Table of Contents
Statement of Changes in Net Assets   (continued)
  Six Months Ended Year Ended
  November 30, 2017 (Unaudited) May 31, 2017
  Shares Dollars ($) Shares Dollars ($)
Class T        
Distributions reinvested 90 898 280 2,668
Redemptions (1,049) (10,398) (2,431) (23,592)
Net decrease (959) (9,500) (2,151) (20,924)
Total net decrease (43,683,519) (435,119,058) (66,483,847) (639,350,376)
    
(a) Effective July 17, 2017, Class B shares were automatically converted to Class A shares.
(b) Includes conversions of Class B shares to Class A shares, if any.
(c) Prior to November 1, 2017, Advisor Class shares were known as Class R4 shares.
(d) Effective March 27, 2017, Class I shares were redeemed or exchanged for Institutional 3 Class shares.
(e) Prior to November 1, 2017, Institutional Class shares were known as Class Z shares.
(f) Prior to November 1, 2017, Institutional 2 Class shares were known as Class R5 shares.
(g) Prior to November 1, 2017, Institutional 3 Class shares were known as Class Y shares.
The accompanying Notes to Financial Statements are an integral part of this statement.
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Columbia Dividend Opportunity Fund  | Semiannual Report 2017
17


Table of Contents
Financial Highlights
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
Year ended (except as noted) Net asset value,
beginning of
period
Net
investment
income
Net
realized
and
unrealized
gain (loss)
Increase
from payment
by affiliate
Total from
investment
operations
Distributions
from net
investment
income
Distributions
from net
realized
gains
Class A
11/30/2017 (c) $9.92 0.20 0.44 0.64 (0.17)
5/31/2017 $9.23 0.32 0.74 0.00 (g) 1.06 (0.37)
5/31/2016 $9.58 0.32 (0.16) 0.16 (0.32) (0.19)
5/31/2015 $10.67 0.31 0.23 0.54 (0.29) (1.34)
5/31/2014 $9.83 0.28 1.34 1.62 (0.28) (0.50)
5/31/2013 $8.14 0.30 1.69 1.99 (0.30)
Advisor Class(i)
11/30/2017 (c) $10.08 0.21 0.45 0.66 (0.18)
5/31/2017 $9.38 0.35 0.74 0.00 (g) 1.09 (0.39)
5/31/2016 $9.73 0.35 (0.17) 0.18 (0.34) (0.19)
5/31/2015 $10.81 0.35 0.23 0.58 (0.32) (1.34)
5/31/2014 $9.95 0.33 1.33 1.66 (0.30) (0.50)
5/31/2013 (j) $8.62 0.20 1.31 1.51 (0.18)
Class C
11/30/2017 (c) $9.72 0.16 0.42 0.58 (0.13)
5/31/2017 $9.05 0.25 0.72 0.00 (g) 0.97 (0.30)
5/31/2016 $9.40 0.25 (0.16) 0.09 (0.25) (0.19)
5/31/2015 $10.50 0.23 0.22 0.45 (0.21) (1.34)
5/31/2014 $9.68 0.20 1.32 1.52 (0.20) (0.50)
5/31/2013 $8.02 0.23 1.68 1.91 (0.25)
Institutional Class(k)
11/30/2017 (c) $9.96 0.22 0.43 0.65 (0.18)
5/31/2017 $9.27 0.36 0.72 0.00 (g) 1.08 (0.39)
5/31/2016 $9.62 0.34 (0.16) 0.18 (0.34) (0.19)
5/31/2015 $10.71 0.34 0.23 0.57 (0.32) (1.34)
5/31/2014 $9.86 0.30 1.35 1.65 (0.30) (0.50)
5/31/2013 $8.16 0.32 1.71 2.03 (0.33)
The accompanying Notes to Financial Statements are an integral part of this statement.
18 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Total
distributions to
shareholders
Net
asset
value,
end of
period
Total
return
Total gross
expense
ratio to
average
net assets(a)
Total net
expense
ratio to
average
net assets(a),(b)
Net investment
income
ratio to
average
net assets
Portfolio
turnover
Net
assets,
end of
period
(000’s)
 
(0.17) $10.39 6.56% 0.99% (d),(e) 0.99% (d),(e),(f) 4.02% (d) 23% $1,868,212
(0.37) $9.92 11.71% (h) 0.99% (e) 0.99% (e),(f) 3.40% 65% $1,942,546
(0.51) $9.23 2.08% 1.01% (e) 1.01% (e),(f) 3.53% 85% $2,805,177
(1.63) $9.58 5.82% 1.00% 1.00% (f) 3.08% 78% $3,754,040
(0.78) $10.67 17.30% 1.01% 1.01% (f) 2.75% 73% $4,011,117
(0.30) $9.83 25.05% 1.05% 1.05% (f) 3.32% 62% $3,705,617
 
(0.18) $10.56 6.68% 0.74% (d),(e) 0.74% (d),(e),(f) 4.23% (d) 23% $114,481
(0.39) $10.08 11.90% (h) 0.74% (e) 0.74% (e),(f) 3.66% 65% $101,179
(0.53) $9.38 2.31% 0.76% (e) 0.76% (e),(f) 3.78% 85% $106,063
(1.66) $9.73 6.11% 0.75% 0.75% (f) 3.39% 78% $116,211
(0.80) $10.81 17.57% 0.77% 0.77% (f) 3.23% 73% $79,510
(0.18) $9.95 17.71% 0.83% (d) 0.83% (d) 3.64% (d) 62% $12,222
 
(0.13) $10.17 6.09% 1.74% (d),(e) 1.74% (d),(e),(f) 3.27% (d) 23% $366,736
(0.30) $9.72 10.88% (h) 1.74% (e) 1.74% (e),(f) 2.67% 65% $392,361
(0.44) $9.05 1.33% 1.76% (e) 1.76% (e),(f) 2.79% 85% $411,269
(1.55) $9.40 5.00% 1.75% 1.75% (f) 2.35% 78% $468,629
(0.70) $10.50 16.46% 1.76% 1.76% (f) 2.06% 73% $445,402
(0.25) $9.68 24.25% 1.80% 1.80% (f) 2.56% 62% $313,275
 
(0.18) $10.43 6.66% 0.74% (d),(e) 0.74% (d),(e),(f) 4.30% (d) 23% $978,398
(0.39) $9.96 11.93% (h) 0.75% (e) 0.75% (e),(f) 3.72% 65% $1,149,455
(0.53) $9.27 2.34% 0.76% (e) 0.76% (e),(f) 3.76% 85% $602,822
(1.66) $9.62 6.07% 0.75% 0.75% (f) 3.33% 78% $927,865
(0.80) $10.71 17.65% 0.76% 0.76% (f) 3.00% 73% $1,022,666
(0.33) $9.86 25.42% 0.80% 0.80% (f) 3.58% 62% $1,069,240
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Table of Contents
Financial Highlights  (continued)
Year ended (except as noted) Net asset value,
beginning of
period
Net
investment
income
Net
realized
and
unrealized
gain (loss)
Increase
from payment
by affiliate
Total from
investment
operations
Distributions
from net
investment
income
Distributions
from net
realized
gains
Institutional 2 Class(l)
11/30/2017 (c) $9.98 0.22 0.44 0.66 (0.19)
5/31/2017 $9.29 0.36 0.73 0.00 (g) 1.09 (0.40)
5/31/2016 $9.64 0.35 (0.16) 0.19 (0.35) (0.19)
5/31/2015 $10.72 0.35 0.24 0.59 (0.33) (1.34)
5/31/2014 $9.88 0.32 1.34 1.66 (0.32) (0.50)
5/31/2013 $8.17 0.33 1.72 2.05 (0.34)
Institutional 3 Class(m)
11/30/2017 (c) $10.10 0.22 0.46 0.68 (0.19)
5/31/2017 $9.40 0.37 0.74 0.00 (g) 1.11 (0.41)
5/31/2016 $9.74 0.36 (0.15) 0.21 (0.36) (0.19)
5/31/2015 $10.83 0.36 0.22 0.58 (0.33) (1.34)
5/31/2014 $9.96 0.34 1.35 1.69 (0.32) (0.50)
5/31/2013 (n) $8.63 0.22 1.29 1.51 (0.18)
Class K
11/30/2017 (c) $9.97 0.20 0.44 0.64 (0.17)
5/31/2017 $9.28 0.34 0.73 0.00 (g) 1.07 (0.38)
5/31/2016 $9.63 0.33 (0.16) 0.17 (0.33) (0.19)
5/31/2015 $10.71 0.33 0.23 0.56 (0.30) (1.34)
5/31/2014 $9.87 0.29 1.34 1.63 (0.29) (0.50)
5/31/2013 $8.17 0.31 1.71 2.02 (0.32)
Class R
11/30/2017 (c) $9.91 0.19 0.44 0.63 (0.16)
5/31/2017 $9.23 0.30 0.73 0.00 (g) 1.03 (0.35)
5/31/2016 $9.58 0.30 (0.16) 0.14 (0.30) (0.19)
5/31/2015 $10.66 0.29 0.23 0.52 (0.26) (1.34)
5/31/2014 $9.83 0.26 1.32 1.58 (0.25) (0.50)
5/31/2013 $8.14 0.28 1.70 1.98 (0.29)
The accompanying Notes to Financial Statements are an integral part of this statement.
20 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Total
distributions to
shareholders
Net
asset
value,
end of
period
Total
return
Total gross
expense
ratio to
average
net assets(a)
Total net
expense
ratio to
average
net assets(a),(b)
Net investment
income
ratio to
average
net assets
Portfolio
turnover
Net
assets,
end of
period
(000’s)
 
(0.19) $10.45 6.68% 0.69% (d),(e) 0.68% (d),(e) 4.34% (d) 23% $233,717
(0.40) $9.98 11.99% (h) 0.68% (e) 0.68% (e) 3.75% 65% $238,847
(0.54) $9.29 2.44% 0.67% (e) 0.67% (e) 3.89% 85% $237,565
(1.67) $9.64 6.29% 0.65% 0.65% 3.41% 78% $256,079
(0.82) $10.72 17.65% 0.65% 0.65% 3.19% 73% $310,352
(0.34) $9.88 25.68% 0.66% 0.66% 3.52% 62% $191,577
 
(0.19) $10.59 6.82% 0.64% (d),(e) 0.64% (d),(e) 4.30% (d) 23% $163,558
(0.41) $10.10 12.01% (h) 0.63% (e) 0.63% (e) 3.82% 65% $159,887
(0.55) $9.40 2.56% 0.62% (e) 0.62% (e) 3.97% 85% $65,791
(1.67) $9.74 6.17% 0.60% 0.60% 3.54% 78% $60,275
(0.82) $10.83 17.84% 0.61% 0.61% 3.29% 73% $38,342
(0.18) $9.96 17.73% 0.71% (d) 0.71% (d) 4.13% (d) 62% $4,064
 
(0.17) $10.44 6.56% 0.94% (d),(e) 0.94% (d),(e) 4.03% (d) 23% $4,322
(0.38) $9.97 11.73% (h) 0.92% (e) 0.92% (e) 3.52% 65% $3,836
(0.52) $9.28 2.17% 0.92% (e) 0.92% (e) 3.66% 85% $4,746
(1.64) $9.63 6.01% 0.90% 0.90% 3.21% 78% $4,694
(0.79) $10.71 17.37% 0.91% 0.91% 2.88% 73% $4,352
(0.32) $9.87 25.25% 0.90% 0.90% 3.47% 62% $3,972
 
(0.16) $10.38 6.43% 1.24% (d),(e) 1.24% (d),(e),(f) 3.75% (d) 23% $46,732
(0.35) $9.91 11.32% (h) 1.24% (e) 1.24% (e),(f) 3.17% 65% $45,454
(0.49) $9.23 1.83% 1.26% (e) 1.26% (e),(f) 3.31% 85% $38,578
(1.60) $9.58 5.65% 1.25% 1.25% (f) 2.87% 78% $36,480
(0.75) $10.66 16.89% 1.26% 1.26% (f) 2.61% 73% $31,544
(0.29) $9.83 24.84% 1.30% 1.30% (f) 3.05% 62% $17,375
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
21


Table of Contents
Financial Highlights  (continued)
Year ended (except as noted) Net asset value,
beginning of
period
Net
investment
income
Net
realized
and
unrealized
gain (loss)
Increase
from payment
by affiliate
Total from
investment
operations
Distributions
from net
investment
income
Distributions
from net
realized
gains
Class T
11/30/2017 (c) $9.94 0.20 0.44 0.64 (0.17)
5/31/2017 $9.25 0.33 0.73 0.00 (g) 1.06 (0.37)
5/31/2016 $9.60 0.32 (0.16) 0.16 (0.32) (0.19)
5/31/2015 $10.69 0.31 0.23 0.54 (0.29) (1.34)
5/31/2014 $9.85 0.24 1.38 1.62 (0.28) (0.50)
5/31/2013 $8.15 0.30 1.71 2.01 (0.31)
    
Notes to Financial Highlights
(a) In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios.
(b) Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(c) For the six months ended November 30, 2017 (unaudited).
(d) Annualized.
(e) Ratios include line of credit interest expense which is less than 0.01%.
(f) The benefits derived from expense reductions had an impact of less than 0.01%.
(g) Rounds to zero.
(h) The Fund received a payment from an affiliate. Had the Fund not received this payment, the total return would have been lower by 0.01%.
(i) Prior to November 1, 2017, Advisor Class shares were known as Class R4 shares.
(j) Advisor Class shares commenced operations on November 8, 2012. Per share data and total return reflect activity from that date.
(k) Prior to November 1, 2017, Institutional Class shares were known as Class Z shares.
(l) Prior to November 1, 2017, Institutional 2 Class shares were known as Class R5 shares.
(m) Prior to November 1, 2017, Institutional 3 Class shares were known as Class Y shares.
(n) Institutional 3 Class shares commenced operations on November 8, 2012. Per share data and total return reflect activity from that date.
The accompanying Notes to Financial Statements are an integral part of this statement.
22 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Total
distributions to
shareholders
Net
asset
value,
end of
period
Total
return
Total gross
expense
ratio to
average
net assets(a)
Total net
expense
ratio to
average
net assets(a),(b)
Net investment
income
ratio to
average
net assets
Portfolio
turnover
Net
assets,
end of
period
(000’s)
 
(0.17) $10.41 6.55% 0.98% (d),(e) 0.98% (d),(e),(f) 4.06% (d) 23% $54
(0.37) $9.94 11.69% (h) 0.99% (e) 0.99% (e),(f) 3.41% 65% $61
(0.51) $9.25 2.08% 1.01% (e) 1.01% (e),(f) 3.51% 85% $76
(1.63) $9.60 5.82% 1.00% 1.00% (f) 2.99% 78% $113
(0.78) $10.69 17.28% 1.01% 1.01% (f) 2.32% 73% $201
(0.31) $9.85 25.19% 1.05% 1.05% (f) 3.27% 62% $128,328
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
23


Table of Contents
Notes to Financial Statements
November 30, 2017 (Unaudited)
Note 1. Organization
Columbia Dividend Opportunity Fund (the Fund), a series of Columbia Funds Series Trust II (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Different share classes pay different distribution amounts to the extent the expenses of such share classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense and sales charge structure. The Fund offers each of the share classes identified below.
Class A shares are subject to a maximum front-end sales charge of 5.75% based on the initial investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a contingent deferred sales charge (CDSC) if the shares are sold within 18 months after purchase, charged as follows: 1.00% CDSC if redeemed within 12 months after purchase, and 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase.
Advisor Class shares are not subject to sales charges and are generally available only to omnibus retirement plans and certain investors as described in the Fund’s prospectus. Prior to November 1, 2017, Advisor Class shares were known as Class R4 shares.
Class B shares of the Fund are no longer offered for sale. When available, Class B shares were subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Effective July 17, 2017, Class B shares were automatically converted to Class A shares without a CDSC. On August 4, 2017, the capital owned by Columbia Management Investment Advisers, LLC in Class B shares was redeemed without a CDSC.
Class C shares are subject to a 1.00% CDSC on shares redeemed within 12 months after purchase.
Institutional Class shares are not subject to sales charges and are generally available only to eligible investors, which are subject to different investment minimums as described in the Fund’s prospectus. Prior to November 1, 2017, Institutional Class shares were known as Class Z shares.
Institutional 2 Class shares are not subject to sales charges and are generally available only to investors purchasing through authorized investment professionals and omnibus retirement plans as described in the Fund’s prospectus. Prior to November 1, 2017, Institutional 2 Class shares were known as Class R5 shares.
Institutional 3 Class shares are not subject to sales charges and are available to institutional and certain other investors as described in the Fund’s prospectus. Prior to November 1, 2017, Institutional 3 Class shares were known as Class Y shares.
Class K shares are not subject to sales charges; however, this share class is closed to new investors.
Class R shares are not subject to sales charges and are generally available only to certain retirement plans and other investors as described in the Fund’s prospectus.
Class T shares are subject to a maximum front-end sales charge of 2.50% per transaction and must be purchased through financial intermediaries that, by written agreement with Columbia Management Investment Distributors, Inc., are specifically authorized to sell Class T shares.
24 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Notes to Financial Statements  (continued)
November 30, 2017 (Unaudited)
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
All equity securities are valued at the close of business of the New York Stock Exchange. Equity securities are valued at the last quoted sales price on the principal exchange or market on which they trade, except for securities traded on the NASDAQ Stock Market, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets.
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Foreign equity securities are valued based on the closing price on the foreign exchange in which such securities are primarily traded. If any foreign equity security closing prices are not readily available, the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy adopted by the Board of Trustees, including, if available, utilizing a third party pricing service to determine these fair values. The third party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that reasonably reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment companies, including money market funds, are valued at their latest net asset value.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
25


Table of Contents
Notes to Financial Statements  (continued)
November 30, 2017 (Unaudited)
Foreign currency transactions and translations
The values of all assets and liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains (losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes, the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Equity-linked notes
The Fund may invest in equity-linked notes (ELNs). An ELN is a debt instrument, generally valued based on a quotation received from a counterparty, which is based on the value of a single equity security, basket of equity securities or an index of equity securities (each, an Underlying Equity). An ELN typically provides interest income, thereby offering a yield advantage over investing directly in an Underlying Equity. However, the holder of an ELN may have limited or no benefit from any appreciation in the Underlying Equity, but is exposed to various risks, including, without limitation, volatility, issuer and market risk. The Fund may purchase ELNs that trade on a securities exchange or those that trade on the over-the-counter markets, including securities offered and sold under Rule 144A of the Securities Act of 1933, as amended. The Fund may also purchase an ELN in a privately negotiated transaction with the issuer of the ELN (or its broker-dealer affiliate).
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Corporate actions and dividend income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts (REITs), which report information on the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported. Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the extent actual information has not yet been reported, estimates for return of capital are made by the Fund’s management. Management’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a proportionate change in return of capital to shareholders.
Awards from class action litigation are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities, the proceeds are recorded as realized gains.
26 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Notes to Financial Statements  (continued)
November 30, 2017 (Unaudited)
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company net taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Realized gains in certain countries may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment income, if any, are declared and paid each calendar quarter. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncement
Accounting Standards Update 2017-08 Premium Amortization on Purchased Callable Debt Securities
In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. At this time, management is evaluating the implication of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
27


Table of Contents
Notes to Financial Statements  (continued)
November 30, 2017 (Unaudited)
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.72% to 0.52% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended November 30, 2017 was 0.60% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees, who are not officers or employees of the Investment Manager or Ameriprise Financial, are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Plan. All amounts payable under the Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. A portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other affiliated funds governed by the Board of Trustees, based on relative net assets. The total amount allocated to all affiliated funds governed by the Board of Trustees will not exceed $40,000 annually.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Effective August 1, 2017, total transfer agency fees for Class K, Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07%, 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. Prior to August 1, 2017, these limitations were 0.075% for Class K and Institutional 2 Class shares and 0.025% for Institutional 3 Class shares. In addition, effective October 1, 2017 through September 30, 2018, Class K and Institutional 2 Class shares are subject to a contractual transfer agency fee annual limitation of not more than 0.05% and Institutional 3 Class shares are subject to a contractual transfer agency fee annual limitation of not more than 0.00% of the average daily net assets attributable to each share class.
28 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Notes to Financial Statements  (continued)
November 30, 2017 (Unaudited)
For the six months ended November 30, 2017, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
  Effective rate (%)
Class A 0.11
Advisor Class 0.11
Class B 0.02 (a),(b)
Class C 0.11
Institutional Class 0.11
Institutional 2 Class 0.06
Institutional 3 Class 0.01
Class K 0.06
Class R 0.11
Class T 0.11
    
(a) Effective July 17, 2017, Class B shares were automatically converted to Class A shares.
(b) Unannualized.
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended November 30, 2017, these minimum account balance fees reduced total expenses of the Fund by $40.
Plan administration fees
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund pays an annual fee at a rate of 0.25% of the Fund’s average daily net assets attributable to Class K shares for the provision of various administrative, recordkeeping, communication and educational services.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. Under a Plan and Agreement of Distribution, the Fund pays a fee at an annual rate of up to 0.25% of the Fund’s average daily net assets attributable to Class A and Class T shares, a fee at an annual rate of up to 0.50% of the Fund’s average daily net assets attributable to Class R shares (of which up to 0.25% may be used for shareholder services) and a fee at an annual rate of up to 1.00% of the Fund’s average daily net assets attributable to Class B and Class C shares. For Class B and Class C shares, of the 1.00% fee, up to 0.75% is reimbursed for distribution expenses. As a result of all Class B shares of the Fund being redeemed or converted to Class A shares, August 4, 2017 was the last day the Fund paid a distribution and shareholder services fee for Class B shares.
The amount of distribution and shareholder services expenses incurred by the Distributor and not yet reimbursed (unreimbursed expense) was approximately $1,089,000 for Class C shares. This amount is based on the most recent information available as of September 30, 2017, and may be recovered from future payments under the distribution plan or CDSCs. To the extent the unreimbursed expense has been fully recovered, the distribution and/or shareholder services fee is reduced.
Sales charges
Sales charges, including front-end charges and CDSCs, received by the Distributor for distributing Fund shares for the six months ended November 30, 2017, if any, are listed below:
  Amount ($)
Class A 481,216
Class C 9,946
Columbia Dividend Opportunity Fund  | Semiannual Report 2017
29


Table of Contents
Notes to Financial Statements  (continued)
November 30, 2017 (Unaudited)
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
  October 1, 2017
through
September 30, 2018
Prior to
October 1, 2017
Class A 1.16% 1.16%
Advisor Class 0.91 0.91
Class C 1.91 1.91
Institutional Class 0.91 0.91
Institutional 2 Class 0.84 0.86
Institutional 3 Class 0.79 0.81
Class K 1.09 1.11
Class R 1.41 1.41
Class T 1.16 1.16
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Reflected in the contractual cap commitment, effective October 1, 2017 through September 30, 2018, is the Transfer Agent’s contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.05% for Class K and Institutional 2 Class and 0.00% for Institutional 3 Class of the average daily net assets attributable to each share class, unless sooner terminated at the sole discretion of the Board of Trustees. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At November 30, 2017, the approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($)
Gross unrealized
appreciation ($)
Gross unrealized
(depreciation) ($)
Net unrealized
appreciation ($)
3,036,754,000 793,690,000 (67,924,000) 725,766,000
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
30 Columbia Dividend Opportunity Fund  | Semiannual Report 2017


Table of Contents
Notes to Financial Statements  (continued)
November 30, 2017 (Unaudited)
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $879,038,613 and $1,292,576,688, respectively, for the six months ended November 30, 2017. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money market fund
The Fund invests in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the overnight federal funds rate plus 1.00% or (ii) the one-month LIBOR rate plus 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations.
For the six months ended November 30, 2017, the average daily loan balance outstanding on days when borrowing existed was $5,700,000 at a weighted average interest rate of 2.32%. Interest expense incurred by the Fund is recorded as a line of credit interest expense in the Statement of Operations. The Fund had no outstanding borrowings at November 30, 2017.
Note 8. Significant risks
Shareholder concentration risk
At November 30, 2017, affiliated shareholders of record owned 54.5% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.